Vext Science (VEXT) investor relations material

Executive summary

• Achieved record Q2 2025 results with revenue of $13.4M, up 59% year-over-year, driven by Ohio retail expansion and disciplined Arizona operations, resulting in industry-leading margins and free cash flow.

• Adjusted EBITDA rose to $4.1M, more than tripling year-over-year, with a 30% margin and a 31% cash flow margin, among the highest in the industry.

• Ohio retail sales surged 86% sequentially, with new dispensary openings and progress toward the state license cap of eight by early 2026.

• Maintained profitability in Arizona despite a 13.7% year-over-year market decline, with company sales down only 0.3% and a focus on in-house retail sell-through.

• On track for self-funded growth, minimizing external capital needs and maintaining a strong financial position, supported by an experienced management team and stable shareholder base.

Financial highlights

• Revenue increased to $13.4M in Q2 2025 from $8.4M in Q2 2024 and $11.6M in Q1 2025.

• Adjusted EBITDA: $4.1M in Q2 2025, up from $1.1M in Q2 2024 and $3.4M in Q1 2025; margin reached 30%+.

• Operating cash flow was $4.2M, up from negative $0.6M in Q2 2024 and $3.1M in Q1 2025; cash flow margin 31%.

• Net debt reduced to $27.1M from $29M at Q1 end and $34.7M in Q2 2023.

• Free cash flow conversion reached 93.2% in Q2 2025.

Outlook and guidance

• Focus remains on expanding Ohio operations toward the state license cap and capturing adult-use market upside, with new dispensaries expected to open through early 2026.

• Anticipates consistent revenue and cash flow growth as new retail locations open and Ohio scales.

• Minimal growth capex required in Arizona; remaining Ohio capex focused on store openings.

• No dramatic changes expected in H2 2025 due to Arizona seasonality and timing of store consolidations.

• Operations in new Ohio dispensaries expected to begin in Q4 2025, subject to regulatory approvals.