Verano lifts third-quarter revenue 5% to $212.443 million as cash flow improves
Key Facts
Verano Holdings reported results on October 29 for the third quarter ended September 30, 2026, posting revenue after discounts of $212.443 million, up 5% from $202.810 million in the year-earlier period. Net loss attributable to the company fell to $4.065 million from a loss of $43.832 million a year earlier. The company prepared its financial statements in accordance with U.S. generally accepted accounting principles. Results showed contrasting performance in its two main businesses: retail revenue grew, while revenue from cultivation for wholesale declined. Net cash provided by operating activities was $49 million, up from $26 million in the third quarter of 2025.
The company said quarterly operating cash flow was its highest in four years. Cash flow also improved in the first nine months of 2026, reaching $98 million compared with $39 million in the same period of 2025. Capital expenditures, meanwhile, rose to $40 million in the nine-month period from $32 million. Current assets totaled $416 million on September 30, including $102 million in cash and cash equivalents. The company also reported working capital of $301 million and total debt of $390 million, net of issuance costs.
Retail revenue rose 9% to $179.323 million in the quarter, compared with $164.462 million a year earlier. The company attributed the growth to momentum from new products, including continued expansion of the HYPHEN and Swift Lifts brands. In its report, it said product launches, strategic collaborations and new store openings supported revenue, along with extended operating hours in Florida and Illinois. It also cited growth in Florida, Illinois, Maryland and Pennsylvania markets and operational improvements. Verano opened the MÜV Bradfordville dispensary, bringing its Florida dispensary count to 86 and its nationwide locations to 163, and launched Easy Landings as its first national beverage brand.
Wholesale cultivation revenue, by contrast, fell 9.8% to $73.921 million from $81.951 million in the third quarter of 2025. The company attributed the decline to pricing pressure, increased competition and promotional activity in some markets, including Connecticut. It also said some third-party customers increased the integration of their operations, affecting demand for wholesale products. Delays in regulatory approvals for some products in Ohio also weighed on revenue, the company said. Reflecting the differing pace of its two segments, retail's share of revenue, excluding intersegment eliminations, rose to 70.8% from 66.7% a year earlier, while wholesale cultivation's share fell to 29.2% from 33.3%.
For the nine months ended September 30, revenue rose to $638.539 million from $614.891 million in the year-earlier period, an increase of 3.8%. Net loss for the period narrowed to $35.299 million from $74.497 million a year earlier. Gross profit, however, fell to $298.713 million from $307.802 million, putting the decline in that measure alongside improvements in net loss and cash flow. The company said the quarterly reduction in net loss was mainly tied to a $21.173 million decrease in the income tax provision, a $15.963 million decline in net other expenses and a $4.801 million increase in gross profit. A $3.946 million increase in general and administrative expenses partly offset those effects.
Verano raised its 2026 capital expenditure guidance to a range of $54 million to $60 million. This follows capital spending of $40 million in the first nine months, compared with $32 million in the year-earlier period. In a development in one of the company's markets, Virginia's Cannabis Control Authority said retail sales for adult use will begin on July 1, 2027. In trading, VRNO shares closed at $5.01 on October 30, after closing at $5.15 on October 29. The company reported results on October 29, when a report published the same day said the stock was trading at $5.10, up 0.2% from the previous close.