iANTHUS CAPITAL HOLDINGS, INC. (ITHUF)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 delivered sequential and year-over-year growth: revenue rose to $43.0M (+3.5% QoQ, +11.1% YoY) and gross margin expanded 673bps QoQ to 48.1%, driving Adjusted EBITDA up to $8.9M from $3.2M in Q1 .
• Net loss improved to $9.8M vs $14.0M in Q1 and $20.1M in Q2 2023; net loss per share remained (0.00) given the share count and rounding conventions .
• One-time items persisted (non-recurring charges: $1.1M; accretion: $1.2M), and Q2 included a $2.1M gain from the deconsolidation of Nevada operations, which is excluded in Adjusted EBITDA via reconciliation .
• No formal guidance or earnings call transcript was published for Q2 2024; near-term stock catalysts center on continued margin recovery and operating leverage, tempered by ongoing interest and tax expense and absence of guidance .

What Went Well and What Went Wrong

What Went Well

• Revenue growth and margin expansion: $43.0M revenue (+3.5% QoQ, +11.1% YoY) and gross margin up to 48.1% (+673bps QoQ), signaling improved mix/efficiency .
• Adjusted EBITDA surged to $8.9M from $3.2M in Q1 and $3.9M in Q2 2023, reflecting operating leverage after non-GAAP adjustments .
• Management highlighted structural changes: “Q2 2024 reflects a gain of $2.1 million from the deconsolidation of our Nevada operations” (excluded in Adjusted EBITDA), and standardized tax accounting presentation across periods .

What Went Wrong

• Ongoing losses: Net loss was $9.8M despite improvement QoQ and YoY; interest expense remained elevated at $4.2M and income tax expense was $6.9M for Q2, constraining GAAP profitability .
• Continued non-recurring and accretion costs: $1.1M in non-recurring charges and $1.2M accretion expense diluted reported EBIT/EBITDA quality .
• No guidance or transcript: The company did not provide revenue/EBITDA/margin guidance or host a published earnings call transcript for Q2, limiting forward visibility .

Financial Results

Quarterly Comparison (YoY and QoQ)

Trailing Three Quarters

Notes:

• Reconciliation details: EBITDA was $7.579M in Q2; total adjustments of $1.368M produced Adjusted EBITDA of $8.947M. Adjustments included accretion ($1.165M), share-based compensation ($0.726M), non-recurring charges ($1.084M), and a $2.120M gain from deconsolidation of subsidiaries (reducing total adjustments) .
• The company clarified an accounting policy change: interest and penalties related to accrued income taxes aggregated within “income tax expense” vs SG&A, conforming prior periods .

Segment Breakdown / KPIs

• No segment/geographic breakdown or operational KPIs were provided in the Q2 press release/8-K .

Guidance Changes

Management did not provide formal guidance in the Q2 2024 earnings materials .

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was found; we searched company documents and public releases but did not locate a transcript. Themes below derive from press releases and footnotes.

Management Commentary

• Deconsolidation and portfolio actions: “Q2 2024 reflects a gain of $2.1 million from the deconsolidation of our Nevada operations” (treated as an adjustment and excluded from Adjusted EBITDA) .
• Accounting comparability: “Current and prior period amounts have been conformed to follow an accounting policy change… aggregate interest and penalties related to accrued income taxes within ‘income tax expense’…” .
• Non-GAAP framing: Management emphasizes EBITDA/Adjusted EBITDA as supplemental operating measures and cautions they are not substitutes for GAAP results .

Q&A Highlights

• No Q2 2024 earnings call transcript was available; therefore, there were no published Q&A exchanges or guidance clarifications for the quarter. We searched company filings and press releases for Q2 2024 and found none beyond the 8-K/press release .

Estimates Context

• S&P Global consensus estimates for Q2 2024 (Revenue, EPS, EBITDA) were unavailable at time of query due to API limit; coverage also appears limited for the ticker. As a result, we cannot benchmark the quarter versus Street estimates. Where estimates are required, default to S&P Global; here, data was unavailable.

Key Takeaways for Investors

• Sequential operating momentum: Revenue and gross margin stepped up, lifting Adjusted EBITDA to $8.9M; continued margin recovery is a near-term driver for sentiment .
• GAAP losses persist: Interest ($4.2M) and income tax expense ($6.9M) plus non-recurring charges keep GAAP net loss elevated; watch for actions to reduce financing/tax burden .
• Portfolio rationalization: The Nevada deconsolidation signals active portfolio management; monitor whether further actions sharpen focus and improve profitability mix .
• Quality of earnings: Adjusted EBITDA improved despite ongoing non-recurring and accretion costs; investors should track normalization of these adjustments over coming quarters .
• Visibility gap: Absence of formal guidance and call transcript limits forward visibility; price action likely ties to reported margin trajectory and subsequent disclosures .
• Trend watch: Gross margin has risen from 38.9% (Q4) to 41.4% (Q1) to 48.1% (Q2)—sustaining this trajectory would underpin EBITDA/FCF improvements .
• Next catalysts: Look for Q3 results and any strategic updates; with no formal guidance, interim press releases or filings may serve as catalysts .