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Introduction

Despite the significant sell-off in the stock market last week, 5 of the 7 constituents in the munKNEE American Cannabis MSO Portfolio advanced in response the release of their Q2 financials during the week. This article reports their stock performances last week as a result, in descending order, along with 3 financial metrics as a % of net revenue as per their most recent quarterly financial reports and their rank compared to their peers with hyperlinks to their Q2 financial reports.

The financial metrics used in this analysis are a company's:

• Gross Profit Margin is the profit remaining after subtracting the cost of goods sold from revenue. A high gross profit margin reflects how efficiently a company manages its operating expenses, i.e. how successfully a company is producing profit over and above its costs;
• Selling General and Administration (SG&A) Expenses are the costs a company incurs to run its business, which include salaries, marketing, rent, utilities, and office supplies and the SG&A margin is the percentage of revenue consumed by these expenses and shows how much revenue is being absorbed by overhead costs;
• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is the cash profit generated by a company's operations excluding non-recurring, irregular, and one-time items such as unrealized gains or losses; non-cash expenses (depreciation, amortization); litigation expenses; gains or losses on foreign exchange; goodwill impairments; non-operating income; and share-based compensation that may distort the EBITDA. Source
   

The munKNEE American Cannabis MSO Portfolio

1. Trulieve Cannabis (TCNNF): UP 8.7% last week
   • Gross Profit Margin as a % of Net Revenue Rank: #1; UP to 60.0% from 58.0%
   • SG&A Expenses as a % of Net Revenue Rank: #1; DOWN to 23.4% from 30.9%
   • Adjusted EBITDA as a % of Net Revenue Rank: #1; DOWN to 35.0% from 35.5%
   • Q2 Financial Report:
     • Trulieve Cannabis Q2, 2024, Financials Improved Across The Board
2. Green Thumb (GTBIF): UP 4.1% last week
   • Gross Profit Margin as a % of Net Revenue Rank: #2; UP to 53.7% from 52.5%
   • SG&A Expenses as a % of Net Revenue Rank: #4; UP to 34.5% from 26.9%
   • Adjusted EBITDA as a % of Net Revenue Rank: #2; UP to 33.5% from 32.8%
   • Q2 Financial Report:
     • Green Thumb Cannabis Q2 Financials Reported Increased Adj. EBITDA Results
3. Cresco Labs (CRLBF): UP 4.0% last week
   • Q1 Gross Profit Margin as a % of Net Revenue: 47.1 %
   • Q1 SG&A Expenses as a % of Net Revenue: 29.9%
   • Q1 Adjusted EBITDA as a % of Net Revenue: 28.8%
   • Q1 Financial Report:
     • All Cresco Labs' QI Financial Metrics Down Except SG&A
4. Verano (VRNOF): UP 3.6% last week
   • Gross Profit Margin as a % of Net Revenue Rank: #4; UP to 51.4% from 51.0%
   • SG&A Expenses as a % of Net Revenue Rank: #6; DOWN to 39.1% from 40.1%
   • Adjusted EBITDA as a % of Net Revenue Rank: #3; UP to 31.7% from 30.1%
   • Q2 Financial Report
     • Verano Reported A Q2 Net Loss Increase Of 351%
5. TerrAscend (TSNDF): UP 3.1% last week
   • Gross Profit Margin as a % of Net Revenue Rank: #5; UP to 48.6% from 48.0% 
   • SG&A Expenses as a % of Net Revenue Rank: #3; DOWN to 31.1% from 34.7%
   • Adjusted EBITDA as a % of Net Revenue Rank: #6; UP to 20.2% from 20.1%
   • Q2 Financial Report:
     • TerrAscend Q2 Financial Metrics Were All Down
6. Ayr Wellness (AYRWF): DOWN 9.3% last week
   • Gross Profit Margin as a % of Net Revenue Rank: #3; DOWN to 51.7% from 53.1%
   • SG&A Expenses as a % of Net Revenue Rank: #5; UP to 35.6% from 33.2%
   • Adjusted EBITDA as a % of Net Revenue Rank: #4; DOWN to 21.9% from 24.7%
   • Q2 Financial Report:
     • AYR Wellness Q2 Financial Results Down Across The Board
7. Curaleaf (CURLF): DOWN 9.4% last week
   • Gross Profit Margin as a % of Net Revenue Rank: #6; DOWN to 46.9% from 47.5%
   • SG&A Expenses as a % of Net Revenue Rank: #2; UP to 26.4% from 26.0%
   • Adjusted EBITDA as a % of Net Revenue Rank: #5; DOWN to 21.3% from 22.6%
   • Q2 Financial Report:
     • Curaleaf Reports Relatively Flat Q2 Financial Metrics

Summary

On average, the MSO Portfolio was UP 4.6% last week. 

The above financial metrics as a % of net revenue by company have been averaged and are listed as follows, in descending order, to provide a comparative analysis of each company's respective financial health:

• (1) Trulieve; (2) Green Thumb; (3) Ayr Wellness; (4) Curaleaf; (5) Verano; (6) TerrAscend; (N/A) Cresco Labs. This information will be updated when the Q2 financial report for Cresco is are released on August 21st.

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