Clever Leaves Holdings Inc.

Third-quarter 2023 revenue was $3.8 million, up 33% from $2.9 million a year ago. Gross profit was $1.9 million, up 49% year over year, and adjusted gross profit was $2.2 million, up 19%, with adjusted gross margin at 57.7% versus 64.7% a year ago. Net loss was $5.1 million versus a $20.2 million loss in the prior-year quarter, and adjusted EBITDA improved to negative $2.6 million from negative $3.7 million. Cash, cash equivalents and restricted cash were $6.5 million at September 30, compared with $12.9 million at December 31, 2022, and total debt was $1.3 million. For full-year 2023, management now expects revenue of $17 million-$18 million, adjusted gross margin of 55%-57%, adjusted EBITDA of negative $11 million to negative $10 million, and capital expenditures of $0.2 million-$0.3 million. The prior full-year revenue range was $19 million-$22 million, adjusted gross margin 58%-63%, adjusted EBITDA negative $13.6 million to negative $10.6 million, and CapEx $0.5 million-$0.7 million.

Andres Fajardo framed the quarter as continued progress on profitable growth, capital efficiency, and a leaner operating model. He highlighted 135% year-over-year growth in cannabinoid revenues, 6% growth in the non-cannabinoid business, and ongoing expansion in core markets such as Australia, Germany, Brazil, Israel, the U.K., and Colombia. His tone was optimistic but measured, emphasizing that the company is nearing an inflection point in 2024 as it leverages Colombia-based production, lower costs, and a narrower commercial focus.

Hank Hague focused on the financial details: revenue grew to $3.8 million, gross profit reached $1.9 million, adjusted gross profit was $2.2 million, and adjusted EBITDA improved to negative $2.6 million. He noted that Q3 cost discipline helped lower operating expenses to $5.3 million, excluding the prior-year Colombian license impairment, and that the company had $6.5 million of cash, cash equivalents and restricted cash at quarter end plus $1.9 million in post-quarter Cansativa sale proceeds. He also stressed the reduced debt burden of $1.3 million and the lowered 2023 CapEx outlook of $0.2 million-$0.3 million, while warning that substantial doubt about going concern remains and additional funding may be needed.

The only analyst question centered on Israel and how management can backfill delayed demand. Andres said the company is monitoring logistics closely, expects some shipments may resume in early December or early Q1, and is redirecting product to other core markets such as Australia while prioritizing patient access in Israel. He added that the company is staying focused on its existing set of target countries rather than broadening beyond them.