Executive Summary

Q3 2023 revenue was $3.8M, up 33% year over year, driven by 135% growth in cannabinoid revenue and 6% growth in non‑cannabinoid, but down sequentially due to Brazil regulatory timing; gross margin was 50.8% and adjusted gross margin 57.7% .
Adjusted EBITDA improved to $(2.6)M from $(3.7)M YoY on continued cost reductions; net loss was $(5.1)M including a $3.7M impairment tied to the post‑quarter Cansativa stake sale .
Guidance was cut: FY23 revenue to $17–$18M (prior $19–$22M), adjusted GM to 55–57% (prior 58–63%), while adjusted EBITDA loss narrowed to $(11)–$(10)M (prior $(13.6)–$(10.6)M); CapEx reduced to $0.2–$0.3M (prior $0.5–$0.7M) .
Liquidity improved sequentially: cash was $6.5M at 9/30 and $6.2M at 10/31, with ~$1.9M proceeds subsequently from Cansativa shares; management still notes substantial doubt about going concern and dependence on further funding .

What Went Well and What Went Wrong

What Went Well

Cannabinoid revenue surged 135% YoY to $1.4M, with strong extract demand in Australia and Brazil; non‑cannabinoid revenue grew 6% YoY .
Adjusted EBITDA improved to $(2.6)M vs $(3.7)M YoY on restructuring and cost reduction benefits .
Quote: “Our third quarter results reflect our commitment to enhancing our commercial strategy and Colombian production, as well as optimizing our expenses.” — CEO Andres Fajardo .

What Went Wrong

Sequential revenue softness from Brazil quota timing delays; shipments expected to resume by end of Q4 .
All‑in cost per gram increased to $0.75 vs $0.52 YoY due to processing existing inventory, ramping Colombian flower exports, and cultivation changes to meet stricter standards .
Net loss of $(5.1)M included a $3.7M impairment related to the Cansativa stake sale; management reiterated substantial doubt about going concern, highlighting reliance on additional funding and working capital reduction .

Financial Results

Metric	Q1 2023	Q2 2023	Q3 2023
Revenue ($USD Millions)	$4.0	$4.981	$3.8
Gross Margin (%)	55.0% (calc: $2.2/$4.0)	54.7%	50.8%
Adjusted Gross Margin (%)	59.2%	58.8%	57.7%
Adjusted Gross Profit ($USD Millions)	$2.4	$2.931	$2.2
Gross Profit ($USD Millions)	$2.2	$2.726	$1.9
Adjusted EBITDA ($USD Millions)	$(3.0)	$(2.122)	$(2.6)
Net Loss ($USD Millions)	$(4.1)	$(3.595)	$(5.1)
EPS (Basic & Diluted, $)	n/a (not disclosed)	$(0.08)	n/a (not disclosed)
Total Operating Expenses ($USD Millions)	$6.4	$5.901	$5.3
All‑in Cost per Gram ($/gram)	$1.29	$0.70	$0.75
Cash, Cash Equivalents & Restricted Cash ($USD Millions)	$6.7	$5.1	$6.5

Segment revenue breakdown:

Segment Revenue ($USD Millions)	Q1 2023	Q2 2023	Q3 2023
Cannabinoid	n/a (not disclosed)	$1.9	$1.4
Non‑Cannabinoid	n/a (not disclosed)	$3.081 (calc: $4.981−$1.9)	$2.4 (calc: $3.8−$1.4)

KPIs and operational metrics:

KPI	Q1 2023	Q2 2023	Q3 2023
Inventory Provision ($USD Millions)	$0.1	$0.205	$0.3
Harvested (kg)	n/a	n/a	1,210
Total Debt ($USD Millions)	n/a	n/a	$1.3

Notes:

Q2 revenue in the press release is “approximately $5.0M”; consolidated statements show $4.981M, which is used above .
Q3 EPS was not disclosed in the 8‑K press release; consolidated EPS was available for Q2 only .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2023	$19–$22M	$17–$18M	Lowered
Adjusted Gross Margin	FY 2023	58%–63%	55%–57%	Lowered
Adjusted EBITDA	FY 2023	$(13.6)M to $(10.6)M	$(11.0)M to $(10.0)M	Raised/Narrowed (less negative)
Capital Expenditures	FY 2023	$0.5M–$0.7M	$0.2M–$0.3M	Lowered

Rationale: Revisions reflect timing variability in Brazil internal quotas and Israeli logistics amid war, plus H1 specialty channel softness; EBITDA improved on cost reductions and restructuring .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Brazil (RDC 327) extracts	Strong Q1 shipments; 5‑year Hypera supply agreement; continued traction; ANVISA GMP certification achieved	Timing variability in internal quotas delayed shipments; expected deliveries by end of Q4	Mixed near term; normalization expected
Australia	Q1: sold remaining Portuguese flower; ramping Colombian flower; extracts traction	Expanded ANTG agreement; positive reception; next strain to launch Q4	Positive momentum
Israel	Q1: API sales; preparing flower launch	War‑related logistics constraints; reinitiating shipments potentially in early December; backfilling demand to Australia/Brazil	Recovering after disruption
Germany & UK	Q1: early pathways; Germany distributor margins; UK imports rising	Positioning branded flower and B2B partnerships; monitoring regulatory evolution; UK imports tripled YoY	Building pipeline
Flower strains/R&D	Q1: focus on 2–3 strains; Praetorian Global partnership	Aiming to complete two new strains by year‑end; progress with Praetorian	Advancing as planned
ESG/Operational efficiency	Q2/Q1: restructuring; Portugal wind‑down underway	Carbon neutrality certification; reduced cash burn; CapEx minimal	Improving efficiency
Capital structure/Nasdaq listing	Q1: substantial doubt; ATM usage	1‑for‑30 reverse split; regained minimum bid compliance; continued going‑concern risk	Stabilized listing; funding risk persists

Management Commentary

“Demand for our extracts increased, resulting in overall year‑over‑year revenue growth of 135% increase in cannabinoid revenue. We also grew revenue by 6% year‑over‑year in our non‑cannabinoid Herbal Brands business…” — CEO Andres Fajardo .
“We closed the third quarter with $6.5 million compared to $5.1 million at the end of Q2… In addition, our debt obligations have remained low… At September 30… total debt was $1.3 million.” — CEO Andres Fajardo .
“On a sequential basis… variability in the timing of certain regulatory approvals in Brazil… delayed some of our expected shipments. However, we believe these are now on track to be delivered by the end of Q4.” — CFO Hank Hague .
“We implemented a 1‑for‑30 reverse split… facilitating compliance with Nasdaq’s minimum bid price… regained as of September 8.” — CFO Hank Hague .
“As noted… there continues to be substantial doubt about our ability to continue as a going concern.” — CFO Hank Hague .

Q&A Highlights

Israel logistics and demand backfilling: Management is reinitiating delayed shipments as logistics normalize (potentially early December), reallocating APIs to Australia and focusing flower launches in Australia, Germany, UK, with strong emphasis on Brazil .
Strategic prioritization unchanged: Core markets remain Australia, Germany, Brazil, Israel, UK, Colombia; flexibility across geographies to mitigate disruptions .
Guidance clarifications: Shipment delays drove revenue mix phasing; cost actions underpin improved adjusted EBITDA range .

Estimates Context

S&P Global consensus estimates for CLVR were unavailable via our data connection at this time; therefore, we cannot benchmark Q3 revenue/EPS/EBITDA against Wall Street consensus. We searched for CLVR in SPGI/Capital IQ but the CIQ mapping was missing for this ticker, preventing retrieval of consensus estimates.

Key Takeaways for Investors

Revenue trajectory is volatile intra‑quarter due to Brazil approvals and Israel logistics; expect catch‑up shipments by Q4, but near‑term variability remains a risk .
Cost actions are working: sequential cash increase and narrowed EBITDA loss range point to improved capital efficiency; CapEx now de minimis on mature Colombian infrastructure .
Guidance reset lowers revenue and margin expectations but improves EBITDA loss range — prioritize mix and timing rather than demand weakness as drivers; monitor Brazil quotas and Israel logistics for recovery .
Product pipeline: two new flower strains expected by year‑end and ANTG expansion underpin Australia; branded and B2B pathways in Germany/UK build optionality for 2024 .
Structural risks persist: going‑concern language and need for additional funding remain; watch for asset monetizations, ATM usage, and Portuguese asset sales completion .
Trading implications: stock likely sensitive to updates on Brazil shipments, Israel normalization, and any capital raises; upside catalysts include confirmed Q4 deliveries and regulatory progress in target markets .
Medium‑term thesis: leaner cost base plus diversified regional demand in extracts and flower can drive margin stabilization; execution on flower quality and regulatory fit is key to scaling .

Appendix: Prior Quarter Context

Q2 2023: Revenue $4.981M, gross margin 54.7%, adjusted gross margin 58.8%, adjusted EBITDA $(2.122)M; cannabinoid revenue $1.9M; all‑in cost/gram $0.70; cash $5.1M; reaffirmed prior FY23 guidance at the time .
Q1 2023: Revenue $4.0M; adjusted gross margin 59.2%; adjusted EBITDA $(3.0)M; OpEx $6.4M; cash $6.7M; emphasized Brazil/Israel extracts and early Colombian flower shipments .

Search notes:

Read the Q3 2023 8‑K press release (Exhibit 99.1) and full earnings call transcript -.
Reviewed Q2 2023 8‑K press release and Q1 2023 call for trend analysis; no additional standalone press releases in Q3 beyond the 8‑K Exhibit 99.1 were found in our document catalog - .

Clever Leaves Holdings Inc. (CLVR)·Q3 2023 Earnings Summary