Trulieve Reports Q3 With Some Bright Spots and Some Big Questions

Ladies and gentlemen, gather ’round for the quarterly tale of a company that knows how to keep things interesting—even when reporting a net loss. In Q3 2024, our protagonist reported revenue of $284 million, marking a modest 3% year-over-year increase. Not too shabby, especially when you consider that 95% of that sweet, green revenue came straight from retail sales.

Now, let’s talk margins—because who doesn’t love a good margin? Achieving a gross margin of 61% with a GAAP gross profit of $173 million is like hitting a three-pointer from half-court. It shows operational efficiency and a keen eye on costs. However, a reported net loss attributable to common shareholders of $60 million. Before you gasp and clutch your pearls, note that the adjusted net loss is a more palatable $12 million. This figure conveniently excludes $48 million in campaign support and other non-recurring charges. Think of it as the company saying, “Ignore the man behind the curtain; focus on the adjusted numbers where we’re practically profitable!”

Speaking of profitability, adjusted EBITDA came in at a cool $96 million, representing 34% of revenue and a 24% uptick year over year. It’s the kind of growth that would make even the most stoic accountant crack a smile—or at least raise an eyebrow.

Cash flow from operations was $30 million, with free cash flow playing the role of the moody teenager at $(7) million. Both figures were impacted by that $48 million in campaign support. One might say they’re investing in the future—or perhaps just sponsoring the world’s most expensive ballot initiative (which it was).

On the balance sheet front, cash and short-term investments totaled a robust $319 million. It’s always comforting to know there’s a hefty cushion to fall back on, especially when you’re opening new stores up and down 95 in the Sunshine State.

Operationally, the Q was buzzing for Trulieve. They launched adult-use sales at three Ohio locations—Beavercreek, Columbus, and Westerville—which we will be listening on the earnings call for any performance metrics. They also rolled out the #YesOn3 product line to support the Smart and Safe Florida adult-use campaign. It’s a marketing move that’s as strategic as it is supportive, blending civic engagement with, well, sales.

But the pièce de résistance is their entry into the world of pickleball. Yes, you read that correctly. They’ve partnered with the Professional Pickleball Association and Major League Pickleball to sponsor events in Arizona, Florida, and Georgia. It’s a bold move that says, “We don’t just serve the community; we play ball with them—pickleball, to be exact.”

Not to be outdone, they opened 15 new dispensaries in Florida and Pennsylvania. With 30% of retail locations now outside the Sunshine State, the growth of the footprint outside Florida is starting to take shape.

While the net loss might make headlines, it’s the underlying growth and strategic maneuvers that tell the real story. From solid revenue figures and impressive margins to nationwide expansions and quirky partnerships, this company is playing the long game. And if that game happens to involve pickleball and a few new dispensaries, who are we to judge? After all, diversification is the name of the game—even if that game comes with a side of sour pickles (or financial metrics).