Gold Flora Corp. (OTC:GRAM), a vertically-integrated California cannabis company, announced its financial earnings Thursday for the second quarter of 2024.

Q2 2024 Financial Highlights

• Revenue was $31.64 million, compared to the $14.96 million reported in the same quarter last year.
• Net loss was $23.95 million, compared to the $14.1 million from the second quarter of 2023.
• Adjusted EBITDA was a loss of $1.97 million, compared to a loss of $0.28 million in Q2 last year.
• Gross profit was $7.25 million, increasing from the $3.94 million in Q2 2023.

Gross Profit Declines And Adjusted Gross Margin Increases

Gold Flora Corporation generated $31.64 million in revenue, reflecting a slight decrease of 2% from the previous quarter. However, gross profit dropped significantly by 28%, totaling $7.25 million, resulting in a gross margin of 23%. Adjusted gross profit stood at $18.17 million, with an adjusted gross margin of 57%, up from 54% in Q1.

Cash used in operating activities amounted to $4.8 million, leaving Gold Flora with $10.7 million in cash and cash equivalents as of June 30, 2024.

Gold Flora Boosts Flower Harvest Yields, Increases Product Portfolio

Operationally, Gold Flora achieved a 14% improvement in flower harvest yields following recent cultivation investments. The company also successfully increased first-party product revenue to 30% of total retail sales and continued to expand its product portfolio, notably with the Gramlin brand, now the 5th fastest-growing cannabis brand in California.

CEO Commentary

Despite the challenges, CEO Laurie Holcomb expressed optimism, citing the company's strong market positioning and cultivation capabilities as key advantages moving forward.

"As one of the largest indoor cultivators in the state, we have a unique competitive advantage that sets us apart from the vast majority of other operators in California," stated Holcomb in a press release. "We can quickly adjust our operations to meet current market demand, and at scale, enabling us to offer attractive price points and excellent products. With our cultivation investments complete and subsequent harvests now demonstrating the improved yield and product quality that we can generate, we are incredibly well positioned to execute on the opportunity ahead of us as we move through the second half of the year."

With its continued expansion of its cultivation footprint, Gold Flora remains focused on strengthening its competitive edge in the California cannabis market.

Price Action
GRAM's shares were trading 5.67% lower at $0.0915 per share at the time of this writing around 1:00 PM ET Thursday.

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