Curaleaf Holdings Inc: The No. 1 Pot Stock in the World by Revenue

If You Aren’t Paying Attention to This Pot Stock, You Might Kick Yourself Later

Pot stocks have gotten renewed investor attention after the U.S. presidential election. To give you an idea, the United States Marijuana Index has climbed more than 40% since November 3, outperforming pretty much every other industry during this period. (Source: “United States Marijuana Index,” The Marijuana Index, last accessed December 10, 2020.)

And if you believe in the future of the U.S. cannabis industry, there’s one company that deserves to be placed at the top of your watch list: Curaleaf Holdings Inc (CNSX:CURA, OTCMKTS:CURLF).

Headquartered in Wakefield, MA, Curaleaf is a vertically integrated cannabis operator with a presence in 23 states. The company currently has 23 cultivation sites, 96 dispensaries, and more than 30 processing sites.

Curaleaf stock is listed on the Canadian Securities Exchange under the ticker symbol “CURA.” In the U.S., it trades over the counter under the ticker “CURLF.”

Now, some investors might be wondering why you would consider an over-the-counter name when there are quite a few pot stocks trading on major U.S. stock exchanges. Well, the reason is simple: while Curaleaf does not trade on the New York Stock Exchange or the Nasdaq, it’s actually the biggest legal cannabis company in the world by revenue.

You see, on July 23, Curaleaf closed its previously announced acquisition of GR Companies, Inc. (also known as Grassroots). Because Grassroots was the largest private vertically-integrated multistate operator in the U.S. cannabis industry, the deal allowed Curaleaf to substantially expand its presence. (Source: “Curaleaf Completes the Acquisition of Grassroots Creating the World’s Largest Cannabis Company,” Curaleaf Holdings Inc, July 23, 2020.)

The combined entity had a pro-forma revenue of $165.4 million in the second quarter of 2020, making Curaleaf the largest pot company in the world by revenue. (Source: “Curaleaf Investor’s Presentation September 2020,” Curaleaf Holdings Inc, last accessed December 10, 2020.)

And the best part is, that number is still growing.

According to its latest earnings report, Curaleaf’s pro-forma revenue rose to $215.3 million in the third quarter of 2020. (Source: “Curaleaf Reports Record Third Quarter 2020 Financial and Operating Results,” Curaleaf Holdings Inc, November 17, 2020.)

Of course, the pro-forma revenue includes revenue from Grassroots, as if the acquisition occurred on July 1. But even if you look at the actual managed revenue for the quarter, the numbers are still more than impressive.

In the third quarter of 2020, Curaleaf’s managed revenue totaled $193.2 million, representing a 59% increase sequentially and a whopping 164% increase year-over-year. Growth was across the board as the company’s retail revenue rose 206.5% year-over-year while its wholesale revenue skyrocketed nearly seven-fold.

I should point out that there are several pot companies in the U.S. that generated more than $100.0 million in revenue in the third quarter of this year. But Curaleaf’s number still makes it the leader on the top line.

With this kind of performance, it should not come as a surprise that Curaleaf stock has been soaring in recent months. In fact, if you take a look at the following chart, you’ll see that the stock is now trading at a price level above its previous major top formed in April and May 2019.

Curaleaf Holdings Inc (OTCMKTS:CURLF) Stock Chart

Chart courtesy of StockCharts.com

Analyst Take

Don’t forget that, while Curaleaf Holdings Inc ranks No. 1 in revenue, it’s also the most diversified vertically integrated legal pot company in the U.S., with an unparalleled business footprint from coast to coast.

As the U.S. cannabis industry enters a new era, Curaleaf stock could reach new highs.