Curaleaf's Q2 2023 Revenue Up 1% Sequentially To $339M, 4% Increase YoY & Adjusted EBITDA $70M

Curaleaf Holdings (OTCQX: CURLF reported its financial and operating results Wednesday afternoon for the second quarter ended June 30, 2023. 

Boris Jordan, executive chairman seemed delighted as Curaleaf's revenue grew 4% YoY to $339 million with an adjusted gross margin of 44% and adjusted EBITDA of 21%"

Balance Sheet Looking Good

"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," stated Jordan who has been a keynote speaker at several Benzinga Cannabis Capital Conferences and will be back by popular demand at this September's conference in Chicago.

"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," Jordan said. 

Q2 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 by 1%

• Gross profit of $146.5 million and gross margin of 43%
• Adjusted gross profit of $149.9 million, resulting in adjusted gross margin of 44%, which includes an 80 basis point impact from an additional expense reclassification into the cost of goods sold
• Net loss attributable to Curaleaf, including discontinued operations, of $71.2 million or net loss per share of $0.10
• Adjusted net loss from continuing operations attributable to Curaleaf of $68.9 million or adjusted net loss per share 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 operations of $8 million

CEO Weighs In

“In Q2 we continued to prioritize the highest return growth opportunities balanced by a relentless focus on driving efficiencies across the business,” said CEO Matt Darin. “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.”

Price Action: Shares of Curaleaf were down 9.76% at $3.05 per share after the bell on Wednesday afternoon.