Vireo Growth (VREO) Q4 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of $99.4 million, up 15.4% year-over-year excluding discontinued operations, with strong growth in Maryland and steady performance in Minnesota.

• Fourth quarter revenue was $25.0 million, a 3.5% increase year-over-year and flat sequentially, with Maryland growth offset by New York declines.

• Ended FY24 with $91.6 million in cash after an $81 million private placement and additional loans.

• Record gross margin, operating income, and Adjusted EBITDA achieved in FY24; Q4 impacted by $4.2 million in one-time transaction expenses.

• Positioned for a transformational 2025 with pending merger transactions and growth investments in Minnesota and New York.

Financial highlights

• FY24 revenue was $99.4 million, up 15.4% year-over-year, with gross margin improving to 51.1%.

• Operating income for FY24 was $13.6 million, up 28.2% year-over-year; operating margin rose to 13.6%.

• Adjusted EBITDA for FY24 was $25.1 million, up 28.4% year-over-year; margin expanded to 25.3%.

• Q4 net loss was $15.7 million, impacted by $4.2 million in one-time transaction expenses and increased stock-based compensation.

• Total current assets at year-end were $133.8 million, with $91.6 million in cash.

Outlook and guidance

• Management expects pending mergers to close in 2025, subject to regulatory and shareholder approvals.

• Expects adult use cannabis sales to launch in Minnesota within 2025.

• Recent initiatives in New York to increase premium flower production expected to contribute meaningfully in Q2 2025.

• Capital deployment will focus on high-growth opportunities in New York and Minnesota.

• Management notes continued focus on operational strength and liquidity.