The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis stocks that generate industry sales of more than US$7.5 million per quarter. This data-driven, fact-based tracker will continually update based on new financial filings so that readers can stay up to date. Companies must file with the SEC or SEDAR to be considered for inclusion. Please note that we raised the minimum quarterly revenue in May from US$2.5 million and from US$5.0 million in October.
43 companies currently qualify for inclusion, with 27 filing in U.S dollars and 16 in the Canadian currency, which is down from 44 when we reported at the end of October due to one addition, Canadian retailer Alcanna (TSX: CLIQ) (OTC: LQSIF), and the removal of Halo Labs (NEO: HALO) (OTC: AGEEF) and Terra Tech (OTC: TRTC), both of which saw revenue fall sequentially below the minimum required to qualify.
In May, we began to include an additional metric, “Adjusted Operating Income”, as we detailed in our newsletter. The calculation takes the reported operating income and adjusts it for any changes in the fair value of biological assets required under IFRS accounting. We believe that this adjustment improves comparability for the companies across IFRS and GAAP accounting. We note that often operating income can include one-time items like stock compensation, inventory write-downs or public listing expenses, and we recommend that readers understand how these non-cash items can impact quarterly financials.
One trend we have observed is that many of the companies are now providing pro forma revenue as well, which is an attempt to more accurately portray the operations by taking into account the results of closed and pending acquisitions as the multi-state operator (MSO) space rapidly consolidates. Our rankings include only actual reported revenue.
For companies that report in U.S. dollars, several have done so in the first half of November. GW Pharma (NASDAQ: GWPH) generated Q3 revenue of $91 million, which was slightly ahead of expectations and represented 26% growth over Q2. Helping to boost sales was $1.9 million of Epidyolex sales in Europe, the company’s first. KushCo Holdings (OTC: KSHB) exceeded expectations with revenue in its Q4 ending 8/31, with sales of $47 million growing 135% from year-ago levels. The company provided initial guidance for its fiscal 2020, with revenue expected to exceed $230 million compared to FY19 revenue of $149 million. Tilray (NASDAQ: TLRY) generated cannabis revenue of