Vext Science (VEXT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $12.7 million, up 41% year-over-year, driven by Ohio retail expansion and steady Arizona performance.

• Positive operating cash flow was generated for the fourth consecutive quarter, with year-to-date operating cash flow totaling $8.5 million, up from $(0.7) million in Q3 2024 YTD.

• Ohio retail footprint expanded to five consolidated locations, with plans to reach the state dispensary license cap of eight by 2026.

• Operational discipline in Arizona led to outperformance on a per-store basis despite a broader market decline.

• Ohio is a key growth engine, with retail ramp-up offsetting lower wholesale activity; Arizona remains competitive but profitable.

Financial highlights

• Revenue for Q3 2025 was $12.7 million, compared to $13.4 million in Q2 2025 and $8.9 million in Q3 2024.

• Year-to-date revenue totaled $37.6 million, up 46% from 2024, mainly due to Ohio retail growth.

• Adjusted EBITDA was $2.1 million (16.7% margin), impacted by lower Arizona wholesale prices and IFRS adjustments.

• Operating cash flow for Q3 was $1.26 million (9.9%-10% margin), with sequential decline due to working capital impacts.

• Inventory stood at $8.3 million, with a sequential decline in valuation despite increased sellable grams.

Outlook and guidance

• Expect strong Q4 revenue growth as Portsmouth is consolidated and cultivation yields improve.

• Anticipate meaningful step-up in revenue, adjusted EBITDA, and cash flow in Q4, supported by Ohio momentum and Arizona stability.

• Three additional Ohio stores targeted for opening through 2026, aiming for the state license cap of eight dispensaries.

• Margins expected to revert closer to first half of the year as cost efficiencies and yield improvements materialize.

• Q4 cash flow expected to improve as inventory built in Q3 is worked through.