Curaleaf Q2 Revenue Increases 8% Sequentially to $338 Million

Curaleaf Reports Second Quarter 2022 Results
  • Second Quarter 2022 Revenue of $338 Million, an increase of 8% sequentially and YoY
  • Second Quarter 2022 Adjusted EBITDA(1) of $86 Million, an increase of 18% sequentially and 2% YoY
  • Generated $12 Million of Positive Operating Cash Flow for the First Half of 2022

WAKEFIELD, Mass., Aug. 8, 2022 /PRNewswire/ — Curaleaf Holdings, Inc. (CSE: 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 second quarter ended June 30, 2022. All financial information is provided in U.S. dollars unless otherwise indicated.

Earnings Call: Monday, August 8, 2022, at 5:00 P.M. ET
Conference ID # is 7759736
Replay ID # is 4470743

U.S. Callers: +1-844-763-8274
U.S. Replay: +1-877-344-7529
International Callers: +1-412-717-9224

International Replay (Toll): +1-412-317-0088
Canadian Callers: +1-416-639-5883
Canadian Replay: +1-855-669-9658

The teleconference will be rebroadcasted starting at 7:00 P.M. ET
on August 8, 2022 and will end at 7:00 P.M. ET on August 15, 2022

Our record breaking second quarter got off to a great start with the launch of adult use in New Jersey and a historic 4/20. We bounced back from earlier headwinds to grow revenue 8%, and AEBITDA 18% sequentially, while continuing to execute on our growth strategy for Europe, a key differentiator for Curaleaf and a significant advantage over our competitors.

Boris Jordan, Executive Chairman of Curaleaf

I am also very pleased to report that thanks to our vertical penetration and operating efficiencies, Adjusted EBITDA margins expanded to 26%. The fundamentals of our business are strong, and our leadership team is moving with speed and discipline, continuing to set-up 2022 as another milestone year.

Matt Darin, Chief Executive Officer of Curaleaf, stated, “In the second quarter we made key adjustments and some bold decisions to focus on operational excellence, innovative products and brands, and leadership talent, and we are already seeing positive results as demonstrated by a 267 bps improvement in gross margin on cannabis sales. This quarter we continued to grow our retail footprint, expand our distribution partnerships and launch innovative new product lines that excite consumers and invigorate the industry. The power of our platform, our products and our people is undeniable, and we are now realizing the impact our long term strategy both in the U.S. and abroad. And with today’s announcement of key hires in our Chief Financial Officer, Chief Investment Officer and Chief Strategy Officer, I am more confident than ever that Curaleaf will continue to be the global leader in the cannabis industry.”

Second Quarter Operating Highlights

  • Added seven new retail dispensaries, closing the quarter with 135 total locations, and serviced nearly 2,200 wholesale partner accounts.
  • Commenced adult-use sales in New Jersey, with BDSA estimating a $2.3 billion market by 2026.
  • Executed historic 4/20 with net revenue increasing 45% year-over-year.
  • Launched Endless Coast Cannabis-Infused Seltzers, a highly sociable line of low-calorie, low-sugar and low-carb beverages.
  • Signed a distribution agreement with WB Canna Co. & Wellness which will launch Curaleaf’s Hemp and Select CBD product lines in the U.S. Virgin IslandsPuerto RicoArubaBermudaBarbados, Cayman, Costa RicaGuatemalaJamaica, and Saint Maarten, as well as additional markets in Latin America.
  • Tyneeha Rivers joined as the Company’s first Chief People Officer in June and has made an immediate impact on organizational dynamics and leadership culture.

Post Second Quarter Operating Highlights

  • Opened Tampa Citrus Park dispensary, our 51st in Florida and 136th overall.
  • Launched “The Farmer’s Select” program, an ongoing series of limited-edition collaborations with licensed legacy farmers and diverse operators in California.
  • Launched Plant Precision, a health and wellness line of products featuring the minor cannabinoids in combination with lower levels of THC to address a variety of need states for new consumer segments.
  • Announced key hires in Ed Kremer as Chief Financial Officer, Camilo Lyon as Chief Investment Officer and Mitch Hara as Chief Strategy Officer.

Total revenue increased by 8% to $338 million during the second quarter of 2022, compared to $312 million in the second quarter of 2021. The Company’s year-over-year revenue growth primarily reflects continued growth driven by new retail store openings and commencement of adult-use in New Jersey, the acquisition of Bloom Dispensaries, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities.

Retail revenue increased by 13% to $252 million during the second quarter of 2022, compared to $222 million in the second quarter of 2021, representing 75% of total revenue. Growth in retail revenue was primarily due to strong growth across Curaleaf’s footprint and the opening of 28 new stores over the year, namely in Arizona (including the acquisition of Bloom Dispensaries), Florida, Maine, and Pennsylvania and the commencement of adult-use in New Jersey.

Wholesale revenue decreased 6% to $84 million during the second quarter of 2022, compared to $89 million in the second quarter of 2021, representing 25% of total revenue. Contraction in wholesale revenue during the quarter was largely due to the Company’s continued assessment of the wholesale marketplace in California and Colorado.

Gross profit on cannabis sales was $175 million for the second quarter of 2022, compared to $155 million in the second quarter of 2021. Gross profit margin reached 51.9%, compared to 49.6% in the second quarter of 2021 largely resulting from the increase in vertically integrated products sold in its dispensaries and the mix of revenue from higher margin states.

For the second quarter of 2022, net loss attributable to Curaleaf Holdings, Inc. was $28 million, compared to a net loss of $5 million in the second quarter of 2021. The increase in net loss was due to an unfavorable net change in fair value of biological assets coupled with the increase in operating expenses, which were partially offset by higher revenues.

Adjusted EBITDA was $86 million for the second quarter of 2022, compared to $84 million for the second quarter of 2021. The year-over-year increase in adjusted EBITDA was primarily driven by solid revenue growth combined with operating leverage. The year-over-year decrease in Adjusted EBITDA margin reflects greater SG&A expenditures due to increased headcount in support of new store openings, higher levels of expenses related to research and development activities, as well as higher sales and marketing spend, and an increase in professional fees.

Balance Sheet and Cash Flow

As of June 30, 2022, the Company had $187 million of cash and $587 million of outstanding debt net of unamortized debt discounts, which had a weighted average interest rate of 7.3% per annum.

During the first-half of 2022, Curaleaf invested $60 million net in capital expenditures mostly attributable to cultivation, processing, and retail sites development activities. The Company expects to invest approximately $125 million in capital expenditures for the full year 2022.

Shares Outstanding

As of June 30, 2022 and March 31, 2022, the Company’s weighted average subordinate voting shares outstanding amounted to 709,434,324 and 708,897,273 shares, respectively.

As of June 30, 2022 and March 31, 2022, the Company’s issued and outstanding subordinate voting shares plus multiple voting shares amounted to 710,136,421 and 708,812,195 shares, respectively.


As disclosed in the Company’s Consolidated Annual Financial Statements for the year ended December 31, 2021, the Company made an immaterial restatement to the initial purchase accounting for the Select acquisition. Adjustments have been made to the comparative period financial statements presented herein, which reflect a decrease in amortization expense, as applicable. The net impact of the adjustment on the Company’s Interim Consolidated Statements of Profits and Losses for the three and six months ended June 30, 2021, was a positive $2.4 million and $4.8 million, respectively, to Net loss attributable to Curaleaf Holdings, Inc.

Non-IFRS Financial and Performance Measures

Curaleaf reports its financial results in accordance with IFRS and uses a number of financial measures and ratios when assessing its results and measuring overall performance. Some of these financial measures and ratios are not calculated in accordance with IFRS. Curaleaf refers to certain Non-IFRS financial measures and ratios such as “Gross Profit on Cannabis Sales”, “Gross Margin on Cannabis Sales”, “Adjusted EBITDA”, and “Adjusted EBITDA Margin”. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. The Company defines “Gross Profit on Cannabis Sales” as retail and wholesale revenues less cost of goods sold. “Gross Margin on Cannabis Sales” is defined by Curaleaf as gross profit on cannabis sales divided by retail and wholesale revenues. “Adjusted EBITDA” is defined by Curaleaf as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and other add-backs related to business development, acquisition, financing and reorganization costs. “Adjusted EBITDA Margin” is defined by Curaleaf as Adjusted EBITDA divided by total revenue. Curaleaf considers these measures to be an important indicator of the financial strength and performance of our business. We believe the adjusted results presented provide relevant and useful information for investors because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of our performance, and they may not be comparable to similarly named measures from other companies. The tables provided in this press release contained in the sections “Gross Profit on Cannabis Sales” and “Adjusted EBITDA” (pg. 5) provide reconciliations of Non-IFRS measures to the most directly comparable IFRS measures.

About Curaleaf Holdings

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf”) is a leading international provider of consumer products in cannabis with a mission to improve lives by providing clarity around cannabis and confidence around consumption. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf and Select, provide industry-leading service, product selection and accessibility across the medical and adult-use markets. In the United States, Curaleaf currently operates in 22 states with 136 dispensaries, 26 cultivation sites, and employs over 5,700 team members. Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Canadian Securities Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit

Original press release

Published by NCV Newswire
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