Curaleaf Earnings + Call Notes
U.S. cannabis leader reports Q4/FY25.
$333.1M Revs; est. $327.9M
$69M AEBITDA; est. $66.9M
$161.8M GP; est. $161.2M
$2.9M OI; est. $6M
48.6% GM; est. 49.2%
($59.8M) NI; est. ($44M)
($0.06) EPS; est. ($0.08)
Fourth quarter 2025 net revenue of $333 million
Fourth quarter 2025 International revenue of $51 million,
Fourth quarter 2025 gross profit margin of 49%
FY OCF and FCF from continuing operations of $152M and $89M, respectively.
Management Commentary
“We closed 2025 with clear momentum, delivering fourth-quarter revenue of $333 million. Revenue increased 5% sequentially and 2% year over year, bolstered by a broad-based return to growth in nearly all of our domestic markets despite a persistently challenging pricing environment.
Our international team closed out an impressive year with $51 million in fourth quarter revenue representing 10% sequential growth and 65% year over year revenue growth. Adjusted gross margin expanded to 49%, up 20 basis points from last year as the benefits from productivity gains in our cultivation facilities outweighed price compression. Adjusted EBITDA totaled $69 million, or 21% of sales, inclusive of a 120 basis point drag from international.
For the year, revenue reached $1.27 billion, with adjusted gross margin of 50% and adjusted EBITDA of $275 million, or 22% of revenue. We generated $152 million in operating cash flow and $89 million in free cash flow from continuing operations, while ending the year with $102 million of cash on the balance sheet. These results were delivered despite a third consecutive year of double-digit price compression, underscoring the strength, discipline, and resilience of our operating model and the success of our Return to Our Roots plan.
With our $500 million debt offering and Return to Our Roots plan now complete, we have reset the foundation of our business, and are transitioning from stabilization to acceleration with our Built for Growth strategy. By leveraging the platform we have strengthened—improved cultivation economics, tighter merchandising discipline, brand-led innovation, and enhanced execution—we are positioned to drive sustainable organic growth augmented by opportunistic acquisitions.”
Boris Jordan, Chairman and CEO
Call Notes
$333m Q4 revs.
^ strongest in 6 quarters.
Q4 Revs up 5% QoQ and 2% YoY.
Q4 Return to growth in nearly all domestic markets, led by OH INTL FL PA.
Q4 Intl team w/ $51m Q4 revs, up 10% QoQ and 65% YoY.
Q4 Adj GM to 49%, up 20bps YoY.
Q4 Adj EBITDA $69m or 21% margin, 120bps from INTL.
Q4 OPCF of $42m, FCF of $25m.
Paid $35m acquisition debt during the quarter.
FY’25 $1.27b revs ; $275m adj EBITDA.
FY’25 $152m OPCF, $89m FCF.
Q4 Retail revs of $237m, down 4% YoY.
Q4 wholesale revs up 15% YoY to $99m, led by INTL MA AZ OH.
Opened 9 new dispensaries during the year, 5 in FL, 3 in OH, 1 in ME.
Third consecutive year of double digit price compression.
Doubled yields across facilities, materially lowering cultivation costs and mitigating price compression ; without sacrificing quality.
Q4 avg flower potency reached 31%, highest in history.
Stronger product allocation and higher quality flower in FL drove higher conversion, traffic, satisfaction, sell through, loyalty ; replicating this across other states.
Substantial runway to unlock productivity and SSS growth.
Launched Anthem in April, cig-style pre-rolls; followed w/ Anthem Infused line.
^ also exceeding expectation.
Anthem a top 5 national pre-roll brand in 4 launch markets, NY NJ IL AZ.
Significant opportunity to scale gains as operating discipline scales across the nation.
’25 represents the trough.
Hemp ban in November will materially impact dynamics.
Believe regulated cannabis market was disrupted by proliferation of low-cost hemp THC products that can ship interstate.
Expect demand to normalize, pricing pressures to abate post-hemp ban.
Rescheduling will bring closer to US exchanges, expanded capital options, and credit cards.
Increased consolidation seen across the sector, primarily by undercapitalized operators
Expect industry consolidation to accelerate meaningfully in ‘26.
Completed $475m senior note maturing Dec ’26; issued new $500m senior secured note due Feb ’29, 11.5% coupon
Strengthened leadership across critical functions, sharpened critical execution.
Captured #1 overall brand market share across all CURLF brands; maintained #1 ranking in vape category w/ Select
Q4 outperformance driven by OH UT PA FL.
OH continues to benefit from A/U transition, and 2 new store ramp.
^ early performance exceeded expectations
UT remains healthy / stable, gaining share through increased brand adoption + wholesale penetration.
PA strong performance throughout the year; improvements in cultivation yields / quality impacting sell through and loyalty.
FL seeing consistent improvement in traffic, consumer satisfaction.
CURLF NY grew 14% in ’25.
Focused on extending leadership to become brand house of choice in wholesale; Anthem driving pre-roll strength, Select driving vape sales.
Innovation a core driver; launching BRIC 2.0 next month across 13 states, upgraded version w/ improved reliability and experience.
Expanding Dark Heart as premium flower offering, more details in the coming months.
CURLF INTL revs up 65% YoY, over $200m annual run rate; strong performance in GRMY UK.
Largest supplier in GRMY, demand robust for brand portfolio; QMID vape benefitted from adoption.
Expanded UK clinic patient count QoQ, reinforcing #1 m/share position.
Poland began to recover post-telemedicine restrictions; seeing tangible momentum re-emerge.
Expanding AUS expansion in ’26 w/ new products.
Put option on remaining Germany Four20 ownership exercised.
Regulators in France/Turkey developing rulemaking process.
France could commence as early as Q4 ’26.
Turkey expect a program launch in Q1 ‘27.
Believe France, Spain, Turkey have potential to be significant contributors.
Made decision to discontinue hemp business, de minimis impact.
Exited MO, where CURLF was subscale.
May be a role in hemp THC beverages in the broader landscape one day, but currently uncertain.
Alcohol demand continues to decelerate, impacting cannabis demand.
Positioned to drive sustainable organic growth.
Pursuing acquisitions that expand scale and advance market share gains.
’25 Adj GP of $633m or 50% adj GM, up 150bps YoY.
Q4 SG&A of $111m ($107m core SG&A), core SG&A up $10m YoY.
$428m and $413m FY’25 SG&A and core SG&A.
($39m) adj net loss for Q4 ‘25.
($176m) adj net loss for FY’25.
Intl segment profitability improving, but margins dragging by 120bps on EBITDA.
$275m adj EBITDA FY’25, 25% adj EBITDA, up 120bps YoY.
$102m cash/equivs.
$17m Q4 CAPEX, $63m FY’25 CAPEX.
’26 CAPEX of $80m, INTL, automation, relocation/renovation of stores, 10 new dispensary openings, IT infrastructure, expenses associated w/ relocation of corporate headquarters.
$549m debt; reduced acquisition debt by $57m during the year.
Expect Q1 revs to be down mid-single digits QoQ.
Continue to see pricing pressure across most markets in the US.
Will continue in 1H.
As hemp ban comes into play, expect stabilization in pricing across markets.
Starting to see some markets see shortage in certain products, led by hemp prevalence across the country
Seeing less hemp products now, less advertising, less C-stores carrying, etc.
Will see migration of customers to regulated market, think 50% of $25b estimated revenue of hemp market will probably move over to regulated market, largely flower/vape/edibles parts of the market.
Anticipate beverage probably stays within the hemp market.
Will see firmness / pricing moving higher into ’26.
Focused on efficiencies, getting more out of grow operations.
Getting more from automation and from grows.
Expect more efficiencies to come this year.
Expect to be able to hold onto current margin profile
Anticipate EU margins to stay flat vs. ’25.
As business scales, could see improvements in some margins, closer to US margins.
Early to tell. Some markets like France/Turkey wont begin until late ’26 / early ’27
Have the best GMs in the EU market of any operator today.
CURLF margins substantially better than the entire EU market.
Using US experience has benefited EU margins.
Federal ban is 1 year post-announcements, still see products due to that ban.
Seen marked benefit in margin + performance in MA, post-hemp ban.
Chances of hemp beverage consolations are pretty low right now.
Germany still around a $1b market, UK around 50-70k patients; 2 very early stage markets, expect strong growth to continue going forward; GRMY medical market is ½ the size of FL market w/ 4x the population
Pressure on prices in GRMY and UK, less so in the UK.
CURLF operates at higher end of segments, insulating margins.
Believe growth will help scalability of business.
Seeing pricing pressure at low end of product portfolio, which CURLF does not participate in
Improved yields and operational quality allows increased transactions.
Believe will see improved traffic in retail + wholesale going forward due to continued improvement
/end
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CB1 has a position and nothing contained herein should be considered advice.