$CRLBF

Cresco Labs Inc.

CIK:0001832928|SEC Filings

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Income Statement [Abstract]
Revenues, net	$ 655,847	$ 724,343
Cost of goods sold	331,279	359,889
Gross profit	324,568	364,454
Operating expenses:
Selling, general, and administrative	247,454	254,842
Impairment loss	105,101	2,320
Total operating expenses	352,555	257,162
(Loss) income from operations	(27,987)	107,292
Other expense, net:
Interest expense, net	(56,280)	(54,601)
Other expense, net	(11,155)	(63,307)
Total other expense, net	(67,435)	(117,908)
Loss before income taxes	(95,422)	(10,616)
Income tax expense	(44,622)	(49,873)
Net loss	(140,044)	(60,489)
Net (loss) income attributable to non-controlling interests, net of tax	(4,636)	13,949
Net loss attributable to Cresco Labs Inc.	$ (135,408)	$ (74,438)
Net loss per share - attributable to Cresco Labs Inc. shareholders:
Basic loss per share (in USD per share)	$ (0.38)	$ (0.22)
Diluted loss per share (in USD per share)	$ (0.38)	$ (0.22)
Basic weighted-average shares outstanding (in shares)	355,007,044	345,474,155
Weighted Average Number of Shares Outstanding, Diluted	355,007,044	345,474,155
Comprehensive loss:
Net loss	$ (140,044)	$ (60,489)
Foreign currency translation differences, net of tax	601	(1,081)
Total comprehensive loss for the period	(139,443)	(61,570)
Comprehensive (loss) income attributable to non-controlling interests, net of tax	(4,636)	13,949
Total comprehensive loss attributable to Cresco Labs Inc.	$ (134,807)	$ (75,519)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (140,044)	$ (60,489)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, Depletion and Amortization	48,712	59,096
Amortization of operating lease assets	7,027	6,897
(Recovery) provision for doubtful accounts for expected credit losses	(1,165)	1,730
Provision for Other Credit Losses	163	0
Share-based compensation expense	11,233	14,164
(Gain) loss on changes in fair value of deferred consideration	(1,105)	780
Increase (Decrease) in Intangible Assets, Current	(4,000)	0
Loss on debt extinguishment1	(1,542)	65,648
Loss on inventory write-offs and provision	1,905	968
Change in deferred taxes	(3,704)	206
Accretion of discount and deferred financing costs on debt arrangements	4,059	4,855
Loss on debt extinguishment	16,363	1,002
Foreign currency loss (gain)	617	(1,039)
Loss on disposals of property and equipment	2,370	683
Gain (Loss) on Disposition of Business	(209)	0
Impairment loss	105,101	2,320
Proceeds of contingent consideration in excess of costs over estimated earnings	0	598
Other noncash adjustments	(115)	96
Changes in operating assets and liabilities:
Accounts receivable	12,036	(1,731)
Inventory	(18,005)	18,556
Prepaid expenses and other assets	(7,783)	2,486
Accounts payable and accrued liabilities	8,618	(16,917)
Operating lease liabilities	(9,457)	(7,902)
Income taxes payable	41,397	40,473
NET CASH PROVIDED BY OPERATING ACTIVITIES	72,890	132,480
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(35,138)	(19,492)
Purchase of intangibles	(3,043)	(3,994)
Proceeds from tenant improvement allowances	501	1,055
Payment of acquisition consideration, net of cash acquired	(1,750)	(3,230)
Proceeds from divestiture, net of cash transferred	350	0
Proceeds from disposals of property and equipment	676	432
Merger and acquisition consideration	(3,513)	0
Receipts from loans and advances	1,213	0
NET CASH USED IN INVESTING ACTIVITIES	(40,704)	(25,229)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	11	9
Proceeds from the issuance of long-term debt	312,000	0
Payment of debt issuance costs	(14,368)	0
Payment for Debt Extinguishment or Debt Prepayment Cost	(7,000)	0
Repayment of debt	(360,000)	(40,000)
Proceeds of acquisition-related contingent consideration	0	705
Payment for equity transfer	0	(200)
Tax distribution payments in accordance with the tax receivable agreement	(4,251)	0
Tax distributions to non-controlling interest redeemable unit holders and other members	(959)	(22,077)
Excess cash distributions to non-controlling interest redeemable unit holders and other members	(2,533)	(5,155)
Principal payment of property, plant, and equipment vendor financing	(251)	(976)
Principal payments on finance lease obligations	(4,737)	(3,784)
NET CASH USED IN FINANCING ACTIVITIES	(82,088)	(71,478)
Effect of exchange rate changes on cash and cash equivalents	(17)	(39)
Net (decrease) increase in cash and cash equivalents	(49,919)	35,734
Cash and cash equivalents and restricted cash, beginning of period	144,254	108,520
Cash and Cash Equivalent	57,902	137,564
Restricted cash	33,184	3,439
Restricted cash included in other non-current assets, end of period	3,251	3,251
Cash and cash equivalents and restricted cash, end of period	94,335	144,254
CASH PAID DURING THE PERIOD FOR:
Income tax, net	6,960	9,195
Interest	51,341	55,196
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Issuance of shares under business combinations and acquisitions	0	2,850
Deferred and contingent consideration for acquisitions	750	0
Non-controlling interests redeemed for equity	6,859	4,230
Increase to net lease liability	3,934	680
Liability incurred to purchase property, equipment and intangibles	921	1,218
Liability of property, plant and equipment purchased through vendor financing	97	490
Purchase of inventory through inventory	0	39
Overpaid declared distributions to non-controlling interest redeemable unit holders	(11,303)	(17,401)
Receivable related to financing lease transactions	0	612
Noncash or Part Noncash Acquisition, Other Liabilities Assumed	1,250	0
Liability incurred in accordance with tax receivable agreement	77,840	83,482
Noncash or Part Noncash Divestiture, Amount of Consideration Received	1,851	0
Gain (Loss) on Disposition of Business	$ (209)	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Current assets:
Cash and Cash Equivalent	$ 57,902	$ 137,564
Restricted cash	33,184	3,439
Accounts receivable, net	37,887	51,563
Inventory, net	98,666	83,343
Lease Liability	135,536
Prepaid expenses	11,725	16,120
Other current assets	19,909	2,228
Total current assets	259,273	294,257
Non-current assets:
Property and equipment, net1	327,192	344,846
Right-or-use assets - operating, net	86,773	95,846
Right-of-use assets - finance, net	12,947	14,811
Intangible assets, net1	275,342	293,994
Goodwill	208,173	283,484
Deferred tax asset	13,501	13,127
Other non-current assets	14,099	14,990
Total non-current assets	938,027	1,061,098
TOTAL ASSETS	1,197,300	1,355,355
Current liabilities:
Accounts payable	16,540	13,651
Accrued liabilities	58,017	54,296
Short-term borrowings	10,784	11,934
Income taxes payable	0	348
Less: current lease liabilities	9,793	9,629
Less: current lease liabilities	2,480	1,994
Deferred and contingent consideration, short-term	2,566	2,486
Total current liabilities	100,180	94,338
Non-current liabilities:
Long-term notes and loans payable, net	417,095	460,750
Operating lease liabilities	125,743	135,273
Finance lease liabilities	18,269	20,061
Deferred tax liability	33,619	38,950
Deferred and contingent consideration, long-term	5,815	7,736
Tax receivable agreement liability	71,603	79,457
Uncertain tax position liability	171,474	122,468
Other long-term liabilities	1,000	8,146
Total non-current liabilities	844,618	872,841
TOTAL LIABILITIES	944,798	967,179
COMMITMENTS AND CONTINGENCIES (Note 15)
SHAREHOLDERS’ EQUITY
Share capital	1,722,277	1,706,822
Additional paid-in-capital	120,047	122,750
Accumulated other comprehensive loss	(1,631)	(2,232)
Accumulated deficit	(1,500,244)	(1,352,486)
Equity of Cresco Labs Inc.	340,449	474,854
Non-controlling interests	(87,947)	(86,678)
TOTAL SHAREHOLDERS’ EQUITY	252,502	388,176
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 1,197,300	$ 1,355,355