Cannabis investors haven't always been too concerned by profitability, or lack thereof, in the industry. But with COVID-19 slowing down global economies and putting many companies in danger of going under, having strong financials is more important than ever before. A key part of the equation is being able to stay in the black.
While it's not the only factor investors should consider, profitability is important because it can help a company become self-sufficient and minimize the need to raise cash through the equity markets, thus diluting outstanding shares. It's not a common feat in the industry, so below are three pot stocks that have posted profitable quarters within the past year.
Cronos Group (NASDAQ: CRON) is a vertically integrated cannabis company headquartered in Toronto, Ontario. The company released its annual results on March 30 and showed an incredible net income of $1.2 billion for the full year of 2019. It's a significant improvement from the $21.8 million loss Cronos reported in the prior year.