Vext Science (VEXT), a hemp cannabinoid and cannabis THC company based in Arizona, announced strong first-quarter results on May 26.
Revenue came in at $9.2 million in Q1 2021, increasing 124% from $4.1 million in the prior-year quarter. Adjusted EBITDA was $3.1 million compared to an Adjusted EBITDA loss of $74.7 million in Q1 2020.
Meanwhile, net income totaled $1.1 million, compared to a loss of $971 million a year ago. The company swung from an adjusted loss of $0.01 per share to an adjusted profit of $0.01 per share in the quarter ended March 31.
In addition, the pure-play cannabis company has received approval from the State of Arizona on May 20 to start operations at the recently expanded Phoenix facility. The company has quadrupled its overall space and also incorporated more automation into the process.
Vext CEO Eric Offenberger said, “Our team generated strong financial performance in Q1, fueled by a record month in March for our operated Phoenix dispensaries. Momentum in the Arizona market continues to build, and with recent announcements of fully funded expansions to effectively triple our cultivation footprint and a four-fold expansion to our manufacturing space, we are prepared for the upcoming growth. “
“Vext continues to translate solid top-line performance into expanding Adjusted EBITDA and positive fully diluted earnings per share. The Company has been profitable since 2016 and we are committed to delivering organic growth for shareholders, while judiciously building our footprint in Arizona, both on the retail side of the business and through wholesale channels led by the strength of the Vapen brand,” added Offenberger. (See Vext Science stock analysis on TipRanks)
Last month, Beacon analyst Russell Stanley reiterated a Buy rating on VEXT while lifting its price target to C$2.75 (from C$2.25), for 189.5% upside potential. The analyst raised its price target after Vext announced its intention to acquire more cultivation capabilities. Stanley is the only analyst that has issued a stock rating for Vext Science in the last three months.
TipRanks’ Smart Score
VEXT scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is expected to perform in line with the overall market.