Verano Holdings Corp Reports Q2 2025 Financial Results

CHICAGO – Verano Holdings Corp., a multi-state Cannabis operator, released its financial results for the second quarter of 2025, reflecting a period of operational streamlining amid market challenges. The consolidated financial statements, prepared under U.S. GAAP, highlight a mixed performance with improvements in gross margins and cash flow, despite a decline in revenue.

For Q2 2025, Verano reported net revenues of $202 million, a decrease from $222 million in Q2 2024 and $210 million in Q1 2025. The revenue drop was attributed to ongoing price compression, increased competition, and adjustments to the company’s wholesale accounts receivable strategy. However, robust sales in Florida, noteworthy contributions from Ohio’s adult-use market, and operations strategically acquired from The Cannabist Company Holdings Inc. in Q3 2024 provided some offset.

Gross profit reached $113 million, or 56% of revenue, compared to $114 million (51% of revenue) in Q2 2024 and $100 million (47% of revenue) in Q1 2025. The improved gross margin reflects more efficient cultivation yields, though overall gross profit dipped slightly due to lower revenue and increased promotional activity. Selling, general, and administrative (SG&A) expenses were $86 million, or 43% of revenue, down marginally from $87 million (39% of revenue) in Q2 2024, driven by lower depreciation and amortization costs.

The company recorded a net loss of $19 million, or 9% of revenue, an improvement from a $22 million loss (10% of revenue) in Q2 2024, primarily due to reduced other income (expense), though higher income tax provisions partially offset this gain. Adjusted EBITDA stood at $66 million, or 33% of revenue, signaling stable profitability metrics. Net cash from operating activities rose to $11 million from $8 million in Q2 2024, bolstered by operational efficiencies and lower tax payments. Capital expenditures dropped to $10 million from $19 million in Q2 2024, reflecting a focus on optimizing existing facilities.

Verano expanded its retail presence in Q2 2025, opening MÜV New Smyrna Beach, its 81st Florida dispensary, and Zen Leaf Ashford and Zen Leaf Enfield in Connecticut, bringing its total to seven dispensaries in the state and 157 nationwide. The company also introduced a novel bodega-style retail concept at Zen Leaf Cave Creek in Phoenix, offering one of the largest directly accessible Cannabis product assortments in the U.S. Additionally, Verano partnered with Grow Sciences to launch premium flower and extract products in Illinois, enhancing its craft Cannabis portfolio.

Verano’s Q2 2025 results come as the U.S. Cannabis industry navigates a complex environment marked by price pressures and regulatory shifts. The company’s focus on operational efficiency and margin improvement aligns with broader industry trends, where operators are prioritizing cost control and targeted expansion to maintain competitiveness. Ohio’s adult-use market and Florida’s substantial sales demonstrate the significance of strategic market selection, and acquisitions such as those from The Cannabist Company strengthen Verano’s geographic presence, spanning 13 states and 15 production facilities.

Verano’s management expressed optimism for the second half of 2025, citing planned dispensary openings, product innovation, and ongoing efficiency initiatives. Highly Capitalized Network notes Verano’s resilience and ability to improve margins and cash flow in a challenging quarter for all market participants. However, sustained revenue growth will depend on navigating price compression and leveraging new market opportunities. We will closely monitor how Verano balances expansion with profitability in the coming quarters, particularly as regulatory developments and consumer trends shape the U.S. Cannabis market.