Curaleaf Posts $48.9M Loss In Q2: What It Means For Your Cannabis Investments

Curaleaf Holdings, Inc. CURLF announced a second-quarter revenue of $342 million, reflecting a 2% increase from the previous year.

Key Financial Indicators

• Net Loss: Curaleaf experienced a net loss of $48.9 million for the quarter, marking a per-share loss of $0.06.
• Gross Profits and Margins: The company's adjusted gross profit was $163.1 million with an improved adjusted gross margin of 48%.
• Adjusted EBITDA: The adjusted EBITDA stood at $73 million with a margin of 21%.
• Cash at quarter end: $89.4 million.
• Operating and free cash flow from continuing operations of $30.2 million and $6.0 million, respectively.

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Boris Jordan, executive chairman of Curaleaf, stated, "Our gross margin showed successive improvement each month during the quarter with June exiting at 50%. Thus far, the first half of 2024 has unfolded as we guided. (...) In June Curaleaf launched The Hemp Company to expand the Select brand to consumers we are not reaching today with responsibly sourced, safe, and tested hemp-derived THC edibles and beverages."

Operational Highlights And Strategic Moves

Curaleaf has actively expanded its global and domestic footprint. Internationally, revenue surged by 78%, driven by robust performance in the UK and Germany.

The company also made significant strides in the U.S., including launching The Hemp Company to distribute hemp-derived THC products. This move aligns with its strategy to transition from a multi-state to a multi-country operator, catering to an expanding global market.

Outlook And Future Projections

Curaleaf's leadership remains optimistic about accelerating revenue and margin growth in the latter half of 2024, spurred by regulatory developments in key markets such as New York, Ohio and Germany. The company also plans to continue focusing on operational efficiencies and strategic market expansions to strengthen its position as a leader in the global cannabis market.

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