Verano (VRNO) Q2 2026 earnings summary

Executive summary

• Achieved third consecutive quarter of revenue growth, reaching $218 million in Q2 2026, up 5% sequentially and 8% year-over-year, with improved operational cash flow and net cash from operations at $31 million.

• Net loss for the quarter was $13.4 million, representing a net loss margin of 6%, improved from $19 million YoY.

• Adjusted EBITDA was $51.2 million (24% margin), down from $66 million (33%) YoY.

• Expanded retail footprint to 163 locations across 13 states, including new dispensaries in Florida and 1,300+ wholesale accounts.

• Strategic initiatives included a $20 million share repurchase authorization, $2 million stock repurchase, a 1-for-5 reverse stock split, and applications for DEA registration.

Financial highlights

• Q2 2026 revenue: $218 million (+5% QoQ, +8% YoY); gross profit: $100 million (46% margin), down from $113 million (56%) YoY.

• Retail revenue: $182 million (+$10M sequentially, +$13M YoY); wholesale revenue: $80 million (+$1M sequentially, +$6M YoY).

• Adjusted EBITDA: $51 million (24% margin), up $2 million sequentially, down $15 million YoY.

• Net loss: $13 million, improved from $18 million in Q1 and $19 million YoY; net loss margin: -6%.

• Cash and equivalents at quarter end: $85 million; total debt: $393 million as of June 30, 2026.

Outlook and guidance

• Expect continued improvements in cash flow and margin expansion in Q3 and Q4 as operational initiatives take effect.

• Positioned to benefit from potential 280E tax relief and medical cannabis rescheduling, with possible retroactive tax benefits to January 1, 2026.

• Anticipate significant growth in Virginia with adult-use launch in July 2027 and continued expansion in Florida's medical market.

• 2026 capital expenditures guidance narrowed to $40–$50 million, with investments in new stores and cultivation improvements.

• Focus remains on generating further efficiencies and cost-saving measures.