Canadian Cannabis Companies Report Continued Slowing Revenue Growth in June

The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis companies. June was a light month for reporting.

Tracker Rules

This data-driven, fact-based tracker will continually update based on new financial filings so that readers can stay up to date. Companies must file with the SEC or SEDAR and be current to be considered for inclusion. When we launched this resource in May 2019, companies with quarterly revenue in excess of US$2.5 million qualified. As the industry has scaled and as more companies have gone public, we have raised the minimum several times subsequently, including a move to US$5 million in October 2019, to US$7.5 million in June 2020, to US$10 million in November 2020 and US$12.5 million in August 2021. Due to the rapid growth in the cannabis industry, we raised the minimum to US$25 million (C$31.5 million) to qualify for what we now call the senior list and introduced a junior list with a minimum of US$12.5 million (C$15.6 million) in September 2021.

A Note About Adjusted Operating Income

In May 2019, we added an additional metric, “Adjusted Operating Income”, as we detailed in our newsletter. The calculation takes the reported operating income and adjusts it for any changes in the fair value of biological assets required under IFRS accounting. We believe that this adjustment improves comparability for the companies across IFRS and GAAP accounting. We note that often operating income can include one-time items like stock compensation, inventory write-downs or public listing expenses, and we recommend that readers understand how these non-cash items can impact quarterly financials. Many companies are moving from IFRS to U.S. GAAP accounting, which will reduce our need to make adjustments. Please note that our rankings include only actual reported revenue and not pro forma revenue. We also note that companies with non-cannabis operations must provide segment-level financial reports that detail not only revenue but also operating profit to be have their operating profit included in the tracker. Currently, Jazz Pharma (NASDAQ: JAZZ) and Tilray (TSX: TLRY) (NASDAQ: TLRY) aren’t providing this information.

Tracker Inclusion Updates

At the time of our last update on June 30, 38 companies qualified for inclusion on the senior list, including 31 filing in U.S. dollars and 7 in the Canadian currency. The junior list now includes 9 companies reporting in U.S. dollars and 6 in Canadian dollars. On a combined basis, the Public Cannabis Company Revenue & Income Tracker now includes 53 companies.

Flower One Holdings (CSE: FONE) (OTC: FLOOF) was removed from the Junior U.S. Dollar Reporting companies list due to quarterly revenue not meeting the requirement. We expect to add additional companies in the months ahead, and, due to pending or recently completed mergers, we anticipate some removals as well. We note that Intercure (TASE: INCR) (NASDAQ: INCR), which reports in the Israeli currency, qualifies for the junior list, but we haven’t yet added it due to its different reporting currency.

Included Companies That Reported in June

Since our last update in May, there have been no financials released by senior U.S. Dollar, junior U.S. Dollar or junior CAD reporting companies that meet the criteria for the revenue tracker.

Senior – Canadian Dollar Reporting

The following three companies reporting in CAD released their financials during the month: Fire & Flower (OTC: FFLWF) (TSX: FAF), High Tide (NASDAQ: HITI) (TSXV: HITI) and HEXO Corp (NASDAQ: HEXO) (TSX: HEXO). Fire & Flower saw sales decline decline both sequentially and from a year ago. High Tide, due to an aggressive acquisition strategy, saw high growth compared to a year ago. HEXO has also benefitted from M&A, though the sequential sales declined it the 3rd quarter.

Stay up to date

Visit the Public Cannabis Company Revenue Tracker to track and explore the complete list of qualifying companies. We have recently created a way for our readers to access our library of Revenue Tracker articles. For our readers who are interested in staying on top of scheduled earnings calls in the sector, we have created and continually update the Cannabis Investor Earnings Conference Call Calendar.

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email