Curaleaf (CURA) Q4 2024 earnings summary

Executive summary

• 2024 revenue was $1.34 billion, flat year-over-year, with adjusted gross margin up 160 bps to 48% and adjusted EBITDA at $301 million, also flat.

• Fourth quarter revenue was $331 million, flat sequentially and down 4% year-over-year; adjusted gross margin was 48% and adjusted EBITDA was $76 million (23% margin).

• Ended the year with $107 million in cash, generating $163 million in operating cash flow and $70 million in free cash flow.

• Full year net loss from continuing operations was $216 million ($0.29/share); adjusted net loss was $117 million ($0.16/share).

• 2024 was a pivotal year, with decisive actions to reset the business and strengthen the foundation for long-term growth amid 14% industry-wide price compression.

Financial highlights

• Retail revenue for Q4 was $247 million, down 11% year-over-year; wholesale revenue rose 23% to $82 million, now 25% of total revenue.

• For 2024, retail revenue was $1 billion (down 6%), while wholesale revenue was $304 million (up 25%).

• Adjusted gross profit for Q4 was $159 million (48% margin, up 150 bps YoY); for the year, adjusted gross profit was $644 million (48% margin, up 160 bps).

• Q4 net loss from continuing operations was $72 million ($0.11/share); excluding $80 million in non-cash impairments, adjusted net income was $12 million ($0.02/share).

• Capital expenditures for the year totaled $93 million, focused on facility upgrades and retail expansion.

Outlook and guidance

• Expect continued growth in international, New York, and Ohio segments in 2025, with new store openings planned in Ohio.

• Capital expenditures for 2025 expected to be roughly half of 2024 levels, focusing on international, automation, store renovations, and IT.

• Q1 2025 revenue expected to be down mid-single digits sequentially due to seasonality.

• Management is focused on organic growth, margin optimization, cash flow improvement, and debt reduction under the "Return to our ROOTS" initiative.

• Plans to build on international growth and innovation pipeline, with opportunities anticipated in 2025.