[PRESS RELEASE] – CHICAGO, Aug. 7, 2025 – Verano Holdings Corp. announced financial results of its second quarter ending June 30, 2025. The company prepared the report in accordance to U.S. GAAP.
The Second Quarter of 2025: Financial Highlights
The Second Quarter of 2025: Financial Highlights
- Net of Discounts: $202 Million in Revenues
- The gross profit was $113,000,000 or $56% of revenues.
- SG&A expenses of $86 million or 43% of revenue.
- A net loss of ((19) millions of dollars or (9)% revenue.
- Adjusted EBITDA1 What is the revenue? $66,000,000 or 33 percent of revenues.
- Operating activities generated net cash of $11 Million.
- Capital expenditures exceeding $10 million
Management Commentary
George Archos, Verano’s Chairman and CEO said: “I am very proud of our progress during this quarter in strengthening our foundation and advancing key priorities including streamlining operations and improving margins.” We generated higher yields from our cultivation, introduced new products and enhanced retail performance across several key markets.
Archos commented, “As our company focuses on improving its wholesale business, accounts receivable, pipeline of product innovation and new store openings as well as our ongoing efforts to improve efficiency, we anticipate that Verano will have a better second half in 2025. We look forward advancing our key initiatives for the rest of this year.
Second Quarter 2025 Financial Summary
The second quarter revenue, net discounts, was $202 millions, down from the $222 million of the second quarter in 2024 and $210 million of the first quarter.
The decline in revenue in the second half of 2025, compared with the second half of 2024, was mainly due to ongoing price compression and competition, as well as the impact from wholesale accounts receivables strategy. This was partly offset by good results in Ohio and Florida, and by contributions from businesses acquired by The Cannabist Co. Holdings Inc. during the third quarter in 2024.
The second-quarter 2025 gross profit was $113 million, or 56%, compared to the $114 million, or 51%, of second-quarter 2024. However, it increased from $100 million, or 47%, of first quarter 2025. Gross profit decreased in the second half of 2025 as compared with the second half of 2024, mainly due to lower top line revenue and more promotional activities. This was partially offset by increased harvest efficiency from the expanded cultivation facilities.
SG&A expenses for the second quarter 2025 were $86 million or 43% of revenue, down from $87 million or 39% of revenue for the second quarter 2024, and up from $85 million or 40% of revenue for the first quarter 2025. The decrease in SG&A expenses for the second quarter 2025 compared to the second quarter 2024 was driven primarily by a decrease in depreciation and amortization and ongoing efficiencies generated across the business.
In the second half of 2025, the net loss was $19 million (or 9% of revenue), compared to $22 million (or 10% of revenue) in the first quarter 2024. Net loss decreased by $(19) million in second quarter of 2025, compared with the same period in 2024. This was due to a decrease in overall other income and expense. However, this decrease has been partially offset by a rise in income tax provision.
Adjusted EBITDA1 For the second quarter of 2025, $66 million (33% of revenues) was allocated.
Net cash generated by operations for the 2nd quarter of 2025 increased to $11m, compared to $8m for the 2nd quarter of 2024. This increase was attributable primarily to operating efficiencies, and to a reduction in tax payments compared to previous year periods.
The capital expenditures in the second quarter of 2025 will be $10 million. This is down from the $19 million spent for the quarter two 2024, and from the $14 million invested for the quarter one 2025. This decrease was driven by greater efficiencies in cultivation and production.
Operational Highlights for the Second Quarter of 2025
- Richard Tarapchak has been promoted to Chief Financial Officer.
- The company has expanded its retail footprint through the opening of new dispensaries.
- MÜV™ New Smyrna Beach, the company’s 81st dispensary in Florida; and
- Zen Leaf™ Ashford and Zen Leaf™ Enfield, elevating the company’s Connecticut retail operations to seven dispensaries statewide.
- Grow Sciences announced an exclusive partnership to launch their suite of cannabis flower products and extracts on the Illinois market. Grow Sciences is an award winning cultivator with elite genetics.
- Zen Leaf Cave Creek has opened a new retail store with a unique bodega style experience in Phoenix. The shop features the biggest selection of direct-access cannabis products anywhere in the U.S.
Following Operational Highlights
- James Leventis promoted to chief strategy and Compliance Officer in July.
- There are currently 157 cannabis dispensaries in 13 different states. 15 facilities have been built with a total of more than 1 million square feet for cultivation.
Balance sheet and liquidity
As of June 30, 2025, the company’s current assets were $371 million, including cash and cash equivalents of $69 million. As of June 30, 2025, the company’s current assets were $371 million, including cash and cash equivalents of $69 million.
As of June 30 2025, the company had 361,779 913 Class A voting subordinate shares.
You can view the balance sheet of this company and its definitions. Here is a link to the article.