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JH

Jushi Holdings Inc. (JUSHF)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $65.9M, gross margin 38.6%, adjusted EBITDA $8.0M (12.2% margin), and net loss $12.5M; operating cash flow was $7.2M, and cash plus restricted cash ended at $21.3M .
  • Versus prior quarter, revenue increased from $61.6M while margins compressed from 45.4% to 38.6% on wholesale production challenges; adjusted EBITDA fell to $8.0M from $10.3M .
  • Wall Street consensus from S&P Global was unavailable; third‑party sources indicate revenue beat by $2.36M and EPS of -$0.07 missed by $0.01 (vs consensus) for Q4 2024 .
  • Strategic expansion continued post quarter: acquisition of Oxford/Toledo OH dispensaries, opening Warren OH and Linwood PA stores, and issuing 12% second-lien notes ($5.1M principal, ~$4.6M net proceeds); ERC claims factoring generated ~$5.1M cash .

What Went Well and What Went Wrong

What Went Well

  • Operating cash flow improved to $7.2M (quarter) and $21.6M (FY), supporting liquidity while funding expansion .
  • Jushi-branded products represented ~55% of retail revenue in Q4, sustaining mix-driven margin support and brand traction across five vertical markets .
  • Management progressed the “7 and 7” retail-first expansion strategy, targeting seven new dispensaries by mid-2025 and a 40% footprint increase by mid-2026: “We believe this expansion is poised to drive both revenue and profitability…” (CEO) .

What Went Wrong

  • Gross margin fell to 38.6% (from 45.4% in Q3) primarily due to wholesale production challenges; wholesale revenue declined YoY in MA and PA, prompting prioritization of internal retail supply .
  • Adjusted EBITDA declined to $8.0M from $11.3M YoY, reflecting margin compression and production issues despite growth initiatives .
  • Interest expense remained heavy at $9.4M in Q4; total debt was $3.3M short-term and $198.2M long-term (gross principal), highlighting ongoing leverage constraints .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$64.6 $61.6 $65.9
Gross Profit ($USD Millions)$32.6 $28.0 $25.4
Gross Margin (%)50.4% 45.4% 38.6%
Net Loss ($USD Millions)$(1.9) $(16.0) $(12.5)
Loss per Share ($USD)$(0.01) $(0.08) $(0.06)
Adjusted EBITDA ($USD Millions)$14.5 $10.3 $8.0
Adjusted EBITDA Margin (%)22.4% 16.8% 12.2%
Cash + Restricted Cash ($USD Millions)$35.0 $22.9 $21.3
Net Cash Flow from Ops ($USD Millions)$5.5 $2.4 $7.2

Versus prior year (Q4 2023):

MetricQ4 2023Q4 2024YoY Δ
Revenue ($USD Millions)$67.8 $65.9 $(1.9)
Gross Profit ($USD Millions)$27.2 $25.4 $(1.8)
Gross Margin (%)40.2% 38.6% -160 bps
Net Loss ($USD Millions)$(18.0) $(12.5) +$5.5
Adjusted EBITDA ($USD Millions)$11.3 $8.0 $(3.3)

Estimates vs actual (Q4 2024):

  • Revenue beat by $2.36M; EPS of -$0.07 missed by $0.01 (S&P Global consensus unavailable; third-party transcript summary) .

Segment / Mix and Operating KPIs

KPIQ2 2024Q3 2024Q4 2024
Jushi-branded share of retail revenue (%)56% 55% 55%
Store count at period end35 35 38
Retail revenue YoY Δ ($USD Millions)n/an/a$(0.8)
Wholesale revenue YoY Δ ($USD Millions)n/an/a$(1.1)

Balance Sheet/CF KPIs

KPIQ4 2024
Cash, cash equivalents & restricted cash ($USD Millions)$21.3
Short-term debt (gross principal) ($USD Millions)$3.3
Long-term debt (gross principal) ($USD Millions)$198.2
FY 2024 Capex ($USD Millions)$4.7
FY 2024 Operating Cash Flow ($USD Millions)$21.6

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q4 2024None providedNone providedMaintained (no quantitative guidance)
Margins (Gross/Adj. EBITDA)FY/Q4 2024None providedNone providedMaintained (no quantitative guidance)
OpEx, OI&E, tax, segment-specificFY/Q4 2024None providedNone providedMaintained (no quantitative guidance)

Note: Management emphasized strategic expansion (“7 and 7” initiative) rather than numeric guidance; no explicit ranges were issued .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Retail-first expansionBuilt out IL (Peoria), awarded OH retail license; targeting footprint growth Adult-use Ohio launch; definitive agreements to add OH dispensaries Acquired Oxford/Toledo; opened Warren OH and Linwood PA; “7 and 7” initiative to expand retail 40% by mid-2026 Accelerating
Mix and product innovation308 new high-margin SKUs; brand rollouts (The Lab, Tasteology) 278 new SKUs; debut “Uncommon Kind” edibles 415 new SKUs; launch “Uncommon Kind” in MA/PA/VA; “Flower Foundry” premium flower in VA Sustained high cadence
Margin dynamicsGP margin 50.4% aided by VA efficiencies GP margin 45.4%; promotions pressure retail margin; wholesale improved in VA GP margin 38.6% impacted by wholesale production challenges Down due to wholesale issues
Regulatory outlookScaling in OH post adult-use; eyed PA/VA developments Adult-use Ohio operations; ERC claim partial approvals PA budget proposal includes adult-use; VA legislature advanced legalization bills; timing uncertain Constructive but uncertain
Capital structure & liquidityRefinanced first-lien; reduced short-term debt < $1M Continued debt reduction; cash ~$22.9M Factored ~$6.0M ERC for ~$5.1M proceeds; issued ~$5.1M second-lien notes; cash+RC $21.3M Active balance-sheet actions

Management Commentary

  • “Looking ahead to 2025, we remain committed to building upon this momentum by expanding our retail network across our core footprint with our 7 and 7 initiative… We believe this expansion is poised to drive both revenue and profitability, while enhancing operational efficiency and margin expansion.” — Jim Cacioppo, CEO .
  • “We are pleased with the progress we made in 2024 to strengthen our platform, particularly in reducing debt, enhancing our balance sheet, and improving cash flows from operations…” — Jim Cacioppo .
  • Post-quarter developments include launching “Flower Foundry” premium flower in Virginia and closing Ohio acquisitions, underscoring product-led growth and retail scaling .

Q&A Highlights

  • Regulatory outlook: Management highlighted Pennsylvania’s budget proposal including adult-use (potential legalization in 2025–26) and Virginia’s legislature advancing recreational sales bills, noting upside potential but uncertainty on timing .
  • Expansion pipeline: Since announcing “7 and 7,” Jushi acquired Toledo and Oxford OH, and opened Peoria IL, Warren OH, Linwood PA, with expected openings in Mansfield/Parma OH and Little Ferry NJ in coming months if approvals proceed smoothly .
  • Mix and margins: Continued focus on high-margin SKUs and branded mix gains to support margins despite wholesale production headwinds .

Estimates Context

  • S&P Global consensus data for Q4 2024 was unavailable at time of analysis (tool request limit), so we cannot anchor to SPGI figures.
  • Third-party transcript summary indicates Q4 revenue beat by $2.36M and EPS of -$0.07 missed by $0.01 versus consensus; use for directional context only given lack of SPGI data .

Key Takeaways for Investors

  • Mix strength and retail scaling: Jushi’s branded share (~55%) and accelerating store openings should support sell-through and revenue growth, but margin recovery hinges on resolving wholesale production challenges .
  • Margin trajectory: Q4 gross margin compressed to 38.6% due to wholesale issues; near-term margin recovery likely depends on improved production throughput and reduced write-downs, especially in Ohio ramp .
  • Liquidity actions: ERC factoring ($5.1M net) and second-lien notes ($4.6M net proceeds) bolster cash but add interest burden; interest expense was $9.4M in Q4, keeping leverage in focus .
  • Regulatory optionality: Potential adult-use in PA and VA represents meaningful upside; maintain a catalyst watch on legislative timelines and store opening approvals in OH/NJ .
  • Cash generation: Operating cash flow improved ($7.2M Q4; $21.6M FY), offering flexibility to fund expansion while managing debt service .
  • Estimate framing: Without SPGI consensus, use third-party indicators showing a revenue beat and slight EPS miss; consider revising internal models for margin and EBITDA given Q4’s wholesale headwinds .
  • Execution focus: Near-term priorities are stabilizing wholesale operations, continuing retail expansion (Ohio, Illinois, NJ), and sustaining branded mix to support margins and adjusted EBITDA .

Sources

  • Q4/FY 2024 8-K Item 2.02 and Exhibit 99.1 press release: detailed financials, margins, and commentary .
  • Q4 press release (Investor Relations site): highlights, SKUs, balances, and post-quarter developments .
  • Other relevant Q4 window press releases: ERC proceeds and second-lien notes ; Warren OH opening ; Linwood PA opening ; reporting date release .
  • Prior quarters: Q3 2024 8-K ; Q2 2024 press release/8-K .
  • Earnings call transcript references: Seeking Alpha summary and transcript; MarketScreener/GuruFocus transcript listings .