💸 The Tape

For three years, Curaleaf has been building through headwinds — restructuring debt, expanding internationally, and positioning for a regulatory shift that always seemed to be six months away. In Q1 2026, the headwinds finally started turning.

The world's largest cannabis company by revenue reported first quarter net revenue of $324.2 million, up 6% year-over-year and ahead of both company guidance and internal expectations. CEO Boris Jordan didn't understate the moment: "The macro headwinds that constrained growth over the past three years are now beginning to turn into meaningful tailwinds."

He's not wrong. Between federal rescheduling, accelerating international growth, and a domestic business that's quietly regaining momentum, Curaleaf's Q1 reads like the beginning of a different chapter.

The Revenue Picture

The 6% year-over-year growth was driven by complementary strength across both segments. Domestic revenue came in at $277 million, up 2% from Q1 2025, with retail revenue of $215.2 million and wholesale revenue of $61.5 million — the latter reflecting a notable 18.7% year-over-year increase that suggests Curaleaf's branded wholesale business is gaining traction with third-party retailers.

International revenue was the standout, hitting $47.2 million — up 35% year-over-year from $34.9 million in Q1 2025. That international number now represents nearly 15% of total revenue, up from roughly 11% a year ago. The growth was fueled by expanding operations across Germany, the UK, Poland, and other European markets where Curaleaf has been methodically building infrastructure.

Sequentially, total revenue dipped 3% from Q4 2025's $333.1 million, reflecting typical post-holiday seasonality rather than any structural weakness. The year-over-year trajectory is what matters — and it's pointing decisively upward for the first time in several quarters.

Margins and Profitability

Gross profit came in at $157.3 million, with a 49% gross margin — down 220 basis points year-over-year. Management noted that the international segment created a 170 basis point drag on overall margins, which is expected at this stage of international scaling where upfront costs precede full revenue maturation. As European operations reach scale, that drag should narrow.

Adjusted EBITDA landed at $63.4 million, representing a 19.6% margin — down 200 basis points from the prior year period. The compression reflects the same international investment dynamic plus ongoing competitive pressures in certain domestic markets. It's a margin profile that has room to improve, particularly as 280E tax relief begins flowing through the medical business following rescheduling.

The headline profitability number: net income from continuing operations of $70.1 million, or $0.09 per share. In an industry where net losses remain the norm for most operators, Curaleaf posting meaningful positive net income is a differentiator that shouldn't be overlooked.

Cash Flow and Balance Sheet

Operating cash flow from continuing operations was $21.3 million, with free cash flow of $4.3 million after $17 million in capital expenditures focused on facility upgrades, automation, and selective retail expansion. The company ended the quarter with $106.1 million in cash.

On the debt side, Curaleaf executed a significant refinancing during the quarter, closing a $500 million private placement of non-dilutive senior secured notes due February 2029, using the proceeds to fully repay its outstanding 2026 senior secured notes. That's a clean maturity extension that removes near-term debt pressure and gives management breathing room to execute the growth strategy without a refinancing cliff looming overhead.

Total outstanding debt stood at $565.1 million net of discounts and deferred financing fees — a substantial figure, but more manageable with the extended maturity profile and the prospect of improved cash flow from 280E relief.

The Footprint

Curaleaf continues to build retail density in its most strategic markets. During Q1, the company deepened its Florida presence to 72 dispensaries with new locations in Lauderhill and Cape Coral. It opened an adult-use dispensary in Bangor, Maine, bringing the state total to six. And it expanded in Ohio — one of the country's newest adult-use markets — with two new Curaleaf-branded dispensaries in Findlay and Lorain through a partnership with RC Retail.

The nationwide store count now stands at 164 dispensaries — a retail footprint that, combined with Curaleaf's wholesale and international operations, creates a multi-channel revenue base that few competitors can match.

On the product side, the company launched the Select Briq 2 vape across 12 states during the quarter — a format innovation in one of the fastest-growing product categories in cannabis.

Post-Quarter Moves

The activity after March 31 has been equally significant. Curaleaf launched Dark Heart, its ultra-premium flower brand, across 11 states to what the company describes as strong consumer reception. The brand extension into premium flower addresses a segment where margins are typically higher and consumer loyalty runs deeper.

Internationally, Curaleaf completed the buyout of the remaining 45% of Four 20 Pharma, taking full ownership of its German medical cannabis subsidiary and appointing co-founder Torsten Greif to the company's board. That move gives Curaleaf end-to-end control of its European seed-to-patient supply chain — from cultivation in Portugal and Canada through to distribution in Germany and beyond.

And in what may be the most symbolically significant post-quarter development, Curaleaf filed DEA registration applications for certain medical cannabis locations — putting the company at the front of the line for the federal registration pathway created by the Schedule III rescheduling order.

The Rescheduling Catalyst

Jordan framed rescheduling as more than a policy milestone — he called it "a shift in the trajectory of our business and the industry overall." For a company of Curaleaf's scale, operating medical cannabis programs across the majority of its markets, the elimination of 280E on qualifying medical operations represents an immediate and material improvement to after-tax economics.

But the benefits extend beyond taxes. Federal recognition of medical cannabis legitimacy opens doors to better capital markets access, more favorable lending terms, and the kind of institutional investor interest that has historically avoided the sector. Curaleaf's $500 million refinancing was completed before rescheduling took effect — imagine what the terms might look like in a post-280E world.

The Bottom Line

Curaleaf's Q1 2026 is the quarter where the narrative shifts from "building through adversity" to "positioned for acceleration." Revenue growing. International scaling. Net income positive. Balance sheet restructured. DEA applications filed. European operations fully consolidated.

The company that spent three years investing through headwinds is now positioned to harvest the tailwinds. As Jordan put it: Curaleaf isn't just positioned to benefit from the regulatory shift — it intends to "lead the next phase of industry growth."

The setup has never been stronger. Now it's about execution.

📈 Dog Walkers

$RYM ( ▼ 1.46% ) Found Its RYTHM

RYTHM, Inc. is doing something unusual in cannabis: generating revenue from brands without growing a single plant.

The Nasdaq-listed THC brand company — whose portfolio includes RYTHM, Señorita, incredibles, Beboe, and Dogwalkers — reported Q1 2026 revenue of $13.3 million, up 24% sequentially, with a gross margin of 78%. Those are CPG-style margins that most cannabis operators can only dream about, and they reflect RYTHM's asset-light model built around intellectual property licensing rather than cultivation and retail operations.

The financial architecture became even clearer this quarter. RYTHM amended its brand licensing agreements with Green Thumb Industries to establish fixed annual cash licensing fees of $70 million, with annual increases tied to inflation. That structure provides predictable, recurring revenue from some of the most recognized brands in cannabis — a foundation that transforms RYTHM from a startup narrative into something resembling a royalty company.

Adjusted EBITDA was approximately breakeven, with $1 million in operating cash flow and a cash balance of $33.3 million. Net income of $19.9 million was driven largely by a $25.6 million non-cash tax benefit, so the headline profit number requires context — but the underlying business trajectory is moving in the right direction.

The brand portfolio continues to perform. According to BDSA, RYTHM ranked No. 1 nationally in branded flower and Dogwalkers held the No. 1 position in uninfused pre-rolls during Q1. incredibles expanded with Peanut Buddah Cups and Strawberry Supernova Comets, while the company launched 1777 by Señorita — its first non-alcoholic hemp-derived THC spirit — pushing further into the fast-growing THC beverage category.

Chairman and Interim CEO Ben Kovler — who also leads Green Thumb — highlighted the multi-channel opportunity: "From convenience and grocery stores to arenas and concert venues, RYTHM brands are available where American consumers shop." The THC beverage push is particularly strategic given consumer trends, though Kovler acknowledged the shadow of the potential federal hemp ban that could reshape the hemp-derived THC landscape.

Looking ahead, RYTHM is guiding for Q2 revenue of approximately $22 million — representing 65% sequential growth — a number that, if achieved, would signal rapid acceleration in the licensing model's revenue capture.

With category-leading brands, a $70 million annual licensing structure, and a Nasdaq listing that provides access to traditional capital markets, RYTHM is building the case that in cannabis, owning the brands may be more valuable than owning the plants.

SAM Sues Against A Smart Approach To Marijuana

It didn't take long. The legal challenge to cannabis rescheduling that everyone expected has officially arrived.

Smart Approaches to Marijuana (SAM) and the National Drug and Alcohol Screening Association (NDASA) filed a lawsuit Monday with the U.S. Court of Appeals for the District of Columbia Circuit, asking the court to review and set aside the Trump administration's rescheduling order that moved state-licensed medical cannabis from Schedule I to Schedule III of the Controlled Substances Act.

The petition alleges that the rescheduling order "violates the rulemaking requirements of the Administrative Procedure Act" and "exceeds the statutory authority of the Attorney General under the CSA," calling it "arbitrary and capricious and not in accordance with law."

The legal representation is notably pointed: SAM is using Torridon Law PLCC, a firm where former U.S. Attorney General William Barr — who led the DOJ during Trump's first term — is a partner. That's a deliberate choice. Hiring the former president's own AG to sue the current president's DOJ adds a layer of political irony that isn't lost on anyone following the case.

SAM CEO Kevin Sabet framed the lawsuit in apocalyptic terms, calling the rescheduling order something that "gave federal approval to a new Big Tobacco industry selling cookies, gummies, and sodas laced with highly potent marijuana." He added: "This is a fight for the next generation." Marijuana Moment

The core legal argument centers on process, not science. SAM contends that Acting Attorney General Todd Blanche bypassed the formal rulemaking procedures required under federal law when he used the UN Single Convention treaty pathway to immediately reclassify medical cannabis — rather than completing the traditional administrative hearing process. It's a procedural challenge, but procedural challenges can be effective when the government takes shortcuts, even popular ones.

This isn't SAM's first swing at rescheduling-related policy this year. The organization also filed a separate lawsuit seeking to block the Trump administration's Medicare CBD pilot program, and has worked with lawmakers on legislation that would preserve 280E tax penalties on cannabis businesses regardless of scheduling changes.

The timing matters. The DEA's broader administrative hearing on whether to reschedule all marijuana — including recreational — is set to begin June 29. A court order pausing or reversing the existing medical rescheduling before that hearing could throw the entire federal cannabis reform timeline into uncertainty.

The industry expected this fight. Now it's here.

🗞️ The News

📺 YouTube

DEA Sees Strong Early Demand for Cannabis Registration | TTB Presented by Flowhub

Highlights:

• Ohio Market Surge: April 2026 sales hit approximately $107 million, up ~26% YoY, with early signs that recent hemp restrictions may be driving consumers back to licensed dispensaries — a trend worth watching.

• White House Potency Focus: A new report highlights the administration zeroing in on high-potency cannabis marketing as part of its national drug strategy, signaling that even as reform advances, public health scrutiny is tightening.

• Curaleaf Q1 Breakdown: The hosts dig into Curaleaf's Q1 2026 earnings, examining what stood out and how the company is positioning for a post-280E landscape.

• DEA Registration Momentum: Just one week after the DEA opened its medical cannabis registration portal, more than 400 state-licensed operators have already submitted applications — a clear signal the industry is moving fast.