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, up 13% sequentially and in line with last year, and 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, while wholesale revenue was $73 million, down 8% sequentially and 21% year over year, excluding intersegment eliminations. SG&A was $86 million, compared with $87 million a year ago, and net loss was $19 million. For the rest of 2025, management expects a modest improvement in wholesale in the back half, CapEx of $30 million to $45 million for the full year, and adjusted EBITDA margin to remain around the historical 30% range.

George Archos framed the quarter as progress on the company’s foundation for a stronger second half, emphasizing efficiencies, product innovation, automation and differentiation. He said the wholesale pullback was intentional to collect receivables and work only with creditworthy customers, with a slow ramp expected in the back half of the year and into 2026. He also highlighted new product launches, dispensary openings, and optimism around Virginia, Pennsylvania, Florida and broader industry catalysts like rescheduling.

Rich Tarapchak emphasized that gross profit improved because of cultivation and production efficiencies that drove better volume and yields, while SG&A stayed essentially flat at $86 million. He said net outstanding receivables have been reduced by about $9 million year to date through payment solutions, CapEx was $10 million in the quarter, and full-year CapEx is still expected to be $30 million to $45 million. On liquidity, he said the company ended Q2 with $69 million in cash and cash equivalents, generated $11 million of operating cash flow, paid $26 million in income taxes, and made $16 million in debt payments, including an early prepayment that saved about $4 million; he also said cash should build in the back half and that refinancing discussions are underway ahead of the October 2026 term loan maturity.

Analysts focused heavily on wholesale weakness, asking when it might bottom and whether inventory and sell-through could recover quickly. Management said the slowdown is deliberate, with accounts being turned back on slowly and a ‘nice slow ramp-up’ expected in the back half of 2025 and into 2026, while inventory has been sized accordingly. Questions also centered on gross margin sustainability, where management said margins should normalize to the historical 30% range, and on refinancing, where Verano said it is proactive and believes its real estate ownership supports options. In Virginia, management reiterated strong confidence in adult-use prospects and said the asset has room for future organic growth with minimal CapEx.