Image Source: Unsplash

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

Q3 Financial Highlights

• Total Revenue: DOWN 0.7% to $333.2M
  • Retail: DOWN 0.8% to $273.2M
  • Wholesale: UP 0.2% to $58.6M
  • Other: DOWN 12.5% to $1.4M
• Adj. Gross Profit: UP 0.5% to $152.2M
• Adj. EBITDA: UP 4.0% to $75.3M 
• Net Loss: UP 24.2% to $(92.3)M
  • Net Loss/Share:  UP to $(0.13) from $(0.11)
• Cash on Hand: UP 38.9% to $118.1M
• Outstanding Debt: UP 1.8% to $584.6M

Management Commentary

Boris Jordan, Founder and Executive Chairman, commented:

• "In the third quarter we took the final steps in our asset optimization plan, and I'm pleased that our changes are showing results...
• With significant near-term state and regulatory catalysts on the horizon, coupled with our proposed up-listing to the Toronto Stock Exchange and our early mover advantage in Europe give us great confidence in Curaleaf's future.
• I...remain bullish for a strong end to 2023 and an exciting 2024."

Matt Darin, Chief Executive Officer, commented,

• "The last two quarters have represented an important evolution for us.
  • Along with significant reductions to our expense structure,
  • we scaled back production to accelerate the right-sizing of our inventory
  • while continuing to deliver innovative new products that consumers love.
• With this progress, along with:
  • new wholesale growth opportunities and
  • a return to a decentralized leadership structure,
• we are turning on idled capacity and are back on offense.
• The growth catalysts of Germany, New York, Ohio, and potentially Florida and Pennsylvania position Curaleaf incredibly well for years of market share gains."

Q3 Operational Highlights

• opened their third and fourth stores for adult-use sales in Connecticut,
• launched adult-use sales in Maryland across their four stores and wholesale, realizing triple digit sequential revenue growth throughout the quarter,
• entered into an agreement to sell our Oregon assets,
• consolidated grow processor facilities in Nevada from three to one,
• launched BRIQ, their proprietary two-gram vape hardware, in 11 states which set record breaking product launch sales,
• launched Select Liquid Diamonds in Florida and Zero Proof, cannabis-infused drinkables in Illinois.
• completed the acquisition of EU GMP processing assets from Clever Leaves in Portugal to further vertically integrate their European supply chain,
• began selling edibles to the UK market,
• commenced wholesaling into Poland, and

• raised C$16 million through an equity offering of Subordinate Voting Shares which fulfills one of the requirements for listing on the Toronto Stock Exchange.

Stock Performance

Curaleaf's stock price was DOWN 22.3% for the year the day prior to the release of the Q3 financials (November 9th) and is DOWN a further 1.6% as of mid-day November 10 and is now DOWN 24.2% YTD.

More By This Author:

TerrAscend's Q3 Net Revenue And Adj. EBITDA Increased 24% And 89%, Respectively
Aurora Cannabis' Q2 Net Income Was Positive For The First Time
Humane's Ai Pin Being Launched Later Today: An Update