Curaleaf Reports Second Quarter 2025 Results; Domestic Stabilization, Robust International Momentum

Executive Summary

• Curaleaf reported its financial and operating results for the second quarter ended June 30, 2025, showing a slight sequential revenue increase but a year-over-year decline, alongside a net loss from continuing operations.
• The company highlighted strong international momentum, with international revenue growing 62% year-over-year, and announced the acquisition of a license to operate in Turkey's medical cannabis market.
• Operational updates include the opening of new retail locations in Florida and Ohio, the launch of new product brands (Anthem, Select ACE), and the completion of a buyout of the minority partner in Curaleaf International.

Key Details

• Q2 2025 Financial Highlights:
  • Net Revenue: $314.5 million (down 8% YoY from $342.3 million; up 1.5% sequentially from Q1 2025).
  • Gross Profit: $152.6 million with a gross margin of 49% (up 160 basis points YoY).
  • Adjusted Gross Profit: $153.5 million with an adjusted gross margin of 49% (up 120 basis points YoY).
  • Net Loss from Continuing Operations: $50.6 million ($0.07 per share).
  • Adjusted Net Loss from Continuing Operations: $47.8 million ($0.06 per share).
  • Adjusted EBITDA: $65.5 million (margin of 21%, down 40 basis points YoY).
  • Cash Position: $102.3 million at quarter end.
• Six Months Ended June 30, 2025 Financial Highlights:
  • Net Revenue: $624.5 million (down 8% YoY).
  • International Revenue: $75.8 million (up 67% YoY from $45.3 million).
  • Gross Profit: $307.7 million with a gross margin of 49%.
  • Adjusted Gross Profit: $309.0 million with an adjusted gross margin of 50%.
  • Operating Cash Flow: $51.1 million; Free Cash Flow: $19.8 million.
  • Net Loss from Continuing Operations: $105.4 million ($0.14 per share).
  • Adjusted Net Loss from Continuing Operations: $95.5 million ($0.13 per share).
  • Adjusted EBITDA: $130.7 million (margin of 21%).
• Operational Highlights:
  • Retail Expansion: Opened 66th retail location in Winter Park, FL, and 3rd location in Lima, OH, bringing the total nationwide store count to 153. Opened 67th dispensary in St. Augustine, FL (154 total) on August 1, 2025.
  • Product Launches: Launched "Anthem" cylindrical pre-roll brand in NY, NJ, IL, MA, AZ, and FL. Launched "Select ACE" ultra-clear oil in NY.
  • Certification: Achieved EU-MDR certification for the world's first medically certified liquid cannabis inhalation device, with plans to launch in the UK and other markets.
  • Management: Hired four senior executives: Rahul Pinto (President), Scott Crawford (SVP Merchandising), Justin Miller (SVP Brand Marketing), and Helen Chen (SVP Digital).
• Strategic Developments:
  • Completed the buyout of the minority partner in the international business, now owning 100% of Curaleaf International.
  • Awarded a license to operate in Turkey's nascent medical cannabis program, anticipated to launch in 2026.
• Balance Sheet & Cash Flow:
  • Cash and cash equivalents: $102.3 million.
  • Outstanding debt (net of unamortized discounts): $561.0 million.
  • Capital expenditures for the six months: $31.3 million.
  • Weighted average shares outstanding (Q2 2025): 757,270,633.

Notable Quotes

• "Second quarter revenue was $315 million, up 1.5% compared to the first quarter, consistent with our guidance. Adjusted gross margin of 49% increased 120 basis points compared to the prior year period. We generated $66 million in adjusted EBITDA resulting in a 21% AEBITDA margin. Our international segment delivered another solid quarter of 62% year-over-year growth." — Boris Jordan, Chairman and CEO
• "Today, I'm proud to announce another key milestone: we have been awarded a license to operate in Turkey, a country of 87 million people, further expanding our international footprint." — Boris Jordan, Chairman and CEO