The North American marijuana industry currently holds over 80% of the market share, with Statista.com forecasting a compound annual growth rate (CAGR) of 14.6% over the next five years, reaching a market volume of approximately US$102.9 billion by 2028.
Despite the rapid growth of the global market, prominent cannabis stocks such as Canopy Growth, Aurora Cannabis, and Tilray Brands have all experienced significant losses over the past three years, ranging between 85% and 99%. Only Curaleaf Holdings has managed to outperform the TSX so far in 2023, with a 31.22% increase compared to 2.17% for the market index.
Curaleaf, a New York-based company that debuted on the TSX in December 2023, has 147 local dispensaries, 21 cultivation sites, and operates in 17 states. The company’s investor deck highlights its potential to become a global industry leader due to its presence in the U.S. and international markets.
In the first three quarters of 2023, Curaleaf reported a 7% year-over-year increase in total revenue, totaling US$1 billion. Despite the revenue growth, the company saw a net loss of US$224.7 million during the same period, raising concerns about profitability.
Looking ahead, Curaleaf’s management is optimistic about future growth catalysts, including upcoming state and regulatory changes, expansion into new markets like Europe, and the listing on Canada’s primary stock market. However, the company continues to face strong headwinds in the industry, with mounting losses and profitability remaining uncertain. Investors should carefully consider these factors before making investment decisions.
