Curaleaf Reports Q1 2026 Financial Results

STAMFORD – Curaleaf Holdings Inc. posted its strongest revenue growth in years during the first quarter of 2026, swinging to a net profit just as the federal regulatory environment under which the industry operates began to shift in a specific, measurable way.

For Q1 2026, Curaleaf reported net revenue of $324.2 million, up 6% from $306.6 million a year earlier. The company also recorded net income from continuing operations of $70.1 million, or 9 cents a share, a sharp turnaround from the loss in the same period last year. Domestic revenue rose 2% to about $277 million, while international sales jumped 35% to $47.2 million. Gross profit reached $157.3 million, for a margin of 49%. Adjusted EBITDA came in at $63.4 million, equal to a 19.6% margin.

The results beat expectations on the topline and marked a return to profitability. Sequential revenue slipped 3% from Q4 2025, a shift the company tied to normal seasonal patterns. Cash at the end of the period stood at $106.1 million. The company generated $21.3 million in operating cash flow from continuing operations and $4.3 million in free cash flow. The company also closed a $500 million private placement of non-dilutive senior secured notes due February 2029, using the proceeds to retire its outstanding 2026 Senior Secured Notes – a balance sheet maneuver that reduces near-term refinancing risk. It also announced a change in auditors, replacing PKF O’Connor Davies with BDO USA effective May 6.

On the retail side, Curaleaf expanded its Florida footprint to 72 dispensaries with new locations in Lauderhill and Cape Coral, opened an adult-use dispensary in Bangor, Maine, and expanded in Ohio through a partnership with RC Retail, bringing the company’s total nationwide store count to 164 dispensaries across 17 states.

After the quarter closed, Curaleaf bought out the remaining stake in its German subsidiary, Four 20 Pharma, to reach full ownership and named one of that unit’s co-founders to its board. The company confirmed it has filed applications to register certain medical cannabis locations with the DEA – a step that, if approved, would allow Curaleaf to claim normal federal business tax deductions currently blocked under Section 280E of the Internal Revenue Code.

Chairman and CEO Boris Jordan said the quarter reflected early benefits from the company’s “Built for Growth” strategy and a more supportive regulatory environment following the rescheduling of medical Cannabis.

Curaleaf’s Q1 2026 results represent a company that has stabilized its domestic base, built international scale, and, for the first time in years, printed a net profit while the political wind is arguably blowing in the sector’s favor. The 280E tax relief that would flow from formal DEA registration is not speculative theater at this point; it is a dated federal process with a specific deadline and a defined response window. For Curaleaf specifically, with its retail footprint and a sizable wholesale operation, the per-dollar benefit of normalized federal tax treatment would be material.

What investors and market observers should watch in Q2 and beyond is whether the margin compression visible in this quarter [gross margin off 220 basis points, adjusted EBITDA margin off 200] stabilizes or deepens as the company continues to invest in retail expansion and international infrastructure. Revenue growth at 6% year-over-year is constructive, but it runs below the pace needed to justify the company’s debt load on operating cash flow alone. The rescheduling calendar [DEA registration applications closing June 26, the broader Schedule I-to-III hearing commencing June 29] sets up H2 2026 as the period when the financial thesis for companies like Curaleaf either firms up or gets stress-tested further.