[PRESS RELEASE] – CHICAGO, Nov. 5, 2025 – Cresco Labs Inc., the industry leader in branded cannabis products with a portfolio of America’s most popular brands and the operator of Sunnyside dispensaries, released its financial and operating results for the third quarter ended Sept. 30, 2025. All financial information presented in this release is reported in accordance with U.S. generally accepted accounting principles (GAAP) and in U.S. dollars, unless otherwise indicated, and is available on the company’s investor website, here.
Third Quarter 2025 Highlights
- Third quarter revenue of $165 million. Third quarter operating cash flow of $6 million.
- Gross profit of $79 million. Adjusted gross profit1 of $80 million; and an adjusted gross margin1 of 48.8%.
- SG&A of $52 million or 31.3% of revenue.
- Net loss of $22 million, which includes a $16 million loss for debt extinguishment related to the refinancing of the company’s senior secured term loan, and non-cash impairment charges of $2 million related to California assets being considered held for sale.
- Third quarter adjusted EBITDA1 of $40 million and adjusted EBITDA margin1 of 24.1%.
- Retained the No. 1 share position in multiple billion-dollar markets.2
Management Commentary
“In Q3, we refinanced our debt and strengthened our balance sheet while delivering solid results and maintaining leadership across key markets through disciplined execution. Our proven retail and wholesale capabilities continue to drive profitability, while new dispensaries in Ohio, expansion into Kentucky, and our upcoming product launch in Germany are unlocking compelling avenues for growth. Together, these initiatives position Cresco Labs to outperform the market and create lasting shareholder value.
“The cannabis industry is entering a new phase of growth and consolidation, and Cresco Labs is prepared to lead. Operators with scale, efficiency, and discipline will define the next chapter. By leveraging our core assets and operational excellence, we’re building an emerging growth platform designed to create long-term value, both within and beyond regulated U.S. cannabis.”
Balance Sheet, Liquidity, and Other Financial Information
- On Aug. 13, 2025, the company closed a refinancing of its senior secured term credit facility to reduce total debt and extend the debt maturity to 2030. The new $325 million senior secured term loan bears an interest rate of 12.5%, per annum, and matures on Aug. 13, 2030. Proceeds from the new facility, together with cash on hand, were used to repay the company’s prior $360 million facility.
- As of Sept. 30, 2025, current assets were $243 million, including cash, cash equivalents, and restricted cash of $79 million. An additional $3 million of restricted cash was classified as a non-current asset. The company had senior secured term loan debt, net of discount and issuance costs, of $309 million and a mortgage loan, net of discount and issuance costs, of $18 million.
- Total shares on a fully converted basis to subordinate voting shares were 490,889,023 as of Sept. 30, 2025.
1 See “Non-GAAP Financial Measures” in the company’s press release for more information regarding the company’s use of non-GAAP financial measures.
2 According to Hoodie Analytics.
