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Verano Holdings (TSE:VRNO)
NEO-L:VRNO
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Verano Holdings (VRNO) AI Stock Analysis

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TSE:VRNO

Verano Holdings

(NEO-L:VRNO)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
C$6.50
▲(2.85% Upside)
Action:Reiterated
Date:08/10/26
The score is primarily held back by persistent net losses and negative returns on equity despite stable revenue. Offsetting this, cash flow is a relative strength with positive and improving operating and free cash flow. Technical indicators are broadly neutral with some near-term momentum (high Stochastic), while valuation remains pressured by the negative P/E.
Positive Factors
Improving cash generation
Positive and improving operating and free cash flow indicates Verano is currently funding operations internally. This provides greater resilience and flexibility to maintain its footprint, invest selectively, and manage obligations despite accounting losses.
Negative Factors
Persistent net losses
Sustained net losses and deeply negative returns on equity indicate that operating cash generation has not translated into shareholder profitability. Continued losses can erode capital, constrain reinvestment, and make durable value creation harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Positive and improving operating and free cash flow indicates Verano is currently funding operations internally. This provides greater resilience and flexibility to maintain its footprint, invest selectively, and manage obligations despite accounting losses.
Read all positive factors

Verano Holdings (VRNO) vs. iShares MSCI Canada ETF (EWC)

Verano Holdings Business Overview & Revenue Model

Company Description
Verano Holdings Corp. functions as a vertically integrated, multi-state cannabis enterprise throughout the United States. Its operations span the complete cannabis supply chain, from growing and manufacturing to wholesale and direct-to-consumer sa...
How the Company Makes Money
Verano primarily makes money by selling cannabis products in state-regulated markets through two main revenue streams: (1) Retail sales: The largest driver is sales to end consumers via Verano-operated dispensaries. Revenue is generated at the poi...

Verano Holdings Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong retail growth and improved margins due to cost management and efficiency efforts. However, significant challenges remain with declining wholesale revenue, increased net loss, and ongoing market pressures.
Positive Updates
Strong Retail Revenue Growth
Verano generated $169 million in retail revenue in Q2 2025, marking a 3% increase compared to the prior year. This growth was driven by organic expansion in Ohio and contributions from acquired assets in Virginia and Arizona.
Negative Updates
Decline in Wholesale Revenue
Wholesale revenue fell to $73 million, down 8% sequentially and 21% year-over-year, due to increased competition and a strategic accounts receivable focus.
Read all updates
Q2-2025 Updates
Negative
Strong Retail Revenue Growth
Verano generated $169 million in retail revenue in Q2 2025, marking a 3% increase compared to the prior year. This growth was driven by organic expansion in Ohio and contributions from acquired assets in Virginia and Arizona.
Read all positive updates
Company Guidance
During the Verano Second Quarter 2025 Earnings Conference Call, the company reported a revenue of $202 million, a gross profit of $113 million, and an adjusted EBITDA of $66 million, or 33% of revenue. Despite a 4% sequential and 9% year-over-year decline in total revenue, retail revenue grew 3% compared to the previous year, driven by organic growth in Ohio and acquired assets in Virginia and Arizona. The wholesale segment generated $73 million, impacted by increased competition and a strategic accounts receivable approach. The company maintained a gross margin of 56%, attributed to operational efficiencies, especially in Florida and Illinois. SG&A expenses were stable at $86 million, with a net loss of $19 million due to higher income tax provisions. Verano ended the quarter with $69 million in cash and cash equivalents, with expectations to bolster cash reserves in the latter half of the year. Looking ahead, Verano aims to continue cost management, enhance its product pipeline, and focus on strategic growth in key markets like Florida, Virginia, and Pennsylvania, while addressing industry-wide credit challenges.

Verano Holdings Financial Statement Overview

Summary
Financials are mixed: revenue is stable (~$835M TTM) and cash generation is improving (operating cash flow ~$89M TTM; free cash flow ~$46M), but profitability remains the core issue with deeply negative net margin (~-31% TTM) and strongly negative ROE (~-34% TTM). Leverage appears manageable (debt ~$494M vs equity ~$677M), yet declining equity and persistent losses limit the score.
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
64
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Mar 2022
Income Statement
Total Revenue835.28M835.88M878.59M938.45M853.24M725.46M
Gross Profit389.92M428.67M443.93M475.21M398.57M317.79M
EBITDA163.22M221.72M-94.29M239.22M210.36M166.66M
Net Income-261.00M-262.42M-341.86M-117.35M-269.16M-57.51M
Balance Sheet
Total Assets1.70B1.76B1.99B3.08B3.26B2.53B
Cash, Cash Equivalents and Short-Term Investments85.19M82.57M87.80M230.44M114.97M98.19M
Total Debt493.68M501.88M522.98M542.79M498.75M353.30M
Total Liabilities1.02B1.06B1.04B1.45B1.45B1.06B
Stockholders Equity676.53M702.87M952.17M1.64B1.82B1.47B
Cash Flow
Free Cash Flow45.69M11.83M13.15M99.04M-32.32M42.78M
Operating Cash Flow89.29M53.78M112.19M148.07M122.83M189.90M
Investing Cash Flow-44.08M-33.17M-133.25M-34.15M-207.85M-456.63M
Financing Cash Flow-28.43M-25.76M-65.93M14.35M99.25M348.06M

Verano Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
C$2.34B14.196.82%3.81%344.13%
53
Neutral
C$3.63B-72.30-4.47%1.50%81.84%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
C$2.17B-1.72-35.22%-2.30%26.63%
45
Neutral
C$175.73M-1.9053.44%4.96%-12.20%
45
Neutral
C$493.18M-2.58-28.27%-5.83%-115.39%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:VRNO
Verano Holdings
6.32
0.00
0.00%
TSE:JUSH
Jushi Holdings
0.88
-0.06
-6.38%
TSE:CURA
Curaleaf Holdings
13.72
1.48
12.09%
TSE:GTII
Green Thumb Industries
10.71
-0.42
-3.77%
TSE:CL
Cresco Labs
1.08
-0.55
-33.74%

Verano Holdings Corporate Events

Business Operations and Strategy
Verano to Spotlight Strategy at Canaccord Genuity Growth Conference
Positive
Aug 6, 2026
Verano Holdings said its executive leadership team will take part in a fireside chat and investor meetings at the Canaccord Genuity 46th Annual Growth Conference in Boston on August 11, 2026. The appearance is expected to enhance the company&#8217...
Business Operations and StrategyStock BuybackFinancial DisclosuresStock Split
Verano Posts Strong Q2 Revenue Gains as It Advances U.S. Expansion and Listing Plans
Positive
Aug 5, 2026
Verano reported second-quarter 2026 revenue of $218 million, marking its third consecutive quarter of organic revenue growth and an 8% increase year-on-year, with gross profit at $100 million and adjusted EBITDA of $51 million. Despite a net loss ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 10, 2026