XS Financial Reports Record Earnings for 2023 Fiscal Year

XS Financial Inc., a specialty finance provider targeting the U.S. cannabis industry, announced a significant growth in its annual revenue for the year ended December 31, 2023. The company generated an annual revenue of $11.7 million, marking a 54% increase from the $7.6 million reported in 2022. Additionally, XS Financial experienced a notable improvement in net distributable earnings, reaching $0.4 million in 2023 compared to a loss of $0.9 million in the previous year.

For the fourth quarter of 2023, XS Financial saw a revenue rise to $2.9 million, up from $2.5 million in the corresponding quarter of 2022, which accounts for a 14% increase year-over-year. Despite challenges such as a major customer potentially rejecting leases, the company has maintained a portfolio of active leases and reported growth in lease sizes and monthly recurring payments.

David Kivitz, CEO of XS Financial, noted the slowdown in industry growth but expects a rebound in the latter half of 2024 driven by market expansions from medicinal to adult use. The full-year and quarterly results reflect a decreasing trend in operating expenses and an increase in financing income, improving the overall fiscal health of the company.