Latest news with #CURLF
Globe and Mail
8 hours ago
- Business
- Globe and Mail
Cannabis Operator Curaleaf Plunges 46% YTD: Time to Sell or Hold?
Widely regarded as the largest cannabis operator by revenues, shares of Curaleaf Holdings CURLF have been declining persistently over the past few years due to regulatory hurdles and intensifying competition. While this Connecticut-based company has been aggressively cutting costs and expanding abroad, the core domestic market remains challenging to navigate, limiting the impact of its international progress. Let's delve into the company's fundamentals to gain a better understanding of how to play the stock amid this price decline. CURLF's Domestic Weakness Eclipses International Gains Curaleaf maintains a diversified business model in the cannabis space, spanning both retail and wholesale channels for both recreational and medical use, along with hemp-derived beverages. However, its top line continues to face pressure from a deteriorating domestic market. In its first-quarter results of 2025, Curaleaf's overall revenues fell by 9% year over year and 6% sequentially to $310 million. Although sales from the company's international segment increased by 74% year over year, it still represents a relatively small portion of the total revenues. Most sales continue to come from Curaleaf's domestic business, which remains under pressure due to the ongoing market saturation, pricing challenges and regulatory uncertainty. Despite these headwinds, Curaleaf reported an adjusted gross margin of 50% (up 250 basis points YoY) and even managed to generate $26 million in free cash flow. While higher selling prices and operational efficiencies drove this improvement, it was still not enough to turn a profit. The company's adjusted EBITDA margin declined 180 basis points YoY to 21%. Looking ahead, we expect the company to scale its international business and boost domestic profitability by focusing on high-margin formats, such as hemp-derived beverages and other products. The company's multiple cost-saving initiatives could further improve margins. Cutthroat Competition From Other Cannabis Players Curaleaf is targeting an overcrowded market. It faces stiff competition from its peers — Aurora Cannabis ACB, Canopy Growth CGC and Tilray Brands TLRY — all of which are also pursuing international expansion and cost optimization strategies, making the competitive landscape even tougher. As CURLF gains ground in Europe and Australia, competitive responses from Aurora Cannabis, Canopy Growth and Tilray Brands could intensify. CURLF Stock Performance and Estimates Shares of Curaleaf Holdings have plunged 46% year to date against the industry 's 7% rise, as seen in the chart below. Loss estimates for 2026 and 2027 have widened over the past 60 days. How to Play CURLF Stock? While Curaleaf's push into the THC beverages via its Select brand demonstrates strategic foresight, the persistent decline in its core domestic business makes it a risky bet in the near term. Also, a proposed federal bill that could significantly restrict (or even ban) the majority of hemp-derived products was recently approved by a House committee, posing further regulatory uncertainty. With a Zacks Rank #4 (Sell), the stock offers limited upside and elevated risk for conservative investors. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tilray Brands, Inc. (TLRY): Free Stock Analysis Report Aurora Cannabis Inc. (ACB): Free Stock Analysis Report Curaleaf Holdings, Inc. (CURLF): Free Stock Analysis Report
Yahoo
24-05-2025
- Business
- Yahoo
Why Curaleaf Got Investors Higher on Friday
Two factors propelled the shares slightly higher on the last trading day of the week. One piece of news came from Florida, the other from Pennsylvania. 10 stocks we like better than Curaleaf › One positive internal company development and another outside of its control helped propel Curaleaf (OTC: CURLF) stock into the win column on Friday. The marijuana company's shares ticked up by 1.5% that trading session, on a day when the S&P 500 index closed in the red at 0.4%. Weed stocks are generally unpopular and tend to trade down if anything, so the Friday rise was notable. The internal factor was Curaleaf's announcement that it has opened a new medical marijuana dispensary in Florida, specifically in the municipality of Punta Gorda. This adds to the company's already considerable presence in the Southeastern state, as it's the 67th Curaleaf outlet there. That in itself is reason to be more optimistic about Curaleaf. Florida is the third most populous state in this country, with a recent estimate of almost 23.4 million inhabitants. At the moment, it has only legalized medical marijuana; a vote to flip the switch on recreational cannabis fell short last November, but there is sufficient public support for a future effort to succeed. As for the external happening, some distance north in Pennsylvania lawmakers are making another run at legalizing recreational sale and consumption. On State Senator Sharif Street's podcast, the lawmaker waxed optimistic with his guest, Representative Rick Krajewski, about their Democrat Party's attempts to modify the proposed law in order to get it passed. A legalization bill had passed in the House of Representatives earlier this month, but it was rejected by the Senate's law and justice committee when handed over to that legislative body. Both of these developments aren't all that major or game-changing, yet they are steps in the right direction for Curaleaf (and for the ever-struggling marijuana business in general). Investors are justified in feeling cautiously bullish about one and both, although Curaleaf needs bigger wins to be a more viable company. Before you buy stock in Curaleaf, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Curaleaf wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!* Now, it's worth noting Stock Advisor's total average return is 963% — a market-crushing outperformance compared to 168% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Curaleaf Got Investors Higher on Friday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-03-2025
- Business
- Yahoo
Curaleaf Holdings Inc (CURLF) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...
Annual Revenue: $1.34 billion, flat compared to the previous year. Adjusted Gross Margin: Increased by 160 basis points to 48% for the year. Adjusted EBITDA: $301 million, flat compared to the previous year. Fourth Quarter Revenue: $331 million, up slightly sequentially, down 4% year-over-year. Fourth Quarter Adjusted Gross Margin: 48%, a 150 basis point increase over the prior year. Fourth Quarter Adjusted EBITDA: $76 million, with a 23% EBITDA margin. Cash and Cash Equivalents: $107 million at year-end. Operating and Free Cash Flow: $163 million and $70 million, respectively, from continuing operations for the year. Net Loss from Continuing Operations: $216 million for the year, or a loss of $0.31 per share. Adjusted Net Income from Continuing Operations: $12 million for the fourth quarter, or a gain of $0.02 per share. Store Openings: 7 new stores opened, including 5 in Florida and 2 in New York. International Revenue Growth: 70% year-over-year, driven by Germany and the U.K. Wholesale Revenue: Increased 23% year-over-year to $82 million in the fourth quarter. Capital Expenditures: $93 million for the year, with a focus on LED lighting, automation, and facility upgrades. Outstanding Debt: $569 million, with a reduction of $60 million planned for the current year. Warning! GuruFocus has detected 4 Warning Signs with CURLF. Release Date: March 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Curaleaf Holdings Inc (CURLF) maintained a stable revenue of $1.34 billion in 2024 despite a 14% industry-wide price compression. The company's adjusted gross margin increased by 160 basis points to 48%, driven by efficiency and productivity improvements. Curaleaf Holdings Inc (CURLF) achieved a 73% growth in its International segment, surpassing the $100 million revenue milestone. The company successfully launched new products, including the Anthem pre-rolled brand and ACE Oil processing technology, which are expected to drive future growth. Curaleaf Holdings Inc (CURLF) reduced its acquisition-related debt by $60 million, strengthening its balance sheet. Curaleaf Holdings Inc (CURLF) experienced a 4% decrease in fourth-quarter revenue compared to the previous year, with significant price compression in key markets like Pennsylvania, Illinois, and New Jersey. The company's retail revenue declined by 11% year-over-year, partially offset by a 23% increase in wholesale revenue. Curaleaf Holdings Inc (CURLF) reported a net loss from continuing operations of $72 million in the fourth quarter, excluding noncash impairments. The adjusted EBITDA margin decreased by 110 basis points year-over-year to 23% in the fourth quarter. Curaleaf Holdings Inc (CURLF) faces challenges in the New York market due to the influx of illicit cannabis products affecting the regulated market. Q: Can you provide an outlook for Curaleaf's international operations, particularly in Germany, and discuss any potential changes in the market? A: Boris Jordan, Executive Chairman of the Board, stated that there are no anticipated changes to the medical program in Germany, despite political negotiations. The adult-use timetable might slow down, which Curaleaf views positively. Competition is increasing in Europe, but Curaleaf has expanded margins due to high-end product offerings and scale. Q: What is Curaleaf's strategy regarding the hemp-derived market, and are there plans for acquisitions in this space? A: Boris Jordan mentioned that Curaleaf is cautiously optimistic about the hemp-derived market due to the pending Farm Bill. The company is focusing on organic growth and launching new products like Formula X. Currently, there are no plans for acquisitions until there is more legislative clarity. Q: How are wholesale margins performing in New York, and what challenges are you facing? A: Boris Jordan explained that New York's wholesale market had strong margins and demand in 2024. However, the market faces challenges from illicit California flower entering the regulated market. Curaleaf is working with regulators to address this issue and expects improvements once seed-to-sale regulations are implemented in the third quarter. Q: What are the expectations for potential regulatory changes under the new administration, and how might this impact Curaleaf's refinancing plans? A: Boris Jordan expressed optimism that the new administration will support adult-use legalization, banking, and rescheduling. While Curaleaf is not planning its business around these changes, they believe the administration will follow through on its commitments. The timing of these changes is uncertain, but Curaleaf is preparing for refinancing in the second half of the year. Q: What are Curaleaf's plans for expanding into the premium flower segment, and are there any additional investments planned for 2025? A: Boris Jordan stated that most investments in automation and lighting were completed in 2024, and the focus is now on building inventory for premium flower offerings. Curaleaf aims to increase premium flower revenue to 20-25% in its largest markets, with new offerings launching in early April. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
