2023-03-14 07:30:00 ET
A close look at the performance of cannabis retailer Green Thumb Industries (OTC: GTBIF) offers a good example of how doubts about the broader industry make it hard for individual firms to raise capital, even if they are among the stronger players.
While the company saw revenue growth of 14% year over year in 2022 to $1 billion, a price squeeze is keeping its net income low and making investors skittish.
Net income for the year was $12 million, or $0.05 per basic and diluted share, yet in the fourth quarter, the company recorded a net loss of $51 million, or $0.22 per basic and diluted share ( GAAP measures). This makes Green Thumb a rarity among cannabis companies since it has previously reported genuine net income; for example, the third quarter of 2022 was the ninth consecutive quarter in which it reported positive GAAP net income, $10 million or $0.04 per basic and diluted share.
For further details see:
Betting Big on Florida, Cannabis Retailer Green Thumb Faces Price Squeeze