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Curaleaf Holdings Inc. Financial Report - Q4 and Full Year 2024

Introduction

Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF), a prominent player in the cannabis sector, has recently disclosed its financial results for the fourth quarter and the full year of 2024. The results reflect a commitment to stability and growth in a challenging market environment.

Financial Highlights for Q4 2024

In the fourth quarter of 2024, Curaleaf achieved total revenues of $331 million, marking a modest decrease from $345.3 million in Q4 2023 but remaining flat compared to Q3 2024. The company's adjusted gross margin of 48% highlights their ability to maintain profitability amidst fluctuating market conditions. Notable metrics include:

• - Adjusted EBITDA of $75.8 million, equating to an adjusted margin of 23%.
• - Operating cash flow from continuing operations amounted to $163 million, alongside a free cash flow of $70 million.
• - The cash balance at quarter-end reached $107 million.

CEO Insights

Boris Jordan, the company's Chairman and CEO, noted, "Our strategy focuses on enhancing organic growth while addressing challenges that have arisen. The 'Return to our ROOTS' initiative is a crucial element of our operational focus, aiming to optimize performance and reduce debt."

Operational Milestones

During this quarter, Curaleaf opened two new dispensaries in Florida and successfully introduced its product lines in the German market. Additionally, a $40 million revolving credit facility was secured, setting a significant precedent for cannabis companies. This level of operational activity indicates Curaleaf's commitment to expanding its footprint and product offerings.

Full Year 2024 Financial Results

For the entire year, Curaleaf reported a net revenue of $1.34 billion, a stable result relative to the previous year. These figures include significant international revenue growth of 73%, contributing positively to overall financial health.

• - Gross profit for the year was $639 million, with a consistent gross margin of 48%.
• - Adjusted EBITDA stood at $300.8 million, while the net loss from continuing operations was reported at $216.2 million.

Strategic Growth Areas

The company emphasized its focus on international expansion and innovation for product development. This includes initiatives aimed at promoting their equity brand portfolio, including Curaleaf, Select, and Grassroots, ensuring comprehensive service delivery across medical and adult-use markets.

Looking Ahead

With 2025 on the horizon, Curaleaf expressed optimism about the potential for growth driven by their robust operational strategies and pioneering product developments. Key areas of focus will involve enhancing their supply chain efficiency, improving profit margins, and fostering new market opportunities.

In conclusion, Curaleaf Holdings Inc. remains committed to navigating the complexities of the cannabis market with a strong operational focus and strategic growth plans. Their adaptability and commitment to innovation will be integral to their expansion as the cannabis industry continues to evolve.