Cresco Labs (6CQ) AI Stock Analysis

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Cresco Labs

(Frankfurt:6CQ)

Rating:―N/A

Action:N/A

Date:―

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Positive Factors

Operating improvementPositive EBIT and EBITDA indicate that the core operations have improved before financing and below-the-line costs. Combined with a roughly 48% gross margin, this provides a stronger operating base for cost control, reinvestment, and eventual progress toward sustainable profitability.

Negative Factors

Persistent net lossesThe meaningful net loss shows that operating improvements have not yet translated into bottom-line profitability. Continued losses can constrain retained capital, reduce financial flexibility, and make it harder for Cresco to fund growth and absorb adverse changes in regulated cannabis markets.

Cresco Labs (6CQ) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 201.50M
Dividend Yield: ―
Average Volume (3M): 2,178
Price to Earnings (P/E): -1.9
Beta (1Y): 1.61
Revenue Growth: -11.43%
EPS Growth: -102.85%
Country: Germany
Employees: 2,900
Sector: Healthcare
Sector Strength: 51
Industry: Drug Manufacturers - Specialty & Generic

Cresco Labs Business Overview & Revenue Model

Company Description

Cresco Labs Inc. cultivates, manufactures, and sells retail and medical cannabis products in the United States and Germany. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vap...

Cresco Labs Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|Next Earnings Date:Dec 09, 2018

Earnings Call SentimentPositive

The call was broadly positive: Cresco delivered its planned Q3 results, grew revenue, generated $21 million of free cash flow, expanded its Pennsylvania and Ohio retail footprints, launched new products and reported strong market share and productivity positions. Near-term challenges include 47% gross margin affected by higher-cost inventory, expected low-single-digit sequential revenue decline in Q4, pricing and promotional pressure, a measured Kentucky ramp and uncertainty around hemp, Texas and Pennsylvania regulatory developments.

Positive Updates

Q3 Revenue and Cash Flow Growth

Q3 revenue was $173 million, up 5% year-over-year and roughly flat sequentially. The company generated $26 million in operating cash flow, up from $15 million in Q2, and $21 million in free cash flow.

Negative Updates

Gross Margin Pressure from Higher-Cost Inventory

Adjusted gross profit was $81 million, or 47% of revenue, at the low end of the previously outlined range. Cost of goods sold increased as Cresco worked through higher-cost inventory associated with facility upgrades completed in the first half of the year.

Company Guidance

For Q4, Cresco expects net revenue to be down low single digits sequentially, gross margin similar to this quarter as the majority of the higher cost inventory from the construction period sells through, and adjusted SG&A to be up modestly in dollar terms as it rebrands acquired Pennsylvania dispensaries and opens its new dispensary in Kentucky; the Q3 framework had called for gross margin in the high 40s, adjusted SG&A essentially flat in dollar terms and adjusted EBITDA margin of approximately 20%, while higher cost inventory is expected to sell through through the rest of the year and a little bit into Q1, Kentucky’s contribution in the near term will be modest, and the Kentucky market is expected to play out through '27 and into '28.

Cresco Labs Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

DE:6CQ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:GTII	69Neutral	CAD 2.00B	11.44	6.82%	―	3.81%	344.13%
TSE:CURA	52Neutral	CAD 3.55B	-261.50	-1.47%	―	5.01%	92.12%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TSE:VRNO	51Neutral	CAD 2.17B	-1.61	-30.11%	―	0.61%	37.92%
TSE:AYR.A	40Neutral	CAD 18.10M	-0.03	-74.75%	―	―	―

* Healthcare Sector Average

Performance Comparison

DE:6CQ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:6CQ	Cresco Labs OTC	0.54	-0.29	-35.50%
TSE:CURA	Curaleaf Holdings (Otc)	13.22	2.06	18.46%
TSE:AYR.A	Ayr Wellness Inc.	0.15	0.00	0.00%
TSE:GTII	Green Thumb Industries (OTC)	9.13	-0.69	-7.03%
TSE:VRNO	Verano Holdings Corp.	6.32	0.00	0.00%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Cresco Labs AI Stock Analysis