Vireo Growth (VREO) investor relations material

Executive summary

• Q2 GAAP revenue reached $48.1M, up 91% year-over-year, driven by completed mergers and partial quarter contributions.

• Pro forma Q2 revenue and adjusted EBITDA were $90.7M and $23.2M, respectively, aligning with management's expectations.

• Operations expanded to six states through three major mergers, establishing industry leadership and improving profitability.

• Integration post-merger is progressing well, driving operational efficiencies and cost reductions.

• Ended Q2 with over $100M in cash and completed $153M refinancing post-quarter, reducing annual interest expense by ~$10M.

Financial highlights

• Q2 GAAP revenue was $48.1M, up 91.4% year-over-year; six-month revenue was $72.6M, up 47.6%.

• Q2 GAAP gross profit was $20.4M (gross margin 42.5%, down 1,150 bps year-over-year); adjusted gross profit was $24.8M (margin 51.6%, down 260 bps).

• Q2 adjusted EBITDA was $13.3M (margin 27.6%), up 100.4% year-over-year.

• Q2 adjusted operating income was $11.3M (23.5% of sales), up from 22.7% last year.

• Cash on hand at quarter end was $106.2M; current assets (excluding NY assets held for sale) totaled $186.2M.

Outlook and guidance

• Focus remains on organic growth, positive free cash flow at the unit level, and disciplined CapEx.

• Management expects continued positive trends and benefits from recent mergers and refinancing.

• M&A opportunities are being explored in both distressed and mature markets, but not relied upon for growth.

• Anticipates adult-use sales in Minnesota in the second half of the year, pending regulatory approval.

• Pro forma Q2 revenue and adjusted EBITDA guidance were $88–91M and $23–24M, assuming all mergers closed April 1, 2025.