MariMed (MRMD) Q2 EPS Jumps to Positive

Core Insights - MariMed reported a strong non-GAAP EPS of $0.40, significantly beating the expected loss of $(0.01) [1] - GAAP revenue was $39.6 million, missing the consensus estimate of $40.93 million and showing a 2.0% decline year-over-year [2] - Adjusted EBITDA improved sequentially to $4.9 million, an 11.4% increase from Q2 2024 [2] Financial Performance - Non-GAAP EPS was $0.40, compared to an expected loss of $(0.01) [2] - GAAP revenue was $39.6 million, down from $40.4 million in Q2 2024, reflecting a 2.0% decrease [2] - Adjusted EBITDA was $4.9 million, up from $4.4 million in Q2 2024 [2] - GAAP Gross Margin decreased to 40.5%, down 1.3 percentage points from 41.8% in Q2 2024 [2] - Adjusted EBITDA Margin improved to 12.4%, up 1.6 percentage points from 10.8% in Q2 2024 [2] Business Overview and Strategy - MariMed operates as a vertically integrated cannabis operator with a focus on branded products across multiple states [3] - The company is expanding into new regulated markets, particularly Delaware and Pennsylvania, while investing in product innovation [4] - The strategy emphasizes wholesale expansion and branded product licensing to balance growth and profitability [4] Expansion and Innovation - The company advanced its regulatory footprint in Delaware and entered a managed services agreement in Pennsylvania [5] - Retail product sales fell 5.0% year-over-year to $22.44 million, reflecting a shift towards wholesale [6] - Product innovation included new launches such as Nature's Heritage flower and a vegan pill combining cannabis and functional mushrooms [7] Operational Efficiency - Adjusted EBITDA margin improved to 12.4%, aided by tighter control of marketing expenses [8] - Marketing costs were reduced to $0.76 million from $1.86 million in Q2 2024 [8] - The company ended the quarter with $6.1 million in cash, down from $10.2 million in Q2 2024 [8] Future Outlook - Management did not provide specific numeric guidance but expressed confidence in upcoming revenue drivers, including adult-use sales in Delaware and expansion in Pennsylvania [9] - The timing of adult-use sales in Delaware is expected to be a significant catalyst for future growth [10]