Should You Buy or Sell CURLF Stock Amid Renewed Legalization Hopes?

A leading multistate cannabis operator, Curaleaf Holdings’ CURLF stock has skyrocketed over 200% in the past three months, largely driven by support from the Trump administration.

In the past couple of months, President Trump has spoken favorably about marijuana rescheduling, a move that sparked sharp rallies across several U.S.-listed cannabis operators, including Curaleaf.

The stock’s price performance has left investors wondering whether to buy, hold or sell it. Let’s delve into the company’s fundamentals to gain a better understanding of how to play the stock amid this price surge.

Domestic Headwinds Hinder Curaleaf’s Sales Growth

Despite being regarded as one of the largest cannabis operators in terms of sales, Curaleaf faces revenue pressure from a deteriorating domestic market.

In the second quarter of 2025, Curaleaf’s total revenues declined by 8% year over year to $314.5 million. While sales from the international division increased by 62%, it only makes up a small part of the company’s overall revenues. The majority, which comes from the domestic market, continued its downtrend amid pricing challenges and regulatory headwinds.

Yet, the bottom line showed a mixed picture. While operational efficiencies and a favorable product mix have helped expand adjusted gross margin to 49% (up 160 basis points YoY), it was still not enough to turn a profit. Curaleaf’s adjusted EBITDA margin declined 40 basis points YoY to about 21%.

We expect the company to continue focusing on expanding its international business. It recently got a license to operate in Turkey, a country with a nascent medical cannabis market. Curaleaf is also expanding its domestic business through dispensary growth. During Q3, it opened four new retail locations — two in Florida and two more in Ohio — bringing its nationwide store count to 157. CURLF is also focusing on high-margin products, such as hemp-based beverages (via its Select brand), to boost margin growth and turn a profit.

Stiff Competition in the Cannabis Space

Curaleaf competes in an overcrowded market. It faces stiff competition from its peers, like Aurora Cannabis ACB, Canopy Growth CGC and Tilray Brands TLRY. Like Curaleaf, each of these players is pursuing international expansion and cost optimization strategies.

As CURLF gains ground in international markets, competitive responses from Aurora, Canopy and Tilray are more than likely to intensify and could limit its ability to sustain outsized market share gains.

CURLF Stock Performance and Estimates

Shares of Curaleaf Holdings have more than doubled in market value so far this year compared to the industry’s 7% rise.

Loss estimates for 2025 and 2026 have remained consistent over the past 30 days.

How to Play CURLF Stock?

Curaleaf’s recent rally appears to be fueled more by optimism surrounding federal reform than by improvements in its underlying fundamentals. While the company continues to expand globally and streamline its cost base, domestic pricing pressure and profitability challenges remain significant headwinds.

Until there is tangible progress on federal rescheduling or sustained margin recovery, CURLF’s valuation may not justify its sharp upward move. With a Zacks Rank #4 (Sell), the stock looks vulnerable to volatility and may carry elevated risk for conservative investors.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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