Verano (VRNO) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached $879 million, with operations in 13 states and 153 retail locations, serving a population of 89 million adults; Q4 revenue was $218 million, up 1% sequentially but down 8% year-over-year.

• Adjusted EBITDA for 2024 was $264 million (30% margin), with Q4 Adjusted EBITDA of $63 million (29% margin).

• Net loss for 2024 was $342 million, primarily due to asset impairments, including a $328 million impairment in Q4.

• Launched over 60 new products in 2024, with new products accounting for 23% of total retail sales.

• Focused on innovation, automation, operational efficiency, and SKU rationalization, while maintaining a disciplined pricing strategy and pursuing accretive M&A opportunities.

Financial highlights

• Full-year revenue declined 6% year-over-year, mainly from pricing pressure and competition in key markets.

• Gross profit was $444 million (51% margin); SG&A expenses rose to $353 million (40% of revenue) due to new store openings.

• Q4 gross profit was $108 million (49% margin); Q4 SG&A expense was $84 million (38% of revenue).

• Ended 2024 with $88 million in cash; operating cash flow was $112 million, and CapEx was $99 million for the year.

• Total assets at year-end were $2.0 billion, with total debt of $414 million and total liabilities of $1.04 billion.

Outlook and guidance

• 2025 CapEx expected between $25–$40 million, focused on efficiency, targeted retail expansion, and automation.

• Plans to open new dispensaries in Connecticut, Ohio, and Florida, with a robust product pipeline for Q1 2025 and beyond.

• Anticipates competitive pressure in Maryland but expects stabilization in Illinois and New Jersey.

• Growth strategy centers on expanding retail footprint, increasing wholesale distribution, and diversifying product offerings.

• Optimistic about Florida's growth due to rising patient counts and new product launches.