Curaleaf Holdings, Inc. (CURLF), a constituent in the munKNEE Pure-Play MSO Pot Stock Sub-Index, reported its financial results for Q2 ended June 30, 2021, on Monday.

Q2 Financial Highlights

(All financial information is provided in U.S. dollars unless otherwise indicated.)

• Total Revenue: increased 20% to $312M
  • Retail Revenue: increased 19% to $222M
  • Wholesale Revenue: increased 22% to $89M
• Gross Profit: increased 21% to $155M
• Gross Margin: increased to 49.6% from 49%
• Adj. EBITDA: increased 35% to $84M
• Net Income/Loss: loss reduced 59% to $(7)M
• Net Loss/Share: loss reduced to $(0.01) from $(0.03)

Q2 Operational Highlights

• Closed the acquisition of EMMAC, Europe's largest vertically integrated independent cannabis company.
• Agreed to acquire Los Suenos, a 66-acre outdoor grow in Colorado.
• Brought online nearly 250 thousand square feet of flower canopy during the first half of the year, with a further 40 thousand square feet planned for the second half of 2021.
• Opened five new stores in Illinois, Pennsylvania, New Jersey, and Maine bringing total retail locations to 107.
• Launched a long-term strategic partnership with Rolling Stone to leverage our Select brand and operating experience in Nevada 

Management Commentary

Joe Bayern, Chief Executive Officer, stated:

• "...Our leading positions in cultivation and distribution are driving some of the strongest revenue growth rates in the sector, while our scale and focus on cost efficiency are delivering Adjusted EBITDA margin expansion as promised.
• Looking ahead, our strategic investments in innovation and technology will deliver processing advantages and consumer-focused product differentiation to fuel our growth into 2022 and the years beyond."

Boris Jordan, Executive Chairman, commented:

• "...Given the significant investments we are making in cultivation, production, and distribution, Curaleaf is creating a strong foundation for future growth. Nearer-term this includes the expansion of New York, New Jersey, and Connecticut from medical to adult-use markets representing a potential new $8 billion annual addressable market opportunity. Longer-term, our acquisition of EMMAC and establishment of Curaleaf International this quarter marks our entry into Greater Europe, with a population of 750 million representing a potential market size twice that of the United States."

Stock Performance

As the chart below illustrates, Curaleaf declined 7% over the 3-month Q2 period and has declined a further 15% since then.