Curaleaf Holdings (CSE: CURA) saw mild growth in the second quarter in terms of topline revenue as the company turns its focus to the European market and treads water stateside.
“As the U.S. industry regains its supply-demand equilibrium and we eagerly anticipate the game changing catalysts on the horizon, we continue to control costs and remain focused on long-term growth opportunities, particularly in Europe and our advantage in Germany specifically. We remain committed to the long game and will continue to position the Company globally for years of robust growth and margin improvement in ’24, ’25, ’26 and beyond,” commented Executive Chairman Boris Jordan on the results.
Net revenue for the second quarter came in at $338.6 million, a 4% improvement over the $327.0 million reported in the year ago period, and a 1% improvement over the first quarter.
Gross profit meanwhile fell to $146.5 million, down from $160.8 million in the first quarter. The decline was blamed on price compression in Florida and New York, and “intentional actions to reduce inventory.” Overall, the company saw a loss from operations of $7.1 million during the quarter, versus an income in Q1 of $16.4 million.
Net loss for the quarter overall came in at $74.5 million, compared to a loss of $56.5 million in Q1, and a loss of $21.8 million in the year ago period. Adjusted EBITDA also declined, falling to $70.0 million, versus $73.2 million in the first quarter, and $86.6 million in the year ago period.
In terms of its cash position, Curaleaf claimed that it had free cash flow from continuing operations of $8.0 million, yet its cash position declined from $115.8 million to $85.0 million over the course of the quarter.
Total current assets overall declined from $599.4 million to $463.4 million in Q2, while total current liabilities fell from $544.7 million to $515.9 million.
Curaleaf Holdings last traded at $4.08 on the CSE.
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