In the wake of two acquisitions totaling nearly $2 billion, cannabis company Curaleaf Holdings Inc. reported lower-than-expected second-quarter revenue Tuesday, but forecast more than $1 billion in 2020 revenue.
U.S. over-the-counter shares CURLF, +0.66% CURA, +0.00% closed up 0.7%.
The company reported a widening second-quarter net loss of $24.4 million, or 5 cents a share, versus $4.9 million, or a penny a share, in the year-ago period. Net revenue rose to $48.5 million from $14.6 million in the year-ago period and $35.3 million in the prior quarter.
Curaleaf also manages several cash-producing entities, which collected $6.6 million in revenue during the second quarter.
Analysts polled by FactSet expected revenue of $49.8 million. There were not enough analysts to form a reliable consensus for earnings.
The company said that its losses included two non-cash charges: $5.8 million for depreciation and amortization and $3.8 million for stock-based compensation.
In the earnings call, Curaleaf executives said they expect revenue of $1 billion to $1.2 billion in 2020.
“The recently announced acquisitions of Select and Grassroots, as well as tuck-in acquisitions in Arizona, California, Nevada and Ohio, position Curaleaf as the undisputed leader in the cannabis industry,” Curaleaf Chief Executive Joseph Lusardi said in a statement. “With the industry’s largest operational footprint, we have the scale to rapidly accelerate growth across the country.”
Curaleaf said that it intended to buy a cannabis-oil maker May 1 for $949 million with its paper, and paid $875 million, $75 million of which was in cash, to buy Grassroots, a vertically integrated operator.
Curaleaf’s U.S.-traded stock has gained 35% his year, with the S&P 500 index SPX, -0.32% rising 14.8%.