Curaleaf Reports Third Quarter 2023 Results
- Third quarter 2023 revenue of $333 million excluding $3.5 million from discontinued operations, representing an increase of 2% year-over-year, and adjusted EBITDA¹ of $75 million
- Third quarter 2023 operating cash flow from continuing operations of $47 million and free cash flow from continuing operations¹ of $33 million
NEW YORK, Nov. 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 third quarter ended September 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, “In the third quarter we took the final steps in our asset optimization plan, and I’m pleased that our changes are showing results. Revenue was $333 million, with adjusted EBITDA margin¹ of 23%. We reduced our inventory by another $18 million this quarter, ending with $118 million in cash on the balance sheet, and generated $33 million in free cash flow from continuing operations. With significant near-term state and regulatory catalysts on the horizon, coupled with our proposed uplisting to the Toronto Stock Exchange and our early mover advantage in Europe give us great confidence in Curaleaf’s future. I am very encouraged by the team’s commitment and discipline, and remain bullish for a strong end to 2023 and an exciting 2024.”
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.
Matt Darin, Chief Executive Officer of Curaleaf
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.
Third Quarter 2023 Financial Highlights
- Net Revenue of $333.2 million excluding $3.5 million from discontinued operations, a year-over-year increase of 2% compared to Q3 2022 revenue of $325.8 million. Sequentially, net revenue declined less than 1%
- Gross profit of $150.1 million and gross margin of 45%
- Adjusted gross profit¹ of $152.2 million, resulting in adjusted gross margin of 46%
- Net loss attributable to Curaleaf Holdings, Inc., including discontinued operations, of $92.3 million or net loss per share $0.13
- Adjusted net loss from continuing operations attributable to Curaleaf Holdings, Inc.¹ of $70.8 million or adjusted net loss per share¹ of $0.10
- Adjusted EBITDA¹ of $75.3 million or 23% of revenue
- Exited direct operations in Michigan and Kentucky resulting in a $22 million non-cash impairment charge, and $3 million in adjusted EBITDA accretion
- Cash at quarter end totaled $118.1 million
- Free cash flow from continuing operations¹ of $33.4 million
Nine Months Ended September 30, 2023 Financial Highlights
- Net revenue of $1,001.4 million, a 7% increase year-over-year
- Gross profit of $458.3 million and gross margin of 46%
- Adjusted gross profit¹ of $464.7 million, a 9% decrease year-over-year
- Adjusted gross margin¹ of 46%
- Operating cash flow of $73.0 million
- Net loss attributable to Curaleaf Holdings, Inc. of $218.0 million or net loss per share of $0.31
- Adjusted net loss attributable to Curaleaf Holdings, Inc.¹ of $178 million or net loss per share¹ of $0.25
- Adjusted EBITDA¹ of $221.9 million or 22% of revenue
