HomeMarket NewsMicro Cap StocksWhy MariMed Inc.'s Q3 Results Point to Sustained Success Beyond Federal Weed...

Why MariMed Inc.’s Q3 Results Point to Sustained Success Beyond Federal Weed Reform

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MariMed Inc. (MRMD) recently unveiled its third-quarter earnings report for the three months ending Sept. 30, 2023, showcasing impressive results and projections that reinforce its position as a pioneering multi-state operator (MSO) in the cannabis industry.

Renowned cannabis expert Pablo Zuanic, senior analyst at Zuanic & Associates, highlights MariMed’s undervalued status compared to its MSO peers and projects its ascent to a top 10 MSO by 2025.

Amidst this optimistic outlook, MariMed’s Q3 performance is a testament to its robust operational capabilities in key states such as Illinois, Massachusetts, Maryland, Ohio, with upcoming expansions in Missouri and Delaware. The company reported a revenue surge to $38.8 million, marking a noteworthy year-over-year growth of over 14%.

Zuanic underscores MariMed’s commendable gross margins, high SGA efficiency, competitive EBITDA margins, and positive operating cash flow, setting it apart from many industry counterparts.

The Financial Landscape – Q3 Insights

  • The gross profit escalated to $16.8 million from $16.1 million in the previous year’s corresponding period.
  • Gross margin experienced a slight dip to 43.4%, down from 47.7% in the prior year’s Q3.
  • Total operating expenses rose to $13.5 million from $10.4 million in the same quarter of the previous year.
  • Income from operations totaled $3.3 million, a decrease from $5.7 million in the Q3 of 2023.
  • The company reported a net loss of $4.2 million, in contrast to a net income of $2.7 million in the prior year’s period.
  • Adjusted EBITDA stood positive at $6 million, in comparison to $8.6 million in the previous year’s Q3.

2023 Outlook and Beyond

MariMed’s outlook for the full-year 2023 encompasses:

  • Anticipated revenue within the range of $148 million to $150 million
  • Approximately 45% gross margin
  • Non-GAAP Adjusted EBITDA spanning $27 million to $32 million
  • Projected capital expenditures between $22 million to $25 million

MRMD Price Action

MariMed’s shares observed a 1.5625% decline, trading at $0.315 per share at the time of reporting on Thursday morning.

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