Mr. T.J. Cole reports

CRESCO LABS DELIVERS STRONG Q3, MAINTAINS MARKET LEADERSHIP, AND UNLOCKS NEW GROWTH OPPORTUNITIES

Cresco Labs Inc. has released its financial and operating results for the third quarter ended Sept. 30, 2025. All financial information presented in this release is reported in accordance with U.S. GAAP (generally accepted accounting principles) and in U.S. dollars, unless otherwise indicated, and is available on the company's investor website.

Third quarter 2025 highlights:

• Third quarter revenue of $165-million; third quarter operating cash flow of $6-million;
• Gross profit of $79-million; adjusted gross profit of $80-million; and an adjusted gross margin of 48.8 per cent;
• SG&A (selling, general and administrative expenses) of $52-million, or 31.3 per cent of revenue;
• Net loss of $22-million, includes a $16-million loss for debt extinguishment related to the refinancing of the company's senior secured term loan and non-cash impairment charges of $2-million related to California assets being considered held for sale;
• Third quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $40-million and adjusted EBITDA margin of 24.1 per cent;
• Retained the No. 1 share position in multiple billion-dollar markets.

Management commentary

"In Q3, we refinanced our debt and strengthened our balance sheet while delivering solid results and maintaining leadership across key markets through disciplined execution. Our proven retail and wholesale capabilities continue to drive profitability, while new dispensaries in Ohio, expansion into Kentucky and our upcoming product launch in Germany are unlocking compelling avenues for growth. Together, these initiatives position Cresco Labs to outperform the market and create lasting shareholder value.

"The cannabis industry is entering a new phase of growth and consolidation, and Cresco Labs is prepared to lead. Operators with scale, efficiency and discipline will define the next chapter. By leveraging our core assets and operational excellence, we're building an emerging growth platform designed to create long-term value, both within and beyond regulated U.S. cannabis."

Balance sheet, liquidity and other financial information:

• On Aug. 13, 2025, the company closed a refinancing of its senior secured term credit facility to reduce total debt and extend the debt maturity to 2030. The new $325-million senior secured term loan bears an interest rate of 12.5 per cent per annum and matures on Aug. 13, 2030. Proceeds from the new facility, together with cash on hand, were used to repay the company's prior $360-million facility.
• As of Sept. 30, 2025, current assets were $243-million, including cash, cash equivalents and restricted cash of $79-million. An additional $3-million of restricted cash was classified as a non-current asset. The company had senior secured term loan debt, net of discount and issuance costs, of $309-million and a mortgage loan, net of discount and issuance costs, of $18-million.
• Total shares on a fully converted basis to subordinate voting shares were 490,889,023 as of Sept. 30, 2025.

Conference call and webcast

The company will host a conference call and webcast to discuss its financial results on Wednesday, Nov. 5, 2025, at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). The conference call may be accessed by webcast or by dialling 1-833-470-1428 (U.S. toll-free) or 1-646-844-6383 (U.S. local), and providing access code 307245. Archived access to the webcast will be available for one year on Cresco Labs' investor website.

Consolidated financial statements

The financial information reported in this press release is based on unaudited management prepared financial statements for the quarter ended Sept. 30, 2025. These financial statements have been prepared in accordance with U.S. GAAP. The company expects to file its unaudited condensed interim consolidated financial statements for the quarter ended Sept. 30, 2025, on SEDAR+ and EDGAR on or about Nov. 7, 2025. Accordingly, such financial information may be subject to change. All financial information contained in this press release is qualified in its entirety with reference to such financial statements. While the company does not expect there to be any material changes between the information contained in this press release and the consolidated financial statements it files on SEDAR+ and EDGAR, to the extent that the financial information contained in this press release is inconsistent with the information contained in the company's financial statements, the financial information contained in this press release shall be deemed to be modified or superseded by the company's filed financial statements. The making of a modifying or superseding statement shall not be deemed an admission, for any purposes, that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws. Further, the reader should refer to the additional disclosures in the company's audited financial statements for the year ended Dec. 31, 2024, filed on SEDAR+ and EDGAR.

About Cresco Labs Inc.

Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG (consumer packaged goods) approach to building national brands and a customer-focused retail experience while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production and branded product distribution, the company is leveraging its scale and agility to grow its portfolio of brands, including Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's and Remedi, on a national level. The company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering continuing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED (social equity and educational development) initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, work force development and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible.

We seek Safe Harbor.