Verano Reports Q2 2026 Financial Results

CHICAGO – Verano Holdings Corp. posted net revenue of $218 million for the three months ended June 30, 2026, up 8% year-over-year from $202 million in Q2 2025, and up 5% sequentially from $208 million in Q1 2026.

Gross profit came in at $100 million, or 46% of revenue – a meaningful step back from $113 million, or 56% of revenue, in Q2 2025. SG&A expenses rose to $92 million from $86 million a year earlier. Adjusted EBITDA reached $51 million, or 24% of revenue, compared with $66 million, or 33%, in the year-ago quarter.

Net loss for the quarter was $13 million, or 6% of revenue. That compares favorably with the $19 million net loss in Q2 2025 and the $18 million loss in Q1 2026. The standout figure, however, was cash generation. Net cash provided by operating activities reached $31 million, up from $11 million in Q2 2025. Capital expenditures totaled $12 million for the period, and the Company tightened its full-year 2026 capex guidance to a range of $40 million to $50 million.

By the period’s end, Verano held cash and equivalents of $85 million, with working capital of $295 million and total debt, net of issuance costs, of $393 million. Outstanding shares stood at approximately 73.2 million. That figure reflects the completion of a 1-for-5 reverse stock split that took effect June 11. CEO George Archos described the action as “a prudent strategic measure that prepares the Company for listing on a major U.S. exchange.” Verano also maintains an active $20 million stock repurchase authorization.

On the retail side, Verano added MÜV Miramar Beach during the quarter, its 85th Florida dispensary and 162nd location nationally. MÜV Bradfordville in Tallahassee followed after quarter-end, lifting the Florida count to 86 dispensaries and the national total to 163 locations under the Zen Leaf™ and MÜV™ banners across 13 states.

On the regulatory front, Verano’s DEA registration applications, submitted in May for select state-licensed medical Cannabis operations, reflect the company’s positioning following the Justice Department’s April 2026 process to reclassify Cannabis to Schedule III. Separately, Verano acknowledged Virginia’s passage of adult-use legislation, with retail sales in the South’s first adult-use Cannabis market scheduled to begin July 1, 2027.

Verano’s Q2 numbers present a credible but layered picture. Top-line growth for a third straight quarter carries weight in a sector still working through pricing pressure, yet the 10-percentage-point gross margin contraction year-over-year is too substantial to set aside. The tripling of operating cash flow is the most constructive signal in the release and… the most relevant for investors tracking the company’s debt servicing capacity alongside its U.S. exchange listing preparation. With the DEA registration filed, the balance sheet reinforced, and Virginia’s adult-use timeline set, H2 2026 will determine how much of Verano’s capital markets buildout converts into durable cash generation.