Acreage Holdings, Inc. ACRHF ACRDF ACRG ACRG released its financial results for the second quarter ended June 30, 2022, revealing revenue of $61.4 million, an increase of $17.1 million or 39% compared to Q2 2021.
Q2 2022 Financial Highlights
Gross margin of 50% compared to 52% in Q1 2022, and 54% in Q2 2021.
Total gross profit for Q2 2022 was $30.6 million, an increase of $6.7 million or 28% compared to Q2 2021, driven by an increase in revenue.
Adjusted EBITDA for the second quarter of 2022 increased to $10.4 million, a 28% improvement compared to adjusted EBITDA of $8.1 million in the second quarter of 2021 and a 20% improvement from adjusted EBITDA of $8.6 million in the first quarter of 2022.
Net loss attributable to Acreage for Q2 2022 was $(9.9) million, compared to $(2.5) million in the second quarter of 2021.
“We were thrilled to execute on a significant milestone with the launch of adult-use sales in the state of New Jersey during the second quarter,” stated Peter Caldini, CEO of Acreage. “The initial performance of our retail stores during the roll-out has been strong, and we believe there is an even bigger opportunity to further optimize our cultivation and wholesale capabilities to serve this growing market. We are working diligently to improve our New Jersey cultivation and processing operations to take advantage of the market opportunities that are available to us.”
Caldini continued, “With the conclusion of our operations in Oregon following the end of the quarter, we are in a more favorable position to drive development in our core markets, where we see the best opportunity to foster long-term growth and enhance shareholder value. During the latter half of the year, we will continue our preparation for pending adult-use sales in these developing Northeastern markets, such as New York and Connecticut, in addition to strengthening our presence in New Jersey.”
Balance Sheet and Liquidity
Acreage ended the quarter with $29.3 million in cash and cash equivalents. As of June 30, 2022, $100.0 million was drawn under the credit facility entered in the fourth quarter of 2021. A further $50.0 million is available in future periods under a committed accordion option once certain, predetermined milestones are achieved. Acreage intends to use the proceeds of the credit facility to fund expansion initiatives, repay existing debt, and provide additional working capital.