Verano Holdings Corp.

What they do

Verano cultivates, processes, distributes, and sells cannabis products in the U.S., operating through a seed-to-sale model. It sells products under consumer brands including Encore, Avexia, M V, Savvy, (the) Essence, BITS, HYPHEN, Swift Lifts, CTPharma, and Verano, and operates retail dispensaries under the Zen Leaf and M V banners. The company serves both medical and adult-use markets; in 2025, 53% of revenue came from medical-use sales and 47% from adult-use sales. Federal law prohibits interstate transport, so operations are confined to state boundaries.

Revenue drivers

• Retail dispensaries — Sells cannabis directly to consumers through 163 dispensaries (85 in Florida, others elsewhere); retail operation is a primary revenue source.
• Wholesale distribution — Distributes products to other cannabis retailers/operators within states; leverages its cultivation capacity to generate wholesale revenue.
• Medical-use sales — Medical-use sales comprised approximately 53% of consolidated revenues in 2025, reflecting strong patient-focused sales across states with medical programs.
• Adult-use sales — Adult-use sales comprised approximately 47% of 2025 revenues; growth could be driven by upcoming Virginia adult-use market launch in July 2027.

Recent performance

In the second quarter of 2026 (ended June 30, 2026), revenue was $218 million, up 5% sequentially from $208 million in Q1 2026 and up 8% year-over-year from $202 million in Q2 2025. Gross profit was $100 million (46% of revenue), down from $113 million (56%) in Q2 2025. Net loss narrowed to $13 million (6% of revenue) from $19 million (9%) in the prior-year period. Operating cash flow improved to $31 million in Q2 2026, up from $11 million in Q2 2025.

Strategy

Verano plans to deepen its engagement in U.S. capital markets and pursue a prospective U.S. stock exchange listing, having completed a 1-for-5 reverse stock split and initiated a $20 million stock repurchase authorization in Q2 2026. The company is expanding its Florida retail footprint, having opened new dispensaries in Miramar Beach and Bradfordville, and plans additional retail expansion and product innovation for the remainder of 2026. It is also leveraging federal medical cannabis rescheduling to Schedule III by submitting DEA registration applications, and is preparing for the Virginia adult-use market launch in July 2027.

Risks

• Federal illegality and enforcement — Cannabis remains illegal under U.S. federal law, creating risks of prosecution, asset forfeiture, and obstacles to banking and financing.
• Rescheduling uncertainty — The April 2026 final order rescheduling medical cannabis to Schedule III could face legal challenges or be reversed; adult-use remains Schedule I, and implementation may not benefit the company.
• Competition from large players — Rescheduling could lower barriers to entry, attracting well-capitalized institutional competitors that may pressure market share.
• Debt and liquidity — As of June 30, 2026, the company had $382 million in long-term debt and $85 million in cash, and while annual revenue declined in 2025, it still reported net losses.

Outlook

Management expects continued revenue growth, citing three consecutive quarters of gains, and plans to add more retail locations and launch new products in the second half of 2026. The company tightened its 2026 capital expenditures guidance to $40–$50 million. Management also highlights the upcoming Virginia adult-use market launch in July 2027 as a potential growth catalyst.