Cannabis retailer Trulieve posts narrower Q2 loss as revenue tops $300 million

By Steve Gelsi

Company reaches 200-plus stores as it adds dispensaries in Florida and Ohio

Trulieve Cannabis Corp.'s stock rallied Tuesday after the cannabis company posted a narrower quarterly loss as its revenue grew and its network of state-sanctioned cannabis dispensaries increased in Florida and Ohio.

Truelieve (TCNNF) said its net loss narrowed to $12 million, or 4 cents a share, from a loss of $404 million, or $180 a share, in the year-ago quarter.

On an adjusted basis, the company's second-quarter results were breakeven, or 0 cents a share, while analysts expected a loss of 8 cents a share, according to estimates compiled by FactSet.

Revenue increased by 8% to $303 million, well ahead of the analyst estimate of $293.7 million.

Gross margins expanded to 60% from 50%.

Trulieve's stock rose 7.2% in recent trading.

During the quarter, Trulieve opened dispensaries in Stuart, Brooksville and North Palm Beach, Fla. It also bought two dispensaries in Beavercreek and Columbus, Ohio.

As of Tuesday, the company now operates 204 stores, with about a third of them outside the state of Florida.

Trulieve said it has now opened three adult-use stores in Ohio.

Chief Executive Kim Rivers said the period marked its third consecutive quarter of revenue growth and margin expansion.

"Given our financial performance and significant scale in key markets, Trulieve is best positioned for the coming wave of growth catalysts," Rivers said in a prepared statement.

Trulieve said it marked the eighth anniversary of its first cannabis sale.

Trulieve has been a major financial supporter of the roughly $40 million Smart & Safe Florida signature campaign to place a voter referendum on adult-use cannabis on the November ballot.

Prior to Tuesday's trades, Trulieve's stock is up 66% in 2024, while the AdvisorShares Pure U.S. Cannabis ETF (MSOS) is down 9%.

-Steve Gelsi

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08-06-24 1038ET

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