iAnthus Capital Holdings (ITHUF) (IAN) reported its first-quarter earnings after the market closed on May 30. For the quarter ending on March 31, iAnthus reported revenues of $9.6 million—an increase of 384.4% from $1.9 million in the fourth quarter of 2018.
iAnthus generated revenues from nine of the 11 states where it has a footprint. The company’s pro forma revenues, which includes revenues from pending and closed acquisitions, were $18.5 million—sequential growth of 22%.
For the first quarter, iAnthus reported an adjusted gross profit of $3.4 million—an increase of 134% from $1.4 million in the fourth quarter of 2018. The company’s gross margin for the quarter was 35.8%—a fall from 74.3% in the last quarter.
Increased net loss
During the first quarter, iAnthus’ adjusted EBITDA loss was at $5.1 million—compared to a loss of $6.5 million in the last quarter. In February, iAnthus closed the MPX transaction. iAnthus incurred acquisition-related expenses of $5.2 million. The increased costs hiked the company’s net loss to $18.3 million for the quarter—compared to $15.9 million in the fourth quarter of 2018.
On May 31, iAnthus was trading ~1.9% lower in early morning trading. The company’s stock price has fallen 4.5% YTD (year-to-date) as of May 30. The company has been lagging the broader equity market and the Horizons Marijuana Life Sciences Index ETF (HMMJ). HMMJ tracks the North American Medical Marijuana Index. The S&P 500 Index has returned 11.2% YTD, while HMMJ’s stock price has increased 34.6%.