U.S. marijuana multistate operators reported banner revenue growth in the first three months of this year, boosted by good execution and strong consumer demand in established and newer markets.
Many reported double-digit revenue growth in the first quarter of 2021 versus the fourth quarter of 2020 and, in several cases, staggering year-over-year growth.
Gross profit margins improved for most MSOs, ranging from Illinois-based operators Green Thumb Industries and Cresco Labs to smaller operators like TerrAscend and Ascend Wellness.
But not all MSOs are doing well.
Some, such as Los Angeles-based MedMen Enterprises, still struggle with high debt loads and low cash flow as a result of overspending, overly ambitious expansion and/or poor execution.
A distinctive second tier of up-and-comer MSOs also seems fully established – companies that are smaller in size but are on firm financial footing and seen as potential acquirers of other marijuana businesses. That group includes Ayr Wellness and TerrAscend, both with offices in New York and Toronto.