Verano Holdings Corp.

Verano reported second-quarter revenue of $202 million, down 4% sequentially and 9% year over year. Gross profit was $113 million, gross margin was 56%, and adjusted EBITDA was $66 million, or 33% of revenue, up 7% sequentially and down 6% year over year. 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 versus $87 million a year ago, capex was $10 million in the quarter, cash and cash equivalents ended at $69 million, cash from operations was $11 million, and the company paid $16 million in debt payments and roughly $26 million to $29 million in income taxes, depending on the discussion point in the call. Management expects to maintain a historical 30% adjusted EBITDA margin profile in the back half of 2025 and guided full-year 2025 capex to $30 million to $45 million.

George Archos framed Q2 as a quarter of foundation-building, saying the company made progress on efficiencies, product innovation, automation and differentiation. He said the company’s wholesale pullback was intentional to collect receivables and reset customer relationships, and he expects a slow ramp back in the back half of the year and into 2026 rather than a sharp rebound. He was upbeat on Florida, Virginia and possible adult-use opportunities in Virginia, Pennsylvania and Florida, while also highlighting new products, new store openings and an exclusive Illinois partnership with Grow Sciences.

Rich Tarapchak emphasized that the quarter’s 56% gross margin reflected operational efficiencies, better yields and lower wholesale mix, while SG&A stayed essentially flat at $86 million. He said net outstanding receivables have been reduced by about $9 million year to date, and noted cash uses included about $10 million of capex, roughly $12 million on an early Cannabist note payment in one answer, and about $29 million in income taxes in another. He said cash at quarter-end was $69 million, this should be the low point for the year, cash should rise in Q3 and Q4, and the company remains in proactive debt refinancing discussions ahead of the October 2026 term loan maturity.

Analysts focused heavily on the wholesale decline, asking when it might bottom and whether gross margin can stay elevated as wholesale recovers. Management said the company is deliberately turning accounts back on slowly, expects only a modest wholesale improvement in the back half of the year, and believes the AR strategy is necessary even if it pressures near-term revenue. Other questions centered on margin sustainability, Pennsylvania adult-use prospects, Virginia growth plans, international expansion after Darren Weiss’s resignation, and refinancing; management sounded constructive on all of those but repeatedly framed 2026 as the more meaningful period for market rationalization and upside.