GTBIF stock is gaining momentum this year as Green Thumb Industries (CSE:GTII) (OTCQX:GTBIF) posted a better than estimated revenue in the third quarter.
Revenue Tops Estimates
The earnings season is in full flow in the cannabis industry, and every other day, companies are revealing their financial results for the latest quarter. Green Thumb Industries (GTI) Inc released its financial results for the third quarter late Wednesday, and it proved to be a decent performance. The company managed to grow its revenue substantially, but it should be noted that the company is still a ways away from being profitable. Green Thumb Industries remains a loss-making entity as of Q3 2019.
In the third quarter, the company generated revenue of $68 million, and that is substantially higher than the $44.7 million in revenue that it had generated in the previous quarter. Adjusted EBITDA for the period stood at $14.1 million, which is, again, a big improvement on the same metric in the second quarter. In the latest quarter, the company posted a net loss of $17.1 million or 8 cents a share.
Analysts were estimating the company to report a loss of 4 cents a share on revenue of $60.40 million.
At the time of writing, GTBIF stock is trading higher by 5% at $10.10.
In the previous quarter, Green Thumb Industries had posted an adjusted EBITDA of $5 million. This is a significant development for the company and is an indication that it is perhaps moving in the right direction. However, despite the growth in EBITDA, GTI continued to make losses.
The company also revealed its debt situation at the end of the quarter. The company had total debts of $96.9 million at the end of the quarter and possesses cash in hand to the tune of $66.1 million.
As everyone knows, the pace of retail rollout has been a worry for many companies, and GTI has projected 40 stores by the end of 2019. At this point, it has 33 stores that are open for business.
Like many other cannabis stocks, GTBIF stock has fallen about 40% from its peak price of $16.68 in April.
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