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Verano Holdings
(NEO-L:VRNO)
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Rating:51Neutral
Price Target:
C$6.50
▲(2.85% Upside)
Action:Reiterated
Date:10/31/26
The score is primarily held back by ongoing net losses and negative ROE despite strong revenue growth and healthy gross margins. Positive operating and free cash flow provides an important offset and supports financial stability. Technically, signals are mostly neutral with limited trend confirmation, while valuation is hard to assess given negative earnings and no dividend yield data.
Positive Factors
Strong Revenue Growth
The sharp increase in revenue indicates expanding sales across Verano’s regulated cannabis markets, while the healthy gross margin shows that products retain meaningful economic value. Positive EBIT also suggests the larger revenue base is beginning to support operating profitability.
Negative Factors
Persistent Net Losses
Persistent net losses show that revenue growth and gross profit have not yet translated into sustainable bottom-line earnings. Until expenses below gross profit are better controlled, Verano may have less flexibility to reinvest, strengthen its balance sheet, or consistently reward shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sharp increase in revenue indicates expanding sales across Verano’s regulated cannabis markets, while the healthy gross margin shows that products retain meaningful economic value. Positive EBIT also suggests the larger revenue base is beginning to support operating profitability.
Read all positive factors
Verano Holdings (VRNO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.17B
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)N/A
Revenue Growth0.61%
EPS Growth37.92%
CountryCA
Employees3,800
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-3.03
Shares Outstanding73,217,970
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.65
Price to Sales (P/S)0.55
P/FCF Ratio38.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$26.80Price Target Upside324.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.51
Revenue Forecast (FY)C$854.39M
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:Mar 04, 2027
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
Positive
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
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 846.85M | 835.88M | 878.59M | 938.45M | 853.24M | 725.46M |
| Gross Profit | 390.54M | 428.67M | 443.93M | 475.21M | 398.57M | 317.79M |
| EBITDA | 180.22M | 231.54M | -94.29M | 239.22M | 214.84M | 166.66M |
| Net Income | -221.27M | -262.42M | -341.86M | -117.35M | -269.16M | -57.51M |
Balance Sheet | ||||||
| Total Assets | 1.70B | 1.76B | 1.99B | 3.08B | 3.26B | 2.53B |
| Cash, Cash Equivalents and Short-Term Investments | 101.40M | 82.57M | 87.80M | 230.44M | 114.97M | 98.19M |
| Total Debt | 487.71M | 501.88M | 522.98M | 542.79M | 498.75M | 353.30M |
| Total Liabilities | 1.03B | 1.06B | 1.04B | 1.45B | 1.45B | 1.06B |
| Stockholders Equity | 667.59M | 702.87M | 952.17M | 1.64B | 1.82B | 1.47B |
Cash Flow | ||||||
| Free Cash Flow | 62.42M | 11.83M | 13.15M | 99.04M | -32.32M | 42.78M |
| Operating Cash Flow | 111.82M | 53.78M | 112.19M | 148.07M | 122.83M | 189.90M |
| Investing Cash Flow | -63.26M | -33.17M | -133.25M | -34.15M | -207.85M | -456.63M |
| Financing Cash Flow | -28.99M | -25.76M | -65.93M | 14.35M | 99.25M | 348.06M |
Verano Holdings Risk Analysis
Verano Holdings disclosed 90 risk factors in its most recent earnings report. Verano Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verano Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | C$1.90B | 11.41 | 6.82% | ― | 3.81% | 344.13% | |
53 Neutral | C$3.12B | -60.93 | -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 | -1.65 | -28.93% | ― | 0.61% | 37.92% | |
43 Neutral | C$365.32M | -1.89 | -28.27% | ― | -5.83% | -115.39% | |
42 Neutral | C$133.80M | -1.72 | 40.27% | ― | 5.37% | 17.78% |
* Healthcare Sector Average
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Verano Holdings
6.32
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0.00%
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Verano Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Verano Posts Higher Revenue and Cash Flow as Net Loss Narrows in Q3 2026
Positive
Oct 30, 2026
Verano reported third-quarter 2026 revenue of $212 million, up 5% year over year, with gross profit of $100 million representing a 47% margin and adjusted EBITDA of $50 million, or 24% of revenue. Despite posting a small net loss of $4 million, th...
Business Operations and Strategy
Verano Opens Zen Leaf Ephrata, Expanding Pennsylvania Medical Cannabis Footprint
Positive
Oct 30, 2026
Verano Holdings has expanded its Pennsylvania presence with the grand opening of Zen Leaf Ephrata, a relocated medical cannabis dispensary now situated at 848 E Main St as the first such facility in the borough. The new site offers extended hours,...
Business Operations and StrategyFinancial Disclosures
Verano Sets October 29 Date for Third-Quarter 2026 Results
Neutral
Sep 23, 2026
Verano Holdings said it will release its financial results for the third quarter ended September 30, 2026, before markets open on October 29, 2026. Management will host a conference call and webcast that morning for analysts and investors, with li...
Business Operations and Strategy
Verano to Engage Investors at ATB Cormark Cannabis Conference
Positive
Sep 2, 2026
Verano Holdings Corp., a leading vertically integrated U.S. cannabis operator, serves medical and adult-use markets through its Zen Leaf and MÜV dispensaries and an extensive portfolio of branded products. The company’s operations span ...
Business Operations and StrategyProduct-Related Announcements
Verano Launches Easy Landings to Tap Growing Cannabis Beverage Market
Positive
Aug 20, 2026
Verano has entered the cannabis beverage segment with Easy Landings, its first national drink brand, launching 100 mg single-serve THC shots in four flavors across Arizona, Illinois, Nevada and New Jersey, with further state rollouts planned. The ...
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’...
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.