[PRESS RELEASE] – CHICAGO, Aug. 7, 2025 – Verano Holdings Corp., a leading multistate cannabis company, announced its financial results for the second quarter ended June 30, 2025, which were prepared in accordance with U.S. generally accepted accounting principles (GAAP).
Second Quarter 2025 Financial Highlights
Second Quarter 2025 Financial Highlights
- Revenues, net of discounts, of $202 million.
- Gross profit of $113 million or 56% of revenue.
- SG&A expenses of $86 million or 43% of revenue.
- Net Loss of $(19) million or (9)% of revenue.
- Adjusted EBITDA1 of $66 million or 33% of revenue.
- Net cash provided by operating activities of $11 million.
- Capital expenditures of $10 million.
Management Commentary
“I am proud of the progress we made during the quarter to strengthen our foundation and advance key priorities, including streamlining our operations and improving margins,” Verano Chairman and CEO George Archos said. “Throughout the quarter, we generated more efficient and productive cultivation yields, delivered new product innovation and improved retail performance in several key markets.”
Archos said, “As we focus on improving our wholesale business and accounts receivable strategy, given our pipeline of new store openings and product innovation, and our ongoing efficiency efforts, we anticipate a stronger second half of 2025 for Verano and look forward to advancing key initiatives throughout the remainder of the year.”
Second Quarter 2025 Financial Overview
Revenues, net of discounts, for the second quarter 2025 were $202 million, down from $222 million for the second quarter of 2024, and down from $210 million for the first quarter of 2025.
The decrease in revenue for the second quarter 2025 compared to the second quarter 2024 was driven primarily by ongoing price compression, competition and impacts from the company's wholesale accounts receivable strategy, which was partially offset by positive results in Ohio, strong sales in Florida and contributions from operations acquired from The Cannabist Co. Holdings Inc. in the third quarter of 2024.
Gross profit for the second quarter 2025 was $113 million or 56% of revenue, down from $114 million or 51% of revenue for the second quarter 2024, and up from $100 million or 47% of revenue for the first quarter 2025. The decrease in gross profit for the second quarter 2025 compared to the second quarter 2024 was due to overall top-line revenue declines and increased promotional activity, partially offset by more efficient harvests from expanded cultivation facilities.
SG&A expenses for the second quarter 2025 were $86 million or 43% of revenue, down from $87 million or 39% of revenue for the second quarter 2024, and up from $85 million or 40% of revenue for the first quarter 2025. The decrease in SG&A expenses for the second quarter 2025 compared to the second quarter 2024 was driven primarily by a decrease in depreciation and amortization and ongoing efficiencies generated across the business.
Net loss for the second quarter 2025 was $(19) million or (9)% of revenue, versus $(22) million or (10)% of revenue in the second quarter 2024. The decrease in net loss for the second quarter 2025 compared to the second quarter 2024 was primarily driven by an overall decrease in other income (expense), partially offset by an increase in the provision for income taxes compared to the prior year period.
Adjusted EBITDA1 for the second quarter 2025 was $66 million or 33% of revenue.
Net cash provided by operating activities for the second quarter 2025 was $11 million, up from $8 million for the second quarter 2024, which was primarily attributable to operational efficiencies and a decrease in income tax payments made compared to the prior year period.
Capital expenditures for the second quarter 2025 were $10 million, down from $19 million for the second quarter 2024 and down from $14 million in the first quarter 2025. The decrease in capital expenditures was driven by achieving greater efficiencies across the company's cultivation and production facilities.
Second Quarter 2025 Operational Highlights
- Promoted and appointed Richard Tarapchak as chief financial officer.
- Expanded the company's retail footprint by opening the following new dispensaries:
- MÜV™ New Smyrna Beach, the company's 81st dispensary in Florida; and
- Zen Leaf™ Ashford and Zen Leaf™ Enfield, elevating the company's Connecticut retail operations to seven dispensaries statewide.
- Announced an exclusive partnership with Grow Sciences, an award-winning cultivator of elite genetics in craft cannabis formats, to launch its suite of flower and extract products in the Illinois market.
- Introduced an innovative bodega-style retail experience at Zen Leaf Cave Creek in Phoenix, featuring one of the largest assortments of directly accessible cannabis products in the U.S.
Subsequent Operational Highlights
- Promoted and appointed James Leventis as chief strategy and compliance officer in July.
- Current operations span 13 states, comprised of 157 dispensaries and 15 production facilities with more than 1.1 million square feet of cultivation capacity.
Balance Sheet and Liquidity
As of June 30, 2025, the company’s current assets were $371 million, including cash and cash equivalents of $69 million. The company had working capital of $224 million and total debt, net of issuance costs, of $403 million.
The company’s total Class A subordinate voting shares outstanding were 361,779,913 as of June 30, 2025.
A line-by-line breakdown of the company’s balance sheet and definitions for this press release are available here.
