Vireo Growth (VREO) Q4 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of $99.4 million, up 15.4% year-over-year, with Q4 revenue of $25.0 million, a 3.5% increase year-over-year, driven by strong Maryland growth and offset by New York declines.

• Ended FY24 with $91.6 million in cash after an $81 million private placement at a premium to market and additional loans.

• Record gross margin and operating income achieved in FY24; Q4 impacted by $4.2 million in one-time transaction expenses.

• Pending merger transactions and growth investments in Minnesota and New York are expected to drive a transformational 2025.

Financial highlights

• FY24 gross margin reached a record 51.1%, with Q4 gross margin at 50.6%.

• Operating income for FY24 was $13.6 million, up 28.2% year-over-year; Q4 operating income impacted by $4.2 million in one-time expenses.

• Adjusted EBITDA for FY24 was $25.1 million, up 28.4% year-over-year, with margins above 25%.

• Net loss for FY24 was $28.0 million; Q4 net loss was $15.7 million, mainly due to transaction expenses and increased costs.

• SG&A as a percent of sales improved to 28.2% in FY24, but increased in Q4 due to facility and legal costs.

Outlook and guidance

• Management expects to close all fully executed merger transactions in 2025, pending regulatory and shareholder approvals.

• Expects adult-use cannabis sales to launch in Minnesota within 2025.

• Recent investments in premium flower production in New York and a new indoor cultivation facility in Minnesota are expected to contribute meaningfully to financial performance starting in 2025.

• Management remains focused on operational strength and liquidity.