March quarter revenue grew 16% from December’s for the 23-state operator, and it says that the sequential rise in June could exceed 20%.
sellers like Curaleaf to a Canadian listing and the over-the-counter trading here, where the stock was flat in Tuesday midday trading at $14.40, against a 1% drop in the overall market.
The industry has been supply-constrained, so with production capacity coming on line in Arizona, Florida, Massachusetts, and New Jersey, Curaleaf expects growth to accelerate.
Setting aside the cannabis company’s unusually high taxes, interest, noncash, and onetime charges, Curaleaf said that its adjusted earnings before interest, taxes, depreciation, and amortization were $62.6 million.
Indeed, on its Monday night conference call, Curaleaf told analysts that its adjusted Ebitda margins should get to 30% by the end of this year.
Unlike most big chains, the company went into California’s less-regulated, competitive market—which Jordan hopes will prepare Curaleaf for the more competitive national market that federal legalization might bring.
Jordan admits to some concern that Schumer’s ambitious program may fail to pass, while passage seems easier for more modest reforms, like the cannabis banking services that would be allowed by the SAFE Banking Act.
Eyeing the risk that Democrats could lose control of Congress in the 2022 midterm elections, Jordan worries that comprehensive cannabis reform might be a challenge to pass.
Whatever happens in D.C., Needham’s analyst McGinley expects Curaleaf’s growth next year to be broad-based, with nice boosts from the start of adult recreational sales in New York and New Jersey.
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