Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Firm Grows Revenue 38% in Q4/22

Source: Andrew Semple


April 5, 2023 ( Newswire) The company's material increase in profitability during the quarter is a healthy step toward reaching free cash flow break even status, noted an Echelon Capital Markets report.

Jushi Holdings Inc.'s (JUSH:CSE; JUSHF:OTCQX) Q4/22 financials were notable for a "steep step-up in profitability" and otherwise "met expectations," reported Echelon Capital Markets analyst Andrew Semple in a March 31 research note. Florida-based Jushi is a U.S.-focused producer and retailer of branded cannabis products.

"Jushi reported Q4/22 results that we view as solid in the context of soft earnings reports from other U.S. cannabis companies," Semple commented.

Review of Results

Semple presented the key points about Jushi's Q4/22 financials.

During this quarter, Jushi generated US$76.8 million (US$76.8M) of revenue, which beat Echelon and the Street's forecasts of US$76.1M and US$77.1M, respectively. Q4/22 revenue reflected a 16.6% year-over-year increase and a 5.5% quarter-over-quarter rise.

What was a surprise, Semple noted, was Jushi's wholesale revenues, which came in at nearly US$8M. Not only did this surpass Echelon's expected US$6.5M, but also it was a 38% quarter-over-quarter increase.

"We believe these wholesale gains can be held and built further upon in 2023 as Jushi brings online additional capacity in Virginia and Pennsylvania, upgrades its genetic mix, and finetunes operations," wrote Semple.

Gross margin in Q4/22 was 28.6%, but this was impacted by about US$5.5M in nonrecurring inventory adjustments. Without these, Semple wrote, Echelon believes adjusted gross margin would have been around 35.8%, but even this percentage fell short of Echelon's 41.1% projection and consensus' 40.5% estimate.

Jushi's Q4/44 EBITDA was US$6M, above Echelon and the Street's forecasts of US$4.2M and US$4.3M, respectively.

"This was a marked improvement toward Jushi beginning to demonstrate a pathway towards break-even free cash flow," wrote Semple.

Jushi ended 2022 with US$27.1M in cash.

Need To Raise Capital

Despite Jushi recently refinancing about US$76M in senior secured notes, Semple wrote, it will need to raise capital sometime this year. Echelon estimates the company will need US$20M before year-end 2023 and another US$20M for 2024. This US$40M total is down from Echelon's previous forecast of US$75M, the US$35M drop reflecting Jushi's efforts to quickly reduce its opex and capex spending.

Echelon believes a US$40M capital raise over the next 18 months should get Jushi to a break-even, levered free cash flow status. To raise funds, management is in discussions with commercial lenders and considering divesting its California retail stores that are not generating cash flow.

Hold Rating Reiterated

Echelon updated its financial model on Jushi, slightly increasing 2023 forecasts but lowering longer-term forecasts. Echelon reiterated its Hold rating but reduced its price target on the cannabis firm to CA$0.70 per share, about which it is currently trading, from CA$1.20.

"We believe the business is likely to sustain itself, but over the next two years we see little levered free cash flow accruing that would be available for shareholders, and Jushi's leverage ratios will remain above our coverage average, leading us to remain on the sidelines with a Hold rating," Semple explained.


1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures For Echelon Capital Markets, Jushi Holdings Inc., March 31, 2023

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients. Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.


I, Andrew Semple, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

More Info: Newswire

This news is published on the Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire

Global investors must adhere to regulations of each country. Please read privacy policy:

That's all it takes to get an article published on Investor Ideas - Learn More

LOHAS Stocks investor research at

Health, Wellness and Sustainability Stocks Research and News at - investing ideas for a better world

Like Health, Wellness and Sustainability Stocks? View our LOHAS Stocks Directory