STAMFORD, Conn. — Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, reported its financial and operating results for the first quarter ended March 31, 2025. All financial information is reported in accordance with U.S. generally accepted accounting principles (GAAP) and is provided in U.S. dollars, unless otherwise indicated.
Boris Jordan, Chairman and CEO of Curaleaf, stated, “First quarter revenue was $310 million, with an adjusted gross profit of $155 million, resulting in a 50% adjusted gross margin, an increase of 250 basis points compared to the prior year period. We ended Q1 with $122 million in cash, with operating and free cash flow from continuing operations of $42 million and $26 million, respectively. Additionally, we paid down $20 million in acquisition-related debt. International revenue grew by 74% year–over-year — marking the fourth consecutive quarter of 70% plus growth — and we are encouraged by prospects for new market openings that could materialize over the next year. I’m happy to report that we’ve completed much of the heavy lifting needed to reposition the business for long-term success, including streamlining operations, improving key manufacturing metrics, and sharpening our focus on flower quality. This was evident through several recent successful national product launches, including our hemp THC energy drink, Select FormulaX, our new innovation in the vape category, Select ACE, and the launch of our new pre-roll brand, Anthem. I remain positive that we’re positioning the business to remain resilient and agile in a dynamic environment.”
First Quarter 2025 Financial Highlights
- Net Revenue of $310.0 million, a year-over-year decrease of 9% compared to Q1 2024 revenue of $338.9 million. Sequentially, net revenue decreased 6% compared to Q4 2024 revenue of $331.1 million.
- Gross profit of $155.2 million and gross margin of 50%, an increase of 260 basis points year-over-year.
- Adjusted gross profit of $155.4 million and adjusted gross margin of 50%, an increase of 250 basis points year-over-year.
- Net loss attributable to Curaleaf Holdings, Inc. from continuing operations of $54.8 million or net loss per share from continuing operations of $0.07.
- Adjusted EBITDA of $65.2 million and adjusted EBITDA margin of 21%, a 180 basis point decrease year-over-year.
- Cash at quarter end totaled $121.9 million.
First Quarter 2025 Operational Highlights
- Launched Reef, a high-quality flower brand in Florida
- Relocated one store in Sedona, Arizona, ending the quarter with a total of 149 retail locations
- Expanded Select Zero Proof Hemp Seltzer line with launch of 2.5mg dose option and new flavors
- Began selling Select hemp-derived THC beverages to over 100 Total Wine stores across the U.S.
- Launched Select FormulaX, a new line of hemp THC energy drinks with the added boost of caffeine
Post First Quarter 2025 Operational Highlights
- Opened the Company’s 66th retail location in Florida in Winter Park, bringing the nationwide store count to 151 locations
- Opened the first fully dedicated hemp retail storefront in West Palm Beach, Florida
- Launched Anthem, our new pre-roll brand rooted in American innovation, in New York, New Jersey, Illinois, Massachusetts, Arizona, and Florida, with more states to come
- Launched Select ACE utilizing an exclusive proprietary Aqueous Cannabis Extraction production method in New York, Massachusetts, and Florida
Balance Sheet and Cash Flow
As of March 31, 2025, the Company had $121.9 million of cash and $561.2 million of outstanding debt net of unamortized debt discounts.
During the three months ended March 31, 2025, Curaleaf invested $16.3 million in capital expenditures, focused on facility upgrades, automation, and selective retail expansion in strategic markets.
Shares Outstanding
For the first quarter of 2025 and 2024, the Company’s weighted average Subordinate Voting Shares plus Multiple Voting Shares outstanding amounted to 744,898,937 and 736,147,618 shares, respectively.
Adjusted Gross Profit from Continuing Operations
Gross profit from continuing operations was $155.2 million in the first quarter of 2025, compared with $160.9 million in the prior year period. Adjusted gross profit from continuing operations for the first quarter of 2025 was $155.4 million compared with $161.4 million in the first quarter of 2024. Adjusted gross profit margin from continuing operations for the first quarter of 2025 was 50%, an increase of 250 basis points compared with the first quarter of 2024. The year-over-year increase in adjusted gross profit margin was due to improved efficiencies in the Company’s cultivation and manufacturing operations.
Adjusted EBITDA
Adjusted EBITDA was $65.2 million for the first quarter of 2025, compared to $77.2 million for the first quarter of 2024, and Adjusted EBITDA margin decreased to 21.0%.
About Curaleaf Holdings
Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) is a leading international provider of consumer products in cannabis. The Company and its brands, including Curaleaf, Select, Grassroots, Find, Anthem and The Hemp Company, provide service, product selection and accessibility across the medical and adult use markets.
