Curaleaf Holdings has announced a major leadership change, as its CEO of two years, Matt Darin, steps aside to let founding investor Boris Jordan take the reigns.
The announcement came alongside the publication of Curaleaf’s Q2 results, in which it reported a slight increase in revenue alongside a significant curbing of losses.
Net revenues for the three months ended June 30, 2024 came in at $342.3 million, a year-over-year increase of 2% compared to Q2 2023 revenue of $335.6 million. Sequentially, net revenue increased 1%.
It also reported a net loss of $49.8 million for the second quarter of 2024, marking a significant reduction from the $74.4 million loss in the same period last year.
Curaleaf’s performance over the past four quarters shows that it has surpassed consensus EPS estimates only once, with the latest quarter reflecting a similar trend of underperformance.
The stock has declined about 15.5% since the beginning of the year, compared to the S&P 500’s gain of 9.9%. The company’s revenue, analysts suggest, indicates modest growth but fails has once again failed to meet consensus estimates.
Executive Chairman Boris Jordan will assume the role of Chairman and CEO effective August 16, 2024. Jordan, a founding investor in Curaleaf since 2014, has played a pivotal role in the company’s growth and strategic direction. He will now oversee all day-to-day operations, aiming to streamline the organization, expedite decision-making, and drive growth initiatives.
He said: “Thus far, the first half of 2024 has unfolded as we guided. We are starting to see the benefits of the work we initiated 18 months ago to streamline the business, drive efficiencies in our cultivation facilities, and leverage both domestic and international growth opportunities.
“Looking to the second half of the year, these actions will drive an acceleration in both our revenue and margins as state and country catalysts develop further, including New York, Ohio, and Germany… Our global strategic vision is playing out on multiple fronts, yet there is much more for us to accomplish.”
Outgoing CEO Matt Darin, who has led Curaleaf since May 2022, will retire but remain as a special advisor to Jordan until the end of the year to ensure a smooth transition.
He echoed Jordan’s sentiments, stating: “Curaleaf continues to execute its vision of being the global leader in cannabis. We are at a pivotal time for our industry, on the cusp of federal reform, and the future is bright. Our international business experienced superb 78% year-over-year growth led by the UK, Germany, and contributions from the Northern Green acquisition.
“With this international growth in Q2, Curaleaf is leaning into its evolution from an MSO to an MCO, a multi-country operator, a term which represents our global vision and business that spans 15 countries.”
