Curaleaf Reports Fourth Quarter and Full Year 2025 Results: Domestic and International Growth Accelerate with Gross Margin Expansion
Executive Summary
- Curaleaf reported Q4 2025 net revenue of $333.1 M (up 2% YoY, +5% sequential) and full‑year 2025 revenue of $1.27 B, with international revenue growing 63% YoY to $172.5 M.
- Adjusted gross margin expanded to 49% in Q4 (up 20 bps YoY) and 50% for the year; adjusted EBITDA was $69 M in Q4 and $274.7 M for FY, though margins declined versus prior year.
- The company closed a $500 M senior secured note private placement (11.5% interest, due 2029) used to repay existing debt and extend its revolving credit facility.
Key Details
- Q4 2025 Financial Highlights
- Net revenue: $333.1 M (YoY +2%, Q‑to‑Q +5%)
- Gross profit: $161.8 M; gross margin 49% (up 60 bps YoY)
- Adjusted EBITDA: $69.0 M; adjusted EBITDA margin 20.7% (down 250 bps YoY)
- Net loss from continuing operations: $(49.3) M; net loss per share $0.06
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Cash at quarter‑end: $101.6 M
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FY 2025 Financial Highlights
- Net revenue: $1,268.1 M (International $172.5 M, +63% YoY)
- Adjusted gross margin: 50% (up 150 bps YoY)
- Adjusted EBITDA: $274.7 M; adjusted EBITDA margin 21.7% (down 100 bps YoY)
- Operating cash flow: $152.0 M; free cash flow: $89.3 M
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Net loss from continuing operations: $(201.9) M; net loss per share $0.26
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Debt Financing
- Private placement of non‑dilutive 11.5% senior secured notes due 18 Feb 2029, gross proceeds $500.0 M.
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Proceeds used to fully repay the outstanding December 2026 note and extend the Amended Needham revolving credit facility (maturity extended to 18 Feb 2029; interest rate increased from 7.99% to 8.99%).
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Operational Highlights
- Retail footprint in Florida expanded to 71 locations (opening Curaleaf Lauderhill).
- New adult‑use dispensary opened in Bangor, ME (total U.S. stores = 161).
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International launch of the QMID medically certified liquid inhalation device in the UK and Germany.
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Capital Expenditures
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$63.4 M invested in FY 2025 for facility upgrades, automation, and selective retail expansion.
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Balance Sheet (as of 31 Dec 2025)
- Cash & cash equivalents: $101.6 M (down from $107.2 M)
- Total debt: $548.7 M (net of discounts/fees)
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Shareholders’ equity: $756.4 M
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Conference Call – Scheduled for 26 Feb 2026, 5:00 PM ET; replay available through 5 Mar 2026.
Notable Quotes
“We closed 2025 with clear momentum… Adjusted gross margin expanded to 49%… With our $500 million debt offering and Return to Our Roots plan now complete, we are transitioning from stabilization to acceleration…” – Boris Jordan, Chairman & CEO
Materiality Assessment: Material – Positive (the release provides comprehensive earnings information, highlights revenue growth, margin expansion, and a significant financing transaction).