On February 27, 2025, Verano Holdings Corp (VRNOF, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year ending December 31, 2024. Verano Holdings Corp is a vertically integrated multi-state cannabis operator in the United States, with operations spanning cultivation and retail segments. The company’s consumer brands include Encore, Avexia, MÜV, Savvy, BITS, and Verano, with retail dispensaries operating under brands such as Zen Leaf and MÜV.
Performance and Challenges
Verano Holdings Corp reported a net revenue of $218 million for Q4 2024, which is below the analyst estimate of $219.85 million. This represents an 8% decrease year-over-year and a slight 1% increase from the previous quarter. The decline in revenue was primarily attributed to increased promotional activity and price compression in key markets. The company also faced a significant net loss of $273 million for the quarter, a substantial increase from the $77 million loss in Q4 2023, largely due to fixed and intangible asset impairments and fair value measurements.
Financial Achievements
Despite the challenges, Verano Holdings Corp achieved a gross profit of $108 million, representing 49% of revenue for Q4 2024. The company also reported an adjusted EBITDA of $63 million, accounting for 29% of revenue. These achievements are crucial for a company in the drug manufacturing industry, as they reflect operational efficiency and the ability to generate cash flow amidst a competitive market.
Key Financial Metrics
For the full year 2024, Verano Holdings Corp reported revenues of $879 million, which is below the estimated revenue of $880.06 million, a 6% decrease from the previous year. The gross profit for the year was $444 million, maintaining a margin of 51%. The company’s SG&A expenses increased to $353 million, representing 40% of revenue, driven by enhancements in processes, technology, and increased salaries due to new store openings and acquisitions. The net loss for the year was $342 million, up from $117 million in 2023.
| Financial Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 |
|---|---|---|---|---|
| Revenue | $218 million | $237 million | $879 million | $938 million |
| Gross Profit | $108 million | $118 million | $444 million | $475 million |
| Net Loss | $(273) million | $(77) million | $(342) million | $(117) million |
| Adjusted EBITDA | $63 million | $73 million | $264 million | $305 million |
Analysis and Outlook
Verano Holdings Corp's financial results highlight the challenges faced by the cannabis industry, including market saturation and pricing pressures. The company's strategic initiatives, such as expanding its retail footprint and launching new products, are aimed at countering these challenges. The management remains optimistic about future growth, with plans to harness innovation and differentiation across its operations.
“I am tremendously proud of our team’s resilience in 2024, a year in which we laid the foundation to strengthen and optimize our core business to pursue long-term growth,” said George Archos, Verano founder, Chairman and Chief Executive Officer.
As Verano Holdings Corp continues to navigate the evolving cannabis market, its focus on operational efficiency and strategic expansion will be critical in driving future performance and shareholder value.
Explore the complete 8-K earnings release (here) from Verano Holdings Corp for further details.
