CRLBFOTCMedicinal Chemicals & Botanical ProductsUS GAAP · USD

Cresco Labs Inc.

Cresco Labs Inc. is a U.S.-based cannabis company that grows, processes, brands, and distributes cannabis products through a consumer-packaged-goods style model. It also operates Sunnyside retail dispensaries and supports its business with cultivation, production, and legislative advocacy activities.

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Revenue656m USD
−9.5 %y/y
Operating profit (EBIT)-28.0m USD
−126.1 %y/y
EBIT margin-4.3%
−19.1 ppy/y
Net income-135m USD
−81.9 %y/y
Free cash flow37.8m USD
−66.6 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-2000200400600800m USD2020202120222023: 771 m USD2023: EBIT -88 m USD20232024: 724 m USD2024: EBIT 107 m USD20242025: 656 m USD2025: EBIT -28 m USD2025656-28
RevenueOperating profit (EBIT)

Business

Share of revenue
Branded cannabis products55 %

Packaged cannabis goods sold under Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's and Remedi.

Retail dispensary sales30 %

Direct-to-consumer cannabis sales through Sunnyside dispensaries.

Wholesale distribution10 %

Distribution of cannabis products to third-party retail channels and partners.

Cultivation and production services5 %

Growing, processing and packaging cannabis products for internal brands and channels.

Customers

Cresco Labs serves adult-use consumers and medical cannabis patients who buy through its Sunnyside dispensaries or through retail partners carrying its brands. It also sells to wholesale customers and dispensary networks that want branded cannabis flower, vapes, edibles, and wellness products. The business is built around consumer demand for regulated cannabis products and retailers that value consistent supply, branding, and compliance.

Adult-use consumers

Buy branded cannabis flower, vapes, edibles and pre-rolls for recreational use.

Medical cannabis patients

Buy products through dispensaries for symptom relief and ongoing access.

Wholesale retail partners

Purchase Cresco brands for resale in licensed retail channels.

Dispensary shoppers

Visit Sunnyside locations for direct purchases and product education.

Strategy

Cresco Labs’ strategy is to build national cannabis brands with a consumer-packaged-goods mindset while keeping a strong direct retail channel through Sunnyside. It also emphasizes regulatory engagement, community outreach, and scale in cultivation and distribution to support product availability and brand recognition.

National brand buildingMedium term

A recognizable brand portfolio helps differentiate products in a crowded regulated market.

Retail experience through SunnysideMedium term

Owning retail touchpoints improves customer education, trust, and repeat purchases.

Regulatory and legislative engagementLong term

Cannabis markets depend on licensing and policy changes, so advocacy supports market access.

Operational scale in cultivation and productionMedium term

Reliable supply and product consistency are important for brand execution and wholesale distribution.

Geography

Cresco Labs operates nationally in the United States, with cultivation, production, wholesale distribution, and retail dispensary activity spread across multiple state markets. The company also uses Canadian capital markets for financing and disclosure, but its operating footprint and revenue base are centered in U.S. regulated cannabis states. Geography matters because cannabis regulation, licensing, and retail access are determined state by state.

Risks

Cresco Labs faces cannabis-industry risks tied to regulation, licensing, and shifting state-level market rules, which can affect product availability and retail access. The business also depends on brand execution, wholesale channel relationships, and the continuity of controlled-substance compliance, while accounting and tax treatment can be unusual relative to standard consumer companies.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Cannabis regulatory change1Compliance and licensing risk2Cannabis tax treatment3Wholesale channel concentration4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Cannabis regulatory changeImpact: HighLikelihood: High

    Sales and operations depend on state licensing, product rules, and enforcement priorities.

    Exposure: U.S. state cannabis markets

  2. Compliance and licensing riskImpact: HighLikelihood: Medium

    A regulated controlled-substance business can be disrupted by licensing issues or violations.

    ExposureCultivationProcessingDispensaries
  3. Cannabis tax treatmentImpact: HighLikelihood: Medium

    Tax positions and the applicability of IRC 280E can materially affect cash taxes and reported results.

    Exposure: U.S. operations

  4. Wholesale channel concentrationImpact: MediumLikelihood: Medium

    A meaningful share of product volume may rely on third-party retailers and distribution partners.

    Exposure: Branded product distribution

Accounting

Judgemental items
Inventory capitalization and valuation

Cultivation and processing costs must be allocated carefully, affecting cost of sales and gross margin.

Impact: Cannabis inventory is subject to compliance and quality-related write-down risk

Goodwill and intangible impairment

Brand and acquisition values can be impaired if market conditions or cash flows weaken.

Impact: Could create non-cash charges and reduce reported equity

Variable interest entities

The company consolidates entities it controls economically, affecting assets, liabilities, and revenue presentation.

Impact: Changes consolidation scope and balance sheet size

Uncertain tax positions and IRC 280E

Tax treatment in cannabis is unusual and can alter tax expense, liabilities, and distributions.

Impact: Affects effective tax rate and tax-related assets/liabilities

Non-controlling interests and distributions

Ownership interests in subsidiaries require allocation of income and required tax distributions.

Impact: Affects net income attributable to shareholders and equity

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Last updated: 28/09/2026