Third quarter 2024 revenue of $331 million, representing a decrease of 1% year-over-year, and adjusted gross margin(1) of 49%Third quarter international revenue increased 82% year-over-year Year-to-date operating cash flow from continuing operations of $119 million and free cash flow from continuing operations of $53 millionSecured $40 million revolving credit facility at 7.99% interest rate
STAMFORD, Conn., Nov. 6, 2024 – PRESS RELEASE – Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, reported its financial and operating results for the third quarter ended Sept. 30, 2024. 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.
“Third quarter revenue was $331 million, down 1% and adjusted gross margin of 49% was up 312 basis points compared to last year,” Curaleaf Chairman and CEO Boris Jordan said. “Adjusted EBITDA was $75 million or 23%, consistent with last year. In the first few months in my expanded role as chairman and CEO, my focus has been on delivering value to all shareholders through disciplined execution of fundamental operating principles.
“The industry has experienced the pressures of regulatory overhang, increased competition, unprecedented weather conditions, and irrational pricing strategies. This backdrop is one of the key drivers behind our shift towards focusing on sustainable, profitable organic growth by maintaining share in challenged markets and growing share where we see strategic opportunity. One example is in our international business, which was a highlight this quarter, as it grew 82% year-over-year and 17% quarter over quarter to $30 million dollars. By design, our global presence offers a diversification of revenue streams that mitigates concentration risk.”
Third Quarter 2024 Financial Highlights
Net revenue of $330.5 million, a year-over-year decrease of 1% compared to Q3 2023 revenue of $333.2 million. Sequentially, net revenue decreased 3%Gross profit of $160.5 million and gross margin of 49%Adjusted gross profit(1) of $161.3 million and adjusted gross margin(1) of 49%, an increase of 312 basis points year-over-yearNet loss attributable to Curaleaf Holdings Inc. of $44 million from continuing operations or net loss per share from continuing operations of $0.07Adjusted EBITDA(1) of $75.3 million and adjusted EBITDA margin([1]) of 23%, a 23 basis point increase year-over-yearCash at quarter end totaled $90 millionOperating and free cash flow from continuing operations of $42.3 million and $14.5 million, respectively
Nine Months Ended Sept. 30, 2024, Financial Highlights
Net revenue of $1,011.7 million, a 1% increase year-over-yearGross profit of $481.9 million and gross margin of 48%Adjusted gross profit(1) of $485.8 million and adjusted gross margin(1) of 48%Operating cash flow from continuing operations of $118.6 million and free cash flow from continuing operations of $53.0 millionNet loss attributable to Curaleaf Holdings Inc. of $144 million from continuing operations or net loss per share from continuing operations of $0.20Adjusted EBITDA(1) of $225 million and adjusted EBITDA margin of 22%
Third Quarter 2024 Operational Highlights
In New York, opened two new dispensaries in Rochester and Syracuse and expanded adult-use sales in two existing stores.Commenced adult-use sales in Ohio to wholesale customers and at our two retail dispensaries in Newark and Cuyahoga Falls.In Florida, opened two new dispensaries in Pensacola and Destin, bringing the total to 150 U.S. retail stores at quarter end.Launched JAMS Remix, a new line of flavor-forward jellies in New York, Arizona, Illinois, Connecticut and Massachusetts.
Post Third Quarter 2024 Operational Highlights
In Florida, opened two new dispensaries in Port St. Lucie and Miami, bringing the state total to 66 retail stores and the U.S. total to 151 U.S. retail stores.Successfully introduced Curaleaf flower into the German market.Rebranded our three Nevada stores to Curaleaf stores.Secured a $40 million revolving credit facility with a major commercial regional bank at a 7.99% interest rate that matures Dec. 15, 2026, a milestone for a cannabis company.
Balance Sheet and Cash Flow
As of Sept. 30, 2024, the company had $90 million of cash and $557.4 million of outstanding debt net of unamortized debt discounts.
During the nine months ended Sept. 30, 2024, Curaleaf invested $65.6 million, net in capital expenditures, focused on cultivation, automation, and selective retail expansion in strategic markets.
Shares Outstanding
For the third quarter of 2024 and 2023, the company’s weighted average subordinate voting shares plus multiple voting shares outstanding amounted to 742,535,355 and 725,319,477 shares, respectively.
The company’s detailed financial report is available here.
Adjusted EBITDA, adjusted gross profit and free cash flow from continuing operations are non-GAAP financial measures, and adjusted EBITDA margin and adjusted gross margin are non-GAAP financial ratios, in each case without a standardized definition under GAAP and which may not be comparable to similar measures used by other issuers. See “Non-GAAP Financial Performance Measures” below for definitions and more information regarding Curaleaf’s use of non-GAAP financial measures and non-GAAP financial ratios. See “Reconciliation of Non-GAAP financial measures” below for a reconciliation of each non-GAAP financial measure used in this press release from the most directly comparable GAAP financial measure.
The cannabis company reported $331 million in third-quarter revenue and an 82% year-over-year increase in international revenue. Read More
