Overview

• U.S. cannabis producer's Q1 revenue rose, beating analyst expectations

• Company posted Q1 net loss of $17 mln and adjusted EBITDA of $33 mln

• Expanded dispensary footprint in Ohio and Pennsylvania, awarded Texas medical license

Outlook

• Company expects benefits from medical cannabis reclassification to Schedule III in U.S.

• Cresco Labs sees expanded footprint with 11 new dispensaries in Pennsylvania and Ohio

• Company anticipates long-term optionality from conditional medical license award in Texas

Result Drivers

• MARKET EXPANSION - Co said Q1 results reflect progress on growth initiatives, including opening new dispensaries in Ohio and Pennsylvania and starting revenue generation in Kentucky

• TEXAS LICENSE - Award of conditional medical license in Texas adds long-term optionality, per management

Company press release: ID:nBw7k57Xra

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$151 mln	$148.58 mln (7 Analysts)
Q1 Net Income		-$17 mln
Q1 Adjusted EBITDA		$33 mln
Q1 Adjusted Gross Margin		50.70%
Q1 Gross Profit		$75 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Cresco Labs Inc is C$2.25, about 50% above its May 7 closing price of C$1.50

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.