Curaleaf Earnings + Call Notes
Global canna leader reports Q325 results.
$320.2M Revs; est. $317M
$69.3M aEBITDA; est. $66.2M
$159.7M GP; est. $156.3M
$4M OI; est. $6.9M
49.9% GM; est. 49.3%
“We generated Q3 revs of $320M, up 2% sequentially. Price compression continued to be a headwind, yet our domestic segment was stable and achieved modest growth. Our international segment continued its strong trajectory, delivering 12% sequential growth and 56% year-over-year growth. Adjusted gross margin improved to 50%, an increase of 115 basis points both sequentially and versus the prior year. Adjusted EBITDA was $69 million, representing a 22% margin, inclusive of a 200 basis point drag from our international and hemp businesses.
We ended the quarter with $107M in cash, after paying $28M in principal and interest debt obligations. We generated $53M in operating cash flow from continuing operations and $37M in free cash flow from continuing operations during the third quarter. Subsequent to quarter-end, we made $30M in acquisition-related debt payments, leaving approximately $70M payable over the next two years. We also closed on an upsized $100M revolving line of credit with Needham Bank, giving us greater flexibility to manage our business and pay down more expensive debt.”
The ‘Return to Our Roots’ plan we initiated 12 months ago, focused on enhancing product quality, driving growth, expanding margins, and optimizing cash flow, and is delivering tangible results. Over the past year, we completed significant foundational work to reset the business, leveraging our Dark Heart genetics program, investing in our supply chain, and realigning our retail operations. These actions have positioned our domestic business for renewed growth while supporting rapid int’l expansion. I’m encouraged to report that we’re seeing positive momentum across the organization, despite ongoing macro pressures.” Boris Jordan, Chairman and CEO
Call Notes
