Verano (VRNO) investor relations material

Executive summary

• Q1 2026 revenue reached $208.2 million, up sequentially but down year-over-year, driven by strong retail performance and offset by wholesale competition and promotions.

• Gross profit was $99 million (48% margin), with adjusted EBITDA of $49 million (24% margin), reflecting operational efficiency.

• Net loss was $17.8 million, impacted by $6 million in debt extinguishment costs, compared to a $183 million loss in Q4 and $12 million loss in Q1 2025.

• Operations span 13 states with 162 dispensaries and 1,300+ wholesale accounts, serving an 89 million adult population.

• Announced a $20 million share repurchase authorization and highlighted the transformative impact of medical cannabis rescheduling to Schedule III.

Financial highlights

• Revenue for Q1 2026 was $208.2 million, up from Q4 2025 and down from Q1 2025.

• Gross margin was 48%, down from 51% in Q4 2025 and up from 47% in Q1 2025.

• Adjusted EBITDA was $49 million (24% margin), down from $54.4 million (26%) in Q1 2025 and $55.5 million (27%) in Q4 2025.

• SG&A expenses were $86 million, flat sequentially but up slightly year-over-year due to new stores and timing.

• Net cash from operations was $19 million in Q1 2026; cash and equivalents at quarter-end: $74 million.

Outlook and guidance

• Expect similar margin profile in Q2, with improvements anticipated in the back half of 2026.

• CapEx guidance maintained at $30–$50 million for 2026, with $15 million spent in Q1.

• Anticipate stronger cash flow from operations in 2026 due to lower tax payments and non-recurring inventory growth.

• Positioned to capitalize on potential Schedule III cannabis rescheduling and monitoring federal guidance for 280E tax relief.