Goodness Growth Holdings, Inc. (CSE: GDNS; OTCQX: GDNSF) reported financial results on Friday for its second quarter ended June 30, 2021. 

Q2 Financial Highlights

(Unless otherwise stated, the results are in USD - to convert to other currencies go here - and compared to the previous quarter. Goodness Growth changed its name from Vireo Health International Inc. during Q1 - see here.)

• Total Revenue: increased 7.6% to $14.2M
• Gross Profit: increased 23.2% to $6.9M
• Gross Margin: increased to 48.6% from 42.6%
• SG&A Exp,: increased by 3.7% to $8.3M
• SG&A Exp. as % of Revenue: reduced to 58.3% from 60.9% 
• Adj. EBITDA: loss reduced by 41.2% to $1.0)M
• Net Profit (Loss): declined by 21.4% to $(5.0)M

Operational Highlights

• Completed the planned expansion of its cultivation and processing facility in New Mexico.
• Announced the launch of its ground medical cannabis flower products in the state of New York through all four of its dispensaries there, and via home delivery.
• Announced that its subsidiary, Resurgent Biosciences, plans to expand its research into psychedelics.

Management Commentary

Kyle Kingsley, M.D., Chairman and Chief Executive Officer, said:

• "Our second quarter performance was in line with our expectations, and we were pleased to see increased scale and efficiency of operations contribute to record gross margin performance during the quarter.
• We expect our expansion projects in New Mexico and Arizona will help strengthen revenue and profitability in the second half of this year, especially in the fourth quarter when the expansion projects are operating at full capacity.
• Our operating teams are focused on flower production, strain variety and quality in all of our markets.
• We are continuing to make progress on our expansion plans in New York and the recent passage of adult-use legislation in New York and New Mexico and the inclusion of flower to Minnesota's medical program have substantially improved our long-term outlook in each of these markets."

Stock Performance

As the chart below illustrates, Goodness Growth's stock decreased -23.4% over the 3-month Q2 period of April, May, and is down a further -10.9% since then but remains +10.1% YTD.