Curaleaf Q1 2026: $324M Revenue Signals MSO Turnaround

Curaleaf Holdings, Inc. (CSE: CURA / OTCQX: CURLF), one of the largest U.S. cannabis multi-state operators by retail footprint, reported first-quarter 2026 financial results on May 5 that point to an industry inflection. The company posted $324.2 million in net revenue and $70.1 million in net income from continuing operations, ending a multi-quarter losing streak and reframing how analysts are valuing the entire MSO peer group as Schedule III rescheduling reshapes Section 280E economics.

For an industry that has spent three years coping with price compression, oversupply, and punitive federal tax treatment, Curaleaf's Q1 print is the first marquee post-rescheduling earnings report — and it suggests that the macro headwinds many investors had priced in as permanent are starting to break the other way.

Inside the Curaleaf Q1 2026 Numbers

Curaleaf's Q1 2026 net revenue of $324.2 million represented year-over-year growth of 6 percent compared with $306.6 million in the same quarter of 2025, though it slipped 3 percent sequentially from Q4 2025's $333.1 million. Management attributed the sequential softness to seasonality and ongoing wholesale price compression in mature adult-use markets, partially offset by international growth.

International revenue reached $47.2 million, up 35 percent year-over-year, driven primarily by Germany and the United Kingdom, where Curaleaf has aggressively built out its medical cannabis distribution platform. International now accounts for roughly 15 percent of total revenue, a structurally higher mix than at any U.S. peer.

Gross profit landed at $157.3 million for a gross margin of 49 percent, down 220 basis points year-over-year. Adjusted EBITDA was $63.4 million with a 19.6 percent margin, also down 200 basis points compared with Q1 2025. The margin compression reflects continued pricing pressure in core states such as Massachusetts and Arizona, partially offset by efficiency programs at the cultivation and retail levels.

The headline figure was net income from continuing operations of $70.1 million, or $0.09 per share — a sharp swing into profitability that was driven heavily by a tax benefit tied to the Schedule III rescheduling, which is expected to unlock substantial Section 280E relief for state-licensed medical operators. Operating cash flow from continuing operations was $21.3 million and free cash flow was $4.3 million.

What the Four 20 Pharma Deal Unlocks

A key strategic milestone in the quarter was Curaleaf's completed acquisition of German medical cannabis producer Four 20 Pharma. The deal consolidates Curaleaf's European platform at a time when Germany's medical cannabis market is the single fastest-growing legal cannabis market in the world, and gives the company end-to-end control of cultivation, import, manufacturing, and distribution into one of the most regulated and lucrative cannabis markets in Europe.

Four 20 Pharma was previously a critical supplier into Curaleaf International's distribution network, and full ownership removes a key external dependency. The acquisition also enables Curaleaf to bring its U.S.-developed brands and product formats — including pre-rolls, vape pens, and flower SKUs — into the German EU-GMP supply chain on its own terms.

In the United States, Curaleaf deepened its retail footprint in Florida with new dispensaries opening in Lauderhill and Cape Coral, bringing the state's total to 72 stores. Florida remains Curaleaf's single largest U.S. market by retail count and is widely viewed as the most strategic state to dominate ahead of any future adult-use legalization vote.

CEO Outlook: "Headwinds Turning Into Tailwinds"

CEO Boris Jordan struck an unusually optimistic tone on the earnings call, telling investors that "2026 is off to a strong start across the business" and that "macro headwinds that constrained growth over the past three years are now beginning to turn into meaningful tailwinds." Jordan specifically called out "the historic rescheduling of medical cannabis" as a shift in "the trajectory of our business and the industry overall."

That language is significant. For most of 2023 to 2025, MSO management teams calibrated guidance carefully to avoid overpromising on federal reform. Jordan's comments suggest Curaleaf now believes the rescheduling order — even with the pending Smart Approaches to Marijuana lawsuit attempting to overturn it — will hold long enough to deliver durable Section 280E tax relief and meaningful cash-flow improvement.

Curaleaf reaffirmed its 2026 guidance ranges for revenue growth in the mid-single digits and adjusted EBITDA margins of 20 to 22 percent, while signaling that any upside surprise is most likely to come from international expansion and from the timing of broader rescheduling implementation.

What Curaleaf's Print Means for the Rest of the Cannabis Sector

Curaleaf's Q1 print sets the bar for the rest of cannabis earnings season. Trulieve, Green Thumb Industries, Verano, and Cresco Labs all report later this month, and investors will be benchmarking them against three new realities the Curaleaf release crystallized.

First, post-rescheduling tax benefits are real and showing up in the income statement faster than many models assumed. Second, international cannabis revenue — particularly from Germany — is increasingly a needle-mover, not a side bet. Third, U.S. retail saturation and wholesale price compression remain unresolved drags on gross margin even in the best operators.

The AdvisorShares Pure US Cannabis ETF (MSOS) gained 31 percent in the month leading into earnings season and is up 69 percent over the past year. Curaleaf's results are unlikely to reverse that trade, but they may concentrate the rally into operators with international optionality and a credible 280E-relief story.

Key Takeaways

• Curaleaf reported Q1 2026 revenue of $324.2 million, up 6 percent year-over-year, and net income from continuing operations of $70.1 million, a meaningful turnaround driven by Schedule III tax benefits.
• International revenue grew 35 percent to $47.2 million as the completed Four 20 Pharma acquisition cemented Curaleaf's European platform.
• Gross margin (49 percent) and adjusted EBITDA margin (19.6 percent) compressed year-over-year, signaling that U.S. pricing pressure has not yet abated.
• CEO Boris Jordan called rescheduling a "shift in the trajectory" of the industry — the most bullish management commentary from a major MSO since 2021.
• Curaleaf's print sets the benchmark for the rest of cannabis earnings season and is expected to concentrate investor interest in MSOs with international optionality and credible 280E-relief stories.

If you want to see Curaleaf's retail footprint firsthand, Budpedia can help you find a dispensary near you across every legal U.S. market, including Florida dispensaries where Curaleaf operates its largest store network. For the European angle behind the Four 20 Pharma deal driving this quarter, read our coverage of Curaleaf's Four 20 Pharma expansion.

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