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Yahoo
5 days ago
- Business
- Yahoo
Cannabis Operator CRLBF Plans California Exit: How to Play the Stock?
Despite maintaining strong operational discipline, Cresco Labs CRLBF continues to face persistent challenges in the domestic market. In a bid to streamline operations and improve profitability, Cresco Labs announced a major strategic move — the decision to divest its California operations. Let's delve into the company's fundamentals to gain a better understanding of how to play the stock amid this divestiture decision. California No Longer Fits Cresco's Strategy Although California is the largest cannabis market in the world, it is also one of the most difficult to operate in. Per Cresco, the state is plagued by persistent structural challenges — which include intense price competition, illicit market activity and high taxes. These conditions have made it difficult for even the most established operators to turn a profit in the state. Cresco's move comes as part of a broader strategic restructuring plan designed to 'strengthen its balance sheet, increase cash flow, and prioritize markets with the highest margins and long-term growth potential.' This is also in line with the company's ongoing efforts to simplify operations and improve efficiency in light of ongoing federal and state-level regulatory headwinds. CRLBF remains in active discussions with prospective buyers and expects to finalize the transaction in the coming quarters. The divestiture also reflects a broader industry trend, where several cannabis players are reevaluating their footprints in underperforming or oversaturated markets. Back in 2023, Curaleaf Holdings CURLF announced a similar decision to exit California to optimize operations and reduce costs. By pulling back from such markets, operators like Cresco and Curaleaf are refocusing on core markets where the reallocated capital can deliver stronger returns. Despite divesting these assets, the company will retain full ownership of its premium FloraCal brand, and continue producing and marketing it across key domestic markets. CRLBF's Cannabis Business Under Pressure What differentiates Cresco from its peers is that all of its revenues are generated solely from the United States. This geographic concentration exposes it more directly to the challenges of a heavily regulated domestic market. While the company continues to highlight its leading market share in several U.S. states, top-line pressures persist. Management has already flagged a potential revenue dip in Q2, citing operational disruptions tied to Illinois' mandatory seed-to-sale system transition. Profitability remains under pressure, with shrinking gross and EBITDA margins reflecting tough wholesale conditions and limited pricing power. While Cresco Labs points to new dispensary openings and cultivation expansions as potential growth drivers, these initiatives come with increased capital and operational demands. Though debt refinancing remains a key priority, the strategy depends on sustaining strong cash flow conversion, which may prove challenging if revenue softness persists. Competitive Landscape Cresco faces stiff competition from its peers — Curaleaf Holdings, Green Thumb Industries GTBIF and Tilray Brands TLRY — all of which are also pursuing similar expansion and cost-optimization strategies, making the competitive landscape even tougher. Companies like Curaleaf Holdings and Tilray Brands are also expanding their footprints beyond geographic borders, in markets like Europe and Australia. This international exposure gives them an edge over Cresco Labs and Green Thumb, which remain fully dependent on an increasingly saturated and fragmented U.S. market. CRLBF Stock Performance and Estimates Shares of Cresco have underperformed the industry this year so far, as shown in the chart below. Image Source: Zacks Investment Research Loss estimates for 2026 and 2027 have widened over the past 60 days. Image Source: Zacks Investment Research How to Play CRLBF Stock? While Cresco's restructuring plans highlight the company's strong focus on profitability, the stock remains exposed to significant domestic headwinds. Without a major shift in federal policy or a recovery in retail pricing — something that remains uncertain in the near term — meaningful upside appears limited. The stock currently carries a Zacks Rank #4 (Sell), indicating limited upside and elevated risk for conservative investors. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tilray Brands, Inc. (TLRY) : Free Stock Analysis Report Green Thumb Industries Inc. (GTBIF) : Free Stock Analysis Report Cresco Labs Inc. (CRLBF) : Free Stock Analysis Report Curaleaf Holdings, Inc. (CURLF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
National Post
21-07-2025
- Business
- National Post
Cresco Labs Announces Strategic Restructuring and Plans to Divest California Operations
Article content CHICAGO — Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (' Cresco Labs ' or the ' Company '), today announced a strategic restructuring that includes plans to sell its California operations. This restructuring is part of the Company's broader strategy to strengthen its balance sheet, increase cash flow, and prioritize markets with the highest margins and long-term growth potential. Article content The Company is in active discussions with prospective buyers interested in acquiring its California assets, including cultivation, manufacturing, and select distribution operations. It expects to finalize the transaction within the next several quarters, subject to customary closing conditions and regulatory approvals. Cresco Labs will retain full ownership of its premium FloraCal® brand and continue producing and marketing the brand across key U.S. markets. Article content Article content 'Capital is increasingly precious in this environment, and our focus is on deploying it where it earns the strongest return,' said Charlie Bachtell, CEO and Co-founder of Cresco Labs. 'While California is the largest cannabis market in the world, the structural challenges—ranging from fragmented retail to price compression and the illicit market—combined with our lack of scaled footprint in the state, make it extremely difficult to generate sustainable profitability. Exiting California allows us to reallocate capital and resources to our core markets and build out new markets where we see clear pathways for growth and shareholder value.' Article content About Cresco Labs Inc. Article content Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production, and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's, and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development, and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs' journey by visiting or following the Company on Facebook, X or LinkedIn. Article content Forward-Looking Statements Article content This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, 'forward-looking statements'). Such forward-looking statements are not representative of historical facts or information or current condition but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as, 'may,' 'will,' 'should,' 'could,' 'would,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'projects,' 'predicts,' 'potential,' or 'continue,' or the negative of those forms or other comparable terms. The Company's forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR, other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company's forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs' shares, nor as to the Company's financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company's forward-looking statements contained herein, whether as a result of new information, any future event, or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise. Article content Article content Article content Article content Contacts Article content Media Article content Article content Press@ Article content Investors Article content Article content TJ Cole, Cresco Labs Article content Article content Article content Article content Article content
National Post
17-07-2025
- Business
- National Post
Cresco Labs to Report Second Quarter 2025 Financial Results on August 7, 2025
Article content CHICAGO — Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ) ('Cresco' or 'Company'), the industry leader in branded cannabis products with a portfolio of America's most popular brands and the operator of Sunnyside dispensaries, today announced it will report financial results for the second quarter ended June 30 th, 2025 on Thursday, August 7, 2025 before the market opens. Article content The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights. Article content Date Article content : Thursday, August 7, 2025 Article content Article content Time Article content : 8:30 am ET Article content Article content Webcast: Article content LINK Article content Article content Conference Call Registration: Article content LINK Article content Article content Dial-in Article content Archived access to the webcast will be available for one year on the Cresco Labs investor relations website. About Cresco Labs Inc. Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs' journey by visiting or following the Company on Facebook, X or LinkedIn. Article content Article content Article content Contacts Article content Media Article content Article content press@ Article content Investors Article content Article content Article content Article content
Yahoo
17-07-2025
- Business
- Yahoo
Cresco Labs to Report Second Quarter 2025 Financial Results on August 7, 2025
CHICAGO, July 17, 2025--(BUSINESS WIRE)--Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ) ("Cresco" or "Company"), the industry leader in branded cannabis products with a portfolio of America's most popular brands and the operator of Sunnyside dispensaries, today announced it will report financial results for the second quarter ended June 30th, 2025 on Thursday, August 7, 2025 before the market opens. The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights. Event: Cresco Labs Second Quarter 2025 Earnings Conference CallDate: Thursday, August 7, 2025Time: 8:30 am ETWebcast: LINK Conference Call Registration: LINK Dial-in: 1-833-470-1428 (US Toll Free), 1-404-975-4839 (US Local)Access Code: 158138 Archived access to the webcast will be available for one year on the Cresco Labs investor relations website. About Cresco Labs Inc. Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs' journey by visiting or following the Company on Facebook, X or LinkedIn. View source version on Contacts Media press@ Investors investors@ General Inquiries 312-929-0993info@
