Curaleaf Holdings (CSE: CURA) last night reported its second quarter financial results for the period ended June 30. After seeing negative sequential growth in the first quarter of the year, the firm appears to have returned to a topline growth story.
Revenues for the quarter came in at $337.6 million, a 7.8% increase over the $313.1 million in revenue reported for the first quarter of 2022. The increase in revenue is said to be driven by recent legislative changes in the state of New Jersey, which enabled adult use cannabis sales to begin in the state, as well as expanded product offerings.
Gross profit meanwhile climbed to $175.9 million before fair value changes, representing a gross margin of 51.9% during the quarter. Margin is said to have improved as a result of a changing revenue mix from higher margin states.
Expenses however climbed during the quarter, jumping from $135.3 million to $144.6 million on a sequential basis. The increase is largely attributable to SG&A, which amounted to $107.5 million, while depreciation and amortization came in at $31.1 million and share based compensation was $6.0 million. Overall, the company posted income from operations of $23.4 million.
After other expenses of $6.5 million, as well as an income tax expense of $45.1 million, Curaleaf posted a net loss for the quarter of $28.3 million, versus a loss of $20.0 million in Q1, amounting to a loss per share of $0.04. Adjusted EBITDA meanwhile is said to have been $86.2 million versus $72.9 million in the prior quarter.
“We bounced back from earlier headwinds to grow revenue 8%, and AEBITDA 18% sequentially, while continuing to execute on our growth strategy for Europe, a key differentiator for Curaleaf and a significant advantage over our competitors,” commented Chairman Boris Jordan on the results.
The company also reported a cash position of $187.1 million and total current assets of $932.7 million. Accounts payable and accrued liabilities meanwhile sits at $163.4 million, while income tax payable is currently $125.3 million. Total current liabilities overall sits at $382.7 million.
Curaleaf Holdings last traded at $7.23 on the CSE.
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