Education
About Us
Working with TipRanks
Follow Us
Verano Holdings (TSE:VRNO)
NEO-L:VRNO
Top Page
Verano Holdings
(NEO-L:VRNO)
51Neutral
Positive Factors
Earnings
Verano reported strong Q2 results, with profitability margins and adjusted EBITDA contribution both exceeding expectations, demonstrating strong operational execution.
Growth Potential
Verano launched adult-use sales in Ohio on the first day of market launch, positioning it as a key growth lever with significant sales potential.
Market Expansion
The acquisition of CBST's assets in Arizona and Virginia will expand Verano's operations and penetrate the Virginia medical market for the first time.
Negative Factors
Revenue Challenges
Solid growth in wholesale revenue offset by a decline in retail revenue, primarily driven by the expected productivity decline in NJ.
Verano Holdings (VRNO) vs. S&P 500 (SPY)
Market Cap
$2.17B
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-4.99%
EPS Growth-200.83%
CountryCA
Employees3,800
SectorHealthcare
Sector Strength78
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-1.33
Shares Outstanding358,950,320
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)9.27
Price to Cash Flow (P/CF)22.70
P/FCF Ratio160.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.00Price Target Upside-5.07% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Verano Holdings Business Overview & Revenue Model
Company DescriptionVerano Holdings (VRNO) is a leading, vertically integrated operator in the U.S. cannabis industry. The company is involved in the cultivation, processing, and retail distribution of cannabis products. Verano operates a broad portfolio of brands and dispensaries across multiple states, providing a range of products including premium flower, edibles, and concentrates. The company is committed to delivering high-quality cannabis experiences to its consumers while adhering to stringent regulatory standards.
How the Company Makes MoneyVerano Holdings generates revenue primarily through the sale of cannabis products in its retail dispensaries and wholesale operations. The company's revenue streams include direct sales to consumers via its owned and operated dispensaries, which are strategically located in key markets, and wholesale distribution to other cannabis businesses. Verano's vertically integrated model allows it to control the production process from cultivation to retail, optimizing costs and ensuring product quality. Additionally, the company benefits from a diverse portfolio of brands, catering to various consumer preferences and enhancing its market presence. Strategic acquisitions and partnerships further bolster Verano's market reach and revenue potential, positioning it as a significant player in the rapidly growing cannabis industry.
Verano Holdings Financial Statement Overview
Summary
Verano Holdings faces significant financial challenges, with declining revenues and profitability. Operational cash flows remain positive, but the company struggles with consistent revenue growth and net losses. The balance sheet shows moderate leverage but decreasing financial stability.Income Statement
Verano Holdings has faced significant challenges in profitability, with declining gross profit and net profit margins. The company reported negative net income in the latest period, indicating operational difficulties. Revenue growth has been inconsistent, with a notable decline from 2022 to 2024. EBIT and EBITDA margins have also deteriorated, suggesting pressure on operational efficiency.35
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage levels. However, the equity ratio has declined, reflecting reduced financial stability. Return on equity remains negative due to ongoing net losses. The company's total assets have also decreased, which could limit future growth potential.45
Neutral
Cash Flow
Cash flow from operations remains positive, which is a positive indicator amidst the company's struggles. Free cash flow growth is modest but positive, reflecting some capacity to generate cash after capital expenditures. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from operations despite net losses.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 878.59M | 938.45M | 1.14B | 925.07M | 306.53M | Gross Profit |
| 443.93M | 475.21M | 534.79M | 405.23M | 157.02M | EBIT |
| -237.18M | 84.78M | 86.56M | 75.34M | 123.81M | EBITDA |
| -94.29M | 239.22M | 47.32M | 212.51M | 134.36M | Net Income Common Stockholders |
| -341.86M | -117.35M | -350.41M | -72.10M | 51.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 87.80M | 230.44M | 114.97M | 125.20M | 20.90M | Total Assets |
| 1.99B | 3.08B | 3.26B | 3.22B | 419.98M | Total Debt |
| 522.98M | 542.79M | 675.78M | 446.27M | 67.17M | Net Debt |
| 435.19M | 368.03M | 560.81M | 321.07M | 46.27M | Total Liabilities |
| 1.04B | 1.45B | 1.45B | 1.35B | 224.55M | Stockholders Equity |
| 952.17M | 1.64B | 1.82B | 1.87B | 187.48M |
| Cash Flow | Free Cash Flow | |||
| 13.15M | 99.04M | -32.32M | 54.55M | 10.79M | Operating Cash Flow |
| 112.19M | 148.07M | 122.83M | 242.15M | 100.88M | Investing Cash Flow |
| -133.25M | -63.98M | -270.59M | -582.27M | -119.07M | Financing Cash Flow |
| -65.93M | 27.60M | 129.20M | 443.82M | 33.89M |
Verano Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.94B | 19.94 | 4.19% | ― | 9.46% | 105.27% | |
68 Neutral | $956.33M | 16.85 | 3.80% | ― | 35.87% | ― | |
51 Neutral | $2.17B | ― | -31.19% | ― | -4.99% | -200.83% | |
51 Neutral | $973.57M | ― | -23.33% | ― | 0.67% | 19.14% | |
49 Neutral | C$1.02B | ― | -12.12% | ― | 6.27% | 67.62% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
36 Underperform | $264.39M | ― | -84.50% | ― | -16.27% | 76.17% |
* Healthcare Sector Average
Performance Comparison
TSE:VRNO
Verano Holdings
6.32
0.00
0.00%
TSE:WEED
Canopy Growth
1.38
-11.82
-89.55%
TSE:CRON
Cronos Group
2.50
-1.24
-33.16%
TSE:GTII
Green Thumb Industries
7.55
-10.40
-57.94%
TSE:TRUL
Trulieve Cannabis
5.04
-10.85
-68.28%
TSE:CURA
Curaleaf Holdings
1.16
-5.95
-83.68%
Verano Holdings Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 0.00% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Verano Holdings. While the company showcased strong wholesale performance, retail expansion, and successful new product launches, it also faced significant challenges such as a net loss due to asset impairments, revenue decline in key markets, and pricing pressures. Overall, the highlights and lowlights are balanced, reflecting a neutral sentiment.Highlights
Strong Full Year Revenue and Wholesale Performance
For the full year 2024, Verano Holdings delivered $879 million in revenue and adjusted EBITDA of $264 million. The company achieved $353 million in total wholesale revenue, marking the highest annual total ever in the wholesale segment, with a 1% gain versus the prior year.
Expansion of Retail Footprint
In 2024, Verano strengthened its retail footprint by adding 17 new dispensaries across key markets including Virginia, Arizona, Pennsylvania, New Jersey, Connecticut, and Florida.
Innovative Product Launches
The company launched innovative products such as Extra Savvy 2 gram vape cartridges and Essence J’s barrel-style pre-roll joints, which have become top-selling items in their respective markets.
Improved Retail Productivity
In the fourth quarter, Verano increased transactions per headcount by 54% in Florida and 14% in other markets compared to the third quarter.
Positive Performance in Florida
Verano reclaimed the number two market position in Florida with an 11% market share, driven by successful facility upgrades and new product launches.
Lowlights
Net Loss and Impairments
Verano reported a net loss of $342 million for the year, driven by intangible and fixed asset impairments, particularly in Pennsylvania retail licenses and an Arizona cultivation facility.
Revenue Decline in Key Markets
Revenue decreased by 6% year-over-year, primarily due to increased competition, promotional activity, and cultivation facility upgrades in markets like New Jersey, Illinois, and Florida.
Pricing Compression and Competition
The company faced pricing compression and increased competition in markets such as Illinois, New Jersey, and Florida, impacting retail revenue.
Increased SG&A Expenses
SG&A expenses increased to $353 million in 2024, representing 40% of revenue, up from 35% of revenue in the prior year, driven by new store openings.
Challenges with Third-Party Accounts
Verano held back some third-party accounts due to non-payment, affecting wholesale performance, though improvements are underway.
Company Guidance
During the Verano Holdings earnings call for the fourth quarter and full year 2024, several key metrics were highlighted regarding the company's financial performance and future guidance. Verano reported a full-year revenue of $879 million and an adjusted EBITDA of $264 million, which represents 30% of their revenue. The fourth-quarter revenue was $218 million, showing a sequential increase of 1% from the previous quarter, with an adjusted EBITDA of $63 million. Retail revenue for the year totaled $672 million, while wholesale revenue reached $353 million, marking a 1% gain over the prior year. The company expanded its retail footprint by adding 17 new dispensaries across key markets such as Virginia and Arizona. Verano also experienced a net loss of $342 million for the year, largely due to impairments of intangible and fixed assets, and ended the year with $88 million in cash and cash equivalents. Looking ahead to 2025, Verano anticipates CapEx spending between $25 million and $40 million, focusing on efficiency initiatives at cultivation facilities and targeted retail expansion, while also exploring potential M&A opportunities to strengthen their market position.Verano Holdings Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Verano Holdings Expands in Connecticut with New Zen Leaf Ashford Dispensary
Positive
Apr 1, 2025
Verano Holdings has expanded its presence in Connecticut with the opening of Zen Leaf Ashford, its sixth retail location in the state and the closest cannabis dispensary to the University of Connecticut. This new outlet offers a unique 20% discount for UConn students and celebrates university sports victories with special deals. The opening is part of Verano’s broader strategy to enhance its market position and community engagement, including support for local organizations. The Ashford location complements existing Connecticut dispensaries and is supported by Verano’s cultivation facility in Rocky Hill, which produces a variety of cannabis products.
Product-Related AnnouncementsBusiness Operations and Strategy
Verano Expands Savvy and Essence Cannabis Product Lines
Positive
Mar 13, 2025
Verano Holdings has announced the expansion of its Savvy and Essence product lines, introducing new cannabis products such as Extra Savvy 2-gram vape cartridges and Savvy Strut 2-gram all-in-one vapes. These products target the rapidly growing vape and pre-roll categories, leveraging advanced manufacturing technology to enhance production efficiency and meet consumer demand. The launch positions Verano to strengthen its market presence in key states, with products available in Illinois, New Jersey, Maryland, and Arizona, and plans to expand to additional states.
Business Operations and StrategyFinancial Disclosures
Verano Holdings Reports 2024 Financial Results Amid Strategic Expansion
Negative
Feb 27, 2025
Verano Holdings Corp. reported its financial results for the fourth quarter and full year of 2024, highlighting a decrease in revenue and a significant net loss compared to the previous year. Despite these challenges, the company made strategic moves by entering the Virginia market, expanding in Arizona, and launching new dispensaries and products, which are expected to support long-term growth.
Business Operations and Strategy
Verano Expands Florida Presence with 80th MÜV Dispensary
Positive
Feb 19, 2025
Verano Holdings announced the opening of its 80th MÜV dispensary in Florida, located in North Miami Beach, enhancing their presence in Miami-Dade County. This expansion strengthens Verano’s retail footprint in a populous region, providing convenient access to cannabis products for a large customer base and demonstrating the company’s commitment to growth in the competitive cannabis market.
Financial Disclosures
Verano Holdings to Announce 2024 Financial Results
Neutral
Feb 10, 2025
Verano Holdings has announced that it will report its financial results for the fourth quarter and full year of 2024 on February 27, 2025. The company will host a conference call and webcast to discuss these results, indicating a continued focus on transparency and engagement with investors and stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.