Curaleaf Q1 Revenue Growth Stalls


  • First quarter 2024 revenue of $339 million, representing an increase of 2% year-over-year and adjusted gross margin(1) of 48%
  • First quarter 2024 adjusted EBITDA(1) of $77 million, representing 23% of revenue, a 40 basis point improvement year-over-year
  • First quarter 2024 operating cash flow from continuing operations of $46 million and free cash flow(1) of $33 million
  • Repurchased $15 million of our December 2026 notes at a 7.75% discount

NEW YORK, May 9, 2024 /PRNewswire/ — Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer products in cannabis, today reported its financial and operating results for the first quarter ended March 31, 2024. All financial information is reported in accordance with U.S. generally accepted accounting principles (GAAP) and is provided in U.S. dollars unless otherwise indicated.

Boris Jordan, Executive Chairman of Curaleaf, stated, “Consistent with our expectations, first quarter revenue grew 2% to $339 million, and we achieved a 48% adjusted gross margin. Adjusted EBITDA margin(1) was $77 million or 23% of sales, expanding 40bps from last year. We ended the first quarter with $105 million of cash on the balance sheet, and generated operating and free cash flow from continuing operations(1) of $46 million and $33 million, respectively. We have started to redeploy this cash toward reducing leverage on our balance sheet, as seen by the $15 million bond repurchase executed in April. At this important inflection point in our industry and our Company, on the heels of rescheduling news, our expanded custody solutions and the advances in Europe, Curaleaf has evolved from an MSO to an MCO, a multi-country operator, a term which represents our global vision and business that today spans over 15 countries across the world. With each ensuing quarter, we will create further separation from our peers because of the strategic global lens through which we operate. We are very encouraged by the catalysts thus far with more on the horizon, and our success and future potential would not be possible without our global team members. I thank them all.”

Matt Darin, Chief Executive Officer of Curaleaf, commented, “We are laser focused on expanding the global reach of our brand portfolio, with Select, Grassroots, Curaleaf, and Four20 in Europe leading the way. In the first quarter, our team gained 33 basis points of total market share across all BDSA states, expanding our share in some of the largest markets throughout the U.S.. Our wholesale advantage is growing steadily, and we continue to innovate with new products consumers love. Our unique exposure to the most significant catalysts on the horizon – continued expansion of the NY market, expansion of Pillar 1 in Germany, and adult use in Ohio, Florida, and Pennsylvania sets us up for robust growth in 2025 and beyond. The global cannabis industry is still in its infancy and we are confident that the foundation we have built is one for long-term success.”

First Quarter 2024 Financial Highlights

  • Net Revenue of $338.9 million, a year-over-year increase of 2% compared to Q1 2023 revenue of $332.6 million. Sequentially, net revenue decreased 2%
  • Gross profit of $160.9 million and gross margin of 47%
  • Adjusted gross profit(1) of $161.4 million and adjusted gross margin(1) of 48%, up 120 basis points sequentially
  • Net loss attributable to Curaleaf Holdings, Inc. of $48.3 million or net loss per share $0.07
  • Adjusted EBITDA(1) of $76.7 million and adjusted EBITDA margin([1]) of 23%, a 40 basis point improvement year-over-year
  • Cash at quarter end totaled $105.0 million
  • Operating and free cash flow from continuing operations of $46.1 million and $33.1 million, respectively

First Quarter 2024 Operational Highlights

  • Opened our first adult-use store in New York’s Hudson Valley, ending the quarter with 145 U.S. retail stores.
  • Launched Stir by Zero Proof, a fast-acting THC beverage mix, in Illinois.
  • Launched Stiq, a new 1g all-in-one cannabis oil vape, in Arizona.
  • Announced the acquisition of Northern Green Canada (NGC), a vertically integrated Canadian EU-GMP indoor cannabis producer, focused primarily on solidifying our supply chain and expanding our international presence through its EU-GMP certified facilities.
  • Curaleaf International rebranded Sapphire Clinics to Curaleaf Clinics in the U.K.
  • Acquired Can4Med, an experienced pharmaceutical wholesaler in Poland to enhance our market presence.
  • Curaleaf International made its first wholesale shipment into Czech Republic.

Post First Quarter 2024 Operational Highlights

  • Completed the Northern Green Canada acquisition for a purchase price of approximately $16.0 million plus an earnout.
  • Purchased for cancellation $15.0 million of our Senior Secured Notes – 2026 at a discount of 7.75%, saving the Company $3.2 million of future interest payments.

¹Adjusted EBITDA, adjusted gross profit and free cash flow from continuing operations are non-GAAP financial measures, and adjusted EBITDA margin and adjusted gross margin are non-GAAP financial ratios, in each case without a standardized definition under GAAP and which may not be comparable to similar measures used by other issuers. See “Non-GAAP Financial Performance Measures” below for definitions and more information regarding Curaleaf’s use of non-GAAP financial measures and non-GAAP financial ratios. See the section entitled “Reconciliation of Non-GAAP financial measures” below for a reconciliation of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures.

Balance Sheet and Cash Flow

As of March 31, 2024, the Company had $105.0 million of cash and $580.3 million of outstanding debt net of unamortized debt discounts.

During the three months ended March 31, 2024, Curaleaf invested $13.0 million, net in capital expenditures, focused on cultivation, automation, and selective retail expansion in strategic markets.

Shares Outstanding

For the first quarter of 2024 and 2023, the Company’s weighted average Subordinate Voting Shares plus Multiple Voting Shares outstanding amounted to 736,147,618 and 718,117,628 shares, respectively.

Conference Call Information

The Company will host a conference call and audio webcast for investors and analysts on Thursday May 9, 2024 at 5:00 P.M. ET to discuss Q1 2024 earnings results. The call can be accessed by dialing 1-844-512-2926 in the U.S., internationally 1-412-317-6300 or from Canada 1-416-639-5883. The conference pin # is 7489402.

A replay of the conference call can be accessed at 1-877-344-7529 or internationally 1-412-317-0088 or from Canada 1-855-669-9658, using the replay pin # 7935470.

A webcast of the call can be accessed on the investor relations section of the Curaleaf website at The teleconference will be available for replay starting at approximately 7:00 P.M. ET on May 9, 2024 and will end at 11:59 P.M. ET on May 16, 2024.

Original press release

Published by NCV Newswire
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