{"success":true,"data":{"pressRelease":{"id":"27354","rtpr_id":"nBw7k57Xra","ticker":"CL","exchange":"","all_tickers":["CL"],"title":"Cresco Labs Reports First Quarter 2026 Financial Results, Advances Multiple Growth Initiatives","author":"Business Wire","published_at":"2026-05-08T10:30:00.264Z","article_body":"Cresco Labs Reports First Quarter 2026 Financial Results, Advances Multiple\nGrowth Initiatives\n\nCresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“Cresco Labs” or the\n“Company”), the industry leader in branded cannabis products with a\nportfolio of America’s most popular brands and the operator of Sunnyside\ndispensaries, today released its financial and operating results for the first\nquarter ended March 31, 2026. All financial information presented in this\nrelease is reported in accordance with U.S. GAAP and in U.S. dollars, unless\notherwise indicated, and is available on the Company’s investor website,\nhere\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.crescolabs.com%2Foverview%2Fdefault.aspx&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=here&index=1&md5=00e2a7e020e601a0fd2bf628652d2fa5)\n.\n\nFirst Quarter 2026 Highlights\n\n\n * First quarter revenue of $151 million.\n\n * Gross profit of $75 million. Adjusted gross profit(1) of $77 million; and an\nAdjusted gross margin(1) of 50.7%.\n\n * SG&A of $54 million or 36.0% of revenue. Adjusted SG&A of $51 million\nor 33.7%.\n\n * Net loss of $17 million.\n\n * First quarter Adjusted EBITDA(1) of $33 million and Adjusted EBITDA margin(1)\nof 21.7%.\n\n * Retained the No. 1 share position in multiple billion dollar markets.(2)\n\nSubsequent to Quarter End\n\n\n * Was conditionally awarded a Texas Compassionate Use Program license for\nvertically integrated operations.\n\n * Opened two new Ohio dispensaries: Bridgeport on April 10, 2026, and Aberdeen\non May 5, 2026.\n\n * Began supporting operations of nine Pennsylvania dispensaries under a\nmanagement services agreement.\n\n * The Trump Administration reclassified medical marijuana to Schedule III under\nthe Controlled Substances Act, a step that is expected to eliminate the\napplication of Section 280E to Cresco's medical operations; Attorney General\nBlanche announced an expedited process to review the classification of\nmarijuana more broadly, with a hearing beginning on June 29, 2026.\n\nManagement Commentary\n\n“Q1 reflects continued progress against a clear plan and the strengthening\nof our growth platform. Subsequent to the quarter, we have added 11\ndispensaries to our platform across Pennsylvania and Ohio, expanding our\nscaled footprint in core markets. We’ve shifted Kentucky from the investment\nphase into revenue generation with our first harvest in April and we have\nadded meaningful long-term optionality by being awarded a conditional medical\nlicense in Texas.”\n\n“Moving state-legal medical cannabis from Schedule I to Schedule III is the\nmost consequential reform this industry has seen, and it validates the work\nwe've been executing on for years. More broadly, this is an important step in\na longer path towards normalization. We look forward to the hearings on the\ngeneral rescheduling of cannabis on June 29th. We've built the operational\nfoundation and balance sheet discipline to capture immediate benefits of\nrescheduling, while positioning Cresco to capitalize on the broader path to\nnormalization.”\n (1) See “Non-GAAP Financial Measures” at the end of this press release for \n more information regarding the Company’s use of non-GAAP financial measures. \n (2) According to Hoodie Analytics. \n\n\nBalance Sheet and Other Financial Information\n\n\n * As of March 31, 2026, the Company had $67 million of cash, cash equivalents,\nand restricted cash, a senior secured term loan, net of discount and issuance\ncosts, of $310 million and a mortgage loan, net of discount and issuance\ncosts, of $19 million.\n\n * Total shares on a fully converted basis to Subordinate Voting Shares were\n505,023,292 as of March 31, 2026.\n\nEarnings Webcast\n\nThe Company will host an earnings webcast to discuss its financial results on\nFriday, May 8, 2026, at 8:30am Eastern Time (7:30am Central Time). The\nearnings call may be accessed via webcast, here\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fattendee%2F843035052&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=here&index=2&md5=1ad05aaf26ca1d4a1bffbc2ea2de8838)\n. Archived access to the webcast will be available for one year on Cresco\nLabs’ investor website, here\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.crescolabs.com%2Foverview%2Fdefault.aspx&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=here&index=3&md5=b2aa2bb9b7e4ec31103de04540841e20)\n.\n\nConsolidated Financial Statements\n\nThe financial information reported in this press release is based on unaudited\nmanagement prepared financial statements for the quarter ended March 31, 2026.\nThese financial statements have been prepared in accordance with U.S. GAAP.\nThe Company expects to file its unaudited condensed interim consolidated\nfinancial statements for the quarter ended March 31, 2026, on SEDAR+ and EDGAR\non or about May 8, 2026. Accordingly, such financial information may be\nsubject to change. All financial information contained in this press release\nis qualified in its entirety with reference to such financial statements.\nWhile the Company does not expect there to be any material changes between the\ninformation contained in this press release and the consolidated financial\nstatements it files on SEDAR+ and EDGAR, to the extent that the financial\ninformation contained in this press release is inconsistent with the\ninformation contained in the Company’s financial statements, the financial\ninformation contained in this press release shall be deemed to be modified or\nsuperseded by the Company’s filed financial statements. The making of a\nmodifying or superseding statement shall not be deemed an admission, for any\npurposes, that the modified or superseded statement, when made, constituted a\nmisrepresentation for purposes of applicable securities laws. Further, the\nreader should refer to the additional disclosures in the Company’s audited\nfinancial statements for the year ended December 31, 2025, filed on SEDAR+ and\nEDGAR.\n\nCresco Labs references certain non-GAAP financial measures throughout this\npress release, which may not be comparable to similar measures presented by\nother issuers. Please see the “Non-GAAP Financial Measures” section below\nfor more detailed information.\n\nNon-GAAP Financial Measures\n\nThis release reports its financial results in accordance with U.S. GAAP and\nincludes certain non-GAAP financial measures that do not have standardized\ndefinitions under U.S. GAAP. The non-GAAP measures include: Earnings before\ninterest, taxes, depreciation, and amortization (“EBITDA”); Adjusted\nEBITDA; Adjusted EBITDA margin; Adjusted gross profit; Adjusted gross profit\nmargin; Adjusted selling, general, and administrative expenses (“Adjusted\nSG&A”), Adjusted SG&A margin; and Free Cash Flow are non-GAAP\nfinancial measures and do not have standardized definitions under U.S. GAAP.\nThe Company defines these non-GAAP financial measures as follows: EBITDA as\nnet loss (income) before interest, taxes, depreciation, and amortization;\nAdjusted EBITDA as EBITDA less other (expense) income, net, fair value mark-up\nfor acquired inventory, adjustments for acquisition and non-core costs,\nimpairment and share-based compensation; Adjusted EBITDA Margin as Adjusted\nEBITDA divided by revenues, net; Adjusted gross profit as gross profit less\nfair value mark-up for acquired inventory and adjustments for acquisition and\nnon-core costs; Adjusted gross profit margin as Adjusted gross profit divided\nby revenues, net; Adjusted SG&A as SG&A less adjustments for\nacquisition and non-core costs; Adjusted SG&A margin as Adjusted SG&A\ndivided by revenues, net; and Free Cash Flow as Net cash provided by operating\nactivities less purchases of property and equipment and proceeds from tenant\nimprovement allowances. The Company has provided the non-GAAP financial\nmeasures, which are not calculated or presented in accordance with U.S. GAAP,\nas supplemental information and in addition to the financial measures that are\ncalculated and presented in accordance with U.S. GAAP and may not be\ncomparable to similar measures presented by other issuers. These supplemental\nnon-GAAP financial measures are presented because management has evaluated the\nfinancial results both including and excluding the adjusted items and believe\nthat the supplemental non-GAAP financial measures presented provide additional\nperspective and insights when analyzing the core operating performance of the\nbusiness. These supplemental non-GAAP financial measures should not be\nconsidered superior to, as a substitute for or as an alternative to, and\nshould only be considered in conjunction with, the U.S. GAAP financial\nmeasures presented herein. Accordingly, the Company has included below\nreconciliations of the supplemental non-GAAP financial measures to the most\ndirectly comparable financial measures calculated and presented in accordance\nwith U.S. GAAP.\n\nThis news release constitutes a “designated news release” for the purposes\nof the Company’s prospectus supplement dated January 29, 2026, to its short\nform base shelf prospectus dated October 3, 2025.\n\nAbout Cresco Labs Inc.\n\nCresco Labs’ mission is to normalize and professionalize the cannabis\nindustry through a CPG approach to building national brands and a\ncustomer-focused retail experience, while acting as a steward for the industry\non legislative and regulatory-focused initiatives. As a leader in cultivation,\nproduction, and branded product distribution, the Company is leveraging its\nscale and agility to grow its portfolio of brands that include Cresco, High\nSupply, FloraCal, Good News, Wonder Wellness Co., Mindy’s, and Remedi, on a\nnational level. The Company also operates highly productive dispensaries\nnationally under the Sunnyside brand that focus on building patient and\nconsumer trust and delivering ongoing education and convenience in a\nwonderfully traditional retail experience. Through year-round policy,\ncommunity outreach and SEED initiative efforts, Cresco Labs embraces the\nresponsibility to support communities through authentic engagement, economic\nopportunity, investment, workforce development, and legislative initiatives\ndesigned to create the most responsible, respectable and robust cannabis\nindustry possible. Learn more about Cresco Labs’ journey by visiting\nwww.crescolabs.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.crescolabs.com%2F&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=www.crescolabs.com&index=4&md5=2370d3ddcfe4b8b1e80f6bd9229e4223)\nor following the Company on Facebook\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.facebook.com%2FCrescoLabsOfficial&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=Facebook&index=5&md5=3f33c9c9006619b0fb275c80c95a0e83)\n, X\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fx.com%2Fcrescolabs&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=X&index=6&md5=9f17c17cc565c9de4465c397f762f314)\nor LinkedIn\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fcresco-labs%2F&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=LinkedIn&index=7&md5=c81a02cfa9a63ebfa9a5e1ad1144dc15)\n.\n\nForward-Looking Statements\n\nThis press release contains “forward-looking information” within the\nmeaning of applicable Canadian securities legislation and may also contain\nstatements that may constitute “forward-looking statements” within the\nmeaning of the safe harbor provisions of the United States Private Securities\nLitigation Reform Act of 1995 (collectively, “forward-looking\nstatements”). Such forward-looking statements are not representative of\nhistorical facts or information or current condition but instead represent\nonly the Company’s beliefs regarding future events, plans or objectives,\nmany of which, by their nature, are inherently uncertain and outside of the\nCompany’s control. Generally, such forward-looking statements can be\nidentified by the use of forward-looking terminology such as, ‘may,’\n‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’\n‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’\n‘projects,’ ‘predicts,’ ‘potential,’ or ‘continue,’ or the\nnegative of those forms or other comparable terms. The Company’s\nforward-looking statements involve known and unknown risks, uncertainties, and\nother factors which may cause the Company’s actual results, performance or\nachievements to be materially different from any future results, performance\nor achievements expressed or implied by the forward-looking statements,\nincluding but not limited to those risks discussed under “Risk Factors” in\nthe Company’s Annual Information Form for the year ended December 31, 2025,\nfiled on SEDAR+ and EDGAR, other documents filed by the Company with Canadian\nsecurities regulatory authorities; and other factors, many of which are beyond\nthe control of the Company. Readers are cautioned that the foregoing list of\nfactors is not exhaustive. Because of these uncertainties, you should not\nplace undue reliance on the Company’s forward-looking statements. No\nassurances are given as to the future trading price or trading volumes of\nCresco Labs’ shares, nor as to the Company’s financial performance in\nfuture financial periods. The Company does not intend to update any of these\nfactors or to publicly announce the result of any revisions to any of the\nCompany’s forward-looking statements contained herein, whether as a result\nof new information, any future event, or otherwise. Except as otherwise\nindicated, this press release speaks as of the date hereof. The distribution\nof this press release does not imply that there has been no change in the\naffairs of the Company after the date hereof or create any duty or commitment\nto update or supplement any information provided in this press release or\notherwise.\n Cresco Labs Inc. \n Financial Information and Non-GAAP Reconciliations \n (All amounts expressed in thousands of U.S. Dollars) \n               \n Unaudited Consolidated Statements of Operations \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Revenues, net   $ 151,325     $ 161,553     $ 165,757   \n Cost of goods sold     75,876       78,232       87,126   \n Gross profit     75,449       83,321       78,631   \n Gross profit %     49.9 %     51.6 %     47.4 % \n Operating expenses:             \n Selling, general, and administrative     54,496       57,014       57,811   \n Share-based compensation     4,861       3,415       2,075   \n Depreciation and amortization     4,919       4,966       5,156   \n Impairment loss     —       93,471       —   \n Total operating expenses     64,276       158,866       65,042   \n Income (Loss) from operations     11,173       (75,545 )     13,589   \n               \n Other (expense) income, net:             \n Interest expense, net(2)     (14,927 )     (14,264 )     (14,854 ) \n Other income, net(2)     960       2,664       347   \n Total other expense, net     (13,967 )     (11,600 )     (14,507 ) \n Loss before income taxes     (2,794 )     (87,145 )     (918 ) \n Income tax expense     (14,220 )     (1,804 )     (14,316 ) \n Net loss(1)   $ (17,014 )   $ (88,949 )   $ (15,234 ) \n (1 )Net loss includes amounts attributable to non-controlling interests. \n \n \n \n(2) Certain immaterial prior period amounts were reclassified to conform to \n the current presentation. \n\n Cresco Labs Inc. \n Unaudited Reconciliation of Gross Profit to Adjusted Gross Profit (Non-GAAP) \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Revenues, net   $ 151,325     $ 161,553     $ 165,757   \n Cost of goods sold(1)     75,876       78,232       87,126   \n Gross profit   $ 75,449     $ 83,321     $ 78,631   \n Fair value mark-up for acquired inventory     593       28       —   \n Cost of goods sold adjustments for acquisition and other non-core costs     702       1,049       3,144   \n Adjusted gross profit (Non-GAAP)   $ 76,744     $ 84,398     $ 81,775   \n Adjusted gross profit % (Non-GAAP)     50.7 %     52.2 %     49.3 % \n (1 )Production (cultivation, manufacturing, and processing) costs related to \n products sold during the period. \n\n Cresco Labs Inc. \n Summarized Consolidated Statements of Financial Position \n As of March 31, 2026 and December 31, 2025 \n           \n ($ in thousands)   March 31,   December 31, \n \n2026 \n2025 \n     (unaudited)     \n Cash, cash equivalents, and restricted cash (current)   $ 63,573   $ 91,086 \n Other current assets     183,098     168,187 \n Property and equipment, net     325,589     327,192 \n Intangible assets, net     288,449     275,342 \n Goodwill     209,041     208,173 \n Other non-current assets     129,109     127,320 \n Total assets   $ 1,198,859   $ 1,197,300 \n           \n Total current liabilities   $ 98,172   $ 100,180 \n Total non-current liabilities     856,476     844,618 \n Total shareholders’ equity     244,211     252,502 \n Total liabilities and shareholders’ equity   $ 1,198,859   $ 1,197,300 \n\n Cresco Labs Inc. \n Unaudited Reconciliation of SG&A to Adjusted SG&A (Non-GAAP) \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Selling, general, and administrative   $ 54,496     $ 57,014     $ 57,811   \n Adjustments for acquisition and other non-core costs     3,542       7,702       4,841   \n Adjusted SG&A (Non-GAAP)   $ 50,954     $ 49,312     $ 52,970   \n Adjusted SG&A % (Non-GAAP)     33.7 %     30.5 %     32.0 % \n\n Cresco Labs Inc. \n Unaudited Reconciliation of Net Loss to Adjusted EBITDA (Non-GAAP) \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Net loss(1)   $ (17,014 )   $ (88,949 )   $ (15,234 ) \n Depreciation and amortization     12,216       10,758       12,906   \n Interest expense, net(2)     14,927       14,264       14,854   \n Income tax expense     14,220       1,804       14,316   \n EBITDA (Non-GAAP)   $ 24,349     $ (62,123 )   $ 26,842   \n               \n Other expense, net(2)     (960 )     (2,664 )     (347 ) \n Fair value mark-up for acquired inventory     593       28       —   \n Adjustments for acquisition and other non-core costs     3,661       8,071       7,015   \n Impairment loss     —       93,471       —   \n Share-based compensation     5,255       3,652       2,723   \n Adjusted EBITDA (Non-GAAP)   $ 32,898     $ 40,435     $ 36,233   \n Adjusted EBITDA % (Non-GAAP)     21.7 %     25.0 %     21.9 % \n (1) Net loss includes amounts attributable to non-controlling interests. \n \n \n \n(2) Certain immaterial prior period amounts were reclassified to conform to \n the current presentation. \n\n Cresco Labs Inc. \n Unaudited Summarized Consolidated Statements of Cash Flows \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Net cash (used in) provided by operating activities   $ (5,631 )   $ 27,432     $ 30,463   \n Net cash used in investing activities     (13,232 )     (13,242 )     (6,869 ) \n Net cash used in financing activities     (8,646 )     (1,793 )     (5,733 ) \n Effect of foreign currency exchange rate changes on cash and cash equivalents     (2 )     (17 )     2   \n Net (decrease) increase in cash and cash equivalents   $ (27,511 )   $ 12,380     $ 17,863   \n Cash and cash equivalents and restricted cash, beginning of period     94,335       81,956       144,255   \n Cash and cash equivalents and restricted cash, end of period   $ 66,824     $ 94,336     $ 162,118   \n\n Cresco Labs Inc. \n Unaudited Reconciliation of Operating Cash Flow to Free Cash Flow (Non-GAAP) \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Net cash (used in) provided by operating activities   $ (5,631 )   $ 27,432     $ 30,463   \n Purchases of property and equipment     (7,638 )     (9,016 )     (5,818 ) \n Proceeds from tenant improvement allowances     75       —       50   \n Free Cash Flow (Non-GAAP)   $ (13,194 )   $ 18,416     $ 24,695   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260507583575/en/\n(https://www.businesswire.com/news/home/20260507583575/en/)\n\nMedia \n\nPress@crescolabs.com (mailto:Press@crescolabs.com)\n\nInvestors \n\nSharon Schuler, Chief Financial Officer\n\ninvestors@crescolabs.com (mailto:investors@crescolabs.com)\n\nFor general Cresco Labs inquiries: \n\n312-929-0993\n\ninfo@crescolabs.com (mailto:info@crescolabs.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw7k57Xra","title":"Cresco Labs Reports First Quarter 2026 Financial Results, Advances Multiple Growth Initiatives","author":"Business Wire","ticker":"CL","created":"2026-05-08T10:30:00.264Z","tickers":["CL"],"exchange":"","article_body":"Cresco Labs Reports First Quarter 2026 Financial Results, Advances Multiple\nGrowth Initiatives\n\nCresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“Cresco Labs” or the\n“Company”), the industry leader in branded cannabis products with a\nportfolio of America’s most popular brands and the operator of Sunnyside\ndispensaries, today released its financial and operating results for the first\nquarter ended March 31, 2026. All financial information presented in this\nrelease is reported in accordance with U.S. GAAP and in U.S. dollars, unless\notherwise indicated, and is available on the Company’s investor website,\nhere\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.crescolabs.com%2Foverview%2Fdefault.aspx&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=here&index=1&md5=00e2a7e020e601a0fd2bf628652d2fa5)\n.\n\nFirst Quarter 2026 Highlights\n\n\n * First quarter revenue of $151 million.\n\n * Gross profit of $75 million. Adjusted gross profit(1) of $77 million; and an\nAdjusted gross margin(1) of 50.7%.\n\n * SG&A of $54 million or 36.0% of revenue. Adjusted SG&A of $51 million\nor 33.7%.\n\n * Net loss of $17 million.\n\n * First quarter Adjusted EBITDA(1) of $33 million and Adjusted EBITDA margin(1)\nof 21.7%.\n\n * Retained the No. 1 share position in multiple billion dollar markets.(2)\n\nSubsequent to Quarter End\n\n\n * Was conditionally awarded a Texas Compassionate Use Program license for\nvertically integrated operations.\n\n * Opened two new Ohio dispensaries: Bridgeport on April 10, 2026, and Aberdeen\non May 5, 2026.\n\n * Began supporting operations of nine Pennsylvania dispensaries under a\nmanagement services agreement.\n\n * The Trump Administration reclassified medical marijuana to Schedule III under\nthe Controlled Substances Act, a step that is expected to eliminate the\napplication of Section 280E to Cresco's medical operations; Attorney General\nBlanche announced an expedited process to review the classification of\nmarijuana more broadly, with a hearing beginning on June 29, 2026.\n\nManagement Commentary\n\n“Q1 reflects continued progress against a clear plan and the strengthening\nof our growth platform. Subsequent to the quarter, we have added 11\ndispensaries to our platform across Pennsylvania and Ohio, expanding our\nscaled footprint in core markets. We’ve shifted Kentucky from the investment\nphase into revenue generation with our first harvest in April and we have\nadded meaningful long-term optionality by being awarded a conditional medical\nlicense in Texas.”\n\n“Moving state-legal medical cannabis from Schedule I to Schedule III is the\nmost consequential reform this industry has seen, and it validates the work\nwe've been executing on for years. More broadly, this is an important step in\na longer path towards normalization. We look forward to the hearings on the\ngeneral rescheduling of cannabis on June 29th. We've built the operational\nfoundation and balance sheet discipline to capture immediate benefits of\nrescheduling, while positioning Cresco to capitalize on the broader path to\nnormalization.”\n (1) See “Non-GAAP Financial Measures” at the end of this press release for \n more information regarding the Company’s use of non-GAAP financial measures. \n (2) According to Hoodie Analytics. \n\n\nBalance Sheet and Other Financial Information\n\n\n * As of March 31, 2026, the Company had $67 million of cash, cash equivalents,\nand restricted cash, a senior secured term loan, net of discount and issuance\ncosts, of $310 million and a mortgage loan, net of discount and issuance\ncosts, of $19 million.\n\n * Total shares on a fully converted basis to Subordinate Voting Shares were\n505,023,292 as of March 31, 2026.\n\nEarnings Webcast\n\nThe Company will host an earnings webcast to discuss its financial results on\nFriday, May 8, 2026, at 8:30am Eastern Time (7:30am Central Time). The\nearnings call may be accessed via webcast, here\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fattendee%2F843035052&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=here&index=2&md5=1ad05aaf26ca1d4a1bffbc2ea2de8838)\n. Archived access to the webcast will be available for one year on Cresco\nLabs’ investor website, here\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.crescolabs.com%2Foverview%2Fdefault.aspx&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=here&index=3&md5=b2aa2bb9b7e4ec31103de04540841e20)\n.\n\nConsolidated Financial Statements\n\nThe financial information reported in this press release is based on unaudited\nmanagement prepared financial statements for the quarter ended March 31, 2026.\nThese financial statements have been prepared in accordance with U.S. GAAP.\nThe Company expects to file its unaudited condensed interim consolidated\nfinancial statements for the quarter ended March 31, 2026, on SEDAR+ and EDGAR\non or about May 8, 2026. Accordingly, such financial information may be\nsubject to change. All financial information contained in this press release\nis qualified in its entirety with reference to such financial statements.\nWhile the Company does not expect there to be any material changes between the\ninformation contained in this press release and the consolidated financial\nstatements it files on SEDAR+ and EDGAR, to the extent that the financial\ninformation contained in this press release is inconsistent with the\ninformation contained in the Company’s financial statements, the financial\ninformation contained in this press release shall be deemed to be modified or\nsuperseded by the Company’s filed financial statements. The making of a\nmodifying or superseding statement shall not be deemed an admission, for any\npurposes, that the modified or superseded statement, when made, constituted a\nmisrepresentation for purposes of applicable securities laws. Further, the\nreader should refer to the additional disclosures in the Company’s audited\nfinancial statements for the year ended December 31, 2025, filed on SEDAR+ and\nEDGAR.\n\nCresco Labs references certain non-GAAP financial measures throughout this\npress release, which may not be comparable to similar measures presented by\nother issuers. Please see the “Non-GAAP Financial Measures” section below\nfor more detailed information.\n\nNon-GAAP Financial Measures\n\nThis release reports its financial results in accordance with U.S. GAAP and\nincludes certain non-GAAP financial measures that do not have standardized\ndefinitions under U.S. GAAP. The non-GAAP measures include: Earnings before\ninterest, taxes, depreciation, and amortization (“EBITDA”); Adjusted\nEBITDA; Adjusted EBITDA margin; Adjusted gross profit; Adjusted gross profit\nmargin; Adjusted selling, general, and administrative expenses (“Adjusted\nSG&A”), Adjusted SG&A margin; and Free Cash Flow are non-GAAP\nfinancial measures and do not have standardized definitions under U.S. GAAP.\nThe Company defines these non-GAAP financial measures as follows: EBITDA as\nnet loss (income) before interest, taxes, depreciation, and amortization;\nAdjusted EBITDA as EBITDA less other (expense) income, net, fair value mark-up\nfor acquired inventory, adjustments for acquisition and non-core costs,\nimpairment and share-based compensation; Adjusted EBITDA Margin as Adjusted\nEBITDA divided by revenues, net; Adjusted gross profit as gross profit less\nfair value mark-up for acquired inventory and adjustments for acquisition and\nnon-core costs; Adjusted gross profit margin as Adjusted gross profit divided\nby revenues, net; Adjusted SG&A as SG&A less adjustments for\nacquisition and non-core costs; Adjusted SG&A margin as Adjusted SG&A\ndivided by revenues, net; and Free Cash Flow as Net cash provided by operating\nactivities less purchases of property and equipment and proceeds from tenant\nimprovement allowances. The Company has provided the non-GAAP financial\nmeasures, which are not calculated or presented in accordance with U.S. GAAP,\nas supplemental information and in addition to the financial measures that are\ncalculated and presented in accordance with U.S. GAAP and may not be\ncomparable to similar measures presented by other issuers. These supplemental\nnon-GAAP financial measures are presented because management has evaluated the\nfinancial results both including and excluding the adjusted items and believe\nthat the supplemental non-GAAP financial measures presented provide additional\nperspective and insights when analyzing the core operating performance of the\nbusiness. These supplemental non-GAAP financial measures should not be\nconsidered superior to, as a substitute for or as an alternative to, and\nshould only be considered in conjunction with, the U.S. GAAP financial\nmeasures presented herein. Accordingly, the Company has included below\nreconciliations of the supplemental non-GAAP financial measures to the most\ndirectly comparable financial measures calculated and presented in accordance\nwith U.S. GAAP.\n\nThis news release constitutes a “designated news release” for the purposes\nof the Company’s prospectus supplement dated January 29, 2026, to its short\nform base shelf prospectus dated October 3, 2025.\n\nAbout Cresco Labs Inc.\n\nCresco Labs’ mission is to normalize and professionalize the cannabis\nindustry through a CPG approach to building national brands and a\ncustomer-focused retail experience, while acting as a steward for the industry\non legislative and regulatory-focused initiatives. As a leader in cultivation,\nproduction, and branded product distribution, the Company is leveraging its\nscale and agility to grow its portfolio of brands that include Cresco, High\nSupply, FloraCal, Good News, Wonder Wellness Co., Mindy’s, and Remedi, on a\nnational level. The Company also operates highly productive dispensaries\nnationally under the Sunnyside brand that focus on building patient and\nconsumer trust and delivering ongoing education and convenience in a\nwonderfully traditional retail experience. Through year-round policy,\ncommunity outreach and SEED initiative efforts, Cresco Labs embraces the\nresponsibility to support communities through authentic engagement, economic\nopportunity, investment, workforce development, and legislative initiatives\ndesigned to create the most responsible, respectable and robust cannabis\nindustry possible. Learn more about Cresco Labs’ journey by visiting\nwww.crescolabs.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.crescolabs.com%2F&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=www.crescolabs.com&index=4&md5=2370d3ddcfe4b8b1e80f6bd9229e4223)\nor following the Company on Facebook\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.facebook.com%2FCrescoLabsOfficial&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=Facebook&index=5&md5=3f33c9c9006619b0fb275c80c95a0e83)\n, X\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fx.com%2Fcrescolabs&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=X&index=6&md5=9f17c17cc565c9de4465c397f762f314)\nor LinkedIn\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fcresco-labs%2F&esheet=54531786&newsitemid=20260507583575&lan=en-US&anchor=LinkedIn&index=7&md5=c81a02cfa9a63ebfa9a5e1ad1144dc15)\n.\n\nForward-Looking Statements\n\nThis press release contains “forward-looking information” within the\nmeaning of applicable Canadian securities legislation and may also contain\nstatements that may constitute “forward-looking statements” within the\nmeaning of the safe harbor provisions of the United States Private Securities\nLitigation Reform Act of 1995 (collectively, “forward-looking\nstatements”). Such forward-looking statements are not representative of\nhistorical facts or information or current condition but instead represent\nonly the Company’s beliefs regarding future events, plans or objectives,\nmany of which, by their nature, are inherently uncertain and outside of the\nCompany’s control. Generally, such forward-looking statements can be\nidentified by the use of forward-looking terminology such as, ‘may,’\n‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’\n‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’\n‘projects,’ ‘predicts,’ ‘potential,’ or ‘continue,’ or the\nnegative of those forms or other comparable terms. The Company’s\nforward-looking statements involve known and unknown risks, uncertainties, and\nother factors which may cause the Company’s actual results, performance or\nachievements to be materially different from any future results, performance\nor achievements expressed or implied by the forward-looking statements,\nincluding but not limited to those risks discussed under “Risk Factors” in\nthe Company’s Annual Information Form for the year ended December 31, 2025,\nfiled on SEDAR+ and EDGAR, other documents filed by the Company with Canadian\nsecurities regulatory authorities; and other factors, many of which are beyond\nthe control of the Company. Readers are cautioned that the foregoing list of\nfactors is not exhaustive. Because of these uncertainties, you should not\nplace undue reliance on the Company’s forward-looking statements. No\nassurances are given as to the future trading price or trading volumes of\nCresco Labs’ shares, nor as to the Company’s financial performance in\nfuture financial periods. The Company does not intend to update any of these\nfactors or to publicly announce the result of any revisions to any of the\nCompany’s forward-looking statements contained herein, whether as a result\nof new information, any future event, or otherwise. Except as otherwise\nindicated, this press release speaks as of the date hereof. The distribution\nof this press release does not imply that there has been no change in the\naffairs of the Company after the date hereof or create any duty or commitment\nto update or supplement any information provided in this press release or\notherwise.\n Cresco Labs Inc. \n Financial Information and Non-GAAP Reconciliations \n (All amounts expressed in thousands of U.S. Dollars) \n               \n Unaudited Consolidated Statements of Operations \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Revenues, net   $ 151,325     $ 161,553     $ 165,757   \n Cost of goods sold     75,876       78,232       87,126   \n Gross profit     75,449       83,321       78,631   \n Gross profit %     49.9 %     51.6 %     47.4 % \n Operating expenses:             \n Selling, general, and administrative     54,496       57,014       57,811   \n Share-based compensation     4,861       3,415       2,075   \n Depreciation and amortization     4,919       4,966       5,156   \n Impairment loss     —       93,471       —   \n Total operating expenses     64,276       158,866       65,042   \n Income (Loss) from operations     11,173       (75,545 )     13,589   \n               \n Other (expense) income, net:             \n Interest expense, net(2)     (14,927 )     (14,264 )     (14,854 ) \n Other income, net(2)     960       2,664       347   \n Total other expense, net     (13,967 )     (11,600 )     (14,507 ) \n Loss before income taxes     (2,794 )     (87,145 )     (918 ) \n Income tax expense     (14,220 )     (1,804 )     (14,316 ) \n Net loss(1)   $ (17,014 )   $ (88,949 )   $ (15,234 ) \n (1 )Net loss includes amounts attributable to non-controlling interests. \n \n \n \n(2) Certain immaterial prior period amounts were reclassified to conform to \n the current presentation. \n\n Cresco Labs Inc. \n Unaudited Reconciliation of Gross Profit to Adjusted Gross Profit (Non-GAAP) \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Revenues, net   $ 151,325     $ 161,553     $ 165,757   \n Cost of goods sold(1)     75,876       78,232       87,126   \n Gross profit   $ 75,449     $ 83,321     $ 78,631   \n Fair value mark-up for acquired inventory     593       28       —   \n Cost of goods sold adjustments for acquisition and other non-core costs     702       1,049       3,144   \n Adjusted gross profit (Non-GAAP)   $ 76,744     $ 84,398     $ 81,775   \n Adjusted gross profit % (Non-GAAP)     50.7 %     52.2 %     49.3 % \n (1 )Production (cultivation, manufacturing, and processing) costs related to \n products sold during the period. \n\n Cresco Labs Inc. \n Summarized Consolidated Statements of Financial Position \n As of March 31, 2026 and December 31, 2025 \n           \n ($ in thousands)   March 31,   December 31, \n \n2026 \n2025 \n     (unaudited)     \n Cash, cash equivalents, and restricted cash (current)   $ 63,573   $ 91,086 \n Other current assets     183,098     168,187 \n Property and equipment, net     325,589     327,192 \n Intangible assets, net     288,449     275,342 \n Goodwill     209,041     208,173 \n Other non-current assets     129,109     127,320 \n Total assets   $ 1,198,859   $ 1,197,300 \n           \n Total current liabilities   $ 98,172   $ 100,180 \n Total non-current liabilities     856,476     844,618 \n Total shareholders’ equity     244,211     252,502 \n Total liabilities and shareholders’ equity   $ 1,198,859   $ 1,197,300 \n\n Cresco Labs Inc. \n Unaudited Reconciliation of SG&A to Adjusted SG&A (Non-GAAP) \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Selling, general, and administrative   $ 54,496     $ 57,014     $ 57,811   \n Adjustments for acquisition and other non-core costs     3,542       7,702       4,841   \n Adjusted SG&A (Non-GAAP)   $ 50,954     $ 49,312     $ 52,970   \n Adjusted SG&A % (Non-GAAP)     33.7 %     30.5 %     32.0 % \n\n Cresco Labs Inc. \n Unaudited Reconciliation of Net Loss to Adjusted EBITDA (Non-GAAP) \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Net loss(1)   $ (17,014 )   $ (88,949 )   $ (15,234 ) \n Depreciation and amortization     12,216       10,758       12,906   \n Interest expense, net(2)     14,927       14,264       14,854   \n Income tax expense     14,220       1,804       14,316   \n EBITDA (Non-GAAP)   $ 24,349     $ (62,123 )   $ 26,842   \n               \n Other expense, net(2)     (960 )     (2,664 )     (347 ) \n Fair value mark-up for acquired inventory     593       28       —   \n Adjustments for acquisition and other non-core costs     3,661       8,071       7,015   \n Impairment loss     —       93,471       —   \n Share-based compensation     5,255       3,652       2,723   \n Adjusted EBITDA (Non-GAAP)   $ 32,898     $ 40,435     $ 36,233   \n Adjusted EBITDA % (Non-GAAP)     21.7 %     25.0 %     21.9 % \n (1) Net loss includes amounts attributable to non-controlling interests. \n \n \n \n(2) Certain immaterial prior period amounts were reclassified to conform to \n the current presentation. \n\n Cresco Labs Inc. \n Unaudited Summarized Consolidated Statements of Cash Flows \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Net cash (used in) provided by operating activities   $ (5,631 )   $ 27,432     $ 30,463   \n Net cash used in investing activities     (13,232 )     (13,242 )     (6,869 ) \n Net cash used in financing activities     (8,646 )     (1,793 )     (5,733 ) \n Effect of foreign currency exchange rate changes on cash and cash equivalents     (2 )     (17 )     2   \n Net (decrease) increase in cash and cash equivalents   $ (27,511 )   $ 12,380     $ 17,863   \n Cash and cash equivalents and restricted cash, beginning of period     94,335       81,956       144,255   \n Cash and cash equivalents and restricted cash, end of period   $ 66,824     $ 94,336     $ 162,118   \n\n Cresco Labs Inc. \n Unaudited Reconciliation of Operating Cash Flow to Free Cash Flow (Non-GAAP) \n For the Three Months Ended March 31, 2026, December 31, 2025, and March 31, \n 2025 \n               \n     For the Three Months Ended \n ($ in thousands)   March 31,   December 31,   March 31, \n \n2026 \n2025 \n2025 \n Net cash (used in) provided by operating activities   $ (5,631 )   $ 27,432     $ 30,463   \n Purchases of property and equipment     (7,638 )     (9,016 )     (5,818 ) \n Proceeds from tenant improvement allowances     75       —       50   \n Free Cash Flow (Non-GAAP)   $ (13,194 )   $ 18,416     $ 24,695   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260507583575/en/\n(https://www.businesswire.com/news/home/20260507583575/en/)\n\nMedia \n\nPress@crescolabs.com (mailto:Press@crescolabs.com)\n\nInvestors \n\nSharon Schuler, Chief Financial Officer\n\ninvestors@crescolabs.com (mailto:investors@crescolabs.com)\n\nFor general Cresco Labs inquiries: \n\n312-929-0993\n\ninfo@crescolabs.com (mailto:info@crescolabs.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-08T10:30:00.33532136Z","server_sent_at_ms":1778236200335},"received_at":"2026-05-08T10:30:00.615Z","source_url":"https://www.businesswire.com/news/home/20260507583575/en/"},"analysis":null,"durationMs":null,"modelName":null}}