Curaleaf (CURA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $310 million, down 6% sequentially and 9% year-over-year, in line with guidance and impacted by seasonality, fewer selling days, and price compression.

• Adjusted gross margin improved to 50%, up 250 basis points year-over-year, driven by operational and cultivation efficiencies.

• Adjusted EBITDA was $65.2 million (21% margin), with a 130 basis point drag from international and hemp businesses.

• Net loss from continuing operations was $54.8 million, or $0.07 per share.

• Ended Q1 with $121.9 million in cash and paid down $20 million in acquisition-related debt.

Financial highlights

• Gross profit was $155.2 million, with adjusted gross profit at $155.4 million (50% margin), up 250 basis points year-over-year.

• Retail revenue was $231 million, down 14% year-over-year; wholesale revenue grew 12% to $78 million, now 25% of total revenue.

• SG&A expenses were $107 million, up $3 million year-over-year, mainly due to international expansion and new store openings.

• Free cash flow from continuing operations was $25.5 million; operating cash flow was $41.8 million.

• Ended the quarter with $122 million in cash and $561 million in outstanding debt.

Outlook and guidance

• Q2 2025 revenue expected to increase low single digits sequentially.

• 2025 capital expenditures projected to be about half of 2024, focused on international expansion, IT, and 12 new store openings.

• International revenue forecasted to grow from $107 million in 2024 to approximately $170 million in 2025.

• Continued focus on margin protection, cost control, and strategic expansion in New York, Ohio, and international markets.

• Management remains optimistic about new market openings and continued international growth.