Verano Holdings Corp

Second-quarter revenue was $202 million, down 4% sequentially and 9% year over year. Gross profit was $113 million, or 56% of revenue, flat year over year but up 13% sequentially. Adjusted EBITDA was $66 million, or 33% of revenue, down 6% year over year and up 7% sequentially. Retail revenue was $169 million, up 3% year over year and flat sequentially; wholesale revenue was $73 million, down 8% sequentially and 21% year over year, excluding intersegment eliminations. SG&A was $86 million versus $87 million a year ago. The company ended the quarter with $69 million in cash and cash equivalents, generated $11 million of cash from operations, spent $10 million on CapEx, and expects full-year 2025 CapEx of $30 million to $45 million. Management expects the back half of 2025 to reflect a more historical 30% adjusted EBITDA margin profile, modest improvement in wholesale, and higher cash balances in Q3 and Q4.

George Archos framed the quarter as progress on strengthening the business for a better second half, emphasizing efficiencies, product innovation, automation and differentiation. He said the company deliberately reduced wholesale sales to rationalize the business and collect receivables, and now sees accounts gradually reopening in a “slow ramp up” that should continue into 2026. He also highlighted new product launches, dispensary openings, and optimism tied to Florida, Virginia, Pennsylvania, and rescheduling.

Rich Tarapchak focused on margin expansion, cost discipline and balance-sheet management. He said gross profit reached $113 million, gross margin was 56%, SG&A was $86 million, adjusted EBITDA was $66 million, and the company reduced net outstanding receivables by about $9 million year to date; he also cited $16 million of debt payments, including an early prepayment on the Cannabist-related loan at 75% of face value, saving about $4 million. He added that cash should bottom in the second quarter, with higher cash balances expected in Q3 and Q4, and that Verano is in proactive refinancing discussions ahead of the October 2026 term-loan maturity.

Analysts focused on wholesale stabilization, gross margin durability, Pennsylvania adult-use prospects, Virginia growth, cash use, and refinancing. Management said wholesale will not rebound sharply because it is intentionally turning accounts back on slowly and only as customers can pay, but it expects a modest back-half improvement as receivables are resolved and new products launch. On margins, management said the 56% gross margin reflected efficiencies in Florida and Illinois and should revert to a more historical 30% adjusted EBITDA margin profile in the second half; on refinancing, management said it feels confident, citing its real estate ownership as a potential support.