Curaleaf Announces Delaware Domestication Plan: How to Play the Stock?

Curaleaf Holdings CURLF recently announced plans to domesticate its corporate structure from Canada to the United States.

CURLF’s Delaware Domestication: A Strategic Repositioning

Under the proposed plan, Curaleaf will continue out of British Columbia and domesticate as a Delaware corporation, subject to shareholder and regulatory approvals. While the move does not directly alter Curaleaf’s operating footprint, it represents a significant strategic shift that could enhance regulatory alignment, governance efficiency and long-term capital market flexibility.

The announcement comes at a time when U.S. cannabis operators are closely watching federal marijuana reform efforts, all thanks to President Trump’s recent executive order directing agencies to pursue marijuana rescheduling.

From a strategic standpoint, the move simplifies Curaleaf’s organizational and regulatory structure by consolidating corporate governance within the same jurisdiction as its core business. Management noted that Delaware’s corporate framework is better aligned with the company’s operational base, which is significantly concentrated in the United States. Delaware is widely regarded as the most business-friendly U.S. state for corporate law, offering legal predictability, efficient dispute resolution and flexibility in structuring future transactions.

For Curaleaf, this could prove especially valuable if federal cannabis reform advances further. A U.S.-domiciled structure may ease future capital markets activity, improve institutional investor accessibility and streamline compliance, provided cannabis-related restrictions at the federal level soften eventually. While the domestication does not change Curaleaf’s day-to-day operations, it positions the company better for potential regulatory normalization over time.

However, we cannot make an investment decision based solely on this single event. Let’s delve into CURLF’s broader fundamentals to gain a better understanding of how to play the stock amid this recent development.

International Gains Partially Offset CURLF’s Domestic Weakness

While domestic market conditions remain challenging, Curaleaf’s international operations have emerged as a driver of top-line growth. In the first nine months of 2025, the company generated international revenues of approximately $122 million, representing an increase of roughly 63% year over year. Growth was driven primarily by continued expansion across European medical cannabis markets, particularly in the U.K. and Germany, supported by rising patient enrollment, broader physician adoption and increased distribution.

International revenues grew at a significantly faster pace than Curaleaf’s U.S. business, which continued to face pressure from persistent pricing compression and regulatory headwinds. Despite the strong growth rate, the international segment still accounted for only about 13% of Curaleaf’s total nine-month net revenues of roughly $945 million, which declined approximately 7% year over year. Although international expansion helped partially cushion the impact of domestic weakness, U.S. operations remain the primary driver of consolidated revenue performance.

Looking ahead, management struck a cautiously optimistic tone on international markets, citing continued demand growth in core European regions and additional product-driven momentum. However, the company also emphasized that newer markets such as Spain, France and Turkey are unlikely to contribute meaningfully to revenues until next year, suggesting that international growth will remain a supportive — rather than transformative — factor in Curaleaf’s near-term financial outlook.

Cutthroat Competition in the Cannabis Space

Curaleaf operates in a highly competitive market where growth opportunities remain limited and fragmented. 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 limit its ability to sustain outsized market share gains.

CURLF Stock Performance and Estimates

Shares of Curaleaf Holdings have surged 92% in the past year against the industry’s 4% decline.

Loss estimates for 2025 and 2026 have widened over the past 60 days.

How to Play CURLF Stock?

Taken together, Curaleaf’s Delaware domestication plan, growing international exposure and improving operational discipline support a constructive long-term view on the stock. While domestic pricing pressure and intense competition continue to weigh on near-term performance, international sales growth and improving cash generation are helping stabilize the business.

Although the domestication move is not an immediate catalyst, it positions Curaleaf more favorably for potential U.S. regulatory normalization and improved access to capital markets over time. With a Zacks Rank #2 (Buy), the stock appears best suited for long-term investors seeking exposure to international cannabis legalization and gradual regulatory progress in the country.

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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