Cresco Labs Q4 revenue slightly beats estimates on margin boost

Cresco Labs

05/03/2026 11:38

Overview

Cannabis products firm reported preliminary Q4 revenue of $162 mln, slightly beating analyst expectations

Company achieved adjusted EBITDA of $40 mln for Q4

Adjusted gross margin for Q4 improved to 52.2%

Outlook

Cresco Labs aims to capitalize on industry consolidation and federal reform

Company focuses on organic expansion and selective acquisitions

Cresco Labs highlights strength in brand share and retail execution

Result Drivers

MARGIN IMPROVEMENT - Cresco Labs reported sequential improvement in profitability metrics, including a gross profit of $83 million and an adjusted gross margin of 52.2%

STRATEGIC POSITIONING - Management highlighted a focused strategy on enhancing competitive positioning and expanding margins

INDUSTRY CONSOLIDATION - Company noted the impact of industry consolidation and its strategic positioning to capitalize on these changes

Company press release: ID:nBwMTCtwa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$162 mln
$160.72 mln (6 Analysts)
Q4 Net Income
-$89 mln
Q4 Adjusted EBITDA
$40 mln
Q4 Adjusted Gross Margin
52.20%
Q4 Gross Profit
$83 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy"

Wall Street's median 12-month price target for Cresco Labs Inc is C$2.25, about 69.2% above its March 4 closing price of C$1.33

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)