NEW YORK and TORONTO, Aug. 12, 2025 — iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) (CSE: IAN, OTCID: ITHUF), which owns, operates, and partners with regulated cannabis operations across the United States, today reported its financial results for the second quarter ended June 30, 2025. The Company’s Quarterly Report on Form 10-Q (the “Quarterly Report”), which includes its unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2025 and the related management’s discussion and analysis of financial condition and results of operations, can be accessed on the Securities and Exchange Commission’s (“SEC’s”) website at www.sec.gov, on the System for Electronic Document Analysis and Retrieval’s (SEDAR+) website at www.sedarplus.com, and on the Company’s website at www.iAnthus.com. The Company’s financial statements are reported in accordance with U.S. generally accepted accounting principles (“GAAP”). All currency is expressed in U.S. dollars.
Second Quarter 2025 Financial Highlights
- Revenue of $35.2 million, a decrease of $2.9 million from Q1 2025 and a decrease of $7.8 million from the same quarter in the prior year.
- Gross profit of $16.2 million, a decrease of $2.7 million from Q1 2025 and a decrease $4.5 million from the same quarter in the prior year.
- Gross margin of 46%, reflecting a decrease of 362 bps when compared to Q1 2025 and a decrease of 221 bps from the same quarter in the prior year.
- Net loss of $18.7 million, or a net loss of less than $0.00 per share, compared to a net income of $5.1 million, or a net income of less than $0.00 per share in Q1 2025, and compared to a net loss of $9.8 million, or a net loss of $0.00 per share, in the same quarter in the prior year.
- Adjusted EBITDA(1) of $1.9 million, a decrease from an Adjusted EBITDA of $3.2 million in Q1 2025, and a decrease from an Adjusted EBITDA of $8.9 million from the same quarter in the prior year. EBITDA and Adjusted EBITDA are non-GAAP measures. Reconciliation tables of EBITDA and Adjusted EBITDA as used in this press release to GAAP are included below.
| Table 1: Financial Results | ||||||||
| in thousands of US$, except per share amounts (unaudited) | Q2 2025 | Q1 2025 | Q2 2024 | |||||
| Revenue | $ | 35,185 | $ | 38,121 | $ | 42,999 | ||
| Gross profit | 16,152 | 18,878 | 20,690 | |||||
| Gross margin | 45.9% | 49.5% | 48.1% | |||||
| Net income (loss) | (18,718) | 5,150 | (9,789) | |||||
| Net income (loss) per share | (0.00) | 0.00 | (0.00) | |||||
| Table 2: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA(1) | ||||||||
| in thousands of US$ (unaudited) | Q2 2025 | Q1 2025 | Q2 2024 | |||||
| Net income (loss) | $ | (18,718) | $ | 5,150 | $ | (9,789) | ||
| Depreciation and amortization | 4,599 | 4,709 | 6,204 | |||||
| Interest expense, net | 3,534 | 4,212 | 4,241 | |||||
| Income tax expense(2) | 4,131 | 4,009 | 6,923 | |||||
| EBITDA (Non-GAAP)(1) | $ | (6,453) | $ | 18,080 | $ | 7,579 | ||
| Adjustments: | ||||||||
| Write-downs and other charges, net | 1,630 | (149) | 306 | |||||
| Inventory reserves and write-downs | 91 | 110 | 183 | |||||
| Accretion expense | 1,212 | 1,189 | 1,165 | |||||
| Share-based compensation | 544 | 521 | 726 | |||||
| Losses from changes in fair value of financial instruments | 4 | 4 | 16 | |||||
| (Gain) loss from equity method investments | (5) | 17 | 60 | |||||
| Non-recurring charges(3) | 5,622 | 374 | 1,084 | |||||
| Gains from deconsolidation of subsidiaries(4) | – | (12,085) | (2,120) | |||||
| Other income(5) | (751) | (4,047) | (52) | |||||
| Change in accounting estimate(6) | – | (811) | – | |||||
| Total Adjustments | $ | 8,349 | $ | (14,877) | $ | 1,368 | ||
| Adjusted EBITDA (Non-GAAP)(1) | $ | 1,896 | $ | 3,203 | $ | 8,947 | ||
| (1) See “Non-GAAP Financial Information” below for more information regarding the Company’s use of non-GAAP financial measures. | ||||||||
| (2) Prior period amounts have been conformed to follow an accounting policy change made by the Company to aggregate interest and penalties related to accrued income taxes within “income tax expense” from within “selling, general and administrative expenses” in its unaudited interim condensed consolidated statement of operations. | ||||||||
| (3) Non-recurring charges includes one-time, non-recurring costs related to strategic review processes, ongoing legal disputes, severance and other non-recurring costs. | ||||||||
| (4) Q1 2025 reflects a gain of $12.1 million on deconsolidation following the sale of Nevada and certain Arizona assets. | ||||||||
| (5) Q2 2025 reflects $0.7 million of Employee Retention Tax Credits (“ERTCs”) and tax refunds received during the quarter. Q1 2025 reflects $3.0 million of ERTC received during the quarter and $1.0 million of forgiven deferred professional fees. Q2 2024 reflects less than $0.1 million of accounts payable write-offs and vendor credits. | ||||||||
| (6) In January 2025, the Company implemented a change in accounting estimate with respect to inventory valuation from weighted average to standard costing. | ||||||||
Non-GAAP Financial Information
This press release includes certain non-GAAP financial measures as defined by the SEC and the Canadian Securities Administrators. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the tables above. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.
In evaluating our business, we consider and use EBITDA and Adjusted EBITDA as supplemental measures of operating performance. We define EBITDA as earnings before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before share-based compensation, accretion expense, write-downs and impairments, gains and losses from changes in fair values of financial instruments, income or losses from equity-accounted investments, the effect of changes in accounting policy, non-recurring costs related to the Company’s Recapitalization Transaction, litigation costs related to ongoing legal proceedings, and other income. We present EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance of other similarly situated companies in our industry, and we present Adjusted EBITDA because it removes non-recurring, irregular and one-time items that we believe may distort the comparability of EBITDA from period-to-period and with other industry participants.
EBITDA and Adjusted EBITDA are not standardized financial measures defined under GAAP, and are not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA have limitations as an analytical tool, and when assessing the Company’s operating performance, investors should not consider EBITDA or Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with GAAP. Among other things, EBITDA and Adjusted EBITDA do not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than us, limiting their usefulness as comparative tools. We compensate for these limitations by relying on GAAP results and using EBITDA and Adjusted EBITDA only as supplemental information.
About iAnthus
iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States. For more information, visit www.iAnthus.com.
