Big MSO Curaleaf Q3 Revenue Declines

• 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 million
• Secured $40.0 million revolving credit facility at 7.99% interest rate

STAMFORD, Conn., Nov. 6, 2024 /PRNewswire/ — Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer products in cannabis, today reported its financial and operating results for the third quarter ended September 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.

Boris Jordan, Chairman and CEO of Curaleaf, stated, “Third quarter revenue was $331 million, down 1% and adjusted gross margin of 49% was up 312 basis points compared to last year. 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-year
• Net loss attributable to Curaleaf Holdings, Inc. of $44 million from continuing operations or net loss per share from continuing operations of $0.07
• Adjusted EBITDA(1) of $75.3 million and adjusted EBITDA margin([1]) of 23%, a 23 basis point increase year-over-year
• Cash at quarter end totaled $90.0 million
• Operating and free cash flow from continuing operations of $42.3 million and $14.5 million, respectively
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1_{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.}

Original press release

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