Curaleaf Holdings Inc. (OTCPK: CURLF) reported an uptick in third-quarter revenue versus last year, but still slightly missed analysts’ sales expectations.
The New York-based company’s net revenue rose to $333.2 million, a 2% increase from the third quarter of 2022, which the company attributed to its expansion and diversification efforts. Still, the figure missed analysts’ average estimates by roughly $7 million.
Additionally, the company reported a net loss of $92.3 million, a notable rise from a loss of $51.4 million in the same quarter last year. Curaleaf’s performance was impacted by a non-cash impairment charge related to exiting operations in Michigan and Kentucky.
Adjusted EBITDA for the period was $75.3 million, representing 23% of revenue.
“The last two quarters have represented an important evolution for us,” CEO Matt Darin said in a statement. “Along with significant reductions to our expense structure, we scaled back production to accelerate the right-sizing of our inventory while continuing to deliver innovative new products that consumers love.
“With this progress, along with new wholesale growth opportunities and a return to a decentralized leadership structure, we are turning on idled capacity and are back on offense,” Darin added. “The growth catalysts of Germany, New York, Ohio, and potentially Florida and Pennsylvania position Curaleaf incredibly well for years of market share gains.”
Despite the net loss, Curaleaf’s retail sector saw a 6% increase in revenue, reaching $273.2 million and contributing significantly to the total revenue. The growth is largely fueled by the launch of adult-use sales in Maryland and Connecticut and the continued expansion in New Jersey.
Wholesale revenue remained unchanged from the second quarter and was down 12% from the previous year, which the company says is due to strategic inventory reductions.
Curaleaf’s balance sheet reflects an aggressive investment strategy with $49.4 million in capital expenditures focused on cultivation and retail expansion in key markets. The company ended the quarter with $118.1 million in cash and a net debt of $584.6 million after accounting for unamortized debt discounts.
The company has continued to shift its geographic focus, entering into an agreement to sell its Oregon assets and consolidating operations in Nevada. Curaleaf also ventured into the European market, acquiring assets in Portugal and starting sales in the U.K. and Poland, which may pave the way for its future growth outside the U.S.
“With significant near-term state and regulatory catalysts on the horizon, coupled with our proposed uplisting to the Toronto Stock Exchange and our early mover advantage in Europe, (all) give us great confidence in Curaleaf’s future,” Executive Chairman Boris Jordan said.