Quarterly Results: Curaleaf Holdings Inc. and Canopy Growth Corp.

Curaleaf Holdings Inc., the largest cannabis company in the U.S., and Canopy Growth Corp, a Canadian cannabis company, recently released their quarterly results. While Ascend Wellness managed to exceed expectations, both Curaleaf and Canopy Growth fell short of analyst estimates.

Curaleaf Holdings Inc.

Curaleaf reported a wider net loss of $92.23 million, or 13 cents a share, compared to a loss of $51.39 million, or 8 cents a share, in the same quarter last year. The company's adjusted loss for the quarter was 9 cents a share, which is higher than the projected loss of 6 cents a share according to Factset consensus analysts.

Although Curaleaf's revenue for the third quarter increased to $333.17 million from $324.64 million, it fell short of the estimated $340.2 million.

One of the contributing factors to Curaleaf's loss was the increased cost of goods sold, which rose to $183.12 million in the third quarter, compared to $158.12 million in the same quarter last year.

Despite the disappointing results, Curaleaf managed to generate $33 million in free cash flow from continuing operations.

As of now, Curaleaf's stock has declined by 29.3% in 2023. In comparison, the AdvisorShares Pure U.S. Cannabis ETF (MSOS) experienced a drop of 12.5%, while the Nasdaq COMP recorded a gain of 29.2%.

Canopy Growth Corp.

Canopy Growth Corp., backed by Constellation Brands Inc., reported a second-quarter loss of 31 cents a share, failing to meet analysts' expectations of an 11-cent loss according to Factset data.

The company's revenue for the quarter was $50.6 million, falling short of the estimated $53.5 million.

Both Curaleaf Holdings Inc. and Canopy Growth Corp. faced challenges in meeting market expectations during this quarter.

Canopy Growth Reports Organic Revenue Growth and Cost Reduction

Canopy Growth, a leading Canadian cannabis company, announced that its Canadian cannabis business has achieved its third consecutive quarter of organic revenue growth. At the same time, the company has made significant cost-cutting measures. This positive development has been reflected in a 3% increase in the stock's value during premarket trading. However, it is worth noting that Canopy Growth's stock has experienced a decline of 77.4% throughout 2023.

Ascend Wellness Surpasses Expectations with Q3 Financial Results

Ascend Wellness, a prominent player in the cannabis industry, reported a narrower loss than expected for the third quarter. With a loss of 5 cents per share, Ascend Wellness outperformed the consensus estimate of an 8 cents per share loss. Additionally, the company's revenue grew by an impressive 27% to reach $141.3 million, surpassing the consensus estimate of $135.2 million.

Speaking about the results, Ascend Wellness Executive Chairman Abner Kurtin expressed satisfaction in surpassing internal forecasts. This achievement comes as John Hartmann, the new chief executive, completes his first full quarter in his role. Hartmann attributed the positive performance to ongoing operational improvements and team strengthening efforts. He highlighted the notable 13% sequential increase in retail revenue, which was mainly driven by the successful launch of adult-use sales in Maryland.

Furthermore, Ascend Wellness reported a 21% growth in its wholesale business compared to the previous quarter. This growth was observed primarily in New Jersey, Illinois, and Massachusetts.

Despite these positive results, Ascend Wellness's stock has experienced a 3.5% decline in value in 2023.

In Other News

In addition to the positive earnings reports from Canopy Growth and Ascend Wellness, recent data indicates that support for legalizing cannabis among Americans has reached 70%. Furthermore, Ohio voters have approved a pot referendum, resulting in a rise in cannabis stocks.