Vext Science (VEXT) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with strong operational execution, especially in Ohio, driving revenue and cash flow growth despite macroeconomic headwinds and pricing pressures in Arizona.

• Q4 2024 was the strongest operating quarter in recent years, with significant contributions from Ohio's adult use market launch and continued execution in Arizona.

• Ohio operations gained momentum, with Jackson and Columbus locations delivering ~40% sequential growth in Q4.

• Regulatory approval received to complete the acquisition of two additional Ohio dispensaries, positioning the company to double its Ohio retail footprint.

• Focus remains on retail-driven strategy, vertical integration, and disciplined cost controls to capture value and maintain market share.

Financial highlights

• Fiscal 2024 revenue reached $36 million, up 3.4% year-over-year; Q4 revenue was $10.2 million, a 13% sequential increase.

• Adjusted EBITDA for 2024 was $9.2 million (25% margin), a 66% increase year-over-year; Q4 adjusted EBITDA was $3.2 million (32% margin), up from $0.5 million in Q4 2023.

• Cash flow from operations in Q4 2024 was $4 million, the highest in three years; full-year cash flow from operations was $3.3 million.

• Ended 2024 with $4.6 million in cash and no anticipated need for capital raises for operational or expansion needs.

• Net income after taxes for FY 2024 was $(22.4) million, compared to $4.4 million in FY 2023.

Outlook and guidance

• Ohio expected to remain a key growth driver as new dispensaries open, with full vertical integration and license cap of eight stores targeted by early 2026.

• Anticipates further strengthening of cash flow from operations in 2025 and 2026 as Ohio adult use market matures.

• No plans for new retail acquisitions in Arizona in the near term; focus on optimizing existing footprint and evaluating future opportunities as market stabilizes.

• Maintenance CapEx expected to remain under $2 million annually; new Ohio store build-outs budgeted at about $1 million per store, self-funded.

• Plans to pay down $6.5 million in non-mortgage debt in 2025, targeting elimination of all non-mortgage debt by end of 2026.