California’s licensed alcohol establishments are no longer selling intoxicating hemp products in near-universal compliance with the state’s prohibition policies implemented last year, Gov. Gavin Newsom announced May 8.

The governor issued emergency regulations in September 2024 to require that industrial hemp food, beverage and dietary products intended for human consumption have no detectable THC or other intoxicating cannabinoids derived from the plant, such as delta-8 THC infused into edibles and beverages.

The regulations, intended to prevent children from accessing the products, also created a minimum age of 21 years to purchase nonintoxicating hemp products, such as those that contain CBD.

After the California Office of Administrative Law approved the governor’s emergency regulations later that month, they were adopted by the California Department of Public Health (CDPH), making hemp-derived THC products illegal.

Following that September 2024 adoption, the California Department of Alcoholic Beverage Control (ABC) began visiting licensed alcohol establishments within its jurisdiction to enforce the law, inspecting 11,445 businesses and removing 7,151 prohibited products from 148 locations, according to the governor’s office.

However, since the beginning of 2025, the ABC reported that licensed alcohol establishments have been 99.7% compliant with the regulations—16 violations during 5,478 site visits. ABC businesses that fail to comply with the law face license revocations as well as potential legal ramifications.

“Our licensees have overwhelmingly complied with the regulation,” ABC Chief Deputy Director Frank Robles said Thursday. “On the few occasions when ABC agents found items during inspections, they’ve ensured these harmful products are removed from shelves.”

Despite its agents finding a near-universal compliance so far in 2025, the department will continue to visit licensed locations throughout the state to enforce the regulations, providing weekly updates of violations.

Although licensed liquor stores don’t allow those under 21 to enter their establishments, Newsom said their compliance helps ensure intoxicating cannabinoid products don’t end up in the hands of the state’s youth.

“We are doing our part to ensure intoxicating hemp products are out of the reach of vulnerable groups like children,” Newsom said. “We must always put the safety of Californians first.”

The regulations don’t impact licensed cannabis dispensary sales, which include intoxicating compounds derived from the same plant species; however, licensed cannabis businesses operate under a framework that requires laboratory testing with certificates of analysis on product labels to help ensure consumer safety from harmful contaminants.

On the other hand, in the aftermath of the 2018 Farm Bill, which federally legalized hemp, manufacturers have “exploited the law,” according to Newsom’s office, to produce and market intoxicating hemp products without the same safeguards in place.

These products are often sold in unlicensed retail establishments, including smoke and vape shops, gas stations and convenience stores. The governor’s office did not include an update on the compliance rates for these unlicensed businesses.

In addition to the ABC, other state agencies and officials are expected to take enforcement actions against those who violate Newsom’s prohibition policies, including the CDPH, the California Department of Cannabis Control (DCC), the California Department of Tax and Fee Administration, and state and local law officers.

[PRESS RELEASE] – STAMFORD, Conn., May 8, 2025 – Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, reported its financial and operating results for the first quarter ended March 31, 2025. All financial information is reported in accordance with U.S. generally accepted accounting principles (GAAP) and is provided in U.S. dollars, unless otherwise indicated.

“First quarter revenue was $310 million, with an adjusted gross profit of $155 million, resulting in a 50% adjusted gross margin, an increase of 250 basis points compared to the prior year period” Curaleaf Chairman and CEO Boris Jordan said. “We ended Q1 with $122 million in cash, with operating and free cash flow from continuing operations of $42 million and $26 million, respectively. Additionally, we paid down $20 million in acquisition-related debt.

“International revenue grew by 74% year–over-year—marking the fourth consecutive quarter of 70% plus growth—and we are encouraged by prospects for new market openings that could materialize over the next year. I’m happy to report that we’ve completed much of the heavy lifting needed to reposition the business for long-term success, including streamlining operations, improving key manufacturing metrics, and sharpening our focus on flower quality. This was evident through several recent successful national product launches, including our hemp THC energy drink, Select FormulaX, our new innovation in the vape category, Select ACE, and the launch of our new pre-roll brand, Anthem. I remain positive that we’re positioning the business to remain resilient and agile in a dynamic environment.”

First Quarter 2025 Financial Highlights

• Net revenue of $310 million, a year-over-year decrease of 9% compared to Q1 2024 revenue of $338.9 million. Sequentially, net revenue decreased 6% compared to Q4 2024 revenue of $331.1 million
• Gross profit of $155.2 million and gross margin of 50%, an increase of 260 basis points year-over-year
• Adjusted gross profit⁽¹⁾ of $155.4 million and adjusted gross margin⁽¹⁾ of 50%, an increase of 250 basis points year-over-year
• Net loss attributable to Curaleaf Holdings Inc. from continuing operations of $54.8 million or net loss per share from continuing operations of $0.07
• Adjusted EBITDA⁽¹⁾ of $65.2 million and adjusted EBITDA margin⁽¹⁾ of 21%, a 180-basis-point decrease year-over-year
• Cash at quarter end totaled $121.9 million

First Quarter 2025 Operational Highlights

• Launched Reef, a high-quality flower brand in Florida
• Relocated one store in Sedona, Ariz., ending the quarter with a total of 149 retail locations
• Expanded Select Zero Proof Hemp Seltzer line with launch of 2.5-milligram dose option and new flavors
• Began selling Select hemp-derived THC beverages to over 100 Total Wine stores across the U.S.
• Launched Select FormulaX, a new line of hemp THC energy drinks with the added boost of caffeine

Post First Quarter 2025 Operational Highlights

• Opened the company’s 66th retail location in Florida in Winter Park, bringing the nationwide store count to 151 locations
• Opened the first fully dedicated hemp retail storefront in West Palm Beach, Fla.
• Launched Anthem, our new pre-roll brand rooted in American innovation, in New York, New Jersey, Illinois, Massachusetts, Arizona and Florida, with more states to come
• Launched Select ACE utilizing an exclusive proprietary Aqueous Cannabis Extraction production method in New York, Massachusetts and Florida

Balance Sheet and Cash Flow

As of March 31, 2025, the company had $121.9 million of cash and $561.2 million of outstanding debt net of unamortized debt discounts.

During the three months ended March 31, 2025, Curaleaf invested $16.3 million in capital expenditures, focused on facility upgrades, automation, and selective retail expansion in strategic markets.

Shares Outstanding

For the first quarter of 2025 and 2024, the company’s weighted average subordinate voting shares plus multiple voting shares outstanding amounted to 744,898,937 and 736,147,618 shares, respectively.

Non-GAAP Financial and Performance Measures

Curaleaf reports its financial results in accordance with GAAP and uses a number of financial measures and ratios when assessing its results and measuring overall performance. Some of these financial measures and ratios are not calculated in accordance with GAAP. Curaleaf refers to certain non-GAAP financial measures and ratios, such as “adjusted gross profit”, “adjusted gross margin”, “adjusted net income (loss)”, “adjusted EBITDA”, “adjusted EBITDA margin” and “Free cash flow from operations”. These measures do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other issuers. “Adjusted gross profit” is defined by Curaleaf as gross profit net of cost of goods sold and related other add-backs. “Adjusted gross margin” is defined by Curaleaf as adjusted gross profit divided by total revenues. “Adjusted net income (loss)” is defined by Curaleaf as net income (loss) net of (gain) loss on impairments and related other add-backs. “Adjusted net income (loss) per share” is defined by Curaleaf as adjusted net income (loss) divided by the weighted average common shares outstanding. “Adjusted EBITDA” is defined by Curaleaf as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and other add-backs related to business development, acquisition, financing and reorganization costs. “Adjusted EBITDA margin” is defined by Curaleaf as adjusted EBITDA divided by total revenue. “Free cash flow from operations” is defined by Curaleaf as net cash provided by operating activities from continuing operations less the purchases of property, plant and equipment (i.e. net capital expenditures). Curaleaf considers these measures to be an important indicator of the financial strength and performance of our business. Curaleaf believes the adjusted results presented provide relevant and useful information for investors, because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, our reported GAAP financial results as indicators of our performance, and they may not be comparable to similarly named measures from other companies. The tables below provide reconciliations of Non-GAAP measures to the most directly comparable GAAP measures.

Several bills to expand Florida’s medical cannabis program have stalled out for the year, including a measure to exempt military veterans from patient ID card registration fees that was passed unanimously by the House of Representatives.

HB 555, from Rep. Alex Andrade (R), was one of a handful of marijuana-related measures withdrawn in recent days. Unlike the other bills, however, it had passed out of the chamber where it was filed, with House members voting 110–0 in favor. Nonetheless, the Senate indefinitely postponed it and withdrew it from consideration without a vote.

The Senate action occurred on May 3. Florida lawmakers have voted to extend the legislative session into early June, though they’re expected to focus mostly on budgetary matters after returning to Tallahassee.

Other bills that have been set aside without votes include proposals to allow patients to cultivate marijuana at home, expand the list of qualifying conditions for the program and protect employment and parental rights of people who use medical cannabis.

As originally filed, HB 555 would have made significant changes to the state’s existing medical cannabis program, for example allowing home cultivation as well as reciprocity for out-of-state patients. But a House committee amendment replaced its language with a two-page substitute that would make only small adjustments to the medical program.

First, the bill would change how often patients need to renew their medical marijuana cards, from the current annual process to once every two years.

Second, it would waive the $75 registration and renewal fees for veterans, specifying that the state “may not charge a fee for the issuance, replacement, or renewal of an identification card for a qualified patient who is a veteran.”

Sponsor Andrade didn’t respond to multiple requests from Marijuana Moment for comment on the bill’s withdrawal and any possible future action.

Kevin Caldwell, Southeast legislative manager for the advocacy group Marijuana Policy Project (MPP), said that whether or not lawmakers find a way to revive HB 555 during the extended session, “it has been a dismal session for cannabis policy reform in Florida.”

“There were a plethora of good cannabis policies submitted for debate,” he said in an email, “but as has been the case in most legislative sessions in the past few years, the legislature simply doesn’t want to even talk about cannabis policy.”

As for the newly withdrawn measure, Caldwell said lawmakers “whittled HB 555 down from a bill that would have created a much more robust medical cannabis program to a bill that would extend the lifespan of an ID card and waive fees for veterans.”

“Both of those proposed changes are great ideas,” he added, “even they might be too much for legislators.”

Other bills recently postponed and withdrawn from consideration would have protected medical marijuana patient rights and allowed patients to cultivate their own cannabis at home.

HB 83, by Rep. Mitch Rosenwald (D) would have prevented public employers from taking adverse action against workers or job applicants merely because they’re qualified medical marijuana patients. It and companion bill SB 142, from Sen. Tina Polsky (D), were each scuttled by their respective chambers.

SB 146, also from Polsky, would have prevented state courts from deciding parental rights based on their medical marijuana patient status. It further would have prohibited courts from presuming neglect or child endangerment based merely on a parent’s status as a cannabis patient.

SB 546, sponsored by Sen. Joe Gruters (R), would have allowed state-registered medical marijuana patients to grow up to two cannabis plants per household for their own use.

Another now-withdrawn bill from Gruters, SB 552, would have added to the state’s list of qualifying medical marijuana conditions those “for which a patient has been prescribed an opioid drug” and called on regulators to make rules allowing out-of-state patients to access Florida’s medical marijuana program.

SB 778, meanwhile, from Sen. Carlos Guillermo Smith (D), would have added “addiction to or dependence on an opioid drug” to Florida’s medical cannabis qualifying conditions.

Separately, fresh changes to Florida law on ballot initiatives are expected create new hurdles for advocates aiming to put legislative proposals before voters—including, potentially, the renewed effort to legalize marijuana in the state.

Florida Gov. Ron DeSantis (R) signed a measure into law that tightens requirements around citizen-initiated measures. Among other requirements, it mandates that supporters post a $1 million bond before commencing signature gathering, prohibits the use of out-of-state and noncitizen petitioners and narrows the window during which which signatures must be submitted to election officials.

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The new obstacles to placing a proposal on the statewide ballot come on the heels of two contentious constitutional amendments that went before voters last year, including one—Amendment 3—that would have legalized marijuana for adults 21 and older, and another on abortion rights.

The campaign for the marijuana measure, Smart & Safe Florida, took in more than $150 million in campaign funds—with most from large cannabis companies such as Trulieve, a multi-state operator that contributed tens of millions of dollars.

It also clashed with DeSantis as well as the state Republican Party, the latter of which Smart & Safe Florida later sued for allegedly deceiving voters about the measure.

After Amendment 3 last year failed to win the 60 percent voter support needed to pass a constitutional amendment, Smart & Safe Florida is now aiming to put a revised legalization proposal on the 2026 state ballot.

Another group—hoping to qualify a measure that would expand Medicaid in the state—has already sued the DeSantis administration over the new law.

Florida Decides HealthCare said in a press release that the new law is unconstitutional and “significantly undermines Florida’s citizen-led constitutional amendment process” by enacting “sweeping restrictions,” according to the Orlando Sentinel.

While the bill’s sponsors didn’t explicitly say that the new law is a response to any particular issue, arguments about the need to change the process were frequently heard in the run-up to last year’s election in Florida, when both marijuana and abortion rights were on the ballot.

Caldwell, at MPP, said inaction on marijuana reform as was seen this session “leads credence to ballot initiatives campaigns, as does the further tightening of the rules to gather signatures for a ballot initiative. With the under-regulated hemp market unchecked, it is not surprising that people are losing faith in Tallahassee in making decisions for everyday Floridians.”

“After an election in November, where just under 56 percent of voters cast their ballot to legalize cannabis for adults over 21, I had expectations that legislators would try and implement some common sense reforms either on the criminal justice side or on the medical side,” he added. “The growing scandal on how opposition to the legalization campaign was funded continues to spread a dark cloud over Florida politics.”

Going forward, Smart & Safe Florida has so far submitted just under the 220,016 valid signatures needed to trigger a judicial and financial impact review of the proposal. A total of 880,062 valid signatures statewide are currently needed to make the 2026 ballot, according to the Florida Division of Elections.

State elections officials recently sent a cease-and-desist letter to Smart & Safe Florida campaign, alleging that the group has “committed multiple election law violations.”

The Office of Election Crimes and Security (OECS)—part of Florida’s Department of State—also fined Smart & Safe Florida more than $120,000 for submitting completed petitions more than 30 days after they were signed.

The issue was referred to the Florida Department of Law Enforcement for a “potential criminal investigation.”

In a statement to Marijuana Moment at the time, a campaign representative said it has confidence in the process and intends to push back on the state’s assertion it violated election law.

“The claims made appear to be a targeted effort to thwart the ability for the people of Florida to express their support of a citizen-driven amendment,” the statement says. “We stand by the process and had legal counsel vet all forms and communications prior to mailing and look forward to challenging the validity of these claims.”

Separately, some Republican lawmakers last month called for a criminal investigation into DeSantis over how $10 million in state funds were used to oppose last year’s ballot initiatives—including an $8.5 million donation to the campaign opposing legalization.

Lawmakers late last month also sent DeSantis a sweeping agricultural bill that includes a provision to outlaw the spores of psychedelic mushrooms.

The bill would outlaw transporting, importing, selling or giving away “spores or mycelium capable of producing mushrooms or other material which will contain a controlled substance, including psilocybin or psilocyn, during its lifecycle.”

Violating the proposed law would be a first-degree misdemeanor, carrying a maximum one year in jail and $1,000 fine.

New Mexico Marijuana Companies Suing Feds Over Seized State-Legal Products Say Government’s Position Is ‘A Study In Contradictions’

Photo courtesy of Philip Steffan.