In this special midweek Trade To Black Podcast, TDR Founder Shadd Dales and lead financial writer Benjamin A. Smith speak with Curaleaf Holdings (CNSX: CURA) (OTCMKTS: CURLF) Executive Chairman, Boris Jordan. With the interview subsequent to second quarter 2022 financial results, we covered company earnings, upcoming New York adult-use cannabis sales, the company’s pullback in California, SAFE Banking and more.
Regarding second quarter financial results released on August 8, Curaleaf Holdings reported $337.55 million in total revenue—an eight percent sequential increase over Q1 2022. The revenue increase moved revenue growth back into a positive direction after experiencing a sequential revenue decline last quarter. Gross margins on cannabis sales also experienced an upturn, rising 260 basis points to 51.9% from 49.3% the quarter prior.
The boost in revenue and gross margins were largely a byproduct of more a majority of New Jersey adult-use cannabis sales coming onto the books. According to Boris Jordan, the Garden State was a primary reason for the beat in quarterly revenue estimates:
This is one (the New Jersey adult-use cannabis market) where we took all of the mistakes we’ve ever made—and we made sure we were ready for this market to open up. And let me tell you something, it’s been a homerun. So even with regulatory holdups of some of our stores—given political stuff—we were still able to exceed our own internal ambitions because of the wholesale market.
On the cash flow side, Curaleaf Holdings generated around $86 million in Adjusted EBITDA, although due to the exclusion of one-time items, it isn’t a true reflection of operating cash flow. Adj. EBITDA is often used by investors and analysts to get a better sense of a company’s true profitability.
Mr. Jordan later opined on neighboring New York’s fledgling adult-use market, which some investors hope will unlock later this year. Mr. Jordan does not share this optimistic point-of-view, as regulatory timelines are currently lagging.
Click on the embedded link to view more of our conversation with Curaleaf Holdings Executive Chairman Boris Jordan, in his own words.
To view the previous Trade To Black Podcast, click here.