Curaleaf (CURA) Q3 2025 earnings summary

Executive summary

• Third quarter revenue reached $320 million, up 2% sequentially but down 3% year-over-year, reflecting stabilization in domestic operations and robust international growth despite ongoing price compression headwinds.

• The "Return to Our Roots" plan has driven improvements in product quality, supply chain, and retail operations, positioning the business for renewed growth domestically and rapid international expansion.

• International segment delivered 12% sequential and 56% year-over-year revenue growth, totaling $46 million for the quarter, with strong performance in the U.K. and Germany and new product launches like the QMID device and ACE oil driving engagement.

• Innovation and data-driven retail strategies, including the Anthem PreRoll and ACE oil, are enhancing customer loyalty and category expansion.

• Ended Q3 with $107 million in cash after $28 million in debt payments; upsized revolving credit line to $100 million post-quarter.

Financial highlights

• Adjusted gross margin improved to 50%, up 115 basis points both sequentially and year-over-year, driven by cost reductions in cultivation.

• Adjusted EBITDA was $69 million (21.6% margin), down 8% year-over-year, with international and hemp businesses dragging margins by 200 basis points.

• Net loss from continuing operations was $54.5 million ($0.07 per share); adjusted net loss was $48.2 million ($0.06 per share).

• Operating cash flow from continuing operations was $53 million for the quarter and $104 million year-to-date; free cash flow was $37 million for the quarter and $56.8 million for nine months.

• Ended the quarter with $107 million in cash and $544 million in outstanding debt.

Outlook and guidance

• Fourth quarter revenue expected to increase low single digits sequentially.

• Anticipates shifting to a growth mindset in 2026 as foundational restructuring is largely complete.

• No meaningful revenue expected from new international markets (Turkey, Spain, France) until 2027 and beyond.

• Cautiously optimistic about strengthening domestic business and confident in multiple growth drivers for 2026.

• Management highlighted ongoing macroeconomic pressures but noted positive momentum from operational initiatives.