Verano (VRNO) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue reached $879 million, with operations in 13 states and 153 retail locations, serving a population of 89 million adults; Q4 revenue was $218 million, up 1% sequentially but down 8% year-over-year.

• Adjusted EBITDA for 2024 was $264 million (30% margin), with Q4 Adjusted EBITDA of $63 million (29% margin).

• Net loss for 2024 was $342 million, significantly impacted by $328 million in asset impairments and fair value adjustments.

• Launched over 60 new products in 2024, with new products accounting for 23% of total retail sales and driving innovation.

• Strengthened retail footprint with 17 new dispensaries, including acquisitions and relocations, and expanded into Virginia and Arizona.

Financial highlights

• Full-year revenue declined 6% year-over-year, mainly due to pricing compression and competition in key markets; partially offset by growth in Maryland and Ohio.

• Gross profit was $444 million (51% margin), down from $475 million prior year; SG&A expenses rose to $353 million (40% of revenue) due to new store openings.

• Q4 2024 revenue was $218.2 million; gross profit $107.5 million; net loss $273 million; adjusted EBITDA $62.9 million.

• Ended year with $88 million in cash; operating cash flow was $112 million, CapEx was $99 million for the year; total debt was $414 million.

• Retail/wholesale revenue split was 66%/34% for FY 2024; wholesale revenue hit a company record $353 million.

Outlook and guidance

• 2025 CapEx expected between $25–$40 million, focused on efficiency, automation, and targeted retail expansion.

• Plans to open new dispensaries in Connecticut, Ohio, and Florida, with continued focus on operational efficiency and innovation.

• Anticipates competitive pressure in Maryland but expects stabilization in Illinois and New Jersey as store openings slow.

• Robust product pipeline planned for Q1 2025 and beyond.

• Actively reviewing M&A opportunities and targeting markets with high potential for adult use legalization.