Sangoma Announces Sale of VoIP Supply, LLC
MARKHAM, Ontario — Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) ('Sangoma' or the 'Company') today announced the completion of the sale of its subsidiary, VoIP Supply, LLC ('VoIP Supply'), effective June 30, 2025.
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This transaction represents a key milestone in Sangoma's ongoing strategic efforts to simplify its portfolio and sharpen its focus on core business areas. As previously disclosed in the Company's second and third quarter fiscal 2024 results, Sangoma has been evaluating strategic alternatives to optimize its operations and concentrate resources on higher growth and higher margin segments such as unified communications (cloud, hybrid, and on-prem solutions), contact center, and communications platforms.
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VoIP Supply operated in a segment that was increasingly non-core to Sangoma's long-term vision. Following a thorough review, the Company determined that divesting this business was the appropriate strategic decision to allow for better alignment with its core mission and to enhance operational focus.
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Sangoma secured approximately a 4x multiple on Adjusted EBITDA, reflecting a disciplined and financially prudent exit from a non-core asset. The proceeds from the sale will be used to reinvest in organic growth initiatives that support the Company's evolving enterprise architecture, go-to-market strategy, and service-based transformation.
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'This divestiture enables Sangoma to direct greater energy and investment into areas where we see significant opportunities for innovation, scalability, and growth,' said Charles Salameh, CEO of Sangoma. 'It reflects our disciplined approach to portfolio management and our commitment to creating long-term value for shareholders.'
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With this sale, Sangoma concludes its involvement in the VoIP hardware distribution segment, marking a deliberate pivot toward software-led, recurring revenue services that now comprise over 90% of the Company's revenue mix heading into Fiscal 2026. Sangoma remains focused on empowering businesses with seamless, integrated communication technologies and expects the streamlined portfolio to support more effective execution across its strategic roadmap.
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About Sangoma Technologies Corporation
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Sangoma (TSX: STC; Nasdaq: SANG) is a leading business communications platform provider with solutions that include its award-winning UCaaS, CCaaS, CPaaS, and Trunking technologies. The enterprise-grade communications suite is developed in-house; available for cloud, hybrid, or on-premises deployments. Additionally, Sangoma's integrated approach provides managed services for connectivity, network, and security.
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A trusted communications partner with over 40 years on the market, Sangoma has over 2.7 million UC seats across a diversified base of over 100,000 customers. Sangoma has been recognized for ten years running in the Gartner UCaaS Magic Quadrant.
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Thinkific reports in thousands of U.S. dollars and in accordance with IFRS VANCOUVER, BC, Aug. 6, 2025 /CNW/ - Thinkific Labs Inc. ("Thinkific" or the "Company") (TSX: THNC), a leading learning commerce platform, today announced its financial results for the quarter ended June 30, 2025. "Q2 marked the official launch of our move upmarket and we are now well underway to executing on a strategy aligning Thinkific's differentiated learning commerce platform to support our ideal customers" said Greg Smith, CEO and Founder of Thinkific. "By leveraging our core strengths: integrating courses, communities, AI and commerce, we plan on meeting the growing demand for scalable, education-driven revenue models. We are confident that this approach, along with our continued commitment to driving customer success, will ultimately accelerate growth for Thinkific and lead to enhanced shareholder value." Second Quarter Financial Highlights (All comparisons are relative to the second quarter of 2024) Total revenue increased 12% to $18.1 million, ahead of the guided range of $17.7 - $18.0 million, driven by strong Commerce adoption increasing Average Revenue per User by 9%, to $169: Commerce revenue increased 48% to $3.2 million, with GPV (2) processed through Thinkific Commerce growing 48% to $65 million. Thinkific Commerce penetration rate, measured as GPV (2) as a percent of GMV (2), increased to 58%, up from 40%. GMV (2) remained flat at $111 million. Subscription revenue increased 6% to $14.9 million, with ARR (2) increasing 6% to $60.5 million, building on the success of ARR growth in Q1. Thinkific Plus Subscription and Commerce revenue grew 25% to $4.7 million. Self Serve Subscription and Commerce revenue grew steadily by 8% to $13.4 million. Gross margin was 73%, broadly consistent with prior periods. Net income was $0.4 million, decreasing by $0.6 million. Adjusted EBITDA (1) was $1.0 million or 6% of revenue, an improvement of $0.2 million, or 20%. Cash and cash equivalents were $52.5 million at June 30, 2025. During the second quarter of 2025, the company generated $2.3 million of cash from operating activities, compared to $0.2 million. "Our Q2 financial performance highlights our ability to execute through strategic change while still delivering on our goals", said Corinne Hua, CFO of Thinkific. "We are re-allocating our spend to focus more upmarket, which we believe will deliver strong and stable long term growth for Thinkific. This transition is well underway and we remain committed to our strategy of profitable growth as we invest in our go-to-market teams and accelerate product innovations and AI into our learning commerce platform." Second Quarter Operational Highlights In support of our strategic shift upmarket, Thinkific launched significant enhancements to our Commerce Capabilities, including sale and management of bulk licenses, invoicing for B2B selling, and an improved subscription management and retention tool. These updates address the more complex needs of our Plus customers by making it easier to sell and manage higher volumes. Throughout the quarter, Thinkific released continuous improvements to our Communities platform. These include a modernized UI with a more intuitive design to help experts deliver a more professional, polished learning experience; Private Spaces which enable private, invite-only, communities; Weekly Digest Emails to support long-term community health and re-engagement; and rich text and multi-image posts to encourage more expressive, engaging community content that drives audience interaction. Thinkific was honored with a 2025 Top Rated Award from TrustRadius. This recognition, based on authentic customer reviews and ratings, highlights Thinkific's continued commitment to delivering exceptional value and driving success for its customers. Second Quarter Other Updates Thinkific eliminated its dual class structure by converting all multiple voting shares to single voting shares on a one-for-one basis, and completed a secondary offering of approximately C$15 million of Rhino Group's shares (which included an over allotment), simplifying the company's capital structure and paving the way to unlock shareholder value. Thinkific named Russ Mann as Board Chairman, succeeding Fraser Hall who remains a valued member of the Board. Russ' appointment as Board Chair brings a sharpened focus on our growth trajectory and dedication to maximizing long-term value for shareholders. Outlook For the third quarter of 2025, the Company expects revenue of $18.1 - $18.4 million while maintaining positive Adjusted EBITDA (1). Actual results may differ materially from Thinkific's financial outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below. Quarterly Conference Call and Webcast Information A conference call will be held at 5:00 PM ET (2:00 PM PT) on August 6, 2025 to discuss Thinkific's second quarter 2025 financial and operational results. To participate in the call, please dial 1.888.510.2154 (US/Canada toll-free) or 1.437.900.0527 (International/Toronto). For those unable to participate, a replay will be available an hour after the event by dialing 1.888.660.6345 (US/Canada toll-free) or 1.289.819.1450 (International/Toronto). The passcode is 95088#. The replay will expire at midnight ET on August 13, 2025. The conference call will also be available via webcast on the Investor Relations section of Thinkific's website at Thinkific's audited consolidated financial statements and accompanying notes, and Management's Discussion and Analysis for the quarter ended June 30, 2025, are available on the Company's website at and on SEDAR+ at About Thinkific Thinkific (TSX: THNC) is an award-winning learning commerce platform where courses and community come together to power business growth. Thinkific gives academies, experts, and businesses everything they need to create and sell online learning experiences, build communities, and grow their revenue — all from one platform. More than 35,000 customers — including companies like GoDaddy, Nasdaq, ActiveCampaign, and Datadog — have generated billions in revenue using Thinkific, impacting more than 200 million people worldwide. For more information, please visit Non-IFRS Measures The information presented within this press release includes "Adjusted EBITDA" and certain industry metrics. The "Adjusted EBITDA" is not a recognized measure under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, does not have a standardized meaning prescribed by IFRS, and is therefore unlikely to be comparable to similar measures presented by other companies. Rather, this measure is provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, it should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We also use certain industry metrics: "Annual Recurring Revenue", "Average Revenue per User", "Gross Merchandise Volume" and "Gross Payments Volume". These industry metrics are unaudited and are not directly derived from our financial statements. The non-IFRS measure and industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures and industry metrics in the evaluation of issuers. Our management also uses the non-IFRS measure and industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. "Adjusted EBITDA" is defined as Net income (loss) excluding taxes, interest, depreciation and amortization (or EBITDA), as adjusted for stock-based compensation, foreign exchange (gain) loss, finance income, and non-recurring equity transaction costs. Adjusted EBITDA does not have a standardized meaning under IFRS and is not a measure of operating income, operating performance or liquidity presented in accordance with IFRS, and is subject to important limitations. Please refer to "Reconciliation to IFRS from Non-IFRS measures" in this press release for more information. Key Performance Indicators We monitor the following industry metrics to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions: "Annual Recurring Revenue" or "ARR", "Average Revenue per User" or "ARPU", "Gross Merchandise Volume" or "GMV", and "Gross Payments Volume" or "GPV". Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies. "ARPU" is the average monthly Revenue per Paying Customer in the quarter. ARPU is calculated by taking the average Revenue for each month in the quarter and dividing this by the average number of Paying Customers for the same quarter. "ARR" is the annual value of all current Paying Customer subscriptions at the end of the period, with the number of Paying Customers multiplied by 12 times the average monthly subscription plan fee in effect on the last day of that period. "GMV" is the total dollar value of all transactions of course sales, membership subscriptions, or other products or services by our customers, facilitated through our platform during the period, net of refunds. GMV does not include transactions for course sales, membership subscriptions, or other products or services processed by application programming interfaces or certain apps where the Company does not record the transaction value. "GPV" is the total dollar value of transactions processed using Thinkific Payments in the period, net of refunds and inclusive of sales taxes where applicable. GPV does not represent revenue earned by us. Penetration rate is the percentage of GMV processed through Thinkific Payments, it is calculated by dividing GPV by GMV for the respective period. We believe that growth in GPV and penetration is an indicator of success of our customers in monetizing their learning products and of our Thinkific Payments offering. It is also a positive growth driver of revenue, which is derived from payment processing fees. Revenue earned from Thinkific Payments is included in our commerce revenue. Forward-Looking Statements This press release includes forward-looking statements and forward–looking information within the meaning of applicable securities laws in Canada. Forward-looking statements and information may relate to our future financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "trends", "directional indicator", "indicator", "future success", "expects", "is expected", "opportunity", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "scalability", "trajectory", "prospects", "strategy", "intends", "anticipates", "adoption", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or, "will", "occur" or "be achieved", and similar words, or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements in this press release include, but are not limited to statements regarding our financial position; management's ability to increase business efficiencies necessary to build and maintain a sustainable cost structure; business strategy, budgets, operations, investments, financial results, our ability to retain a profitable Adjusted EBITDA run rate, plans and objectives around growth and profitability; industry trends; growth in our industry; our growth rates and growth strategies; the expectations regarding our revenue and the revenue generation potential of Our Platform and other products including the Spotify pilot; and our competitive position in our industry. Forward-looking statements and information are based on our opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, the Company's ability to execute on its growth strategies; the impact of changing conditions and increasing competition in the global e-learning market in which the Company operates; the Company's ability to keep pace with technological and marketplace changes including, but not limited to fluctuations in currency exchange rates and volatility in financial markets; changes in attitudes, financial condition and demand of our target market; developments and changes in applicable laws and regulations; and such other factors discussed in greater detail under the "Risk Factors" section of our 2024 Annual Information Form (" AIF"). Forward-looking statements and information are necessarily based upon estimates and assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control and many of which, regarding future business decisions, are subject to change. Assumptions or factors underlying the Company's expectations regarding forward-looking statements or information contained in this press release include, among others: our ability to continue investing in infrastructure to support our growth and brand recognition; our ability to continue maintaining, innovating, improving and enhancing our technological infrastructure and functionality, performance, reliability, design, security and scalability of our Platform (as defined in our AIF); our ability to maintain existing relationships with customers (as defined in our AIF) and to continue to expand our customers' use of our platform; our ability to acquire new customers; our ability to maintain existing material relationships on similar terms with service providers, suppliers, partners and other third parties; our ability to build our market share and enter new markets and industry verticals; the continued development, rollout, integration and success of new products, features, and services; our ability to retain key personnel; our ability to maintain and expand geographic scope; our ability to execute on our expansion and growth plans; our ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; the changes and trends in our industry or the global economy; and the changes in laws, rules, regulations, and global standards. The foregoing list of assumptions cannot be considered exhaustive. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information provided herein. The opinions, estimates or assumptions referred to above are described in greater detail in "Summary of Factors Affecting our Performance" and in the "Risk Factors" section of our AIF, which is available under our profile on SEDAR+ at should be considered carefully by prospective investors. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material, that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date specified herein, and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements. Readers are cautioned that any such forward-looking information should not be used for purposes other than for which it is disclosed. As at June 30 As at December 31 2025 2024 Assets Current assets Cash and cash equivalents $ 52,469 $ 49,492 Trade and other receivables 4,525 4,585 Prepaid expenses and other assets 2,188 3,288 Contract acquisition assets 678 640 Derivative asset 201 — Total current assets 60,061 58,005 Property and equipment 505 580 Lease right-of-use assets 1,567 1,738 Contract acquisition assets 999 909 Intangible assets 196 136 Total assets $ 63,328 $ 61,368 Liabilities and shareholders' equity Current liabilities Accounts payable and accrued liabilities $ 7,336 $ 7,598 Lease liabilities 336 368 Deferred revenue 11,137 9,869 Derivative liability — 538 Total current liabilities 18,809 18,373 Lease liabilities 1,328 1,401 Total liabilities 20,137 19,774 Shareholders' equity Share capital 108,834 109,460 Contributed surplus 8,656 7,945 Accumulated other comprehensive income (loss) 163 (576) Accumulated deficit (74,462) (75,235) Total shareholders' equity 43,191 41,594 Total liabilities and shareholders' equity $ 63,328 $ 61,368 THINKIFIC LABS INC. Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited) Amounts expressed in thousands of U.S. dollars, except share and per share amounts Three months ended June 30 Six months ended June 30 2025 2024 2025 2024 Revenue $ 18,098 $ 16,211 $ 35,942 $ 32,175 Cost of revenue 4,820 4,006 9,492 8,094 Gross profit 13,278 12,205 26,450 24,081 Operating expenses Sales and marketing 5,433 4,890 10,459 9,878 Research and development 5,346 4,335 10,244 8,979 General and administrative 3,341 3,060 6,782 6,841 Total operating expenses 14,120 12,285 27,485 25,698 Operating loss (842) (80) (1,035) (1,617) Other income Finance income 712 1,106 1,313 2,010 Foreign exchange gain (loss) 502 (96) 495 (532) Total other income 1,214 1,010 1,808 1,478 Net income (loss) 372 930 773 (139) Other comprehensive income (loss) Unrealized gain (loss) on derivatives 542 (106) 739 (603) Total comprehensive income (loss) $ 914 $ 824 $ 1,512 $ (742) Weighted average number of common shares outstanding - basic 68,104,374 79,618.425 68,141,404 80,342.751 Weighted average number of common shares outstanding - diluted 68,950,072 81,149,250 69,105,506 80,342,751 Earnings (loss) per share Basic $ 0.01 $ 0.01 $ 0.01 $ (0.00) Diluted $ 0.01 $ 0.01 $ 0.01 $ (0.00) THINKIFIC LABS INC. Condensed Interim Consolidated Statements of Cash Flows (unaudited) Amounts expressed in thousands of U.S. dollars Six months ended June 30 2025 2024 Operating activities Net income (loss) $ 773 $ (139) Items not affecting cash and cash equivalents: Depreciation and amortization 686 671 Stock-based compensation 2,019 2,060 Unrealized foreign exchange (gain) loss (498) 528 Finance income (1,313) (2,010) Interest received 389 2,369 Changes in non-cash working capital: Trade and other receivables 733 (972) Prepaid expenses and other assets 1,097 (775) Contract acquisition assets (487) (353) Accounts payable and accrued liabilities 786 828 Deferred revenue 1,268 1,052 Cash from operating activities $ 5,453 $ 3,259 Investing activities Proceeds on disposal of property and equipment — 77 Investment in property and equipment and intangible assets (142) (233) Cash used in investing activities $ (142) $ (156) Financing activities Operating lease payments (222) (220) Exercise of stock options 45 67 Tax remittances on stock based compensation (422) (1,942) Shares repurchased for cancellation and other equity-related costs, including tax remittances (2,098) (38,486) Cash used in financing activities $ (2,697) $ (40,581) Effect of exchange rate fluctuations on cash and cash equivalents held 363 (568) Increase (decrease) in cash and cash equivalents 2,977 (38,046) Cash and cash equivalents, beginning of period 49,492 86,611 Cash and cash equivalents, end of period $ 52,469 $ 48,565 Non-cash transactions Taxes accrued on share repurchases included in accounts payable and accrued liabilities $ 24 $ 762 THINKIFIC LABS INC. Reconciliation from IFRS to Non-IFRS Measures (unaudited) Amounts expressed in thousands of U.S. dollars Three months ended June 30 Six months ended June 30 (in thousands of U.S. dollars) 2025 2024 2025 2024 Net income (loss) $ 372 $ 930 $ 773 $ (139) Stock-based compensation 1,255 615 2,019 2,060 Depreciation and amortization 334 339 686 671 Foreign exchange (gain) loss (502) 96 (495) 532 Finance income (712) (1,106) (1,313) (2,010) Non-recurring equity transaction costs 302 — 302 — Adjusted EBITDA $ 1,049 $ 874 $ 1,972 $ 1,114 SOURCE Thinkific Labs Inc.
Cision Canada
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Morguard Corporation Announces 2025 Second Quarter Results and Regular Eligible Dividend
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Reporting Highlights Total revenue from real estate properties increased by $1.7 million, or 0.7%, to $256.6 million for the three months ended June 30, 2025, compared to $254.9 million for the same period in 2024. Normalized funds from operations (1) ("Normalized FFO") was $56.0 million, or $5.24 per common share, for the three months ended June 30, 2025. This represents an increase of $4.8 million, or 9.3%, compared to $51.2 million, or $4.74 per common share for the same period in 2024. Comparative NOI (1) decreased by $2.1 million or 1.5% to $138.7 million for the three months ended June 30, 2025, compared to $140.8 million for the same period in 2024. Adjusted NOI (1) decreased by $1.0 million, or 0.7%, to $141.3 million for the three months ended June 30, 2025, compared to $142.3 million for the same period in 2024. Net income decreased by $0.5 million to $54.9 million for the three months ended June 30, 2025, compared to $55.4 million for the same period in 2024, primarily due to increase in provision for taxes, partially offset by a decrease in non-cash net fair value loss. Financial Highlights Three months ended June 30 Six months ended June 30 (in thousands of dollars) 2025 2024 2025 2024 Revenue from real estate properties $256,589 $254,858 $519,638 $511,947 Revenue from hotel properties 9,142 8,826 14,516 19,263 Management and advisory fees 10,417 10,522 19,908 20,179 Interest and other income 4,271 4,325 8,556 8,808 Total revenue $280,419 $278,531 $562,618 $560,197 Revenue from real estate properties $256,589 $254,858 $519,638 $511,947 Revenue from hotel properties 9,142 8,826 14,516 19,263 Property operating expenses (102,951) (99,841) (276,602) (262,985) Hotel operating expenses (5,800) (5,964) (10,498) (15,598) Net operating income ("NOI") $156,980 $157,879 $247,054 $252,627 Net income attributable to common shareholders $54,001 $53,858 $112,136 $184,304 Net income per common share – basic and diluted $5.05 $4.98 $10.47 $17.04 Funds from operations (1) $56,519 $47,381 $103,761 $79,324 FFO per common share – basic and diluted (1) $5.28 $4.38 $9.69 $7.33 Normalized funds from operations (1) $56,039 $51,270 $106,003 $103,846 Normalized FFO per common share – basic and diluted (1) $5.24 $4.74 $9.90 $9.60 (1) Refer to Specified Financial Measures. Total revenue during the three months ended June 30, 2025, increased by $1.9 million to $280.4 million compared to $278.5 million in 2024, mainly due to an increase in revenue from real estate properties in the amount of $1.7 million, primarily due to higher average monthly rent ("AMR"), net of an increase in vacancy within the multi-suite residential segment and an increase in vacancy at Penn West Plaza, resulting from the expiry of Obsidian Energy's lease ("Obsidian Lease Expiry"). In addition, revenue increased from the change in foreign exchange rate and from the net impact of acquisition and disposition of properties. Net income for the three months ended June 30, 2025 was $54.9 million, compared to $55.4 million in 2024. The decrease in net income of $0.5 million for the three months ended June 30, 2025, was primarily due to the following: A decrease in NOI of $0.9 million, mainly due to a decrease in gross rent and an increase in vacancy costs at Penn West Plaza due to Obsidian Lease Expiry, and higher vacancy at multi-suite residential properties, partially offset by an increase in AMR at multi-suite residential properties, the change in foreign exchange rate and from the net impact of acquisition and disposition of properties; A decrease in amortization of hotel properties and other of $1.5 million; A decrease in non-cash net fair value loss of $7.2 million, mainly due to an increase in fair value gain on real estate properties and marketable securities, partially offset by an increase in fair value loss on Morguard Residential REIT units; and An increase in income tax expense (current and deferred) of $7.1 million, mainly due to a higher fair value gain recorded on the Company's Canadian and U.S. properties. Total revenue during the six months ended June 30, 2025, increased by $2.4 million to $562.6 million compared to $560.2 million in 2024, mainly due to an increase in revenue from real estate properties in the amount of $7.7 million, primarily due to higher AMR, net of an increase in vacancy within the multi-suite residential segment and an increase in vacancy at Penn West Plaza. In addition, revenue increased from the change in foreign exchange rate and decreased from the net impact of acquisition and disposition of properties, which includes a decrease in revenue from the sale of 14 hotels on January 18, 2024 (the "Hotel Portfolio Disposition") in the amount of $4.7 million. Net income for the six months ended June 30, 2025 was $109.6 million, compared to $172.2 million in 2024. The decrease in net income of $62.6 million for the six months ended June 30, 2025, was primarily due to the following: A decrease in NOI of $5.6 million, mainly due to a decrease in gross rent and an increase in vacancy costs at Penn West Plaza, resulting from the Obsidian Lease Expiry, and higher vacancy at multi-suite residential properties, partially offset by an increase in AMR at multi-suite residential properties, the change in foreign exchange rate and from the net impact of acquisition and disposition of properties; An increase in non-cash net fair value gain of $108.4 million, mainly due to an increase in fair value gain on real estate properties and marketable securities, and a decrease in fair value loss on other real estate funds investments, partially offset by an increase in fair value loss on Morguard Residential REIT units; A decrease in gain on sale of hotel properties of $150.6 million due to the Hotel Portfolio Disposition; and An increase in income tax expense (current and deferred) of $15.1 million, mainly due to a deferred tax increase from a higher fair value gain recorded on the Company's Canadian and U.S. properties, partly offset by a decrease in current taxes resulting from the disposal of properties in 2024. Average Occupancy Levels During the second quarter, occupancy was strong and consistent across the multi-suite residential and retail asset classes, supporting the Company's business objective of generating stable and increasing cash flow through its diversified portfolio of real estate assets. The following table provides occupancy by asset class for the following periods: (1) Retail occupancy has been adjusted to exclude development space of 379,572 square feet of GLA. (2) Office includes industrial properties with 1,013,500 square feet of GLA. On February 1, 2025, Obsidian Energy's lease expired at Penn West Plaza, an office building located in Calgary, Alberta. As at June 30, 2025, the occupancy percentage for Penn West Plaza was 79.4% compared to 100.0% at June 30, 2024. Adjusted Net Operating Income ("Adjusted NOI") The following table provides a reconciliation of Adjusted NOI to its closely related financial statement measurement for the following periods: (1) Includes industrial properties with NOI for the three and six months ended June 30, 2025 of $2,720 (2024 - $2,639) and $5,524 (2024 - $5,116), respectively. For the three and six months ended June 30, 2025, Adjusted NOI decreased by $1.0 million and $1.9 million, respectively, primarily due to decrease in office portfolio primarily due to Obsidian Lease Expiry, a decrease in the retail portfolio mainly due to lower percentage rent at three enclosed shopping centres and higher vacancy and bad debt expense, partially offset by an increase in AMR, net of higher vacancy within the multi-suite residential segment, and from the change in foreign exchange rate and the net impact of acquisition and disposition of properties. The following tables provide a reconciliation of FFO and Normalized FFO to its closely related financial statement measurement for the following periods: Three months ended June 30 Six months ended June 30 (in thousands of dollars) 2025 2024 2025 2024 Multi-suite residential $76,390 $73,081 $151,240 $143,502 Retail 31,181 32,065 62,039 64,352 Office 30,419 34,343 61,126 68,837 Hotel 3,342 2,862 4,018 3,665 Adjusted NOI Other Revenue 141,332 142,351 278,423 280,356 Management and advisory fees 10,417 10,522 19,908 20,179 Interest and other income 4,271 4,325 8,556 8,808 Equity-accounted FFO 656 573 1,212 1,648 15,344 15,420 29,676 30,635 Expenses and Other Interest (63,610) (63,234) (126,595) (128,116) Principal repayment of lease liabilities (654) (382) (1,143) (783) Property management and corporate (21,789) (21,609) (46,714) (44,940) Internal leasing costs 1,095 932 2,731 2,137 Amortization of capital assets (278) (309) (566) (590) Current income taxes (1,617) (5,772) (4,254) (4,820) Non-controlling interests' share of FFO (12,389) (13,912) (24,312) (27,569) Unrealized changes in the fair value of financial instruments (881) (6,272) (3,503) (26,906) Other income (expense) (34) 168 18 (80) FFO $56,519 $47,381 $103,761 $79,324 FFO per common share amounts – basic and diluted $5.28 $4.38 $9.69 $7.33 Weighted average number of common shares outstanding (in thousands): Basic and diluted 10,704 10,813 10,711 10,813 Three months ended June 30 Six months ended June 30 (in thousands of dollars) 2025 2024 2025 2024 FFO (from above) $56,519 $47,381 $103,761 $79,324 Add/(deduct): Unrealized changes in the fair value of financial instruments 881 6,272 3,503 26,906 SARs plan increase (decrease) in compensation expense (541) (547) (218) 310 Lease cancellation fee and other (1,098) (2,399) (1,363) (3,436) Tax effect of above adjustments 278 563 320 742 Normalized FFO $56,039 $51,270 $106,003 $103,846 Per common share amounts – basic and diluted $5.24 $4.74 $9.90 $9.60 Third Quarter Dividend The Board of Directors of Morguard Corporation announced that the third quarterly, eligible dividend of 2025 in the amount of $0.20 per common share will be paid on September 29, 2025, to shareholders of record at the close of business on September 15, 2025. Subsequent Events The Company completed the CMHC-insured refinancing of a multi-suite residential property located in Toronto, Ontario, providing gross proceeds of $154.0 million at an interest rate of 4.05% for a term of 10 years. The maturing first and second mortgages amounted to $116.5 million and had a weighted average interest rate of 2.99%. The Company completed the refinancing of a multi-suite residential property located in Chicago, Illinois, in the amount of $163.7 million (US$120.0 million) at an interest rate of 5.35% and for a term of 3 years. The maturing mortgage amounted to $153.6 million (US$112.6 million) and had an interest rate of 3.49%. The Company completed the refinancing of an office property, in which the Company has 20% ownership, located in Vancouver, British Columbia, providing gross proceeds of $37.0 million (at ownership share) at an interest rate of 4.68% for a term of 5 years. The maturing mortgage amounted to $34.7 million (at ownership share) and had an interest rate of 3.40%. Specified Financial Measures The Company reports its financial results in accordance with International Financial Reporting Standards ("IFRS"). However, this earnings release also uses specified financial measures that are not defined by IFRS, which follow the disclosure requirements established by National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure for non-GAAP financial measures. Specified financial measures are categorized as non-GAAP financial measures, non-GAAP ratios, and other financial measures. Additional details on specified financial measures including supplementary financial measures, capital management measures and total segment measures are set out in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2025 and are available on the Company's profile on SEDAR+ at The following non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. These measures should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. The Company's management uses these measures to aid in assessing the Company's underlying core performance and provides these additional measures so that investors may do the same. Management believes that the non-GAAP financial measures described below, which supplement the IFRS measures, provide readers with a more comprehensive understanding of management's perspective on the Company's operating results and performance. A reconciliation of each non-GAAP financial measure referred to in this earnings release is provided above. Adjusted NOI Adjusted NOI is an important measure in evaluating the operating performance of the Company's real estate properties and is a key input in determining the fair value of the Company's properties. Adjusted NOI represents NOI (an IFRS measure) adjusted to exclude the impact of realty taxes accounted for under IFRIC 21 as noted below. NOI includes the impact of realty taxes accounted for under the International Financial Reporting Interpretations Committee ("IFRIC") Interpretation 21, Levies ("IFRIC 21"). IFRIC 21 states that an entity recognizes a levy liability in accordance with the relevant legislation. The obligating event for realty taxes for the U.S. municipalities in which the REIT operates is ownership of the property on January 1 of each year for which the tax is imposed and, as a result, the REIT records the entire annual realty tax expense for its U.S. properties on January 1, except for U.S. properties acquired during the year in which the realty taxes are not recorded in the year of acquisition. Adjusted NOI records realty taxes for all properties on a pro rata basis over the entire fiscal year. Comparative NOI Comparative NOI is presented in this earnings release because management considers this non-GAAP financial measure to be an important measure of the Company's operating performance for properties owned by the Company continuously for the current and comparable reporting period and does not take into account the impact of the operating performance of property acquisitions and dispositions as well as properties subject to significant change as a result of recently completed development. In addition, Comparative NOI is presented in local currency, isolating any impact of foreign exchange fluctuations, and eliminates the impact of straight-line rents, realty taxes accounted for under IFRIC 21, lease cancellation fees and other non-cash and non-recurring items. Funds From Operations and Normalized FFO FFO (and FFO per common share) is a non-GAAP financial measure widely used as a real estate industry standard that supplement net income (loss) and evaluates operating performance but is not indicative of funds available to meet the Company's cash requirements. FFO can assist with comparisons of the operating performance of the Company's real estate between periods and relative to other real estate entities. FFO is computed in accordance with the current definition of the Real Property Association of Canada ("REALPAC") and is defined as net income (loss) attributable to common shareholders adjusted for: (i) deferred income taxes, (ii) unrealized changes in the fair value of real estate properties, (iii) realty taxes accounted for under IFRIC 21, (iv) internal leasing costs, (v) gains/losses from the sale of real estate or hotel property (including income tax on the sale of real estate or hotel property), (vi) transaction costs expensed as a result of a business combination, (vii) gains/losses on business combination, (viii) the non-controlling interest of Morguard North American Residential REIT, (ix) amortization of depreciable real estate assets (including right-of-use assets), * amortization of intangible assets, (xi) principal payments of lease liabilities, (xii) FFO adjustments for equity-accounted investments, (xiii) provision for (recovery of) impairment, (xiv) other fair value adjustments and non-cash items. The Company considers FFO to be a useful measure for reviewing its comparative operating and financial performance. FFO per common share is calculated as FFO divided by the weighted average number of common shares outstanding during the period. Normalized FFO (and normalized FFO per common share) is computed as FFO excluding non-recurring items on a net of tax basis and other non-cash fair value adjustments. The Company believes it is useful to provide an analysis of Normalized FFO which excludes non-recurring items on a net of tax basis and other non-cash fair value adjustments excluded from REALPAC's definition of FFO described above. Non-consolidated indebtedness to gross book value ratio is a compliance measure and establishes the limit for financial leverage of the Company on a Non-Consolidated Basis. Non-consolidated indebtedness to gross book value ratio is presented in this earnings release because management considers this non-GAAP measure to be an important compliance measure of the Company's financial position. Non-consolidated gross book value is a measure of the value of the Company's assets and is calculated as total assets less right-of-use assets accounted for under IFRS 16, Leases. Non-consolidated indebtedness is defined as the sum of the current and non-current portion of: (i) mortgages payable, (ii) Unsecured Debentures, (iii) convertible debentures, (iv) bank indebtedness, and (v) loans payable. The Company's unaudited condensed consolidated financial statements for the three and six months ended June 30, 2025, along with Management's Discussion and Analysis will be available on the Company's website at and will be filed with SEDAR+ at About Morguard Corporation Morguard Corporation is a real estate company, with total assets owned and under management valued at $19.1 billion. As at August 6, 2025, Morguard owns a diversified portfolio of 156 multi-suite residential, retail, office, industrial and hotel properties comprised of 17,798 residential suites, approximately 16.9 million square feet of commercial leasable space and 472 hotel rooms. Morguard also currently owns a 68.3% interest in Morguard Real Estate Investment Trust and a 48.4% effective interest in Morguard North American Residential Real Estate Investment Trust. Morguard also provides advisory and management services to institutional and other investors. For more information, visit the Company's website at SOURCE Morguard Corporation
Cision Canada
3 minutes ago
- Cision Canada
Curaleaf Reports Second Quarter 2025 Results; Domestic Stabilization, Robust International Momentum
Second quarter 2025 International revenue of $41 million Second quarter 2025 adjusted gross margin (1) of 49% Awarded license to operate in Turkey's nascent medical cannabis market STAMFORD, Conn., Aug. 6, 2025 /CNW/ -- Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf" or the "Company"), a leading international provider of consumer products in cannabis, today reported its financial and operating results for the second quarter ended June 30, 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, "Second quarter revenue was $315 million, up 1.5% compared to the first quarter, consistent with our guidance. Adjusted gross margin of 49% increased 120 basis points compared to the prior year period. We generated $66 million in adjusted EBITDA resulting in a 21% AEBITDA margin. Our international segment delivered another solid quarter of 62% year-over-year growth. We ended Q2 with $102 million in cash, after making $47 million in interest and debt payments." Mr. Jordan continued, "Over the past decade, we've scaled Curaleaf into a global cannabis leader, now operating in 17 U.S. states plus 15 countries worldwide. Today, I'm proud to announce another key milestone: we have been awarded a license to operate in Turkey, a country of 87 million people, further expanding our international footprint. We also strengthened our leadership team with four senior executive appointments that deepen our commercial expertise and position us for our next phase of growth. With our infrastructure built and asset base set, we're now sharpening our focus on product quality, customer service, and supply chain excellence—positioning Curaleaf to thrive in a volatile environment and capitalize on emerging opportunities. Global consumer demand for cannabis is strong and accelerating, and with the right team, strategy, and foundation in place, we are uniquely positioned to lead the next wave of industry growth." Second Quarter 2025 Financial Highlights Net Revenue of $314.5 million, a year-over-year decrease of 8% compared to Q2 2024 revenue of $342.3 million. Sequentially, net revenue increased 1.5% compared to Q1 2025 revenue of $310.0 million Gross profit of $152.6 million and gross margin of 49%, an increase of 160 basis points year-over-year Adjusted gross profit (1) of $153.5 million and adjusted gross margin (1) of 49%, an increase of 120 basis points year-over-year Net loss attributable to Curaleaf Holdings, Inc. from continuing operations of $50.6 million or net loss per share from continuing operations of $0.07 Adjusted net loss (1) from continuing operations of $47.8 million or adjusted net loss per share from continuing operations of $0.06 Adjusted EBITDA (1) of $65.5 million and adjusted EBITDA margin ([1]) of 21%, a 40 basis point decrease year-over-year Cash at quarter end totaled $102.3 million Six Months Ended June 30, 2025 Financial Highlights Net revenue of $624.5 million, a decrease of 8% year-over-year International revenue of $75.8 million, an increase of 67% compared to 2024 revenue of $45.3 million Gross profit of $307.7 million and gross margin of 49% Adjusted gross profit (1) of $309.0 million and adjusted gross margin (1) of 50% Operating cash flow from continuing operations of $51.1 million and free cash flow from continuing operations of $19.8 million Net loss from continuing operations of $105.4 million or net loss per share from continuing operations of $0.14 Adjusted net loss (1) from continuing operations of $95.5 million or adjusted net loss per share from continuing operations of $0.13 Adjusted EBITDA (1) of $130.7 million and adjusted EBITDA margin of 21% Second Quarter 2025 Operational Highlights Opened the Company's 66 th retail location in Florida, in Winter Park, as well as the 3rd location in Ohio in Lima, bringing the nationwide store count to 153 locations Opened the first fully dedicated hemp retail storefront in West Palm Beach, FL Launched Anthem, our new cylindrical style 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, an ultra-clear, ultra-pure oil utilizing our proprietary Aqueous Cannabis Extraction production method in New York Achieved EU-MDR certification for the world's first medically certified liquid cannabis inhalation device with plans to launch in the UK and other key European and Australian markets as regulations evolve. Hired four senior executives to bolster management team; Rahul Pinto, President; Scott Crawford, SVP Merchandising; Justin Miller, SVP Brand Marketing; and Helen Chen, SVP Digital Post Second Quarter 2025 Operational Highlights Completed the buyout of minority partner of international business and now own 100% of Curaleaf International allowing for increased operational flexibility and a simplified structure Awarded a license to operate in Turkey's nascent medical cannabis program anticipated to launch in 2026 On August 1 st opened the Company's 67 th medical dispensary in Florida, in St. Augustine, bringing the nationwide count to 154 locations (1) Adjusted EBITDA, adjusted net income (loss), adjusted gross profit and free cash flow are non-GAAP financial measures, and adjusted EBITDA margin, adjusted net income (loss) per share and adjusted gross margin are non-GAAP financial ratios, in each case without a standardized definition under GAAP and which may not be comparable to similar measures used by other issuers. See "Non-GAAP Financial Performance Measures" below for definitions and more information regarding Curaleaf's use of non-GAAP financial measures and non-GAAP financial ratios. See "Reconciliation of Non-GAAP financial measures" below for a reconciliation of each non-GAAP financial measure used in this press release from the most directly comparable GAAP financial measure. Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Domestic revenues: Retail revenue $ 216,538 $ 219,644 $ 255,199 Wholesale revenue 56,987 55,207 61,456 Management fee income 86 238 392 Total domestic revenues $ 273,611 $ 275,089 $ 317,047 Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 International revenues: Retail revenue $ 12,929 $ 11,058 $ 8,844 Wholesale revenue 25,970 22,457 15,339 Management fee income 2,010 1,405 1,056 Total international revenues $ 40,909 $ 34,920 $ 25,239 Six Months Ended June 30, 2025 2024 Domestic revenues: Retail revenue $ 436,182 $ 515,768 Wholesale revenue 112,194 119,342 Management fee income 322 806 Total domestic revenues $ 548,698 $ 635,916 Six Months Ended June 30, 2025 2024 International revenues: Retail revenue $ 23,988 $ 16,346 Wholesale revenue 48,427 26,959 Management fee income 3,416 1,997 Total international revenues $ 75,831 $ 45,302 Balance Sheet and Cash Flow As of June 30, 2025, the Company had $102.3 million of cash and $561.0 million of outstanding debt net of unamortized debt discounts. During the six months ended June 30, 2025, Curaleaf invested $31.3 million in capital expenditures, focused on facility upgrades, automation, and selective retail expansion in strategic markets. Shares Outstanding For the second quarter of 2025 and 2024, the Company's weighted average Subordinate Voting Shares plus Multiple Voting Shares outstanding amounted to 757,270,633 and 740,787,287 shares, respectively. For the six months ended June 30, 2025 and 2024, the Company's weighted average Subordinate Voting Shares plus Multiple Voting Shares outstanding amounted to 755,737,314 and 738,467,477 shares, respectively. Conference Call Information The Company will host a conference call and audio webcast for investors and analysts on Wednesday, August 6, 2025 at 5:00 P.M. ET to discuss Q2 2025 earnings results. The call can be accessed by dialing 1-844-512-2926 in the U.S., Canada 1-416-639-5883, or internationally from 1-412-317-6300. The conference pin # is 3090114. A replay of the conference call can be accessed at 1-877-344-7529 in the U.S., Canada 1-855-669-9658, or internationally from 1-412-317-0088, using the replay pin # 1472267. A webcast of the call can be accessed on the investor relations section of the Curaleaf website at The teleconference will be available for replay starting at approximately 7:00 P.M. ET on Wednesday, August 6, 2025 and will end at 11:59 P.M. ET on August 13, 2025. Non-GAAP Financial and Performance Measures Curaleaf reports its financial results in accordance with U.S. GAAP and uses a number of financial measures and ratios when assessing its results and measuring overall performance. Some of these financial measures and ratios are not calculated in accordance with U.S. GAAP. Curaleaf refers to certain non-GAAP financial measures and ratios, such as "adjusted gross profit", "adjusted gross margin", "adjusted net income (loss)", "adjusted EBITDA", "adjusted EBITDA margin" and "Free cash flow from operations". These measures do not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other issuers. "Adjusted gross profit" is defined by Curaleaf as gross profit net of cost of goods sold and related other add-backs. "Adjusted gross margin" is defined by Curaleaf as adjusted gross profit divided by total revenues. "Adjusted net income (loss)" is defined by Curaleaf as net income (loss) net of (gain) loss on impairments and related other add-backs. "Adjusted net income (loss) per share" is defined by Curaleaf as adjusted net income (loss) divided by the weighted average common shares outstanding. "Adjusted EBITDA" is defined by Curaleaf as income (loss) before interest, taxes, depreciation and amortization less share-based compensation expense and other add-backs related to business development, acquisition, financing and reorganization costs. "Adjusted EBITDA margin" is defined by Curaleaf as adjusted EBITDA divided by total revenue. "Free cash flow from operations" is defined by Curaleaf as net cash provided by operating activities from continuing operations less the purchases of property, plant and equipment (i.e. net capital expenditures). Curaleaf considers these measures to be an important indicator of the financial strength and performance of our business. Curaleaf believes the adjusted results presented provide relevant and useful information for investors, because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with U.S. GAAP, they should not be considered in isolation of, or as a substitute for, our reported U.S. GAAP financial results as indicators of our performance, and they may not be comparable to similarly named measures from other issuers. The tables below provide reconciliations of Non-GAAP measures to the most directly comparable U.S. GAAP measures. Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Gross profit from continuing operations $ 152,553 $ 155,175 $ 160,465 Other add-backs (1) 980 265 2,662 Adjusted gross profit from continuing operations (2) $ 153,533 $ 155,440 $ 163,127 Adjusted gross profit margin from continuing operations (2) 48.8 % 50.1 % 47.7 % (1) Other add-backs reflect the impact on cost of goods sold from non-cash inventory adjustments and various non-routine start up and severance costs. (2) Represents a Non-GAAP measure or Non-GAAP ratio. See preceding "Non-GAAP Financial and Performance Measures" section for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Gross profit from continuing operations, the most comparable GAAP measure, to Adjusted gross profit from continuing operations, a non-GAAP measure. Gross profit from continuing operations was $152.6 million in the second quarter of 2025, compared with $160.5 million in the prior year period. Adjusted gross profit from continuing operations for the second quarter of 2025 was $153.5 million compared with $163.1 million in the second quarter of 2024. Adjusted gross profit margin from continuing operations for the second quarter of 2025 was 49%, an increase of 120 basis points compared with the second 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. Six Months Ended June 30, 2025 2024 Gross profit from continuing operations $ 307,729 $ 321,369 Other add-backs (1) 1,245 3,173 Adjusted gross profit from continuing operations (2) $ 308,974 $ 324,542 Adjusted gross profit margin from continuing operations (2) 49.5 % 47.6 % (1) Other add-backs reflect the impact on cost of goods sold from non-cash inventory adjustments and various non-routine start up and severance costs. (2) Represents a Non-GAAP measure or Non-GAAP ratio. See preceding "Non-GAAP Financial and Performance Measures" section for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Gross profit from continuing operations, the most comparable GAAP measure, to Adjusted gross profit from continuing operations, a non-GAAP measure. Gross profit from continuing operations was $307.7 million in the six months ended June 30, 2025, compared with $321.4 million in the six months ended June 30, 2024. Adjusted gross profit from continuing operations for the six months ended June 30, 2025 was $309.0 million compared with $324.5 million in the six months ended June 30, 2024. Adjusted gross profit margin from continuing operations for the six months ended June 30, 2025 was 50%, an increase of 190 basis points compared with the six months ended June 30, 2024. Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Net loss from continuing operations $ (50,602) $ (54,793) $ (48,553) (Gain) loss on impairment (1,209) 3,695 1,774 Other add-backs (1) 4,014 3,363 6,334 Adjusted net loss from continuing operations (2) $ (47,797) $ (47,735) $ (40,445) Adjusted net loss per share from continuing operations (2) $ (0.06) $ (0.06) $ (0.05) Weighted average common shares outstanding – basic and diluted 757,270,633 744,898,937 740,787,287 (1) Other add-backs primarily include costs related to legal fees, rent and other facility costs and non-cash inventory adjustments. (2) Represents a non-GAAP measure or Non-GAAP ratio. See preceding "Non-GAAP Financial and Performance Measures" section for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Net loss from continuing operations, the most comparable GAAP measure, to Adjusted net loss from continuing operations, a non-GAAP measure. Six months ended June 30, 2025 June 30, 2024 Net loss from continuing operations $ (105,395) $ (100,129) Loss (gain) on impairment 2,486 (2,152) Other add-backs (1) 7,377 11,374 Adjusted net loss from continuing operations (2) $ (95,532) $ (90,907) Adjusted net loss per share from continuing operations (2) $ (0.13) $ (0.12) Weighted average common shares outstanding – basic and diluted 755,737,314 738,467,477 (1) Other add-backs primarily include costs related to legal fees, non-routine severance, rent and other facility costs and non-cash inventory adjustments. (2) Represents a non-GAAP measure or Non-GAAP ratio. See preceding "Non-GAAP Financial and Performance Measures" section for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Net loss from continuing operations, the most comparable GAAP measure, to Adjusted net loss from continuing operations, a non-GAAP measure. Adjusted EBITDA ($ thousands) Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Net loss $ (53,606) $ (60,244) $ (49,830) Net loss from discontinued operations (3,004) (5,451) (1,277) Net loss from continuing operations (50,602) (54,793) (48,553) Interest expense, net 25,554 25,074 24,810 Provision for income taxes 31,381 36,855 31,391 Depreciation and amortization (1) 49,724 49,358 51,784 Share-based compensation 8,477 4,624 6,843 (Gain) loss on impairment (1,209) 3,695 1,774 Total other (income) expense, net (1,839) (3,003) (1,875) Other add-backs (2) 4,014 3,363 6,334 Adjusted EBITDA (3) $ 65,500 $ 65,173 $ 72,508 Adjusted EBITDA Margin (3) 20.8 % 21.0 % 21.2 % (1) Depreciation and amortization expense include amounts charged to Cost of goods sold on the Statement of Operations. (2) Other add-backs primarily include costs related to legal fees, rent and other facility costs and non-cash inventory adjustments. (3) Represents a non-GAAP measure or Non-GAAP ratio. See "Non-GAAP Financial and Performance Measures" below for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Net loss, the most comparable GAAP measure to Adjusted EBITDA, a non-GAAP measure. Adjusted EBITDA was $65.5 million for the second quarter of 2025, compared to $72.5 million for the second quarter of 2024, and Adjusted EBITDA margin decreased to 20.8%. Six Months Ended June 30, 2025 2024 Net loss $ (113,850) $ (100,839) Net loss from discontinued operations (8,455) (710) Net loss from continuing operations (105,395) (100,129) Interest expense, net 50,628 50,572 Provision from income taxes 68,236 71,480 Depreciation and amortization (1) 99,082 103,242 Share-based compensation 13,101 14,352 Loss (gain) on impairment 2,486 (2,152) Total other (expense) income, net (4,841) 478 Other add-backs (2) 7,377 11,374 Adjusted EBITDA (3) $ 130,674 $ 149,217 Adjusted EBITDA Margin (3) 20.9 % 21.9 % (1) Depreciation and amortization expense include amounts charged to Cost of goods sold on the Statement of Operations. (2) Other add-backs primarily include costs related to legal fees, non-routine severance, rent and other facility costs and non-cash inventory adjustments. (3) Represents a non-GAAP measure or Non-GAAP ratio. See "Non-GAAP Financial and Performance Measures" below for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Net loss, the most comparable GAAP measure, to Adjusted EBITDA, a non-GAAP measure. Adjusted EBITDA was $130.7 million in the six months ended June 30, 2025, compared with $149.2 million in the prior year period, and Adjusted EBITDA margin declined to 21%. As of June 30, 2025 December 31, 2024 Unaudited Audited Assets Cash and cash equivalents (including restricted cash and cash equivalents) $ 102,269 $ 107,226 Other current assets 327,986 322,455 Property, plant and equipment, net 540,180 546,426 Right-of-use assets, finance lease, net 102,715 105,168 Right-of-use assets, operating lease, net 114,131 116,519 Intangible assets, net 1,060,302 1,085,397 Goodwill 635,507 628,884 Other long-term assets 33,717 37,461 Total assets $ 2,916,807 $ 2,949,536 Liabilities, Temporary equity and Shareholders' equity Total current liabilities $ 293,069 $ 387,925 Total long-term liabilities 1,688,479 1,568,218 Redeemable non-controlling interest contingency 63,962 132,179 Total shareholders' equity 871,297 861,214 Total liabilities, temporary equity and shareholders' equity $ 2,916,807 $ 2,949,536 Condensed Interim Consolidated Statements of Operations (Unaudited) ($ thousands, except for share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues, net: Retail and wholesale revenues $ 312,424 $ 340,838 $ 620,791 $ 678,415 Management fee income 2,096 1,448 3,738 2,803 Total revenues, net 314,520 342,286 624,529 681,218 Cost of goods sold 161,967 181,821 316,800 359,849 Gross profit 152,553 160,465 307,729 321,369 Operating expenses: Selling, general and administrative 105,217 109,507 212,501 213,899 Share-based compensation 8,477 6,843 13,101 14,352 Depreciation and amortization 35,574 36,568 71,014 72,869 Total operating expenses 149,268 152,918 296,616 301,120 Income from continuing operations 3,285 7,547 11,113 20,249 Other income (expense): Interest income 166 310 338 327 Interest expense (14,646) (14,792) (28,807) (30,155) Interest expense related to lease liabilities and financial obligations (11,074) (10,328) (22,158) (20,744) Gain (loss) on impairment 1,209 (1,774) (2,486) 2,152 Other income (expense), net 1,839 1,875 4,841 (478) Total other expense, net (22,506) (24,709) (48,272) (48,898) Loss before provision for income taxes (19,221) (17,162) (37,159) (28,649) Provision for income taxes (31,381) (31,391) (68,236) (71,480) Net loss from continuing operations (50,602) (48,553) (105,395) (100,129) Net loss from discontinued operations (3,004) (1,277) (8,455) (710) Net loss (53,606) (49,830) (113,850) (100,839) Less: Net (loss) income attributable to non-controlling interest (445) (945) 372 (3,642) Net loss attributable to Curaleaf Holdings, Inc. $ (53,161) $ (48,885) $ (114,222) $ (97,197) Per share – basic and diluted: Net loss per share from continuing operations – basic and diluted $ (0.07) $ (0.07) $ (0.14) $ (0.14) Weighted average common shares outstanding – basic and diluted 757,270,633 740,787,287 755,737,314 738,467,477 About Curaleaf Holdings Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf") is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, Grassroots, Find, Anthem and The Hemp Company provide industry-leading service, product selection and accessibility across the medical and adult use markets. Curaleaf International is powered by a strong presence in all stages of the supply chain. Its unique distribution network throughout Europe, Canada and Australasia brings together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Toronto Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit Contact Information: Investor Contact: Curaleaf Holdings, Inc. Camilo Lyon, Chief Investment Officer [email protected] Media Contact: Curaleaf Holdings, Inc. Jordon Rahmil, VP Public Relations [email protected] Disclaimer This press release contains "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and U.S. securities laws (collectively, "forward-looking statements"). Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on management's current beliefs, expectations or assumptions regarding the future of the business, plans and strategies, operational results and other future conditions of the Company. In addition, the Company may make or approve certain statements in future filings with Canadian securities regulatory authorities, in press releases, or in oral or written presentations by representatives of the Company that are not statements of historical fact and may also constitute forward-looking statements. All statements, other than statements of historical fact, made by the Company that address activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements, including, but not limited to, statements preceded by, followed by or that include words such as "assumptions", "assumes", "guidance", "outlook", "may", "will", "would", "could", "should", "believes", "estimates", "projects", "potential", "expects", "plans", "intends", "anticipates", "targeted", "continues", "forecasts", "designed", "goal" or the negative of those words or other similar or comparable words. In particular, but without limiting the foregoing, disclosure in this press release as well as statements regarding the Company's objectives, plans and goals, including benefits of recent or future acquisitions, rebranding and product offering expansion, as well as future operating results and economic performance are forward-looking statements. These statements speak only as at the date they are made and are based on information currently available and on the then current expectations. Holders of securities of the Company are cautioned that forward-looking statements are not based on historical facts but instead are based on reasonable assumptions and estimates of management of the Company at the time they were provided or made and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, but not limited to, risks and uncertainties related to: the legality of cannabis in the U.S., including the fact that cannabis is a controlled substance under the United States Federal Controlled Substances Act; anti-money laundering laws and regulations; the lack of access to U.S. bankruptcy protections; financing risks, including risks related to additional financing and restricted access to banking; general regulatory and legal risks, including the potential constraints on the Company's ability to expand its business in the U.S. by virtue of the restrictions of the TSX following the TSX listing; risk of legal, regulatory or political change; general regulatory and licensing risks; limitation on ownership of licenses; risks relating to regulatory action and approvals from the U.S. Food and Drug Administration ("FDA"); the fact that cannabis may become subject to increased regulation by the FDA; potential heightened scrutiny by regulatory authorities following the TSX listing; loss of foreign private issuer status; risks related to internal controls over financial reporting; litigation risks; increased costs as a result of being a public company in Canada and the U.S.; recent and proposed legislation in respect of U.S. cannabis licensing; environmental risks, including risks related to environmental regulation and unknown environmental risks; general business risks including risks related to the Company's expansion into foreign jurisdictions; future acquisitions or dispositions; service providers; enforceability of contracts; the ability of our shareholders to resell their subordinate voting shares on the TSX; the Company's reliance on senior management and key personnel, and the Company's ability to recruit and retain such senior management and key personnel; competition risks; risks inherent in an agricultural business; unfavorable publicity or consumer perception; product liability; product recalls; the results of future clinical research; reliance on inputs; risks related to limited market data and inherent limitations in forecasting; intellectual property risks; constraints on marketing products; fraudulent or illegal activity by employees, consultants and contractors; increased labor costs based on union activity; information technology systems and cyber-attacks; security breaches; the Company's reliance on management services agreements with subsidiaries and affiliates; website accessibility; high bonding and insurance coverage; risks of leverage; management of the Company's growth; the fact that past performance may not be indicative of future results and that financial projections may prove materially inaccurate or incorrect; risks related to conflicts of interests; challenging global economic conditions including tariffs (and other retaliatory measures) and global trade conflicts; currency fluctuations; risks related to the Company's business structure and securities; including the status of the Company as a holding company; no dividend record; risks related to the Company's indebtedness; concentrated voting control; risks related to the sale of a substantial amount of the Company's subordinate voting shares; the volatility of the market price for the subordinate voting shares; liquidity risks associated with an investment in the subordinate voting shares; risks associated with securities or industry analysts not publishing or ceasing to publish research or reports or publishing misleading information about the Company; the potentially limited market for the subordinate voting shares for holders of the Company's securities who live in the U.S.; shareholders having little to no rights to participate in the Company's business affairs; enforcement against directors and officers outside of Canada may prove difficult; and tax risks; as well as those risk factors discussed under "Risk Factors" in the Company's Annual Information Form dated March 3, 2025 for the fiscal year ended December 31, 2024, and additional risks described in the Company's Annual Management's Discussion and Analysis for the year ended December 31, 2024 (both of which documents have been or will be filed on the Company's SEDAR+ profile at and on its EDGAR profile at and as described from time to time in documents filed by the Company with Canadian securities regulatory authorities. The purpose of forward-looking statements is to provide the reader with a description of management's expectations, and such forward-looking statements may not be appropriate for any other purpose. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. You should not place undue reliance on forward-looking statements contained in this press release. Such forward-looking statements are made as of the date of this press release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
