What is Revenue (TTM)?

Revenue (TTM) stands for trailing twelve months revenue, which sums up the total sales a company has generated over the most recent four consecutive fiscal quarters. This rolling metric smooths out seasonal fluctuations and provides a more current picture of a company's size and growth trajectory than annual figures, which may be up to 11 months out of date.

TTM revenue is the denominator in the widely used price-to-sales ratio and enterprise-value-to-revenue ratio. It is also a key input for analysts building financial models and forecasting future performance. For cannabis companies, which often experience meaningful quarter-over-quarter growth (or decline), TTM revenue is preferable to using just the most recent quarter's revenue annualized, as that approach can over- or understate the true run rate.

Revenue growth rate, specifically year-over-year TTM revenue growth, is one of the most closely watched metrics for cannabis stocks. The industry is still in a growth phase, and investors reward companies that are expanding their top line. However, revenue quality matters as much as revenue quantity: recurring revenue from established retail locations is generally valued more highly than one-time wholesale deals or revenue from markets that may face regulatory headwinds.

When comparing cannabis companies by revenue, it is important to consider the revenue mix. Some companies derive a large portion of revenue from cannabis cultivation and retail, while others include ancillary revenue streams such as real estate, technology licensing, or consumer products. Understanding what drives revenue helps investors assess the sustainability and growth potential of the top line.

When analyzing revenue (ttm) for cannabis stocks, investors must account for industry-specific factors that can distort this metric compared to other sectors. Section 280E tax treatment dramatically impacts profitability metrics for US plant-touching operators, potentially making profitable companies appear unprofitable on paper. Additionally, the rapid growth phase of the cannabis industry means that historical comparisons within the sector itself may be limited.

Cannabis companies often report both GAAP and adjusted financial figures, and revenue (ttm) may differ significantly between the two. Investors should understand which version is being presented and what adjustments have been made. Comparing revenue (ttm) across cannabis sub-sectors (MSOs vs. LPs vs. ancillary companies) requires additional context because each faces different regulatory environments, tax treatments, and competitive dynamics.