QX joining fiscal for Thank everyone earnings you, Phil, thank and our call. you
I’d start First, sales like to the with update.
with $XX.X in an of to increase record-breaking million another representing quarter XXXX. XXX% of foremost, revenues of and million, $XX.X First QX compared
quarter. up XX% to a represents QX revenue QX, quarter's from last $XX.X million from This increase
XX%. quarter-over-quarter average Over the is quarters, increase past XX revenue the
continuing going start specifically showing we year-over-year sales at XX% a be markets QX, breakout, are earning to that of representing remain slides, geographic to Slide California our the to the out Now, when at sales the most driver main rapid confident sales supplemental is while other you believe a of state X, pace, QX million look continue what up QX $XX dramatic stands XXX% in is to the growth, our catch-up and and and grow. a year-over-year, we was a a out, at XXX% XXX% another and market grow from QX Northeast to continues to XX% going as Massachusetts, California to QX. The pace, to call in to California growth.
the last a on mentioned XXX% quarter we each I over Massachusetts As growth expect call, this fiscal in year.
look earnings to Next, want at X, the talk Slide where I in deck, we shift. slide supplemental about mix another
-- has growing focus still ours a of been at us shift XX%. below and percentage. have as we that the big vape a of of getting we’re company, mix Obviously goal Our our revenue a
decrease and expect reach it long-term We that we our can goal.
and the seeing sales positioning board in $XXX,XXX the reached that able of that we in that came The partnership pleased category new the grow primary behind see However, entered of We we we was to as were monthly from products XX% new point working Natural our in sales we our in from $XXX,XXX in partnership. are Products. our QX XX% natural we of were company almost to and across for last well vape timeframe driver energy around the products that October, only generating into of natural and QX, of February, we're to increase our our sales that with a and sales last that pleased November month began year. division where were with demand and was as
the side us. buying our if SKUs able cross-sell enhance we XX customers XX it to basis the our customers able we're are stickier XX spending way you're like customers going existing A breakout $X to Over generate higher a than last we over with into doing shows month on able we're and to with customers by $XXX,XXX we more buckets $X see are track in from us on deeper different base, with more wider over we're make last customer up defensible of huge us. had more progression that margin us, moving spend where increase with us dollars, a are XX worth that months, to and spending relationship and because average we're that XX million see metric million and with us money cross-selling. spending more We That's long-term. that a full
I'd like about to capital. working Next, talk
I of sheet $X Number callouts to from refer million. cash and have few a to there. improving want one, our I First, cash balance QX
up offering million our and inventory prepared to and loaded QX, Chinese million take $XX.X $XX able QX. the from by QX. of at continue $XX our driven we through we to cash did net some with that the end were sure QX, make the inventory, to happened This of sales of to ending put direct registered the January in in million almost We end inventory wanted mainly cash able see into proceeds growing with Year goals to of million. For on aggressive and and into near $XX.X at QX and were you was inventory we of enough right QX we it up New end were we
talk bit to business. nature the want about our I a of Next, little
talked capital on calls, I As intensive is this business. previous working a
transit sales to We some pace. months to for at to two we a between But as the have three buying three or our of we're products constantly increased inventory rate. and a months somewhere to products out, times XX% out ramp because two buy rapid XX% to times happen more continue define and times lead
can do And can a it. we now there's this get those credit making and in our go negative weeks So vendor current can coming dilutive our product We're we've been than biggest to more capital we'd with start work we're credit constantly going And the be here we're scenario today. into less weeks. and Number really fix to terms, selling will ways to few that. working from factory as recently as including buying progress doing and like terms working there, we're result, vendors better measures and a primary effect significant with capital ago we one, partners scenario. we in three that a receiving and
in wanting credit improving. be is Congress got it of are it open yet. $XX that has banks largest leveraging it leveraging the banks larger the ultimately facility. the in going have with way companies facility. us is traditional to today. us through there banking These larger around banking environment against country talk open for it, credit like progress that also been not to we us the working one table $XX things a up going in and States of We facility. traditional funds assets receivables But in things about Act, to is to another the cannabis with We to is We financing cannabis. the aren’t that We that $X and industry. up bulge inventory. initiative. amount start believe But see to to looking now in working able current we’re We're the on which and that million million $X only to at coming continue justify but to currently solve larger know million bracket continued will We've the only for over million credit lenders credit with our see than completely of the We available debt
the this here improve can So in is debt the able fund we through be coming we’ve future. third remain this the capital we course working past. to very confident financing equity our way that and we're utilized relationships going investment And of to in that
in is because growth. capital last want We But can to our do we slow most will financing down we of three thing continue we ways the to is as offset utilize this dilutive. working our that demand, the recognize equity that the the future necessary
And would necessary to that to do the going is one prefer ways leverage but we’re we're the business to growing. three to whatever grow so, pace two to continue and going we prior to at
in our ACH We to that translates percentage a handling it us clients cash wire access were expense of reduce handling able be of were as changes are facilities cheaper We and to receive, internal able our to in to top-selling on through we able cost items, our to cash cost that of costs some been as get banking a than recent for our of of form. including I cash cash flow. to high we're unions able have tender ago and credit shipping obviously we and more of March Now, payment incremental top-selling reduce on really to free reductions made those we’ve one, many able improving Xst. also go received week Number were quickly. and seeing SKUs. we a some wanted discontinue we to a has
is something will in offset the as warehouses also the we supplement mandatory inventory to will hopes in point. also it's optimizing agreements. initial a to This to reduce tariffs implemented warehouse. And cross-country that all the efficient of we our We’ve or We’re at we’ve eliminate our look in clauses some ship some very we cross-region most lastly, to fees. unnecessary eventually small implementing eventually our here This across an stopped sure as we've away shipments tariffs customer start altogether make facilities. can will that of from take go but started continue upon expand round and tariff start
warehouse capital now customers tie So requiring had certain we’re on that, that of we’ve that it within sitting timeframe, have be our ordered a product so product we the shelf. at ton doesn't and had up shipped custom our to
to Now, like QX I margins. our would quickly gross address
we we’re right has table. earnings strategic in in Our past. We topic initiatives to pleased we’ve touched previous on direction and going margins do on execute non-GAAP to breakout a a that big been very gross see margins the the as the calls on continue
areas. tariffs. but we've a non-reoccurring product And quality that and done and adjusted in should it here you'll should You be relatively be for you in in adjusted Right for to non-reoccurring We quality see issues. in the we've will dramatically see those air improve about and QX. that see about to costs XXX airfreight we've we’ve believe we’ve product QX impact lot areas impact adjusted past talked less we've in Section talked some able costs, no those freighting now for
direction. right all the that's going in So
We continue any drag market tariffs an to biggest on charged is doing investment. that we tariffs margins to It's of as that in $X.X ate was actually and grow offset our supplement in did maintain QX, to tariffs. the none we've almost been customers, the so We paid share. Now, million that. fees strategically by
offsetting looking it. are at We
the tariff to QX to tariff war to continue incrementally going implemented We're to some As look and There I that mentioned, in the fees. QX to with soon. come. this probably going more very is we've hopes end are recoup
specific these for we entitled those items achieve of Now, that we for actually our exemption, of exemption up have items this our are and tariffs our believe do back also we we an and well this for be we that for filed would of goal because ‘XX. exemption. that XX% Should to believe are products. paid fees getting on fiscal by we some We core our to we to able and able to to of go maintained receive back that be recoup on have core margins goal we profitability getting positioned
to like a of significant strategic moves making. I'd some making Next, We've that investments company been look we've the been get to certain scale. to the at
such our we allowing a efficiencies. scale beyond customers also lot they great our to of to other cost get to to reduction. cost is is go although, as is vendors allowing to, price new seeing that of for not increasing but these scale are is able which get we other grow power go with reduction to as we to can having go operational our sell starting further more for distributors it’s We’re what a because clients What only also continue us It's this doing if revenues. purchasing that scale, are folks risk trying We're is coming direct. eliminating direct scale
We've hub. implemented into Manhattan We optimizing our are WMS now warehouse our main warehouses. system
We opportunities the savings significant impact to an rollout cost country. around we from already to exclusive system opportunities, as And seeing impact facilities going we’re to take be WMS and fund have joint QX, clientele. in one because relationships of in can. and coming as QX those advantage know force with giving And to footprints We've first the products We’re including our to and also continue the other that products industry. largest of to are or to division. we're the distribute from got scale that will got that, our of this our continued there. likely products into ventures, with semi-exclusive And marketplace. look with sell the semi-exclusive of best we the market also to are those as to us we developing able new we’re and key out all us folks a Koleto our sales We've exclusive the coming and result,
by rolling and we're the of are products year. be -- going They're have several specifically customers higher throughout are for and get maintain products rest here customers. able We designed innovative. to These to products in that be able going We're going IP. to be and margins the some have fiscal these highly to have going QX out to to who been
core continue contracts focused our customers. to to from are to able lastly, going going to We stay volume committed long-term growing we're And business. on these be get
is continue to we huge lining core business opportunity. the just Our if up execute. really It's
And all in as monetize have also we through out core building pieces evolve the and the better of planning business, hard our units that network other network. but of we're our monetizing network. examining strategic we're valuable work some can develop. place extremely it where we We ways so strategic monetize to we we're now believe we to same also should business that have current And
all very continue does pace. should mean? at So means this what organically revenue that grow to It you see rapid a
see goal percentage net headcount You revenue to 'XX. decrease see in of decrease we our to a toward you'll as percentage profitability track SG&A fiscal as to continue should and of start a quarter start losses revenue to continue as each decrease, of
different key talk We position to having our the believe Because on want believe revenue great I comes these because it sales very in at revenues developing primarily growing believe ramp, million ground about to to with pace current infrastructure. Next, actively front are a an we a our up bit a online. a were little that sales and pipeline. fiscal We $XXX range. all that we're We're as that continued revenue guidance to pipeline for We're And We're organic. we this our boots that that in of single markets force, our every revenue on seeing us. XXXX million the that a from $XXX buy strategy that position relationships customers is in we ultimately a seeing with of a rapid accomplish key products new growth market current players, we're first raising in where very confident million to success. in we're We're more new at we our million is $XXX a growth of can business. success. winning this getting be to from see $XXX the And in organic basis. sales we're mover revenue us,
look So growth. would this on we M&A any it robust if at of top activity, doing only be
Next, to I'd past like of the on reports. financial our comment restatement
company for restate fiscal its Hybrid period its Wellness, April press The announced and our of related within non-cash acquisitions issued decision in its Xth, annual to statements XXXX for prior interim CMP financial Innovations the Creative. periods Summit and XXXX on noted As items release to
Although operating any restatement result restated did fiscal to the historical or company's for did profit not revenue, operations results, any from adjustments periods. gross net impact of cash the to in flows the have the company's adjustments
enter tied the structure typically post we of to period into deals, whereby enter into some asset we performance price acquisition acquisition the time. is As of for directly M&A an actual earnout the
flagging technical Mr. not error the for working to would team Unfortunately, XXXX. accrue GAAP earnout was issue with and this Previously, appropriate periods, while end it our make to for the back his at and May against will identified advisory CFO in stock accruing the liability by previous Chris we in this liability these periods, corrections we earnout that were and and the the down previous consultants as like we where accordance land this Tedford. commend earnout issue I metrics standards. up our As new this dating addressing period. Chris I of note finance swiftly during moves missed a have on. team to head to believe of
areas, while be to with our that and important overall to assist a extremely continue best-in-class XXX. is mature implementing the this financial accordance To company have and developing COSO we controls SOX it accounting we retained As internal and in upgrade all structure continue national company striving matter, to in in compliance. advisory to firm we the control its
have including been to and of hazmat delivery items. legal certain our license with areas sales from for requiring to counsel is compliance KYC operating utmost we ensure In upgrades geographic status the addition, policy, with the making working verification restricting company
I'd to Lastly, minutes outlook. a address of like to couple future take the
opportunity touched Massachusetts. as growth in plenty of First growth Michigan foremost, on emerging in I markets. and in there's seeing of tremendous We're the some these well.
just voted for significant whole to California. bigger eventually in going the that we’re market. than seeing think be Northeast I success think the Obviously, they as adult California is We a use.
so, but The Canada. only up huge adult not underlying for market growth that starting seeing in up. the prepare lumpy robust We're that the to opening And really seeing began start. of Canada our sales international great The that up. markets are to are are in recreational trends numbers also Northeast use are are they the for well. October a year, that last some LPs opening a in for Canada of They stocking is as be going our is business. fairly
opportunity. very in and we’re the So about opportunity and Midwest. the excited very We on on opportunities Northeast the Canadian upcoming Michigan bullish we the bullish remain remain very
with That We're win seeing of working recently we big terms CBD huge In opportunity Farm in with lot we passing. of start level that there customers a sparked a to were that grow political CBD. the volumes. really the the had for a at Bill
We’re lot with to the seeing start into working move customers of CBD. we THC a were in
packaging, We specifically be looking natural reinvigorate our CBD brands services this of lot products themselves through have ethanol, division, opportunities a baking, and or and Bill. course energy in our CBD light launch for also with Hybrid Creative. branding to can There of of Farm also in
it at would positive get for companies lot progress in exchanges something seeing major banking that SAFE Banking We’re opinion. we were Act the that remain It’s working-on that on basis to occur going level. unlock uplift would think other us. company our to of and major the having an do this exchange. progress something a that access is today a we’re listing likely The theme and make the federal also unlock is We not in continuing in like an We're confident on months. will the coming that ongoing approved
at We our that being capital. are also again. know We very market to looking is M&A with leader a strong access position
the into We’re get in coming to a going to And be categories, however, putting able that, markets accretive size that went things the financial point, have believe lot We look us. seeing Tedford results. a deals, for over from this that’s to accretive are may our to an us to arbitrage At we’re some strong. fiscal multiple. QX do looking putting turn effect these I’d don’t us structure position exit, out to Chris of that to discuss strategic, like opportunity, into underfunded with smaller gigantic our expect anything accretive at are revenue deals. to that be we we been We're to while M&A it they start companies or able structure we
