Mr. Boris Jordan reports

CURALEAF REPORTS FOURTH QUARTER AND FULL YEAR ENDED 2023 RESULTS

Curaleaf Holdings Inc. has released its financial and operating results for the fourth quarter ended Dec. 31, 2023. All financial information is reported in accordance with U.S. generally accepted accounting principles (GAAP) and is provided in U.S. dollars unless otherwise indicated.

Boris Jordan, executive chairman of Curaleaf, stated: "I'm pleased to report that the work we've done over the past several quarters has paid off; Curaleaf ended the year strong and is positioned extremely well for the future. In the fourth quarter, we generated record revenue of $345-million. Adjusted gross margin of 46 per cent improved by 80 basis points versus last quarter, and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] was $83-million, or 24 per cent of sales. Our gross margin trajectory is improving faster than we initially anticipated as we have turned on idle capacity to meet increasing demand and see our first quarter margins approaching 50 per cent. For the year, revenue was $1.35-billion, up 6 per cent from 2022. Adjusted gross margin was 46 per cent while adjusted EBITDA margin was 23 per cent. The global opportunities we've been building our business toward are unfolding rapidly, and 2024 will be Curaleaf's catalyst year. Our global brand portfolio is second to none, and our amazing team members continue to deliver with energy and enthusiasm. I am happy to say that Curaleaf's future has never been greener."

Matt Darin, chief executive officer of Curaleaf, commented: "Our fourth quarter results are a solid reflection of the discipline and rigour we have put into evolving our business and the committed work of our team members. It is thanks to all of them that we have leading market share and growth in key markets like Arizona, Florida, New York and Pennsylvania, a domestic wholesale business that grew 15 per cent sequentially, and a U.S. retail business that grew 9 per cent for the year, eclipsing the $1-billion mark for the first time. We're excited about our portfolio of brands and innovative new products as well as the potential of our retail footprint as adult use expands. We are encouraged by the momentum we see in our business because of the strategic changes we've made. There is no doubt that Curaleaf is poised for a solid 2024 and beyond."

Fourth quarter 2023 financial highlights:

• Net revenue of $345.3-million, a year-over-year increase of 1 per cent compared with Q4 2022 revenue of $340.2-million; sequentially, net revenue increased 4 per cent;
• Gross profit of $156.2-million and gross margin of 45 per cent;
• Adjusted gross profit of $160.4-million and adjusted gross margin of 46 per cent;
• Net loss attributable to Curaleaf Holdings, excluding discontinued operations, of $57.7-million, or net loss per share of eight cents;
• Adjusted net loss from continuing operations attributable to Curaleaf Holdings of $5-million, or adjusted net loss per share from continuing operations of one cent;
• Adjusted EBITDA of $83-million and adjusted EBITDA margin of 24 per cent, a 490-basis-point improvement year over year;
• Cash at quarter-end totalled $91.8-million.

Full-year 2023 financial highlights:

• Net revenue of $1.35-billion, a 6-per-cent increase year over year;
• Gross profit of $614.4-million and gross margin of 46 per cent;
• Adjusted gross profit of $625.1-million and adjusted gross margin of 46 per cent;
• Operating cash flow from continuing operations of $91.2-million and free cash flow from continuing operations of $25.8-million;
• Net loss attributable to Curaleaf Holdings of $281.2-million, or net loss per share of 39 cents;
• Adjusted net loss attributable to continuing operations of $126.1-million, or adjusted net loss per share from continuing operations of 17 cents;
• Adjusted EBITDA of $304.5-million and adjusted EBITDA margin of 23 per cent;
• Operating cash flow and free cash flow from continuing operations of $91.2-million and $25.8-million.

Fourth quarter 2023 operational highlights:

• In Florida, Curaleaf opened one additional store in Sarasota, totalling 61 stores in the state.
• In December, Curaleaf began selling into the New York adult-use wholesale market.
• On Dec. 14, 2024, Curaleaf completed its uplisting to and commenced trading on the Toronto Stock Exchange.
• Curaleaf entered into an agreement to sell its Maine adult-use store.

Full-year 2023 operational highlights:

• Completed the acquisition of Deseret Wellness in Utah, consisting of four stores out of 15 in the market;
• Successfully launched adult-use sales in Connecticut across Curaleaf's four stores and the wholesale market;
• Successfully launched adult-use sales in Maryland across Curaleaf's four stores and the wholesale market;
• Opened six stores in Florida totalling 61 stores in the state and ended the year with 145 U.S. retail locations;
• Launched Briq, Curaleaf's proprietary two-gram vape hardware into 11 states, which set record-breaking sales;
• Launched Select liquid diamonds in Florida and Zero Proof cannabis-infused drinkables in Illinois;
• Launched Grassroots diamond-infused prerolls into five states;
• Completed the acquisition of EU GMP (European Union good manufacturing practice) processing assets from Clever Leaves in Portugal to further integrate Curaleaf's European business;
• Began selling edibles in the United Kingdom market;
• Began wholesaling into Poland;
• Raised $16-million (Canadian) through an equity offering of subordinate voting shares, which fulfilled one of the requirements for listing on the Toronto Stock Exchange;
• Discontinued operations in California, Colorado, Oregon, Michigan, Kentucky and Curaleaf's adult-use Maine store, which reduced inefficiencies and margin dilution.

Operational highlights -- after fourth quarter of 2023:

• In New York, the company opened its first store for adult-use sales in Newburgh;
• Rebranded Reef stores to Curaleaf stores in Arizona;
• In the United Kingdom, Curaleaf rebranded Sapphire Clinics to Curaleaf Clinics;
• Acquired Can4Med, an experienced pharmaceutical wholesaler in Poland to enhance Curaleaf's European presence;
• Launched Stiq, a new one-gram all-in-one cannabis oil vape, in Arizona.

Balance sheet and cash flow

As of Dec. 31, 2023, the company had $91.8-million of cash and $587.8-million of outstanding debt net of unamortized debt discounts.

As of Dec. 31, 2023, Curaleaf invested $65.4-million, net in capital expenditures, focused on cultivation, automation and selective retail expansion in strategic markets. During the fourth quarter, net capital expenditures were $16.1-million.

Shares outstanding

For the fourth quarter of 2023 and 2022, the company's weighted average subordinate voting shares plus multiple voting shares outstanding amounted to 733,514,919 and 715,796,271 shares, respectively.

Conference call information

The company will host a conference call and audio webcast for investors and analysts on Wednesday, March 6, 2024, at 5 p.m. ET to discuss Q4 2023 earnings results. The call can be accessed by dialling 1-844-512-2926 in the United States, 1-412-317-6300 internationally or 1-416-639-5883 from Canada. The conference ID is 9765571.

A replay of the conference call can be accessed at 1-877-344-7529 or 1-412-317-0088 internationally or 1-855-669-9658 from Canada, using the replay ID 4670787.

A webcast of the call can be accessed on the investor relations section of the Curaleaf website. The teleconference will be available for replay starting at approximately 7 p.m. ET on March 6, 2024, and will end at 11:59 p.m. ET on March 13, 2024.

About Curaleaf Holdings Inc.

Curaleaf Holdings is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. As a high-growth cannabis company known for quality, expertise and reliability, the company and its brands, including Curaleaf, Select and Grassroots, provide industry-leading service, product selection and accessibility across the medical and adult-use markets. In the United States, the company's brands are sold in 17 states, with operations encompassing 145 dispensaries and employing more than 5,600 global team members. Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Toronto Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF.

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