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Earnings analysis · 10-Q

CURLF earnings analysis

Filed November 3, 2026 · Our reading of the company's report

The latest report

Curaleaf delivered solid top-line growth, with Q3 revenue up 11% and International revenue up 28%, while Adjusted EBITDA rose 8%. However, gross margin declined three percentage points to 48%, operating profitability…

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Curaleaf delivered solid top-line growth, with Q3 revenue up 11% and International revenue up 28%, while Adjusted EBITDA rose 8%. However, gross margin declined three percentage points to 48%, operating profitability remained thin at approximately 0.8%, and operating cash flow fell 25% year over year. The balance sheet remains highly leveraged with $636.918 million of notes payable, and the tax benefit from rescheduling is substantial but exposed to unresolved DEA, Treasury and IRS guidance. Overall, growth and free cash flow are constructive, but margin pressure, leverage and regulatory uncertainty support a neutral view.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $51 Operating expenses $48 Left as operating profit $1

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Domestic Operations revenue 83.4% International Operations revenue 16.6%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$-0.12

What stood out

  • Revenue grew 11% year over year

    Q3 revenue increased 11% year over year to $352.650 million from $317.856 million. Retail revenue rose 8% to $242.609 million and wholesale revenue rose 21% to $106.169 million.

  • International growth outpaced domestic

    International revenue increased 28% to $58.697 million, led by 35% growth in wholesale revenue to $37.532 million. Domestic revenue increased 8% to $293.953 million.

  • Loss and EPS improved year over year

    Q3 net loss attributable to Curaleaf improved to $32.721 million from $57.029 million, while loss per share improved to $(0.12) from $(0.25). Continuing-operations EPS was $(0.14) versus $(0.24).

  • Adjusted EBITDA increased

    Adjusted EBITDA increased 8% to $77.577 million from $71.707 million, although Adjusted EBITDA margin declined to 22% from 23%.

  • Positive free cash flow

    The company generated $71.343 million of operating cash flow and $18.802 million of free cash flow after $52.541 million of investing outflows, including $49.982 million of capital expenditures.

  • Rescheduling produced tax benefits

    The April 2026 Rescheduling Order supported a $123.0 million nine-month income tax benefit, including releases of $121.2 million of uncertain tax positions and $60.5 million of valuation allowance.

What to watch

  • Margin compression

    Gross margin fell to 48% from 51% in Q3, while operating margin declined to approximately 0.8% from 2.2%. Management cited product mix, including higher wholesale revenue, price compression and competition as headwinds.

  • High leverage and interest burden

    Notes payable totaled $636.918 million at September 30, 2026, including $500.000 million of 11.50% Senior Secured Notes due February 2029. Nine-month interest expense related to notes payable and deferred consideration was $51.305 million.

  • Tax and rescheduling uncertainty

    The company carries a $476.1 million uncertain tax position liability, despite releasing $121.2 million during 2026. DEA registration applications remain pending, and the company warns that adverse tax guidance or failure to obtain registration could reverse recognized benefits.

  • Aurora acquisition execution risk

    The proposed Aurora offer would require $1.00 in cash and 0.4013 SVS for each Aurora share acquired, potentially reducing cash reserves and diluting shareholders; the offer remains subject to conditions and expires December 4, 2026 unless extended.

  • Working-capital absorption

    Operating cash flow declined to $71.343 million from $94.681 million year over year, while accounts receivable increased to $84.780 million and inventories increased to $239.868 million from $225.022 million at December 31, 2025.

  • Hemp regulation may constrain products

    The November 12, 2026 Hemp Amendments will replace the prior delta-9 THC threshold with a total-THC standard and impose new product limits and compliance obligations; the company reported $9.704 million of discontinued-operations revenue for the first nine months of 2026, including its exited hemp business.

Management's outlook

The 10-Q provides no numeric revenue or EPS guidance and does not state the approximately $150 million 2026 operating cash flow target referenced in the prior 8-K. Management says cash on hand and anticipated operating and financing cash flows are expected to meet capital requirements and operational needs over the next 12 months.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.