Trulieve Cannabis Corp. (TCNNF) announced its Q2 financial and operational results for the period ended June 30, 2021, on Friday that revealed a second consecutive quarter of record revenue, net income, and Adjusted EBITDA. Despite that, however, its stock price has declined 20% since the end of June and is now down 5.0% YTD. 

Q2 2021 Financial Highlights

(Unless otherwise stated, all currency is expressed in U.S. dollars and in comparison to the previous quarter.)

• Revenue: increased 11.0% to $215.1M
• Gross Profit: increased 6.8% to $144.5M
• Gross Margin: decreased to 67% from 70%
• Net Income: increased 35.9% to $40.9M
• Adjusted EBITDA: increased 4.5% to $94.9M
  • i.e. Earnings Before Interest Taxes Depreciation Appreciation

Q2 2021 Operational Highlight

• Announced plans to acquire Harvest Health and Recreation Inc..
• Commenced operations and opened first dispensary in Massachusetts.
• Opened 91st store in the U.S. and maintained leadership in Florida with its 85th dispensary location. (Currently at 96 stores in the U.S., with a new store opening in Worcester Massachusetts on August 14, 2021 

Management Commentary

Kim Rivers, Trulieve CEO, had the following comments regarding the company's Q2 results:

• "We continue to execute on our national expansion model, building our footprint both organically, with license application awards, and inorganically, with strategic acquisitions and are only in the beginning stages of what we know we can achieve as a company. We believe the next chapter, including the anticipated closing of the Harvest acquisition, will only continue to build on the strong foundations we have worked tirelessly to establish."

Stock Performance

Despite Trulieve's outstanding financials in Q1 and now in Q2, its stock price declined -17.6% during Q2 and has declined a further -20.1% since then and is now DOWN -5.0% YTD. In comparison, munKNEE's American Pure-Play MSO Pot Stock Index of 17 constituents, of which Trulieve is one, is UP 5.3% YTD.