“We expect to see continued strong net revenue and adjusted gross margins across our cannabis business, supported by net revenue growth in Europe and Australia. For plant propagation, we expect to see seasonally reduced revenues and gross profit in Q2 2025 that will be in line with historical performance as 25% – 35% of revenues are normally earned in the second half of a calendar year. Positive adjusted EBITDA is expected to continue while free cash flow is anticipated to be negatively impacted by several significant annual and one-time cash payments that typically occur in Q2 2025.”
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