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Curaleaf Holdings, Inc. (CURA) (CURLF) has reported its financial and operating results for the second quarter (Q2) ended June 30th, 2024, as follows:

Q2 Financial Highlights

All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.

• Total Revenue: UP 1.0%% to $342.3M
• Gross Profit: DOWN 0.2% to $160.5M
  • as a % of Revenue: DOWN to 46.9% from 47.5%
• Adj. EBITDA: DOWN 4.8%% to $73.0M
  • as a % of Revenue: DOWN to 21.3% from 22.6%
• Net Loss: UP 1.2% to $(48.9)M
  • Net Loss/Share:  DOWN to $(0.06) from $(0.07)
• Cash on Hand: DOWN 14.9% to $89.4M
• Outstanding Debt: DOWN 2.9% to $563.3M 

Management Commentary

Boris Jordan, Founder and Executive Chairman, stated:

• "...The first half of 2024 has unfolded as we guided. We are starting to see the benefits of the work we initiated 18 months ago to streamline the business, drive efficiencies in our cultivation facilities, and leverage both domestic and international growth opportunities.  Looking to the second half of the year, these actions will drive an acceleration in both our revenue and margins as state and country catalysts develop further, including  New York, Ohio, and Germany.
• Furthermore, in June Curaleaf launched The Hemp Company to expand the Select brand to consumers we are not reaching today with responsibly sourced, safe and tested hemp derived THC edibles and beverages to a strong reception.
• Our global strategic vision is playing out on multiple fronts, yet there is much more for us to accomplish."

Matt Darin, Chief Executive Officer, stated:

• "Curaleaf continues to execute its vision of being the global leader in cannabis. We are at a pivotal time for our industry, on the cusp of federal reform, and the future is bright.
• Our international business experienced superb 78% year-over-year growth led by the UK, Germany, and contributions from the Northern Green acquisition.  With this international growth in Q2, Curaleaf is leaning into its evolution from an MSO to an MCO, a multi-country operator, a term that represents our global vision and business that spans 15 countries. We believe the market will ultimately reward the companies that have a portfolio of global brands that are trusted by consumers worldwide.
• We're also expanding consumer reach by leveraging distribution channels not available in our regulated business. We announced our entry into the hemp-derived THC market with two product lines, Select edibles and Select Zero Proof seltzers, sold via our direct-to-consumer website, TheHempCompany.com, which currently ships to over half the U.S. and through distribution partners."

Q2 Operational Highlights

• Opened their 62nd dispensary in Florida, ending the quarter with a total of 146 U.S. retail stores.
• 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 their Senior Secured Notes due December 2026 at a 7.75% discount.
• Launched Select Fruit Stiq, a rechargeable 1G All-In-One cannabis oil vape with 6 fruit-forward terpene blends in 9 states, including Arizona, Florida, Illinois, Massachusetts, Maryland, Maine, New York, Nevada, and Utah.
• In Germany, commenced expanded medical sales under Pillar 1 legislation on April 1.
• Entered the hemp-derived THC space and launched its new online storefront, TheHempCompany.com, which offers a variety of Select gummies, Zero Proof Seltzers and ships to 25 states, and the District of Columbia and entered into a strategic partnership with a large direct-to-consumer distribution partner in the U.S.

Stock Performance

Curaleaf Holdings' stock went DOWN 28.3% in Q2 (i.e. from April 1st to June 30th), went DOWN a further 10.4% as of yesterday, went DOWN 7.2% today and is now 23.1% YTD.

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