Curaleaf (CURA) Q2 2024 earnings summary

Executive summary

• CEO Matt Darin announced his retirement, with Executive Chairman Boris Jordan stepping in as CEO and Darin remaining as special advisor through year-end.

• Q2 2024 revenue reached $342 million, up 2% year-over-year, with adjusted gross margin improving to 48% and June exiting at 50%.

• International revenue surged 78% year-over-year, driven by growth in the UK, Germany, Poland, and the Northern Green acquisition.

• Adjusted EBITDA for Q2 was $73 million (21.3% margin), with net loss from continuing operations at $49 million or $0.06 per share.

• The company is focused on streamlining operations, accelerating growth initiatives, and expanding margins, returning to a leaner, entrepreneurial structure.

Financial highlights

• Q2 2024 net revenue: $342.3 million, up 2% year-over-year and 1% sequentially; six-month revenue: $681.2 million, up 2%.

• Q2 adjusted gross margin was 48%, up 250–253 basis points year-over-year; June gross margin reached 50%.

• Q2 adjusted EBITDA: $73 million (21.3% margin), up 1% from last year; six-month adjusted EBITDA: $149.7 million (22% margin).

• Net loss from continuing operations was $49 million, or $0.06 per share; six-month net loss: $97.2 million ($0.13 per share).

• Operating cash flow from continuing operations was $30.2 million in Q2; free cash flow was $6 million; ended the quarter with $89.4 million in cash and $563.3 million in outstanding debt.

Outlook and guidance

• Full-year 2024 revenue expected to grow at a mid-single digit rate, at the lower end of the range, with consensus at $1.4 billion.

• Adjusted EBITDA margins expected in the mid-20s%, also at the lower end due to investments in Florida, International, and Hemp.

• Growth anticipated to accelerate in the second half of 2024 as state and international catalysts come online, especially in New York, Ohio, and Germany.

• The company anticipates continued benefits from business streamlining, cultivation efficiencies, and international expansion.