Executive Summary

Q4 2023 revenue was $40.9M, up 8.8% YoY but down 4.7% sequentially; gross margin improved 782 bps QoQ to 38.9% but remained 389 bps below Q4 2022, and net loss was ($18.7M) versus ($43.7M) a year ago .
Adjusted EBITDA was $2.8M in Q4, improving from Q3; however, the Q4 release references Q3 Adjusted EBITDA as $0.8M, which conflicts with the Q3 release table showing $4.9M—an inconsistency investors should note and reconcile to the 10-K and reconciliation tables .
FY 2023 revenue was $159.2M (-2.4% YoY), gross margin 39.7% (-590 bps YoY), net loss ($76.6M) improving substantially from ($449.4M) in FY 2022; FY Adjusted EBITDA was $8.3M vs $8.4M in FY 2022 .
No formal guidance and no earnings call transcript were available in the filings reviewed; near‑term investor focus is likely on sequential margin recovery and sustaining positive Adjusted EBITDA while addressing continued net losses .

What Went Well and What Went Wrong

What Went Well
- Sequential margin recovery: gross margin rose 782 bps QoQ to 38.9% (from 30.7% implied by -687 bps to 47.5% in Q2 and then 40.6% in Q3), despite YoY pressure .
- Adjusted EBITDA positive: Q4 Adjusted EBITDA reached $2.8M, improving from Q3 (noting discrepancy between $0.8M referenced in Q4 vs $4.9M reported in the Q3 8‑K) .
- YoY revenue growth in Q4: revenue increased 8.8% YoY to $40.9M, despite industry pricing pressures and sequential softness .
What Went Wrong
- Sequential revenue decline: revenue fell 4.7% QoQ in Q4 to $40.9M (from $42.9M in Q3), signaling some demand or pricing pressure into year‑end .
- YoY margin compression: gross margin was 38.9%, down 389 bps YoY versus 42.8% in Q4 2022, reflecting ongoing cost/mix or pricing headwinds .
- Continued losses: Q4 net loss was ($18.7M) and FY 2023 net loss was ($76.6M), underscoring that non‑GAAP profitability does not translate yet to GAAP profitability .

Financial Results

Metric	Q4 2022	Q2 2023	Q3 2023	Q4 2023
Revenue ($USD Millions)	$37.57	$38.72	$42.89	$40.88
Gross Profit ($USD Millions)	$16.09	$18.39	$17.43	$15.92
Gross Margin (%)	42.8%	47.5%	40.6%	38.9%
Net Loss ($USD Millions)	($43.73)	($20.15)	($15.57)	($18.70)
Net Loss per Share ($)	($0.01)	($0.00)	($0.00)	($0.00)
Adjusted EBITDA ($USD Millions)	$3.51	($0.43)	$4.86	$2.80

FY results for context:

Metric	FY 2022	FY 2023
Revenue ($USD Millions)	$163.21	$159.24
Gross Profit ($USD Millions)	$74.43	$63.17
Gross Margin (%)	45.6%	39.7%
Net Loss ($USD Millions)	($449.39)	($76.62)
Net Loss per Share ($)	($0.13)	($0.01)
Adjusted EBITDA ($USD Millions)	$8.41	$8.33

KPI snapshot (Q4 2023):

Revenue growth YoY: +8.8%
Revenue growth QoQ: -4.7%
Gross margin change YoY: -389 bps; QoQ: +782 bps

Non‑GAAP reconciliation insights (Q4 2023):

EBITDA was ($3.67M); total adjustments were $6.47M, yielding Adjusted EBITDA of $2.80M .

Discrepancy to note:

Q4 8‑K states Q3 Adjusted EBITDA was $0.8M; Q3 8‑K reported $4.86M—investors should reconcile this difference using the FY 2023 10‑K and footnotes .

Segment breakdown:

Not disclosed in the press release/8‑K materials reviewed .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	N/A	No formal guidance provided in filings reviewed	Maintained: No guidance
Margins/OpEx/Tax	FY/Quarter	N/A	No formal guidance provided in filings reviewed	Maintained: No guidance

No quantitative guidance was provided in the Q4 8‑K press release, and prior 8‑Ks in 2H23 also did not include guidance .

Earnings Call Themes & Trends

No earnings call transcript was available in the document set for Q4 2023 or the prior two quarters; press releases contained limited narrative beyond financial highlights and non‑GAAP definitions .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2023)	Trend
Pricing/margin dynamics	Narrative not provided in 8‑Ks; gross margin fell from Q2 to Q3	Sequential margin recovery (+782 bps) amid YoY compression (-389 bps)	Stabilizing sequentially; YoY pressure persists
Profitability focus	Adjusted EBITDA negative in Q2; positive in Q3	Positive Adjusted EBITDA ($2.8M)	Improving sequential profitability
Strategy/growth initiatives	Not discussed in press releases	Not discussed in press release	Not disclosed in these filings
Regulatory/legal	Non‑recurring legal/strategic review costs affect Adjusted EBITDA calc	Similar treatment continued in non‑GAAP adjustments	Ongoing in adjustments

Management Commentary

The Q4 8‑K press release contained detailed non‑GAAP definitions and methodology but did not include strategic commentary or quotations from management .
- “We define Adjusted EBITDA as EBITDA before share‑based compensation, accretion expense, write‑downs and impairments, gains and losses from changes in fair values of financial instruments, income or losses from equity‑accounted investments… non‑recurring costs related to the Company’s Recapitalization Transaction, litigation costs… and other income.”

Q&A Highlights

No Q&A section or earnings call transcript was available in the filings reviewed for Q4 2023; no analyst Q&A highlights to report .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q4 2023 revenue and EPS were unavailable via our S&P Global query at this time; therefore, no comparison vs. consensus is provided. Values from S&P Global were not retrieved due to access limits; consensus may not be widely published for this issuer.

Key Takeaways for Investors

Sequential margin recovery and positive Adjusted EBITDA in Q4 indicate improving operating leverage into year‑end despite sequential revenue decline .
Persistent GAAP net losses highlight the gap between non‑GAAP profitability and statutory results; watch for further cost discipline and cash conversion in 2024 .
YoY growth returned in Q4 revenue (+8.8%), but full‑year revenue fell 2.4% and gross margins compressed materially; sustainability of QoQ margin gains is a focal point .
Non‑GAAP reconciliation shows sizable adjustments ($6.47M in Q4) underpinning Adjusted EBITDA; diligence on recurring vs. truly non‑recurring items remains critical .
The discrepancy between Q3 Adjusted EBITDA cited in the Q4 release ($0.8M) and the Q3 8‑K table ($4.9M) should be reconciled to the audited FY filings before modeling trend lines .
Absence of formal guidance and lack of a call transcript limit visibility; near‑term narrative likely centers on cost controls, non‑GAAP adjustments, and path to sustained positive EBITDA while narrowing GAAP losses .

Sources: Q4 2023 8‑K and press release exhibit, including financial highlights and non‑GAAP reconciliations ; Q3 2023 8‑K and press release ; Q2 2023 8‑K and press release .

iANTHUS CAPITAL HOLDINGS, INC. (ITHUF)·Q4 2023 Earnings Summary