Vireo Growth Inc.

Second quarter GAAP revenue was $209.3 million, up 335% year over year. Cannabis revenue was $175.8 million, up 265% year over year, and the non-cannabis segment contributed $33.5 million. Pro forma second quarter revenue was $254.9 million, which management said eclipses a $1 billion run rate. Gross margin, excluding non-cash inventory valuation adjustments, was 47%, down 430 basis points year over year; cannabis adjusted gross margin was 53% and non-cannabis adjusted gross margin was 18%. Net loss was $0.1 million versus $14.9 million a year ago, and adjusted EBITDA was approximately $41.5 million, or 19.8% of sales, up about $28.2 million year over year. Vireo ended the quarter with $122.7 million in cash and cash equivalents plus $1 million of marketable liquid securities. For liquidity, the company also disclosed a new ABL facility with a $65 million initial commitment, expandable to $85 million and then $105 million with an accordion. Management did not give formal numeric revenue or EBITDA guidance for the next quarter or full year, but said pending transactions were not included in the run-rate figures and that 2027 should bring a clearer financial picture of the strategy.

John Mazarakis framed the quarter as proof that Vireo can acquire, integrate, and optimize businesses while maintaining discipline. He stressed that the company is building a diversified cannabis and agribusiness platform, not just getting bigger, and said each deal must improve free cash flow, strengthen a market, or create strategic advantage. He was confident on execution, citing the team’s experience, talent, and decentralized operating model, and said Vireo is not highly levered and is buying at the right multiples.

Tyson Macdonald highlighted the scale-up in reported results: revenue of $209.3 million, gross margin of 47% excluding fair-value inventory adjustments, and adjusted EBITDA of $41.5 million. He noted the non-cannabis segment is structurally lower margin, which helped explain the 430 bps gross margin decline and the 790 bps adjusted EBITDA margin decline to 19.8%. On the balance sheet, he pointed to $122.7 million in cash, $1 million of marketable securities, and the new ABL credit facility with Bank of Montreal and others, priced at Term SOFR plus 1.75% to 2%, to support working capital, capex, and M&A. He also gave current asset and liability figures of $374 million and $181.4 million, excluding certain items.

The main analyst concern was whether Vireo’s aggressive expansion resembles past overleveraged cannabis rollups. Management answered that the company is “one of the most under-levered” in the sector, is buying at appropriate multiples, and uses a decentralized model to integrate quickly while preserving local market control. Analysts also pressed on the 7% same-store sales figure, and management clarified it was organic growth in legacy assets, saying 7% is not a realistic perpetual target but that low-single-digit growth above inflation is a more normal expectation. A final question about interstate commerce and rescheduling drew a cautious response: management said it plans for multiple scenarios but does not expect change anytime soon.