Thu, May 8, 11:07 AM (15 days ago)
**Verano Holdings Corp. (VRNOF) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $209.8M, down 5.2% YoY due to increased competition and promotional activities in key markets like New Jersey and Illinois. - **Gross Profit:** $99.6M, a 12% decrease YoY, with a gross margin of 47.5%. - **Net Loss:** $11.5M, an increase of $6.7M YoY, driven by revenue decline and increased tax provisions. - **Cash Flow:** Positive operating cash flow of $1.8M, but negative free cash flow due to capital expenditures. - **Liquidity:** $84.2M in cash and cash equivalents, with working capital of $193.5M. **Profit Margins & Earnings:** - **Gross Margin:** 47.5%, down from 51% YoY. - **Operating Margin:** Negative, with operating loss of $9.2M. - **Net Margin:** Negative, with a net loss margin of 5.5%. **Segment Performance:** - **Retail:** 68% of total revenue, slight increase YoY. - **Wholesale (Cultivation):** 32% of total revenue, decrease due to reduced third-party sales. **Trends & Uncertainties:** - Continued expansion and acquisition strategy. - Uncertainty due to U.S. federal cannabis laws and potential trade policy changes. - Increased competition and promotional activities in key markets. **Future Operations Impact:** - Focus on efficiency enhancements and strategic retail expansion. - Updated capital expenditure guidance of $30-45M for 2025. - Potential impact from U.S. trade policy changes and tariffs on supply chain and costs.