Vext Science (VEXT) Q1 2025 earnings summary

Executive summary

• Revenue reached a record $11.6 million in Q1 2025, up 38% year-over-year, driven by strong Ohio retail performance and disciplined retail strategy.

• Operating cash flow was $3.1 million, nearly matching all of 2024, with a margin exceeding 26%.

• Adjusted EBITDA was $3.4 million with a 29% margin, among the highest in the U.S. multi-state cannabis sector.

• Retail-first model and capital-light expansion underpin growth and margin resilience in Ohio and Arizona.

• Closed acquisition of two Ohio dispensaries post-quarter, doubling the retail footprint in the state.

Financial highlights

• Q1 2025 revenue: $11.6 million, up 38% year-over-year and 13% sequentially.

• Adjusted EBITDA: $3.4 million with a 29% margin; EBITDA was $0.95 million.

• Net income after taxes was a loss of $3.33 million in Q1 2025.

• Operating expenses as a percentage of revenue declined from 54% to 38% year-over-year.

• Cash flow from operations: $3.1 million in Q1 2025; ended Q1 with $4.8 million in cash.

Outlook and guidance

• Expect to consolidate two new Ohio dispensaries in Q2, driving further revenue and margin growth.

• No anticipated capital raises for operational or expansion needs in 2025; focus on internally funded growth and debt reduction.

• Focus remains on free cash flow generation, debt reduction, and Ohio retail expansion.

• Anticipate seven Ohio stores open by year-end, with potential for an eighth by early 2026.

• Retail-first strategy and capital-light build-out model expected to drive further growth in 2025.