Verano Reports $210M in Q1 2025 Revenue

[PRESS RELEASE] – CHICAGO, May 8, 2025 – Verano Holdings Corp., a leading multistate cannabis company, announced its financial results for the first quarter ended March 31, 2025, which were prepared in accordance with U.S. generally accepted accounting principles (GAAP).

First Quarter 2025 Financial Highlights

• Revenues, net of discounts, of $210 million, a decrease of 5% year-over-year, and a decrease of 4% versus the prior quarter
• Gross profit of $100 million or 47% of revenue
• SG&A expenses of $85 million or 40% of revenue
• Net Loss of $(12) million or (5)% of revenue
• Adjusted EBITDA¹ of $54 million or 26% of revenue
• Net cash provided by operating activities of $2 million
• Capital expenditures of $14 million

Management Commentary

“I am very pleased with the progress we made during the first quarter executing our strategic priorities leveraging innovation, automation and differentiation, while driving efficiencies across the business,” Verano founder, chairman and CEO George Archos said. “Throughout the first quarter, we strengthened our core business by optimizing our footprint, implementing cutting-edge automation technology—which increased productivity and reduced costs by streamlining operations—and generated savings while still expanding our product portfolio and retail footprint, which is a testament to our team’s operational excellence.

“As we continue navigating industry dynamics, I am confident in our ability to advance the strategic priorities we’ve outlined for the year that aim to strengthen our foundation and core business, and I look forward to propelling Verano towards a bright future.”

First Quarter 2025 Financial Overview

Revenues, net of discounts, for the first quarter 2025 were $210 million, down from $221 million for the first quarter of 2024, and down from $218 million for the fourth quarter of 2024. The decrease in revenue for the first quarter 2025 compared to the first quarter 2024 was driven primarily by an increase in promotional activity and price compression in key markets, which was partially offset by Ohio adult-use sales, strong performance in Florida, and contributions from Arizona and Virginia operations acquired from The Cannabist Co. Holdings Inc. in 2024.

Gross profit for the first quarter 2025 was $100 million or 47% of revenue, down from $113 million or 51% of revenue for the first quarter 2024, and down from $108 million or 49% of revenue for the fourth quarter 2024. The decrease in gross profit for the first quarter 2025 compared to the first quarter 2024 was primarily due to overall revenue declines and increased promotional activity.

SG&A expenses for the first quarter 2025 were $85 million or 40% of revenue, down from $90 million or 41% of revenue for the first quarter 2024, and up from $84 million or 38% of revenue for the fourth quarter 2024. The decrease in SG&A expenses for the first quarter 2025 compared to the first quarter 2024 was driven primarily by a decrease in amortization and ongoing efficiencies generated across the business, partially offset by additional SG&A costs associated with the Cannabist acquisitions and new store openings.

Net loss for the first quarter 2025 was $(12) million or (5)% of revenue, versus $(5) million or (2)% of revenue in the first quarter 2024. The increase in net loss for the first quarter 2025 compared to the first quarter 2024 was driven by an overall decline in revenue, net of discounts, and gross profit, coupled with an increase in income tax provision compared to the prior year period.

Adjusted EBITDA¹ for the first quarter 2025 was $54 million or 26% of revenue.

Net cash provided by operating activities for the first quarter 2025 was $2 million, down from $31 million for the first quarter 2024, which was primarily attributable to increased income tax payments compared to the prior year period.

Capital expenditures for the first quarter 2025 were $14 million, up from $10 million for the first quarter 2024.

First Quarter 2025 Operational Highlights

• Expanded the company’s retail footprint by opening the following new dispensaries:
  • MÜV North Miami Beach, elevating the company’s Florida operations to 80 dispensaries statewide; and
  • Zen Leaf Ashford, the company’s sixth dispensary in Connecticut.
• Launched new products and line extensions in the industry’s fastest-growing categories to respond to market demand and growing consumer trends, including:
  • Savvy Strut 2-gram all-in-one vapes, incorporating NFC chip technology to provide users with deals and promotions with the tap of a smartphone; and
  • Savvy 100 Proof diamond-infused barrel-style pre-roll joints.
• Secured an additional $12 million in financing by leveraging the company’s owned CPG real estate in Nevada and Arizona.

Subsequent Operational Highlights

• Announced the promotion and appointment of Richard Tarapchak as chief financial officer in April.
• Expanded retail operations in Florida with the opening of MÜV New Smyrna Beach, raising the company’s current statewide retail footprint to 81 dispensaries.
• Current operations span 13 states, comprised of 155 dispensaries and 15 production facilities with more than 1.1 million square feet of cultivation capacity.

Balance Sheet and Liquidity

As of March 31, 2025, the company’s current assets were $361 million, including cash and cash equivalents of $84 million. The Company had working capital of $193 million and total debt, net of issuance costs, of $421 million.

The company’s total Class A subordinate voting shares outstanding was 359,718,318 as of March 31, 2025.

¹Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue (“Adjusted EBITDA Margin”) are non-U.S. GAAP financial measures. Each is derived from EBITDA, another non-U.S. GAAP financial measure, and is defined in this news release in the section below titled “Non-U.S. GAAP Financial Measures.” The most directly comparable U.S. GAAP financial measure to adjusted EBITDA is net income (loss) and the most directly comparable measure to adjusted EBITDA margin is net income (loss) as a percentage of revenue (“net income (loss) margin”). The reconciliation of (i) adjusted EBITDA to U.S. GAAP net income (loss) and (ii) adjusted EBITDA margin to net income (loss) margin is set forth below in the tables included in this news release.

Non-U.S. GAAP Financial Measures

Verano uses non-U.S. GAAP financial information to evaluate the performance of the company. The terms “EBITDA,” “Adjusted EBITDA” and “Adjusted EBITDA Margin” do not have any standardized meaning prescribed within U.S. GAAP and therefore may not be comparable to similar measures presented by other companies. Accordingly, this non-U.S. GAAP financial information is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP.

The company calculates EBITDA as net income (loss) before interest expense, income tax expense, depreciation, and amortization and Adjusted EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization and also excludes certain one-time extraordinary items. The calculations of the non-U.S. GAAP financial measures used in this news release and the reconciliations to the most comparable U.S. GAAP financial numbers are included in the tables below.

Management believes that this non-U.S. GAAP financial information is useful as a supplement to comparable U.S. GAAP financial information because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP information to supplement their U.S. GAAP results. Management reviews these non-U.S. GAAP financial measures on a regular basis and uses them, together with financial measures included in the company’s financial statements, to evaluate and manage the performance of the company’s operations. These measures should be evaluated only in conjunction with the comparable U.S. GAAP financial numbers reported by the company.