Like a decently growing marijuana plant, Harvest Health & Recreation (HRVSF) is showing some encouraging improvements in its fundamentals as revealed in its fourth quarter of fiscal 2020 results published on Tuesday.

For the quarter, the cannabis company earned $69.9 million. That was 85% higher on a year-over-year basis and 13% better than the third-quarter result.

On the bottom line, Harvest Health managed to narrow its net loss to a comparatively mild $5.2 million. In Q4 2019, the company posted a shortfall of $59.6 million, and in the previous quarter the deficit was nearly $84.5 million.

Blue-gloved hand making OK sign in front of marijuana plants.

Image source: Getty Images.

Marijuana companies like to emphasize adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) as a profitability yardstick; the line item for Harvest Health was $9.1 million in the black against Q3's $11.5 million profit and a loss of $8.8 million in Q4 2019.

In its current quarter (Q1), Harvest Health is estimating that its revenue will amount to a minimum of $87 million. This would be nearly double the $45 million the company booked in Q1 2020. This estimate feels realistic as Arizona is one of the more recent states to legalize the consumption and sale of recreational marijuana. The company is based in the state, where it currently has 15 open dispensaries.

For full-year 2021, Harvest Health has set a revenue target of $380 million. That figure was just under $231.5 million in 2020. The company said it would continue implementing its strategy of making targeted investments in its "core markets," namely Arizona, Florida, Maryland, and Pennsylvania. Recreational marijuana isn't legal in any of the latter three, but it seems increasingly possible this will change soon.

In mid-afternoon trading Wednesday, Harvest Health shares were up by 0.3%, slightly lagging the gain of the S&P 500 index.