MariMed Inc., a prominent multi-state cannabis operator, recently unveiled its financial results for the first quarter of 2024, ending on March 31. The company disclosed a notable revenue growth to $37.9 million compared to $34.4 million in the corresponding quarter last year. Jon Levine, MariMed's CEO, emphasized the strong performance of their wholesale business as a significant factor behind the quarter's success, marking their 17th consecutive quarter of positive adjusted EBITDA.
As part of the financial disclosure, MariMed also revealed changes in its gross margins. Both the GAAP and non-GAAP gross margins saw a decrease from the first quarter of 2023, with the GAAP margin dropping to 43% from 45% and the non-GAAP margin decreasing to 44% from 46%. This shift could potentially indicate a tightening in profitability, likely due to increased costs or alterations in the product mix. The financial records further indicated a widening net loss, with the GAAP net loss expanding to $1.3 million from $0.7 million in the previous year.
On a non-GAAP basis, MariMed experienced a notable shift from a net income of $0.3 million in the first quarter of 2023 to a net loss of $0.6 million in the first quarter of 2024. This downturn, despite the growth in revenue, suggests potential challenges such as increased operational expenses or other financial impacts not directly tied to sales. The company's adjusted EBITDA also saw a decline to $4.7 million from $7.1 million year-over-year, with the margin significantly shrinking from 21% to 12%. This reduction highlights potential pressures on operational efficiency or cost management strategies within the company.
Looking ahead, MariMed anticipates revenue growth of 5% to 7% and adjusted EBITDA growth of 0% to 2% for the full year 2024. Additionally, the company plans to invest $10 million in capital expenditures throughout the year. These insights provide a glimpse into MariMed's financial performance and strategic outlook in the evolving cannabis industry landscape.