Curaleaf Earnings: Cutting Fair Value Estimate as Illicit Market Stubbornly Weighs on Legal Growth Trajectory

No-moat Curaleaf finally released fourth-quarter 2022 results on May 1 after a delay stemming from its conversion from IFRS to GAAP accounting standards. Fourth-quarter revenue reflected the ongoing challenges of selling legal cannabis in the current U.S. economic environment, with revenue growing just 4% sequentially. In comparison, full-year revenue growth was 12%. Also, profitability retreated, with adjusted EBITDA margin declining to 21% compared to 25% in the third quarter.