MedMen Enterprises Inc.

MedMen reported first-quarter fiscal 2022 revenue of $39.8 million from continuing operations, up 13.4% year over year. Company-wide retail revenue was $42.8 million, up 17.6% from $36.4 million a year ago, and company-wide retail transactions increased 20% year over year. Company-wide retail gross margin was $22.3 million, or 52% of revenue, up $2.7 million year over year but down 180 basis points; continuing-operations gross margin was $17.5 million, or 43.9% of revenue, down 3 percentage points. Retail adjusted EBITDA was $7.7 million, up 31.9% year over year, while company-wide retail adjusted EBITDA including distribution expenses was $7.2 million. Corporate SG&A excluding preopening costs was $14.6 million, up 42.6% year over year, largely from $3.9 million of litigation-related professional fees. Per-share loss from continuing operations was $0.05, flat with last year. Cash and cash equivalents were $78.2 million, total assets were $531.9 million, and the company said it raised about $89.6 million in net cash from investing and financing activities in the quarter. No formal next-quarter or full-year revenue/EPS guidance was provided, but management said it expects continued store openings and improving profitability as new stores come online; planned openings include two in California, two in Massachusetts, and one in Illinois, plus additional Florida stores.

Tom Lynch framed the quarter as another step in MedMen’s turnaround, emphasizing solid year-over-year growth despite a softer macro backdrop and more promotional competition. He said the company is shifting from stabilization to growth, with new store openings and better unit economics expected to drive company-wide profitability in coming quarters. His tone was constructive but disciplined, especially on Florida, where he said the company will be more deliberate because of price compression and will focus on unit economics rather than chasing market share.

Reece Fulgham highlighted improved year-over-year operating performance and a repaired balance sheet. He pointed to company-wide retail revenue of $42.8 million, gross margin of $22.3 million at 52% of revenue, retail adjusted EBITDA of $7.7 million, and cash and equivalents of $78.2 million. He also detailed the capital structure moves: Tilray-affiliated investors acquired about $165.8 million of senior secured convertible notes and associated warrants, the notes’ maturity was extended to August 17, 2028, cash interest was eliminated in favor of payment-in-kind interest, and MedMen closed a $100 million PIPE led by Serruya Private Equity.

The main analyst question focused on Florida price compression and whether it changes the growth strategy. Tom Lynch said MedMen still likes Florida long term, but will be more deliberate and disciplined in expansion while monitoring how promotions and pricing shake out. A second question asked how email marketing is translating into customer acquisition; management said about 40% of email engagement and activity is now coming from newly acquired customers, and that the company is working to capture more customer data through loyalty and POS systems.