Vireo Growth (VREO) Q2 2025 earnings summary

Executive summary

• Q2 results in core and legacy markets aligned with management expectations, continuing trends from Q1.

• Three major mergers closed in Q2, expanding operations to six states and establishing industry leadership.

• Pro forma Q2 revenue was $90.7 million and adjusted EBITDA was $23.2 million, reflecting partial contributions from mergers.

• Adjusted EBITDA margins remained above 25%.

• Ended Q2 with over $100 million in cash and completed $153 million refinancing post-quarter, reducing annual interest expense by $10 million.

Financial highlights

• Q2 GAAP revenue was $48.1 million, up 91.4% year-over-year, driven by partial contributions from mergers.

• Q2 GAAP gross profit was $20.4 million, margin at 42.5%, down 1,150 bps year-over-year.

• Adjusted gross profit was $24.8 million, margin at 51.6%, down 260 bps year-over-year.

• Q2 adjusted operating income was $11.3 million, margin at 23.5%, up from 22.7% last year.

• Q2 adjusted EBITDA was $13.3 million, margin at 27.6%, up 100.4% year-over-year.

Outlook and guidance

• Focus remains on organic growth, positive free cash flow at the unit level, and operational efficiency.

• Management expects continued positive trends in established markets and benefits from recent mergers and refinancing.

• Lower cost of capital from refinancing is expected to yield $10 million in annual interest savings.

• Anticipates adult-use sales in Minnesota in the second half of the year, pending regulatory approval.

• Pro forma Q2 revenue and adjusted EBITDA guidance were $88–91 million and $23–24 million, assuming all mergers closed April 1, 2025.