
- Fourth quarter 2023 revenue of $345 million, representing an increase of 4% quarter-over-quarter.
- Fourth quarter 2023 adjusted EBITDA(1) of $83 million, representing 24% of revenue, a 490 basis point improvement year-over-year.
- Full year 2023 cash flow from continuing operations of $91 million.
NEW YORK, March 6, 2024 – PRESS RELEASE – Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, reported its financial and operating results for the fourth quarter ended Dec. 31, 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, said, "I'm pleased to report that the work we've done over the past several quarters has paid off; Curaleaf ended the year strong and is positioned extremely well for the future. In the fourth quarter, we generated record revenue of $345 million. Adjusted gross margin of 46% improved by 80 basis points versus last quarter, and adjusted EBITDA was $83 million or 24% of sales. Our gross margin trajectory is improving faster than we initially anticipated as we have turned on idle capacity to meet increasing demand and see our first quarter margins approaching 50%.
“For the year, revenue was $1.35 billion dollars, up 6% from 2022. Adjusted gross margin was 46%, while adjusted EBITDA margin was 23%. The global opportunities we've been building our business toward are unfolding rapidly, and 2024 will be Curaleaf's catalyst year. Our global brand portfolio is second to none, and our amazing team members continue to deliver with energy and enthusiasm. I am happy to say that Curaleaf's future has never been greener."
Curaleaf CEO Matt Darin said, "Our fourth quarter results are a solid reflection of the discipline and rigor we have put into evolving our business and the committed work of our team members. It is thanks to all of them that we have leading market share and growth in key markets like Arizona, Florida, New York and Pennsylvania, a domestic wholesale business that grew 15% sequentially, and a U.S. retail business that grew 9% for the year, eclipsing the $1 billion mark for the first time. We're excited about our portfolio of brands and innovative new products, as well as the potential of our retail footprint as adult use expands. We are encouraged by the momentum we see in our business because of the strategic changes we've made. There is no doubt that Curaleaf is poised for a solid 2024 and beyond."
Fourth Quarter 2023 Financial Highlights
- Net Revenue of $345.3 million, a year-over-year increase of 1% compared to Q4 2022 revenue of $340.2 million. Sequentially, net revenue increased 4%
- Gross profit of $156.2 million and gross margin of 45%
- Adjusted gross profit(1) of $160.4 million and adjusted gross margin of 46%
- Net loss attributable to Curaleaf Holdings Inc., excluding discontinued operations, of $57.7 million or net loss per share $0.08
- Adjusted net loss from continuing operations attributable to Curaleaf Holdings Inc.(1) of $5 million or adjusted net loss per share from continuing operations([1]) of $0.01
- Adjusted EBITDA(1) of $83 million and adjusted EBITDA margin of 24%, a 490 basis point improvement year-over-year
- Cash at quarter end totaled $91.8 million
Full Year 2023 Financial Highlights
- Net revenue of $1.35 billion a 6% increase year-over-year
- Gross profit of $614.4 million and gross margin of 46%
- Adjusted gross profit(1) of $625.1 million and adjusted gross margin(1) of 46%
- Operating cash flow from continuing operations of $91.2 million and free cash flow from continuing operations of $25.8 million
- Net loss attributable to Curaleaf Holdings Inc. of $281.2 million or net loss per share of $0.39
- Adjusted net loss attributable to continuing operations (1) of $126.1 million or adjusted net loss per share from continuing operations(1) of $0.17
- Adjusted EBITDA(1) of $304.5 million and adjusted EBITDA margin of 23%
- Operating and free cash flow from continuing operations of $91.2 million and $25.8 million
Fourth Quarter 2023 Operational Highlights
- In Florida, we opened one additional store in Sarasota, totaling 61 stores in the state.
- In December, we began selling into the New York adult-use wholesale market.
- On Dec. 14, we completed our uplisting to and commenced trading on the Toronto Stock Exchange.
- Entered into an agreement to sell our Maine adult-use store.
Full Year 2023 Operational Highlights
- Completed the acquisition of Deseret Wellness in Utah, consisting of four stores out of 15 in the market.
- Successfully launched adult-use sales in Connecticut across our four stores and the wholesale market.
- Successfully launched adult-use sales in Maryland across our four stores and the wholesale market.
- Opened six stores in Florida totaling 61 stores in the state and ended the year with 145 U.S. retail locations.
- Launched Briq, our proprietary 2-gram vape hardware into 11 states, which set record breaking sales.
- Launched Select Liquid Diamonds in Florida and Zero Proof, cannabis-infused drinkables, in Illinois.
- Launched Grassroots diamond infused pre-rolls into five states.
- Completed the acquisition of EU GMP processing assets from Clever Leaves in Portugal to further integrate our European business.
- Began selling edibles in the U.K. market.
- Began wholesaling into Poland.
- Raised C$16 million through an equity offering of Subordinate Voting Shares, which fulfilled one of the requirements for listing on the Toronto Stock Exchange.
- Discontinued operations in California, Colorado, Oregon, Michigan, Kentucky and our adult-use Maine store, which reduced inefficiencies and margin dilution.
Post Fourth Quarter 2023 Operational Highlights
- In New York, we opened our first store for adult-use sales in Newburgh.
- Rebranded Reef stores to Curaleaf stores in Arizona.
- In the U.K., we rebranded Sapphire Clinics to Curaleaf Clinics.
- Acquired Can4Med, an experienced pharmaceutical wholesaler in Poland to enhance our European presence.
- Launched Stiq, a new 1-gram all-in-one cannabis oil vape, in Arizona.
1 Adjusted EBITDA, adjusted gross profit, free cash flow from continuing operations and adjusted net loss from continuing operations attributable to Curaleaf Holdings, Inc. are non-GAAP financial measures, and adjusted EBITDA margin, adjusted gross margin and adjusted net loss per share 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 the section entitled "Reconciliation of Non-GAAP financial measures" below for a reconciliation of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures.
Balance Sheet and Cash Flow
As of Dec. 31, 2023, the company had $91.8 million of cash and $587.8 million of outstanding debt net of unamortized debt discounts.
As of Dec. 31, 2023, Curaleaf invested $65.4 million, net in capital expenditures, focused on cultivation, automation, and selective retail expansion in strategic markets. During the fourth quarter, net capital expenditures were $16.1 million.
Shares Outstanding
For the fourth quarter of 2023 and 2022, the company's weighted average subordinate voting shares plus multiple voting shares outstanding amounted to 733,514,919 and 715,796,271 shares, respectively.
The company’s balance sheets can be viewed here.