Cannabis earnings took center stage as Trulieve demonstrated strong margins and cash generation while Cronos reported record performance across several international markets. In Los Angeles, the mayoral contest moved from a near-tie to a projected upset, although the official ballot count and certification process remain ongoing.
Trulieve Posts 64% Gross Margin and Returns to Quarterly Profit
Trulieve reported third-quarter revenue of $230 million, a 64% gross margin and net income attributable to common shareholders of approximately $1 million. Adjusted EBITDA totaled $89 million, representing 39% of revenue, while the company generated $74 million in operating cash flow and $45 million in free cash flow during the quarter.
Revenue was 20% lower than a year earlier, but the comparison was affected by Trulieve’s June deconsolidation of Harvest’s mixed medical and adult-use operations. The company said its current results include only Trulieve medical operations, while prior periods included the consolidated Harvest business. Trulieve ended the quarter with $327 million in cash and operated 208 dispensaries.
Why It Matters: Analysis: The return to profitability, high gross margin and positive free cash flow indicate that Trulieve’s medical platform can produce substantial cash even after a corporate restructuring reduced reported revenue. Its liquidity also gives the company flexibility to pursue expansion in markets including Georgia and Texas.
Source: Trulieve Cannabis Corp.
Cronos Reports Record Revenue and 73% Organic Growth
Cronos Group said it achieved record net revenue, gross profit and adjusted EBITDA in the third quarter while continuing to reduce its outstanding share count. On an organic, constant-currency basis, net revenue increased 73% from the same period last year.
The company reported record revenue in Canada, where its Spinach brand retained leading positions in vapes and edibles. Cronos also recorded its 11th consecutive quarter of record revenue in Israel and reported record revenue in Germany, demonstrating growth across multiple regulated cannabis markets.
Why It Matters: Analysis: Cronos’ results show the value of geographic diversification at a time when cannabis companies remain exposed to uneven regulation and consumer demand in individual markets. Sustained growth in Canada, Israel and Germany also strengthens the company’s case for an international, brand-led expansion strategy.
Source: Cronos Group via GlobeNewswire
Nithya Raman Projected to Win Los Angeles Mayor’s Race
Decision Desk HQ projected City Councilmember Nithya Raman as the winner of the Los Angeles mayoral election, according to Bloomberg, putting her on course to unseat incumbent Mayor Karen Bass. The projection represents a material change from early returns that left the candidates nearly tied and the race too close to call.
Ballot counting and the official certification process remain ongoing. If the projected result holds, Raman will inherit major policy decisions involving homelessness, housing construction, public safety, the city’s finances and preparations for the 2028 Olympic and Paralympic Games.
Why It Matters: Analysis: A Raman administration could shift Los Angeles policy on housing, transportation and homelessness while changing the political leadership overseeing one of the world’s most important entertainment and cultural centers. Businesses should closely monitor her transition team, appointments and early budget priorities.
Source: Bloomberg
What We’re Watching
Over the next 24 to 72 hours, watch for additional Los Angeles ballot updates or projections from major election organizations, investor reaction to the latest cannabis earnings and further quarterly reports that clarify how federal medical cannabis reforms are affecting margins, taxes and capital allocation.
