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Cresco Labs Announces First Quarter

2021 Financial Results Under U.S. GAAP

Cresco Labs Inc., a vertically integrat- an increase of 16.5% quarter-over-quar- Company in subsequent quarters. In
ed multistate operator and the number ter and 507.2% year-over-year order to execute all of our pending
one U.S. wholesaler of branded cannabis • Record net wholesale revenue of growth initiatives, we invested in the
products, announced its financial results $95.6 million, an increase of 5.7% quar- operating platform to support the
for the first quarter ended March 31, ter-over-quarter and 150.8% year-over- growth. We laid the groundwork in Q4
2021. year and Q1 and now our expertise with inte-
All financial information presented in • Record retail revenue of $82.8 mil- grating new assets and producing operat-
this release is in U.S. GAAP and U.S. dol- lion from 24 stores, an increase of 15.2% ing leverage will kick in,” said Charles
lars, unless otherwise noted, and all quarter-over-quarter and 193.2% year- Bachtell, Co-Founder and CEO of
comparisons to prior quarter and prior over-year Cresco Labs.
year are made on an as-converted basis “We're also pleased to take this oppor-
under U.S. GAAP. Financial Outlook tunity at the outset of the year to make
The Company is providing the follow- the transition to U.S. GAAP, remove the
First Quarter 2021 ing guidance: break-out of certain one-time items, and
Financial Highlights • Annualized revenue run-rate of more Charles Bachtell provide investors with clarity on the
transition. This represents another step
• Revenue of $178.4 million, an than $1 billion by the end of 2021 ed our ability to reach and sustain #1 to prepare Cresco Labs for the future
increase of 9.9% quarter-over-quarter • Gross profit margins in excess of market share positions in two of this opportunities that await in the U.S. capi-
and 168.8% year-over-year 50% in the remaining three quarters of industry’s top-five states, and we’re gear- tal markets. “On a U.S. GAAP basis,
• Gross profit of $87.0 million, or 2021 ing up to repeat that success in more we're pleased with the growth in Q1 and
48.8% of revenue, an increase of 16.8% • Adjusted EBITDA1 margin run-rate markets this year. We’re accelerating excited about the steps we’ve taken so far
quarter-over-quarter and 268.9% year- of at least 30% by the end of 2021 growth through a diverse set of initia- this year to put Cresco Labs on the path
over-year “In Q1, we delivered sequential tives including several organic expan- to accelerate revenue, profitability, and
• Adjusted EBITDA1 of $35.0million, growth from existing assets, demonstrat-
sions and M&A that will benefit the shareholder value in 2021 and beyond.”

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