Curaleaf Announces Third Quarter 2023

LOS ANGELES- Curaleaf Holdings, Inc., a international cannabis consumer products company, has released its financial and operational results for the third quarter ending September 30, 2023. The company reported a modest revenue increase of 2% year-over-year, achieving $333 million in revenue, excluding $3.5 million from discontinued operations. This result reflects the company’s resilience in a dynamic market environment.

The third quarter also saw Curaleaf achieving an adjusted EBITDA of $75 million, indicative of its strong operational efficiency. The company’s focus on asset optimization has yielded notable results, with an adjusted EBITDA margin of 23%. Despite a net loss of $92.3 million, including discontinued operations, the company remains optimistic about its future growth trajectory.

Curaleaf’s Executive Chairman, Boris Jordan, highlighted the company’s strategic moves in the quarter, including inventory reduction and cash flow generation. The company ended the quarter with $118 million in cash and generated $33 million in free cash flow from continuing operations. These achievements underscore Curaleaf’s robust financial discipline and operational strength.

For the nine months ended September 30, 2023, Curaleaf reported a 7% increase in net revenue year-over-year, totaling $1,001.4 million. This growth, coupled with a steady gross margin of 46%, demonstrates the company’s ability to maintain profitability amid market fluctuations. The adjusted net loss of $178 million, however, reflects the ongoing challenges in the cannabis sector.

Curaleaf’s exit from direct operations in Michigan and Kentucky, resulting in a $22 million non-cash impairment charge, aligns with its strategy to optimize assets and focus on core markets. The company remains bullish on its prospects, citing significant regulatory catalysts and its early mover advantage in Europe as key drivers for future growth.

This financial report reveals Curaleaf’s strategic focus on maintaining financial health and operational efficiency, even as it navigates a complex and evolving cannabis industry landscape. The company’s disciplined approach to growth and expansion positions it well for a strong finish to 2023 and beyond.