Cresco Labs (CL) AI Stock Analysis

• Market Cap: $759.62M
• Dividend Yield: N/A
• Average Volume (3M): 305.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: -5.65%
• EPS Growth: 73.45%
• Country: CA
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 338,757,080
• 10 Day Avg. Volume: 207,555
• 30 Day Avg. Volume: 305,576
• PEG Ratio: 0.07
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 2.89
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 5.80
• 1Y Price Target: $2.18
• Price Target Upside: 27.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: C$1.50 ▼(-12.28% Downside)

Cresco Labs' overall stock score is primarily impacted by its financial performance, which is challenged by declining revenues, high leverage, and negative profitability. Technical analysis suggests a neutral to slightly positive outlook, with potential for a rebound due to oversold conditions. However, valuation remains a concern due to negative earnings and lack of dividends. The company's strategic initiatives and market position provide some optimism, but financial stability needs improvement.

Positive Factors

Debt Refinancing

The refinancing of $325 million in debt extends maturity to 2030, enhancing financial flexibility and stability, crucial for long-term growth amidst capital constraints in the cannabis sector.

Market Share Leadership

Maintaining top market share in key states like Illinois and Pennsylvania underscores Cresco's competitive advantage and strong market positioning, supporting sustained revenue streams.

Operational Efficiency

A 51% adjusted gross margin reflects strong operational efficiencies and a favorable product mix, contributing to long-term profitability and competitive advantage in the cannabis industry.

Negative Factors

Revenue Decline

The sequential revenue decline highlights ongoing challenges in maintaining growth, potentially impacting long-term financial health and necessitating strategic adjustments.

Price Compression

Price compression pressures margins and revenue potential, posing a risk to profitability and necessitating strategic focus on cost management and market adaptation.

High Leverage

High leverage with a debt-to-equity ratio of 1.35 increases financial risk, potentially limiting Cresco's ability to invest in growth and navigate industry challenges.

Cresco Labs Business Overview & Revenue Model

Company Description

Cresco Labs (CL) is a prominent player in the cannabis industry, primarily focused on the cultivation, manufacturing, and distribution of cannabis products across the United States. The company operates in several key sectors, including retail, wholesale, and product innovation, offering a wide range of products such as flower, edibles, oils, and topicals through its various branded lines. Cresco Labs aims to enhance the cannabis experience for consumers while promoting responsible use and compliance with regulatory standards.

How the Company Makes Money

Cresco Labs generates revenue through multiple streams, primarily from the sale of cannabis products in both retail and wholesale markets. The company operates a growing number of dispensaries across states where cannabis is legal, allowing it to sell products directly to consumers. Additionally, Cresco Labs engages in wholesale distribution, supplying its products to other dispensaries and retailers. Key revenue streams include the sale of dried flower, concentrates, edibles, and branded merchandise. The company also benefits from partnerships with local operators and brands, which can enhance its market presence and distribution capabilities. Furthermore, Cresco Labs invests in product innovation and branding, creating a portfolio of recognized products that can command higher price points, thereby contributing to its overall profitability.

Cresco Labs Financial Statement Overview

Summary

Cresco Labs faces significant financial challenges, with declining revenues and profitability issues. High leverage and negative returns on equity indicate financial risk, while cash flow metrics suggest difficulties in generating sufficient cash. The company needs to address operational inefficiencies and improve its financial stability to enhance its overall financial health.

Income Statement

Cresco Labs has experienced declining revenue growth, with a negative growth rate of -2.94% in the TTM. The gross profit margin remains relatively stable at 48.34%, but the net profit margin is negative at -11.86%, indicating ongoing profitability challenges. The EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is high at 1.35, indicating significant leverage. Return on equity is negative, showing that the company is not generating profit from its equity base. The equity ratio is not provided, but the high debt levels suggest potential financial risk.

Cash Flow

Cresco Labs has a negative free cash flow growth rate of -14.13% in the TTM, indicating declining cash generation. The operating cash flow to net income ratio is positive at 1.40, suggesting some ability to cover net losses with operating cash. However, the free cash flow to net income ratio is below 1, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	685.07M	724.34M	770.88M	842.68M	821.68M	476.25M
Gross Profit	339.35M	364.45M	362.37M	407.01M	406.35M	206.70M
EBITDA	136.28M	114.28M	-13.97M	-10.66M	-159.63M	5.23M
Net Income	-45.68M	-74.44M	-175.52M	-212.05M	-319.60M	-102.16M
Balance Sheet
Total Assets	1.35B	1.36B	1.36B	1.58B	1.78B	1.33B
Cash, Cash Equivalents and Short-Term Investments	146.61M	137.56M	103.43M	119.34M	223.54M	136.34M
Total Debt	630.91M	639.64M	682.76M	670.17M	624.74M	354.58M
Total Liabilities	986.85M	967.18M	930.40M	996.01M	982.73M	608.37M
Stockholders Equity	444.47M	474.85M	505.69M	627.04M	755.55M	574.45M
Cash Flow
Free Cash Flow	88.02M	108.99M	681.00K	-67.39M	-82.57M	-91.21M
Operating Cash Flow	118.14M	132.48M	58.56M	18.74M	14.49M	-10.83M
Investing Cash Flow	-30.62M	-25.23M	-44.59M	-36.58M	-163.93M	-44.11M
Financing Cash Flow	-53.70M	-71.48M	-26.91M	-86.64M	235.00M	142.67M

Cresco Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CL, the sentiment is Positive. The current price of 1.71 is below the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.69, and above the 200-day MA of 1.18, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 22.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CL.

Cresco Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	69 Neutral	C$1.36B	52.21	1.73%	―	31.72%	―
GTII	64 Neutral	C$2.43B	63.06	1.63%	―	7.06%	-54.16%
TRUL	56 Neutral	C$2.05B	―	-12.60%	―	4.92%	-64.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CURA	49 Neutral	C$3.08B	-8.77	-24.93%	―	-2.64%	1.65%
CL	48 Neutral	$759.62M	―	-10.02%	―	-5.65%	73.45%
VRNO	43 Neutral	$2.17B	―	-32.20%	―	-5.30%	-191.63%

Cresco Labs Corporate Events

Cresco Labs to Announce Q3 2025 Financial Results

Cresco Labs announced it will release its third-quarter 2025 financial results on November 5, 2025. The company will host a conference call and webcast to discuss the results and provide business highlights, reflecting its ongoing efforts to strengthen its market position and engage with stakeholders.

The most recent analyst rating on (TSE:CL) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Announces Shareholder Meeting Results and Strategic Initiatives

Cresco Labs announced the results of its annual general and special meeting of shareholders, where seven directors were elected, and Baker Tilly US, LLP was appointed as the auditor for the upcoming year. Shareholders also approved the company’s Award Exchange Program, allowing employees to exchange underwater options for full value awards, aligning pay with performance. These decisions, approved by at least 96% of votes, aim to strengthen Cresco Labs’ operational and strategic positioning in the cannabis industry.

The most recent analyst rating on (TSE:CL) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Expands Ohio Presence with New Sunnyside Dispensary

Cresco Labs has opened its sixth dispensary in Ohio, named Sunnyside, located in Proctorville, marking its 71st location nationwide. This expansion strengthens Cresco Labs’ market leadership in Ohio, where it holds the top retail market share and third in branded product share. The new dispensary is expected to contribute to local economic growth through job creation and increased revenue, which will be used to improve community infrastructure.

The most recent analyst rating on (TSE:CL) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Secures $325 Million Refinancing to Boost Growth

Cresco Labs has successfully closed a $325 million senior secured term loan refinancing, extending the maturity to 2030 and strengthening its balance sheet. This move reduces the company’s total debt and provides flexibility for prepayment, positioning Cresco Labs for future growth and reducing near-term refinancing risks. The transaction reflects the company’s disciplined capital management strategy and supports its ongoing growth plans.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$2.80 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Earnings Call: Balancing Achievements and Challenges

Cresco Labs Earnings Call: Balancing Achievements and Challenges

Cresco Labs Reports Solid Q2 Performance and Strategic Debt Refinancing

Cresco Labs Inc. is a leading company in the cannabis industry, known for its branded cannabis products and Sunnyside dispensaries, focusing on cultivation, production, and distribution across the United States.

Cresco Labs Strengthens Financial Position with Solid Q2 Results and Debt Refinancing

Cresco Labs reported solid financial performance in Q2 2025, with a revenue of $164 million and a net loss of $14 million due to non-cash impairment charges. The company strengthened its financial position by securing a $325 million term loan, enhancing its balance sheet and providing financial flexibility for future growth opportunities. As the cannabis industry undergoes consolidation, Cresco Labs is positioned to capitalize on M&A opportunities with its proven operating model and clean capital structure.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Secures $325 Million Refinancing to Bolster Growth

Cresco Labs has announced commitments to refinance its senior secured credit facility, securing a new US$325 million term loan with a 12.5% interest rate, maturing in five years. This refinancing, which replaces an existing US$360 million facility, is a strategic move to enhance financial flexibility amid constrained capital access in the U.S. cannabis sector. The refinancing underscores Cresco Labs’ resilience and positions it to focus on growth initiatives without the immediate pressure of refinancing risk, thereby strengthening its market position.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Secures New Refinancing to Bolster Growth

Cresco Labs has announced commitments to refinance its senior secured credit facility, securing a new US$325 million term loan with favorable terms. This move highlights the company’s resilience in a capital-constrained market, allowing it to reduce debt, enhance financial flexibility, and focus on growth initiatives across its core U.S. markets. The refinancing underscores Cresco Labs’ strong business model and positions it strategically within the cannabis industry.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.