Fri, May 9, 12:11 PM (46 days ago)
**Vireo Growth Inc. (VREO) Q1 2025 Financial Performance Summary** **Financial Health and Performance:** - **Revenue:** $24.54 million, a 2% increase from Q1 2024 ($24.09 million). - **Gross Profit:** $12.41 million, maintaining a 51% gross margin. - **Net Loss:** $6.51 million, slightly improved from $6.71 million in Q1 2024. - **Operating Expenses:** $10.44 million, up 39% from $7.48 million in Q1 2024, driven by increased stock-based compensation and transaction costs. - **Cash Flow:** Net cash used in operating activities was $3.32 million, an increase of $2.13 million from Q1 2024. **Profit Margins:** - **Gross Margin:** 51%, consistent with Q1 2024. - **Operating Margin:** 8.05%, down from 19.76% in Q1 2024 due to higher operating expenses. **Cash Flow:** - **Operating Cash Flow:** Negative $3.32 million, worse than the negative $1.19 million in Q1 2024. - **Investing Cash Flow:** Negative $1.15 million, slightly worse than the negative $1.05 million in Q1 2024. - **Financing Cash Flow:** Negative $0.87 million, an improvement from the negative $1.12 million in Q1 2024. **Earnings Changes:** - **Earnings per Share (EPS):** Negative $0.02, improved from negative $0.05 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased wholesale revenue, particularly in Maryland. - **Expense Increases:** Primarily due to stock-based compensation and transaction-related costs. - **Cash Flow:** Negative cash flow from operations and investing activities, with a slight improvement in financing cash flow. **Trends and Uncertainties:** - **Legal Proceedings:** Ongoing litigation with Verano Holdings Corp. poses uncertainties. - **Merger Agreements:** Pending mergers with Deep Roots, Proper, and Wholesome could impact future operations. - **Regulatory Environment:** Federal and state regulations continue to affect operations and financial performance. **Future Operations Impact:** - **Growth Initiatives:** Company aims to increase revenue through strategic mergers and organic growth. - **Cost Management:** Focus on reducing operating expenses and improving cash flow. - **Regulatory Compliance:** Continued adherence to state and federal regulations.