Verano Reports Q4 and FY 2025 Financial Results

CHICAGO – Verano Holdings Corp. released its financial results for the fourth quarter and full year ended December 31, 2025, showing sequential revenue growth and improved gross margins in the final three months but a full-year sales decline amid ongoing price pressures in the Cannabis market.

The multi-state operator posted net revenues of $206.6 million for Q4 2025, a 2% increase from the third quarter’s $202.8 million but a 5% drop from $218.2 million in the same period a year earlier. Gross profit reached $105.7 million, or 51% of revenue, up from 47% sequentially and slightly below the prior-year 49% mark. Adjusted EBITDA came in at $55.5 million, representing a 27% margin, compared with 26% in the third quarter and 29% a year ago.

For the full year, revenue totaled $821.5 million, down 6% from $878.6 million in 2024. Gross margin held near 50%, while adjusted EBITDA totaled $229.2 million at a 28% margin. The company narrowed its net loss to $257.9 million from $341.9 million the previous year, largely because of smaller impairment charges. Fourth-quarter net loss stood at $183.4 million.

Operating cash flow for the quarter totaled $14 million, down from $44 million a year earlier, while capital spending fell to $9 million from $14 million. Full-year cash flow from operations dropped to $53 million from $112 million, and capital expenditures declined sharply to $41 million from $99 million, reflecting a more measured approach to spending. Cash and equivalents ended the year at $82.7 million, with total debt at $400 million net of issuance costs.

Verano highlighted several operational steps in its release. The company secured and later upsized a revolving credit facility before closing a $195 million senior secured term loan at an initial 9.5% interest rate with favorable terms. It redomiciled from Canada to Nevada, settled litigation with Vireo, and won a conditional license in Texas. Retail expansion continued with new dispensaries in Ohio and West Virginia, bringing the total to 160 locations across 13 states, supported by 14 production facilities and more than 1.1 million square feet of cultivation space.

Founder, Chairman, and CEO George Archos said the team delivered efficiencies through cultivation automation and new product launches, including the all-in-one pod system and partnerships that helped secure top-three market share positions across competing categories. He noted the company’s presence in Florida, Pennsylvania, Virginia and Texas positions it for potential growth if federal rescheduling advances.

Verano’s earnings reflect the broader challenges facing U.S. Cannabis operators, including widespread price compression and heightened competition, yet the firm demonstrated discipline by cutting capital outlays, controlling selling and administrative costs, and strengthening its balance sheet. The debt refinancing and reduced spending provide breathing room as Verano eyes targeted investments in 2026.

The overall picture here points to steady operational progress beneath the headline softness. Verano enters 2026 with leaner costs, stronger liquidity access, and a strategic footprint in states likely to benefit from any federal policy shifts. Execution on efficiency gains and new retail or wholesale opportunities will determine whether these foundations translate into sustained profitability, but the groundwork laid in 2025 leaves the company better prepared than many peers for whatever regulatory or market conditions emerge next.