The company sees extremely mixed results in its fiscal second quarter
California-based KushCo Holdings had an interesting second fiscal quarter. The cannabis packaging company saw its revenue triple to $35.2 million – up from the $10.4 million during the same period a year earlier – and its losses increase from $7.6 million to $8.9 million.
The consensus for the company had been that it would receive revenue of around $25.5 million, so the fact that it collected around $7 million is a good sign. KushCo raised its full-year revenue guidance to between $140 million and $150 million, up from the $110-$120 million previously announced. The new guidance, according to KushCo CEO Nick Kovacevich, reflects the results across the entire first half and several new supply agreements that were “in principle” ready to be signed.
KushCo blamed part of its loss – around $1.4 million – on the ongoing trade war between China and the U.S., but adds that it should be profitable by fiscal year 2020.
The company is still considering going public and has been talking to both the NYSE and NASDAQ about its options. KushCo doesn’t have a preference and says it will go to whichever exchange is the first to say yes.
KushCo had to swallow its pride earlier this week and issue a major correction. It announced on Tuesday that there had been errors in its financial accounting that would cause it to reissue its net income for both 2017 and 2018. It added that the net losses from last year would be more than double what had previously been reported.