Curaleaf Holdings (TSX: CURA) reported a net loss of $216.2 million for 2024 which, while slightly improved from the $238.9 million loss reported in 2023, underscores the company’s ongoing profitability challenges despite maintaining $1.34 billion in annual revenue, a figure nearly unchanged from the prior year.
In Q4 2024, Curaleaf closed the quarter with $331.1 million in revenue, reflecting a 4% decline from Q4 2023 when the company generated $345.3 million. The quarter also ended with a $71.8 million net loss, compared to $57.7 million in Q4 2023.
International revenue provided one of the few bright spots, rising 73% year-over-year to $105.6 million in 2024 from 2023’s $61 million.
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However, the US market, which remains the core of Curaleaf’s business, saw continued shrinking, dropping from $1.29 billion last year to $1.24 billion this year. Particularly in US retail, sales plunged to $994.7 million, down from $1.08 billion in 2023. Conversely, wholesale revenue grew from $206.6 million to $240.9 million.
Curaleaf also reported an adjusted gross margin of 48% for the year, a 160 basis point increase over 2023, attributed to lower production costs and increased vertical integration. But despite better gross margins, adjusted EBITDA dropped to $300.8 million for 2024, down from $304.5 million in 2023. The adjusted EBITDA margin also declined to 22% from 22.6%.
The firm ended the year with $107.2 million in cash, compared to $91.8 million in 2023. It also generated operating cash flow of $163 million. With capital expenditures for 2024 totaling $93.2 million, the company’s free cash flow at the end of the year came in at $70.1 million.
Perhaps the most alarming statistic is that Curaleaf has now accumulated over $1 billion in net losses across the past five years. Despite this, CEO Boris Jordan remains optimistic, citing the company’s new “Return to our ROOTS” initiative to drive organic growth and improve margins.
Curaleaf last traded at $1.75 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
