Chicago-based cannabis firm Green Thumb Industries last week reported impressive 2020 financial results, including 157% revenue growth and nearly 550% adjusted EBITDA growth.
Both revenue ($556 million) and EBITDA ($180 million) beat consensus estimates, however GTI founder Ben Kovler believes things are just getting started.
“We’re still in the early inning of the great American cannabis growth story,” he said during a call with investors and analysts last Thursday.
Indeed, just 15 states currently permit the sale of adult-use cannabis, while 36 states have established medical marijuana laws. The substance is legal in some form across 47 states, and legal sales eclipsed $17.5 billion last year, according to BDSA.
Meanwhile, Virginia is on the verge of becoming the 16th state to legalize adult-use marijuana, while states like New York, Connecticut, and Rhode Island, among others, are looking to follow suit this year.
For Green Thumb, any legislative developments would throw fuel on an already raging fire.
The company completed nearly 4 million transactions in 2020 and posted $177 million in sales during the fourth quarter alone. GTI also had positive net income of $15 million in 2020 and ended the year with $95 million in free cash flow.
“That’s a real business with real momentum,” Kovler told CNBC’s Squawk on the Street last week.
But perhaps the biggest breakthrough for GTI was completing an initial public offering in the U.S. and raising $156 million via the sale of SEC-registered shares to U.S. investors.
“We view the institutional support as a vote of confidence in our proven operating model and a leading indicator of what’s to come for