Sign in

    Matthew McGinley • Needham & Company

    Matthew McGinley's questions to Curaleaf Holdings Inc (CURLF) leadership

    Matthew McGinley's questions to Curaleaf Holdings Inc (CURLF) leadership • Q2 2024

    Question

    Matthew McGinley questioned the dynamics of the quarterly gross margin, asking why it dipped early in the period before recovering to 50% in June, and sought conviction on the sustainability of this higher margin level.

    Answer

    Executive Chairman Boris Jordan attributed the early-quarter dip to excessive promotional activity around the 4/20 holiday, a practice he indicated the company will change. He expressed confidence in sustaining the 50% margin level, citing a strategic shift away from discounting, supported by significant improvements in product quality, potency, and the success of new product lines.

    Ask Fintool Equity Research AI

    Matthew McGinley's questions to Curaleaf Holdings Inc (CURLF) leadership • Q1 2024

    Question

    Matthew McGinley questioned the drivers behind the strong $46 million in operating cash flow for Q1, asking if this was an anomaly and how it aligns with the full-year guidance of over $100 million.

    Answer

    CFO Edward Kremer clarified that the Q1 operating cash flow was 'outsized' because the company did not make a full tax payment due to its re-evaluation of its position on Section 280E. He reiterated that the company remains on track to achieve its full-year guidance of over $100 million in operating cash flow, irrespective of this specific tax benefit.

    Ask Fintool Equity Research AI