Entourage Health Corp.

Entourage reported Q3 2024 total revenue of $13.6 million, up 11% year over year, and net revenue of $9.5 million, up 9% year over year. Gross profit before changes in fair value was $2.9 million versus $2.4 million a year ago, an increase of 20%; EBITDA increased 70% in the quarter and 65% year over year. SG&A was down 32% year over year in Q3 and down 31% for the nine-month period. On a sequential basis, total revenue increased 11.5% versus Q2 2024. For the nine months ended September 30, 2024, net revenue grew 2%, gross profit before fair value changes grew 24%, and average selling price per gram after excise duty was $1.73, down $0.81 or 32%. Cash and cash equivalents were $3.5 million at quarter-end, down $7.6 million from December 2023. Management did not provide formal next-quarter or full-year financial guidance, but said it aims to close the year strongly and highlighted a 2025 product launch pipeline.

George Scorsis framed the quarter as proof that the company’s diversification and cost actions are working, citing expansion into alternative sales channels, adult use and medical as contributors to top-line growth. He emphasized operational progress, including pre-roll automation, more than 2 million pre-rolls produced monthly, 23 new SKUs, and Dime Bag’s strong early performance. His tone was optimistic but cautious, repeatedly noting industry headwinds and saying the company is focused on growth, profitability, and finishing the year strongly.

Vaani Maharaj focused on the drivers behind the numbers: total revenue of $13.6 million, net revenue of $9.5 million, gross profit before fair value changes of $2.9 million, and SG&A down 32% year over year. She said net revenue growth came mainly from bulk sales, while medical revenue fell 7% and adult use was flat in the quarter; for the nine months, bulk sales offset declines in adult use and medical. She also flagged that cash and cash equivalents were $3.5 million at quarter-end, cash burn is decreasing, biomass costs are expected to stay elevated in the short term, and the company is working with its largest lender on a forbearance resolution that expires January 15, 2025.

There were no analyst questions in the call, as the operator stated there were no questions. As a result, no management follow-up or additional clarification was provided beyond the prepared remarks. The main open issues that surfaced were the upcoming January 15, 2025 forbearance expiration and ongoing pressure from lower selling prices and higher biomass costs.