Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported a 3.5% year-over-year uptick in revenue for the second quarter ending June 30, hitting $338.6 million. This was a slight miss on Yahoo’s average analyst estimate of $339.26 million.
Retail revenue was pegged at $277.4 million, a 10% jump from the second quarter of 2022, while wholesale revenue saw a 20% decline year-over-year. The company also reported adjusted EBITDA of $70 million for the quarter.
Additional financial highlights from the quarter include:
- Gross profit of $146.5 million, representing a gross margin of 43%.
- A net loss of $71.2 million, which includes discontinued operations.
- A cash position totaling $85 million at the quarter’s end.
Despite the overall sales growth, net loss increased versus the same period last year, mainly attributed to price pressures in Florida and New York and certain strategic financial decisions, the company said.
In a statement, Executive Chairman Boris Jordan highlighted the company’s drive for “game-changing catalysts” as the U.S. cannabis market finds its equilibrium.
“We continue to control costs and remain focused on long-term growth opportunities,” he said.
Curaleaf also is setting its sights overseas, particularly on European markets such as Germany. “We remain committed to the long game and will continue to position the company globally for years of robust growth and margin improvement,” Jordan added.
On the operational front, Curaleaf made some moves during the period:
- Acquired Deseret Wellness in Utah.
- Expanded its retail presence in Florida, taking its store count to 60 in the state and 152 nationwide.
- Launched the Curaleaf mobile app and introduced new product lines in various states.
“In Q2 we continued to prioritize the highest return growth opportunities balanced by a relentless focus on driving efficiencies across the business,” CEO Matt Darin said. “We made solid progress towards these objectives by shrinking our expense base by 7%, increasing our retail vertical mix to 65% and reducing our inventory by $17 million from the first quarter.”
He also kept to the same script about making sure Curaleaf can capitalize on global cannabis market openings when the industry fully matures.