In a world where many U.S. cannabis multi-state operators (MSOs) laud the their ability to generate positive Adjusted EBITDA, MariMed, Inc. (OTC:MRMD) goes a couple of steps further. As their most recent financials show, MariMed is generating substantial free cash flow, allowing them to expand both their asset base and cash reserves while growing the core business at a measured clip.
The financials of reference are MariMed’s fiscal first quarter ended March 31, 2022. Despite incredibly difficult market conditions—exacerbated by widescale price compression predicted by Cantor Fitzgerald analyst Pablo Zuanic in Q3, 2021—the company delivered growth. According to the report, MariMed managed to increase sequential revenue by +0.77% while elevating gross margin by 437 basis points (54.26% in Q1 2022 from 49.89% in Q4 2021), despite most competitor MSOS experiencing margin contraction.
