Curaleaf beats prelim Q4 revenue estimates, discontinues hemp business, exits Missouri

Overview

• Cannabis products provider's preliminary Q4 revenue rises, beating analyst expectations

• Company to discontinue hemp business and exit Missouri due to regulatory changes

• Adjusted gross profit margin for Q4 expected to be approximately 48.5%

Outlook

• Company anticipates full-year 2025 adjusted gross margin of 50%

• Curaleaf plans to release full financial results by early March 2026

Result Drivers

• REGULATORY CHANGES - Co decided to discontinue hemp business due to new federal regulations limiting THC content

• MARKET EXIT - Co to cease operations in Missouri due to sub-scale presence

• REVENUE GROWTH - Q4 revenue grew 4% sequentially, exceeding previous guidance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Curaleaf Holdings Inc is C$5.00, about 38.5% above its January 19 closing price of C$3.61

Press Release: ID:nPn6QNCBha

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