Trulieve Cannabis (NYSE:TRLV) Issues Earnings Results, Beats Expectations By $0.05 EPS

Trulieve Cannabis (NYSE:TRLV) released its quarterly earnings data on Friday. The company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.06 by $0.05, Zacks reports.

Here are the key takeaways from Trulieve Cannabis’ conference call:

• Core profitability and cash flow remained strong: Medical-only revenue rose 4% sequentially to $222 million, with a 63% gross margin and $98 million of adjusted EBITDA at a 36% margin. Operating cash flow was $53 million, while quarter-end cash totaled $325 million versus $289 million of debt.
• Georgia is emerging as a significant growth driver: Expanded qualifying conditions and product formats drove a sharp increase in traffic, while patient enrollment surpassed 45,000. Trulieve is expanding cultivation, adding dispensaries, and supplying nearly 20 independent pharmacies, although temporary flower shortages constrained sales.
• Texas offers substantial expansion potential: Trulieve is converting its conditional license to final approval and has completed initial production construction. Management sees considerable upside as the program expands beyond 157,000 patients, with plans to scale production and retail locations alongside demand.
• Reported results and full-year cash-flow guidance were affected by the Harvest deconsolidation: The company posted a $406 million GAAP net loss, including a $407 million impact from the transaction, although adjusted results would have shown $20 million of net income. Full-year operating cash-flow guidance was reduced to at least $225 million, while capital-expenditure guidance increased to $95 million as Trulieve invests in growth.

Trulieve Cannabis Stock Performance

NYSE TRLV traded down $0.24 during trading hours on Friday, hitting $8.76. The company had a trading volume of 1,039,210 shares, compared to its average volume of 811,495. Trulieve Cannabis has a 52 week low of $4.62 and a 52 week high of $13.28.

Insider Activity

In other news, CEO Kim A. Rivers sold 136,811 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $8.76, for a total value of $1,198,464.36. Following the completion of the transaction, the chief executive officer directly owned 1,476,913 shares in the company, valued at approximately $12,937,757.88. This trade represents a 8.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,699,007 shares of company stock valued at $14,661,355 over the last quarter. Corporate insiders own 3.79% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have commented on TRLV. Zacks Research upgraded shares of Trulieve Cannabis to a “hold” rating in a research note on Thursday, June 18th. Weiss Ratings started coverage on shares of Trulieve Cannabis in a report on Tuesday, June 16th. They set a “sell (d-)” rating for the company. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $15.00 price objective on shares of Trulieve Cannabis in a research report on Friday. Finally, Wall Street Zen downgraded shares of Trulieve Cannabis from a “strong-buy” rating to a “buy” rating in a research report on Sunday, July 12th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Trulieve Cannabis has an average rating of “Hold” and a consensus target price of $15.00.

Trulieve Cannabis Company Profile

Trulieve Cannabis Corp. is a vertically integrated cannabis company focused on the cultivation, processing, and retail sale of medical and adult-use cannabis products. The company offers a range of products that may include flower, pre-rolls, concentrates, edibles, vape products, and topicals through its dispensary network and branded product portfolio.

Trulieve’s operations have been centered primarily in the United States, with a strong presence in Florida and additional markets in other states where cannabis is legally regulated.