Curaleaf Reports Second Quarter 2023 Results
- Second quarter 2023 revenue of $339 million, representing an increase of 4% year-over-year, and adjusted EBITDA¹ of $70 million
- Second quarter 2023 operating cash flow from continuing operations of $16 million and free cash flow from continuing operations¹ of $8 million
NEW YORK, Aug. 9, 2023 /PRNewswire/ — Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer products in cannabis, today reported its financial and operating results for the second quarter ended June 30, 2023. All financial information is reported in accordance with U.S. generally accepted accounting principles (GAAP) and is provided in U.S. dollars unless otherwise indicated.
Boris Jordan, Executive Chairman of Curaleaf, stated, “Our second quarter revenue grew 4% year over year to $339 million, adjusted gross margin was 44% and adjusted EBITDA was 21%. We ended the second quarter with $85 million in cash on the balance sheet and generated $37 million in year-to-date cash flow from continuing operations. 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.”
In Q2 we continued to prioritize the highest return growth opportunities balanced by a relentless focus on driving efficiencies across the business. We made solid progress towards these objectives by shrinking our expense base by 7%, increasing our retail vertical mix to 65% and reducing our inventory by $17 million from the first quarter.
Matt Darin, Chief Executive Officer of Curaleaf
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.
Second Quarter 2023 Financial Highlights
- Net Revenue of $338.6 million, a year-over-year increase of 4% compared to Q2 2022 revenue of $327.0 million, which excludes discontinued operations. Sequentially, net revenue grew 1%
- Gross profit of $146.5 million and gross margin of 43%
- Adjusted gross profit¹ of $149.9 million, resulting in adjusted gross margin of 44%, which includes an 80 basis point impact from an additional expense reclassification into cost of goods sold
- Net loss attributable to Curaleaf Holdings, Inc., including discontinued operations, of $71.2 million or net loss per share $0.10
- Adjusted net loss from continuing operations attributable to Curaleaf Holdings, Inc.¹ of $68.9 million or adjusted net loss per share¹ of $0.09
- Adjusted EBITDA of $70.0 million or 21% of revenue
- Cash position at quarter end totaled $85.0 million
- Free cash flow from continuing operations¹ of $8 million
