Clever Leaves Holdings Inc. (CLVR)·Q1 2024 Earnings Summary

Executive Summary

• Clever Leaves did not issue a Q1 2024 earnings press release or hold an earnings call; on April 26, 2024, the company announced a voluntary Nasdaq delisting and intent to deregister with the SEC, implying Q1 results were not furnished in the customary format .
• The latest reported quarter (Q4 2023) delivered revenue of $4.6M (+5% YoY) but a negative gross margin of (7.5)% due to inventory provisions; adjusted gross margin was 9.1% .
• Strategic actions during and immediately after Q4 include the $8.02M sale of the non‑cannabinoid Herbal Brands business (including $7.02M cash at close and a $1.0M note) and completion of the Portuguese farm asset sale, sharpening focus on the cannabinoid business and liquidity preservation .
• Operationally, management emphasized Australian GMP certification (Jan 3, 2024) and a genetics partnership with Paradise Seeds (Feb 13, 2024) as building blocks for quality and commercial momentum in Australia, the U.K., and Europe .

What Went Well and What Went Wrong

• What Went Well

  • Cost structure progress and portfolio focus: CEO highlighted continued cost optimization and a sharpened focus on core international cannabinoid markets, with 2023 G&A down 26% YoY in Q4 and 24% for the full year .
  • Regulatory/quality milestones: Australian GMP certification for cannabis products from the TGA supports manufacturing for Australian patients and adds to CLVR’s set of global GMP credentials .
  • Portfolio refocus and liquidity: Sale of Herbal Brands for $8.02M (including $7.02M cash) and monetization of Portuguese assets reinforced liquidity and strategic focus on cannabinoids .

• What Went Wrong

  • Margin pressure: Q4 2023 gross margin was (7.5)% (adjusted 9.1%), reflecting inventory provisions and operational dynamics; adjusted EBITDA remained negative at $(4.6)M .
  • Market/geo timing variability: Management cited Brazilian quota timing and Israel logistics disruptions as headwinds to shipment timing and revenue phasing .
  • Going concern risk and capital needs: Management reiterated substantial doubt about the company’s ability to continue as a going concern and dependence on funding initiatives (pre‑delisting context) .

Financial Results

Note: Q1 2024 results were not reported; columns are ordered oldest → newest.

Segment revenue (Q4 context; oldest → newest):

KPIs (oldest → newest):

Estimates vs Actuals (Q1 2024):

• S&P Global consensus estimates and actuals for Q1 2024 were unavailable via our S&P Global feed due to missing mapping for CLVR; therefore, no estimate comparison can be provided at this time.

Guidance Changes

Note: No formal 2024 guidance was provided in the Q4 2023 release, and the company subsequently announced voluntary delisting and deregistration on Apr 26, 2024 .

Earnings Call Themes & Trends

Management Commentary

• CEO on 2023 progress/cost actions: “Throughout 2023, we executed on our strategic initiatives to refine our commercial and production operations, as well as optimize our capital efficiency and cost structure.”
• On market dynamics: “We…continued to experience variability related to the timing and issuance of Brazilian quotas, along with order stoppages in Israel resulting from the current geopolitical conflict.”
• On regulatory/quality: “Clever Leaves was granted Australian GMP certification…which authorizes us to manufacture cannabis products for Australian patients.”
• On focus and liquidity: “Through completing [the Herbal Brands sale], we aim to focus our operations solely on our cannabinoid business, as well as point our ongoing capital and cost optimization initiatives in this direction.”

Q&A Highlights

• Israel disruption/mitigation: Management indicated efforts to reinitiate shipments to Israel as logistics allow while redirecting API and flower volumes to Australia, Germany, the U.K., and Brazil to support patient access and demand .
• Liquidity and going concern (prepared remarks): CFO reiterated substantial doubt regarding going concern and dependence on funding and asset monetization initiatives (pre-deregistering context) .

Estimates Context

• S&P Global consensus estimates for Q1 2024 revenue and EPS were unavailable; our S&P Global data feed could not retrieve estimates or actuals for CLVR due to missing mapping. As a result, we cannot provide a estimates vs. actuals comparison for Q1 2024. Values retrieved from S&P Global.

Key Takeaways for Investors

• No Q1 2024 results were published, and CLVR announced voluntary delisting and deregistration on Apr 26, 2024—this is the dominant stock narrative and governance catalyst near-term .
• The most recent financials (Q4 2023) reflect modest revenue improvement but negative GAAP gross margin due to provisions; adjusted profitability metrics remain negative, underscoring continued operating challenges .
• Cost discipline and asset sales (Herbal Brands and Portuguese assets) provided liquidity and sharpened the focus on cannabinoids, but the going concern language (pre‑delisting) signaled financing dependency .
• Operationally, Australian GMP certification and genetics partnerships (Paradise Seeds) strengthen product quality and market entry positioning, particularly in Australia/U.K./EU channels .
• Macro/regulatory timing (Brazil quotas) and geopolitical logistics (Israel) remain key variables for shipment cadence and quarterly revenue phasing .
• With estimates unavailable and filings discontinued, near‑term trading is likely to be headline‑driven (governance/corporate actions) rather than fundamentals‑driven; medium‑term thesis rests on the viability of a streamlined, cannabinoid‑only model under private or alternative reporting status .

References:

• Q4/FY 2023 8‑K and attached press release:
• Q3 2023 8‑K and press release:
• Q3 2023 earnings call transcript:
• Australian GMP PR (Jan 3, 2024):
• Paradise Seeds partnership PR (Feb 13, 2024):
• Delisting/deregistration PR (Apr 26, 2024):
• Q1 2023 PR (for prior‑year revenue context):