Verano (VRNO) Q4 2025 earnings summary

Executive summary

• Achieved $822 million in full-year 2025 revenue, with Q4 revenue of $207 million, up 2% sequentially but down 5% year-over-year due to price compression and lower wholesale sales; maintained a top three market share across all categories and regained the number one spot in New Jersey.

• Expanded retail footprint to 160 locations across 13 states, including new dispensaries in four states, and enhanced operations through automation and technology upgrades.

• Secured a $195 million senior secured term loan at favorable terms, replacing the 2022 credit agreement, reducing future interest costs, and upsized revolving credit facility to $100 million.

• Re-domiciled to Nevada, settled key litigation with Vireo, and won a conditional vertical license in Texas, positioning for future growth.

• Leadership team with deep industry experience continues to drive growth, integration, and operational efficiencies.

Financial highlights

• Q4 2025 revenue was $207 million, gross profit $106 million (51% margin), and adjusted EBITDA $56 million (27% margin); full-year revenue was $822 million, gross profit $413 million (50% margin), and adjusted EBITDA $229 million (28% margin).

• Q4 net loss was $183 million, driven by over $175 million in impairment charges; full-year net loss was $258 million, impacted by significant impairment charges and operating expenses.

• SG&A for Q4 was $86 million (42% of revenue), up 7% sequentially; full-year SG&A was $337 million (41% of revenue), reduced by $16 million versus 2024.

• Cash flow from operations was $14 million in Q4 and $53 million for the year; ended Q4 with $83 million in cash and $400 million in total debt.

• Total assets stood at $1.74 billion and total liabilities at $1.04 billion as of December 31, 2025.

Outlook and guidance

• Plans to open 5-10 new dispensaries in 2026, primarily in Florida, and continue digital and loyalty program enhancements.

• 2026 capital expenditures expected to range between $30 million and $50 million, supporting operational efficiency, retail expansion, and technology investments.

• Anticipates slightly softer Q1 2026 margins (24%-26%) due to seasonality, with stabilization and improvement expected through the year.

• Preparing for potential catalysts: federal rescheduling, hemp loophole closure, and adult-use launches in Virginia and Texas.

• Emphasis on further efficiency gains and cost reductions to improve profitability.