Curaleaf Holdings (CURLF) AI Stock Analysis

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Positive Factors

Market Expansion

Expansion into new markets is anticipated to increase revenue streams.

Operational Efficiency

Operational efficiencies are expected to drive margins.

Sales Growth

Sales growth in 2Q24 was largely driven by wholesale revenue growth as the international segment continues to gain traction.

Negative Factors

Competition

The company is facing stiff competition in the cannabis industry.

Financial Performance

EBITDA margins fell short of expectations due to higher G&A spend and heavy promotions at the start of the quarter.

Regulatory Challenges

There are concerns about regulatory challenges in the cannabis market.

Curaleaf Holdings (CURLF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$674.60M

Dividend YieldN/A

Average Volume (3M)531.63K

Price to Earnings (P/E)―

Beta (1Y)0.87

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees5,519

SectorHealthcare

Sector Strength42

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)-0.07

Shares Outstanding663,325,000

10 Day Avg. Volume354,719

30 Day Avg. Volume531,631

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.75

Price to Sales (P/S)0.00

P/FCF Ratio9.76

Enterprise Value/Market Cap1.98

Enterprise Value/Revenue0.25

Enterprise Value/Gross Profit2.24

Enterprise Value/Ebitda1.41

Forecast

1Y Price Target

$3.83

Price Target Upside335.23% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Curaleaf Holdings Business Overview & Revenue Model

Company DescriptionCuraleaf Holdings, Inc. operates a cannabis operator in the United States. It operates through Domestic Operations and International Operations segments. The company engages in the cultivation, production, and sale of cannabis products through retail and wholesale channels. In addition, it offers flowers, pre-rolls, flower pods, and dry-herb vaporizer cartridges; concentrates for vaporizing, such as pre-filled vaporizer cartridges and disposable vaporizer pens; and concentrates for dabbing, including distillate droppers, mints, topical balms and lotions, tinctures, lozenges, capsules, and edibles. Further, the company provides hemp-based CBD and cannabigerol products. The company was founded in 2010 and is headquartered in New York, New York.

How the Company Makes Money

Curaleaf Holdings Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -1.12%|

Next Earnings Date:Aug 11, 2025

Earnings Call Sentiment Neutral

Curaleaf's first quarter showed a mixed performance with significant growth in the international segment and improved gross margins offset by revenue declines and challenges in key domestic markets like New York. Despite the net loss and price compression challenges, strategic expansions and product innovations present optimistic prospects for future growth.

Q1-2025 Updates

Positive Updates

Gross Margin Expansion

Gross margin expanded by 250 basis points to 50% from the fourth quarter, reflecting improved efficiency in cultivation operations.

International Segment Growth

International segment delivered 74% year-over-year growth, marking the fourth consecutive quarter of 70% growth and 14% sequential growth, led by Germany and the U.K.

Strong Performance in Ohio

Ohio delivered robust year-over-year growth of 58% in quarter one, with strong performance from both retail locations and expanding wholesale business.

Introduction of New Products

Introduction and strong initial sell-through of new products like Anthem and Ace, with new proprietary extraction technology, setting new standards in the market.

Improved Cash Flow

Operating and free cash flow from continuing operations were $42 million and $26 million, respectively.

Negative Updates

Revenue Decline

Revenue of $310 million represented a 6% sequential decline and a 9% decrease compared to the same period last year, primarily due to pricing pressure and seasonality.

Challenges in New York

Significant revenue impact due to the inversion of illicit cannabis entering the market, causing a 50% drop in revenues from fourth quarter to February.

Price Compression

Price compression remains a significant headwind across the industry, affecting markets like New Jersey, Arizona, and Illinois.

Net Loss

First quarter net loss from continuing operations was $55 million, or a loss of $0.07 per share.

SG&A Expenses Increase

SG&A expenses were $107 million, a $3 million increase from the year-ago period, driven by international expansion and new store openings.

Company Guidance

During Curaleaf Holdings, Inc.'s Q1 2025 conference call, the company provided comprehensive guidance on its financial performance and strategic initiatives. The company reported a revenue of $310 million for the quarter, marking a 6% sequential decline, attributed to seasonality and price compression. Despite this, Curaleaf expanded its gross margin by 250 basis points to 50% and achieved an adjusted EBITDA of $65 million, representing a 21% margin. The company's international segment showed strong momentum with a 74% year-over-year revenue growth, led by Germany and the U.K. Domestically, New York and Ohio were highlighted for their revenue growth, with New York experiencing a 24% increase year-over-year. Curaleaf ended the quarter with $122 million in cash and reduced acquisition-related debt by $20 million. Looking ahead, the company anticipates low single-digit revenue growth in Q2 and remains focused on strategic expansions and enhancing profitability through operational efficiency and product optimization.

Curaleaf Holdings Financial Statement Overview

Summary

Curaleaf Holdings faces challenges with profitability, evidenced by declining revenues and persistent net losses. While cash flow and operational efficiency show some improvement, high debt levels and leverage risks pose financial stability concerns. The company needs to enhance profitability and manage leverage for sustainable growth.

Income Statement

Neutral

The company shows a declining revenue trend with a slight drop in total revenue from $1.34 billion in the previous year to $1.31 billion in TTM. The gross profit margin has decreased, indicating increased cost pressures. Furthermore, negative net income results in a negative net profit margin, highlighting ongoing profitability challenges. Though EBIT and EBITDA margins show slight improvements, they remain low, impacting overall profitability.

Balance Sheet

Positive

The balance sheet shows a relatively high debt-to-equity ratio, which poses leverage risks. However, the equity ratio remains stable, suggesting a moderate level of equity financing. Return on equity is negative due to net losses, impacting shareholder returns. Overall, the balance sheet shows stability but with notable leverage risks.

Cash Flow

Positive

Operating cash flow remains positive, reflecting operational viability. The free cash flow has grown compared to previous periods, improving cash flow stability. However, the free cash flow to net income ratio is affected by persistent losses, and the operating cash flow to net income ratio indicates inefficiencies. Overall, cash flow management shows improvements but remains constrained by net income losses.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.31B	1.34B	1.35B	1.34B	1.21B	626.64M
	Gross Profit
596.92M	639.25M	614.45M	579.03M	687.59M	390.51M
	EBIT
15.32M	20.20M	42.88M	-10.25M	175.63M	63.68M
	EBITDA
217.71M	233.14M	238.76M	220.97M	278.98M	128.59M
	Net Income Common Stockholders
-228.21M	-215.42M	-281.20M	-376.93M	-109.13M	-61.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
121.87M	93.03M	91.82M	163.18M	299.33M	73.54M
	Total Assets
2.95B	2.95B	3.10B	3.40B	3.26B	2.39B
	Total Debt
846.60M	853.82M	883.55M	931.91M	753.65M	577.71M
	Net Debt
724.73M	760.80M	800.33M	768.73M	454.32M	504.16M
	Total Liabilities
1.98B	1.96B	1.93B	2.00B	1.45B	1.01B
	Stockholders Equity
814.02M	861.21M	1.05B	1.28B	1.76B	1.38B
Cash Flow		Free Cash Flow
62.65M	64.42M	5.05M	-91.96M	-205.92M	-113.92M
	Operating Cash Flow
159.03M	162.57M	75.26M	46.40M	-33.96M	12.36M
	Investing Cash Flow
-93.78M	-93.83M	-78.69M	-228.62M	-163.97M	-197.11M
	Financing Cash Flow
-48.01M	-54.24M	-67.02M	50.54M	424.80M	224.08M

Curaleaf Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CURLF		$674.60M	―	-25.08%	―	―	―
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
CGC		$350.27M	―	-122.10%	―	―	―
ACB		$312.98M	36.29	4.78%	―	―	―
CRON		$765.46M	15.51	4.61%	―	―	―
TCNNF		$753.40M	―	-12.39%	―	―	―
CRLBF		$244.58M	―	-17.34%	―	―	―

* Healthcare Sector Average

Performance Comparison

CURLF

Curaleaf Holdings

0.88

-3.54

-80.09%

CGC

Canopy Growth

1.70

-5.58

-76.65%

ACB

Aurora Cannabis

5.72

-0.17

-2.89%

CRON

Cronos Group

1.98

-0.51

-20.48%

TCNNF

Trulieve Cannabis

3.94

-5.63

-58.83%

CRLBF

Cresco Labs

0.54

-1.20

-68.97%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.