Curaleaf Holdings’ Earnings Call: Growth Abroad, Challenges at Home

Curaleaf Holdings (OTC) ((TSE:CURA)) has held its Q2 earnings call. Read on for the main highlights of the call.

Curaleaf Holdings’ recent earnings call painted a picture of mixed sentiments. While the company celebrated significant growth in its international markets, driven by strategic investments and innovative product launches, it also faced domestic challenges. Revenue declines and pricing pressures in the U.S. were notable hurdles. Despite these issues, Curaleaf expressed optimism about future growth opportunities and potential regulatory reforms.

International Segment Growth

Curaleaf’s international segment delivered an impressive performance, achieving 17% sequential growth and a remarkable 62% year-over-year increase. This growth was primarily fueled by strong demand in Germany and the U.K., showcasing the company’s successful expansion strategy in these regions.

Product Innovation and Expansion

The company introduced several new products, including ACE (Aqueous Cannabis Extraction oil) and Anthem pre-rolls. These products have been well-received, with Anthem emerging as the fastest-growing pre-roll brand in New York, highlighting Curaleaf’s commitment to innovation and market expansion.

Record Growth in German Market

Germany emerged as a standout market for Curaleaf, with a fourfold increase in imported cannabis flower. This growth was driven by robust patient growth following the CanG Act, positioning Curaleaf as a key player in the German cannabis market.

Expansion into New Markets

Curaleaf’s strategic expansion continued with its entry into the Turkish market, securing a first-mover advantage in the emerging medical cannabis sector. Additionally, the company achieved EU medical device registration for a cannabis inhalation device, further solidifying its presence in new markets.

Domestic Revenue Decline

On the domestic front, Curaleaf faced a 14% decline in revenue compared to the same period last year. This was largely attributed to price compression in key states such as Pennsylvania, New Jersey, and Illinois, highlighting the challenges in the U.S. market.

Flat Domestic Sales

Sales in the U.S. remained flat compared to the first quarter, primarily due to ongoing pricing pressures across most markets. This stagnation underscores the competitive and challenging environment in the domestic cannabis industry.

Adjusted Gross Margin Decrease

Curaleaf reported a decrease in its adjusted gross margin by 130 basis points from the first quarter. This decline was mainly due to higher levels of promotional activity, reflecting the company’s efforts to stimulate sales amidst pricing challenges.

Net Loss from Continuing Operations

The company reported a net loss of $51 million from continuing operations, translating to a loss of $0.07 per share. This financial result highlights the ongoing challenges Curaleaf faces in achieving profitability.

Forward-Looking Guidance

Looking ahead, Curaleaf reported a revenue of $315 million for the second quarter of 2025, marking a 1.5% increase from the first quarter. The company is aligning with its guidance for low single-digit growth, despite price compression. Curaleaf is preparing for strategic moves, potentially spinning off its international and hemp businesses if U.S. federal reform does not progress. The international segment, particularly in Germany and the U.K., continues to show strong performance, and the company is expanding into new markets like Turkey.

In conclusion, Curaleaf Holdings’ earnings call revealed a company navigating through a landscape of international growth and domestic challenges. While the international segment shines with impressive growth figures, domestic revenue declines and pricing pressures pose significant hurdles. Nevertheless, Curaleaf remains optimistic about future opportunities and strategic expansions, positioning itself for potential growth in the evolving cannabis market.