On March 24, 2025, iAnthus Capital Holdings Inc (XCNQ:IAN, Financial) released its 8-K filing, detailing the financial results for the fourth quarter and full year ending December 31, 2024. iAnthus Capital Holdings Inc, a company that owns and operates licensed cannabis cultivators, processors, and dispensaries across the United States, reported significant improvements in its financial performance, particularly in its Eastern Region operations.
Fiscal Year 2024 Financial Performance
iAnthus Capital Holdings Inc reported a revenue of $167.6 million for the fiscal year 2024, marking a 5.2% increase from the previous year. The company's gross profit rose by 18.9% to $75.1 million, with a gross margin improvement of 516 basis points to 45%. Notably, the net loss significantly decreased to $7.6 million, compared to a net loss of $76.6 million in the prior year. This translates to a net loss of less than $0.00 per share, a substantial improvement from the previous year's net loss of less than $0.01 per share.
Quarterly Highlights and Achievements
For the fourth quarter of 2024, iAnthus Capital Holdings Inc reported a revenue of $42.7 million, which is a sequential increase of $2.4 million from the third quarter of 2024 and an increase of $1.8 million from the same quarter in the prior year. The gross profit for the quarter was $19.1 million, reflecting a sequential increase of $1.1 million from the third quarter of 2024 and an increase of $3.2 million from the same quarter in the prior year. The gross margin for the quarter was 45%, showing a sequential decrease of 9 basis points from the third quarter of 2024 but an increase of 586 basis points from the same quarter in the prior year.
Financial Metrics and Analysis
iAnthus Capital Holdings Inc's adjusted EBITDA for the fiscal year 2024 was $23.9 million, up $15.6 million from the prior year. This improvement in adjusted EBITDA is crucial for the company as it indicates enhanced operational efficiency and profitability, excluding non-recurring and irregular items. The company's ability to reduce its net loss and improve its adjusted EBITDA highlights its strategic focus on cost management and revenue growth.
| Financial Results | FY2024 | FY2023 | Q4 2024 | Q4 2023 |
|---|---|---|---|---|
| Revenue | $167,567 | $159,237 | $42,718 | $40,880 |
| Gross Profit | $75,114 | $63,169 | $19,139 | $15,919 |
| Gross Margin | 44.8% | 39.7% | 44.8% | 38.9% |
| Net Income (Loss) | $(7,636) | $(76,621) | $27,793 | $(18,695) |
| Net Income (Loss) Per Share | $(0.00) | $(0.01) | $0.00 | $(0.00) |
Challenges and Strategic Focus
Despite the positive financial results, iAnthus Capital Holdings Inc continues to face challenges typical of the cannabis industry, including regulatory hurdles and market competition. The company's strategic focus on its Eastern Region, which includes operations in states like Florida and New York, is crucial for sustaining revenue growth and improving profitability. The company's ability to navigate these challenges will be pivotal in maintaining its financial momentum.
Conclusion
iAnthus Capital Holdings Inc's fiscal year 2024 results demonstrate a significant turnaround in financial performance, with notable improvements in revenue, gross profit, and net loss reduction. These achievements underscore the company's strategic efforts to enhance operational efficiency and capitalize on growth opportunities in the cannabis industry. Investors and stakeholders will be keen to see how iAnthus Capital Holdings Inc continues to build on this momentum in the coming fiscal year.
Explore the complete 8-K earnings release (here) from iAnthus Capital Holdings Inc for further details.
