Canada · Delayed Price · Currency is CAD Verano Holdings Earnings Call Transcripts
Fiscal Year 2026
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Federal reform and 280E tax relief are expected to drive significant industry growth, with major market expansions planned in Florida, Virginia, and Texas. Enhanced enforcement and regulatory changes in the hemp market are set to recapture market share, while M&A activity will focus on states with existing scale and vertical integration.
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Q2 revenue rose to $218M, driven by retail and new product innovation, with improved cash flow and a narrowed net loss. The company is positioned for further growth in Virginia and Florida, expects margin expansion later in 2026, and stands to benefit from regulatory reforms.
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The meeting covered director elections, executive compensation, auditor ratification, and the stock plan, with all proposals preliminarily approved. No questions were raised, and voting was conducted electronically.
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Q1 2026 revenue grew sequentially to $208M, driven by retail gains, while wholesale faced margin pressure from promotions and competition. Medical cannabis rescheduling to Schedule III offers immediate tax benefits and supports future growth, with a $20M share repurchase authorized.
Fiscal Year 2025
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Reported $822M in 2025 revenue with Q4 sequential growth, despite year-over-year declines from price compression. Secured a $195M term loan, reduced SG&A, and expanded in key markets, positioning for catalysts like federal rescheduling and adult-use launches.
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Q3 2025 saw slight sequential revenue growth to $203M, with gross margin at 47% and Adjusted EBITDA margin at 26%. Wholesale rebounded, SG&A fell 13% year-over-year, and a $75M credit facility was secured. Redomicile to Nevada and new product launches position the company for future growth.
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A special meeting was held virtually to vote on a single proposal: the continuance of the company from British Columbia to Nevada. Shareholders approved the special resolution via electronic ballot, with final results to be posted online.
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Q2 2025 saw revenue of $202M, a 4% sequential and 9% year-over-year decline, with gross profit up 13% sequentially and adjusted EBITDA at $66M (33% margin). Retail growth offset wholesale declines, and operational efficiencies drove record gross margins. Litigation, market competition, and regulatory changes remain key risks.
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The meeting covered director elections, executive compensation, and auditor appointment, with all proposals approved by the required majority. Shareholder questions addressed CEO compensation, stock buyback plans, and CFO severance, with clarifications provided on each.
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Q1 2025 revenue declined 5% year-over-year to $210M, with gross margin at 47% and Adjusted EBITDA of $54M. Retail was flat, wholesale down 8%, and net loss widened to $12M. Margin and cash flow improvements are expected in the second half as one-time items subside.
Fiscal Year 2024
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Revenue reached $879M in 2024 with Adjusted EBITDA of $264M, despite a 6% year-over-year decline due to pricing pressure and competition. Retail and wholesale segments saw productivity and market share gains, while asset impairments led to a net loss. Focus for 2025 is on efficiency, targeted expansion, and innovation.
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Q3 saw revenue decline due to supply constraints and competition, with a net loss of $43M and gross margin at 50%. Expansion continued in Florida, Virginia, and Arizona, while cost management and efficiency initiatives were prioritized. Federal policy shifts and market liberalization are expected to benefit future growth.
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Q2 revenue reached $222M with strong wholesale growth and a 32% adjusted EBITDA margin. Expansion into Virginia and Arizona will bring operations to 14 states, while Florida and Ohio are positioned for adult use growth. CapEx guidance increased to $90M-$130M for 2024.
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The AGM confirmed the election of five directors, approved executive compensation, and reappointed the auditor. All proposals passed, and the frequency of the advisory vote on executive pay was set at one year. Shareholders participated virtually and could submit questions throughout.