Cresco Labs reported Q1 2024 revenue of $183.5 million, essentially flat year-over-year, as the company continued to pursue operating leverage through cost discipline and footprint optimization amid ongoing price compression. Management highlighted a 580 basis point year-over-year improvement in operating gross margin (to 51.5% on an adjusted basis) driven by aggressive SG&A reductions and supply-chain efficiencies, supported by a $53 million adjusted EBITDA print (26.0% EBITDARatio, 29% of revenue) and $36 million of operating cash flow (with $33 million of positive free cash flow). The quarter featured meaningful progress in strategic markets (Ohio, Florida, Pennsylvania) in advance of adult-use transitions, along with a scalable Sunnyside retail/tech stack that contributed to higher basket sizes and online order flow (420 event). Cresco maintained a strong balance sheet posture, generating free cash flow while investing in capex to support future growth, and guiding for 2024 full-year gross margins around 50% with capex of $50–$70 million. Management also flagged potential upside from 280E-related tax optimizations and ongoing tax-position reviews, which could materially affect cash flow in 2024. Looking ahead, the company positions for AU-driven growth in key states, potential new markets (Maryland/New Jersey), and continued operating leverage as adult-use conversions unfold over 2025–2026, even as price pressures and supply dynamics remain meaningful near term.