Curaleaf Holdings, Inc. (CURLF), a constituent in the munKNEE Pure-Play MSO Pot Stock Sub-Index, reported its financial results for Q1 ended March 31, 2022, on Monday. All financial information is provided in U.S. dollars unless otherwise indicated.

Q1 Financial Highlights

• Total Revenue: -2.2% to $313.1M
• Gross Profit: -21.3% to $179.0M
• Net Loss: +47.3% to $(21.8)M
• Net Loss/Share: down to $(0.03) from $(0.04)
• Adj. EBITDA $: -8.5% to $72.9M
• Adj. EBITDA Margin: down to 23.4% from 24.9%
• SG&A: +24.6% to $99.8M
• Cash on Hand: -22.9% to $242.6M

Q1 Operational Highlights

• Added 11 new retail dispensaries, closing the quarter with 128 total locations, and serviced over 2,200 wholesale partner accounts.
• Completed the acquisition of Bloom Dispensaries, a vertically integrated, single state cannabis operator in Arizona , which added four retail dispensaries and two adjacent cultivation and processing facilities totaling approximately 63,500 sq. ft.
• Launched a solvent-less Select Live Rosin product in Florida featuring an aromatic, pure cannabis flavor created through the Company's live harvesting, flash-freezing and proprietary extraction process.

Management Commentary

Boris Jordan, Executive Chairman of Curaleaf, commented,

• "We saw strong month-over-month growth beginning in March and heading into the second quarter, boosting confidence in our ability to hit full year revenue guidance of $1.4 billion - $1.5 billion.
• Given renewed optimism surrounding federal banking reform, a record breaking 4/20, the exciting launch last month of New Jersey adult-use sales, and the prospect of New York following suit, 2022 is shaping up to be another milestone year."

Joe Bayern, Chief Executive Officer of Curaleaf, stated,

• "Our continued focus on research & development of innovative new products, commercialization, national distribution and brand building were cornerstones of the first quarter.
• From the launch of our proprietary ACE extraction system in Florida - which produces the purest live rosin product in the market - to new products launched in the last 12 months generating 17% of our revenues, our long-term focus on attracting new consumers with highly formulated products backed by science continues to drive growth. This advantage will help Curaleaf continue to expand Adjusted EBITDA margins."

Stock Performance

While Curaleaf's stock price was unchanged during the first week of May (i.e. last week) in expectation of a favorable Q1 financial report that did not materialize going DOWN 5.8% today and is DOWN 22.1% since the end of Q1 (March 31), is DOWN 37.7% YTD and is DOWN 68.8% from its peak in February 2021.