Canada · Delayed Price · Currency is CAD Verano Holdings Earnings Call Transcripts
Fiscal Year 2026
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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 revenue reached $203M, with gross margin at 47% and Adjusted EBITDA at 26% of revenue. Wholesale rebounded sequentially, SG&A costs fell, and a $75M credit facility was secured. Price compression, seasonality, and legal settlements shaped results.
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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 a net loss of $12M, impacted by price compression, one-time items, and tax payments. Operational efficiencies, new product launches, and retail expansion are expected to drive margin and cash flow improvements in the second half of 2025.
Fiscal Year 2024
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2024 revenue reached $879M with Adjusted EBITDA of $264M, but net loss was $342M due to asset impairments. Retail and wholesale segments showed resilience amid pricing pressure, and 2025 guidance focuses on efficiency, targeted expansion, and new product 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.