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Curaleaf Holdings, Inc. (CURA) (CURLF) reported its financial and operating results for the second quarter ended June 30, 2023, on Wednesday. All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.

Q2 Financial Highlights

• Total Revenue: UP 0.6% to $338.6M
  • Retail: UP 1.6% to $277.4M
  • Wholesale: DOWN 3.9% to $59.7M
  • Other: UP 7.1% to $1.5M
• Gross Profit: DOWN 8.9% to $146.5M
• Adj. EBITDA: DOWN 4.4% to $70.0M 
• Net Loss: UP 30.9% to $(71.2)M
  • Net Loss/Share:  UP to $(0.10) from $(0.07)
• Cash on Hand: DOWN 26.6% to $85.0M
• Outstanding Debt: DOWN 3.3% to $574.1M

Management Commentary

Boris Jordan, Founder and Executive Chairman, commented:

• "...As the U.S. industry regains its supply-demand equilibrium and we eagerly anticipate the game changing catalysts on the horizon, we continue to control costs and remain focused on long-term growth opportunities, particularly in Europe and our advantage in Germany specifically.
• We remain committed to the long game and will continue to position the Company globally for years of robust growth and margin improvement in '24, '25, '26 and beyond."

Matt Darin, Chief Executive Officer, stated:

• "In Q2 we continued to prioritize the highest return growth opportunities balanced by a relentless focus on driving efficiencies across the business...
• As we further optimize our best-in-class CPG portfolio with a continuously innovative and growing brand and product assortment, our focus remains on profitable, responsible growth in every aspect of our business, both in the U.S. and Europe. The fact is that no company is better positioned than Curaleaf to capitalize on the global cannabis market opportunities when the sector eventually and fully unlocks." 

Q2 Operational Highlights

• Completed the acquisition of Deseret Wellness in Utah.
• Continued to strategically expand our retail footprint in Florida by adding two additional stores reaching 60 in the state, and 152 stores nationwide.
• Launched new Curaleaf mobile app.
• Introduced Grassroots brand to Florida.
• Expanded Find, our value flower line, to six additional states including Florida, Nevada, New York, Ohio, Pennsylvania, and Utah; Find is now in twelve markets.
• Introduced Jams, our new edibles line, in Arizona, Florida, and New Jersey.
• Launched Grassroots diamond infused pre-rolls in Arizona, Illinois, Maryland, and Nevada.
• Completed sale of Colorado cultivation assets.

Stock Performance

Curaleaf's stock price declined 9.2% on Wednesday as a result of the poor Q2 financial results and is now DOWN 22.0% YTD.

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