Verano Holdings (VRNO) AI Stock Analysis

• Market Cap: C$2.17B
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: -4.58%
• EPS Growth: -141.91%
• Country: CA
• Employees: 3,800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.69
• Shares Outstanding: 363,245,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.07
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 38.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$5.29
• Price Target Upside: -16.29% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.05
• Revenue Forecast (FY): C$829.52M

• Rating: 48 Neutral
• Price Target: C$6.50 ▲(2.85% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is primarily held back by persistent sizable net losses, weakening equity/negative returns, and fading free cash flow despite a 2025 operating rebound. Technicals show overbought signals without clear trend strength, while valuation is constrained by negative earnings and no dividend support.

Positive Factors

Vertical integration & multi-channel model

Verano’s vertically integrated model—cultivation, manufacturing, wholesale and company-operated retail—creates durable margin capture and distribution control. Owning retail outlets preserves full retail margin and diversifies revenue sources, reducing reliance on any single channel.

2025 operating rebound and margin recovery

A material 2025 revenue rebound with ~51% gross margin and positive operating profit indicates structural improvements in cost control and product mix. Sustained operating profitability provides a foundation to convert future revenue growth into lasting earnings if below-the-line costs are managed.

Positive operating cash flow

Positive operating cash flow demonstrates the business currently generates cash from core operations, supporting working capital, production investment and retail operations. This cash generation is a durable buffer versus pure accrual profits and aids near-term operational resilience.

Negative Factors

Large net losses & negative returns

Persistent large net losses and deeply negative ROE indicate below-the-line costs or financing/one-offs are eroding shareholder value. Over months this weakens equity cushions, limits retained earnings, and raises the bar for sustainable profitability even if operating margins improve.

Thin and declining free cash flow

A steep ~68% decline to minimal free cash flow constrains the company’s ability to fund growth, repay debt, or absorb shocks without external capital. Over a multi-month horizon, weak FCF increases the likelihood of refinancing needs or dilutive financing for expansion.

Rising leverage and weakening equity

An increasing debt-to-equity ratio alongside declining equity reduces financial flexibility in a capital-intensive, regulated industry. Higher leverage heightens refinancing and covenant risk and makes funding new stores or production capacity more costly or dilutive over the medium term.

Verano Holdings Business Overview & Revenue Model

Company Description

Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. The company engages in the cultivation, processing, wholesale, and retail distribution of cannabis in Arizona, Arkansas, California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, Ohio, Pennsylvania, and West Virginia. It offers artisanal cannabis products under the Encore, Avexia, MUV, Savvy, BITS, and Verano brands for medical and adult-use markets. The company is headquartered in Chicago, Illinois.

How the Company Makes Money

Verano primarily makes money by selling cannabis products through two main channels: (1) retail sales at its company-operated dispensaries (direct-to-consumer) and (2) wholesale sales to other licensed dispensaries and operators (business-to-business). Retail revenue is generated when consumers purchase Verano-produced or third-party cannabis products in-store; this channel typically captures the full retail margin and benefits from store traffic, merchandising, and product mix. Wholesale revenue is generated when Verano sells flower and manufactured cannabis products (e.g., concentrates, vape products, edibles) produced at its cultivation and processing facilities to external retailers within the same state regulatory system. The company’s vertical integration (cultivation/processing plus retail) can support earnings by supplying its own stores (internal production sold at retail) while also placing products into third-party stores via wholesale, subject to state-by-state rules. Additional contributors to revenue can include licensing of products/brands where allowed and the expansion of retail footprint and production capacity through new store openings and acquisitions; however, specific partnership details are null.

Verano Holdings Financial Statement Overview

Summary

Operations improved in 2025 with strong revenue growth (+33.5%), ~51% gross margin, and positive operating profit, but the company still reports large net losses (~-31% net margin). The balance sheet is only moderately levered (debt-to-equity ~0.71) yet weakening as equity has declined and ROE remains deeply negative (~-37%). Cash flow is positive (~$54M) but down materially versus prior years, and free cash flow is thin (~$12M) with a sharp decline (~-68%).

Income Statement

Revenue has been volatile: strong growth in 2025 (+33.5%) after declines in 2023–2024, with 2025 sales still below the 2022 peak. Profitability at the operating level improved meaningfully in 2025 (positive operating profit and a solid gross margin ~51%), rebounding from weak 2024 results. However, the company continues to post large net losses (2025 net margin ~-31%), indicating heavy below-the-line costs and limiting the quality of the earnings recovery.

Balance Sheet

Leverage is moderate with debt-to-equity at ~0.71 in 2025, but it has risen versus 2021–2024 levels, reducing financial flexibility. Equity remains sizable, yet it has declined notably since 2023, and returns to shareholders remain negative (2025 return on equity ~-37%), reflecting persistent losses. Overall, the balance sheet is not overly levered, but weakening equity and ongoing net losses elevate risk.

Cash Flow

Operating cash flow remains positive in 2025 (~$54M), but it has stepped down materially from prior years (e.g., 2023–2024), and free cash flow is thin (~$12M) with a sharp decline in 2025 (free cash flow down ~68%). Cash generation is not consistently translating into strong residual cash after spending, and while cash flow is better than net income (net income remains deeply negative), the overall cash profile looks pressured versus the company’s earlier performance.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	835.88M	878.59M	938.45M	1.14B	925.07M
Gross Profit	428.67M	443.93M	475.21M	534.79M	405.23M
EBITDA	221.72M	-94.29M	239.22M	47.32M	212.51M
Net Income	-262.42M	-341.86M	-117.35M	-350.41M	-72.10M
Balance Sheet
Total Assets	1.76B	1.99B	3.08B	3.26B	3.22B
Cash, Cash Equivalents and Short-Term Investments	82.57M	87.80M	230.44M	114.97M	125.20M
Total Debt	501.88M	522.98M	542.79M	675.78M	446.27M
Total Liabilities	1.06B	1.04B	1.45B	1.45B	1.35B
Stockholders Equity	702.87M	952.17M	1.64B	1.82B	1.87B
Cash Flow
Free Cash Flow	11.83M	13.15M	99.04M	-32.32M	54.55M
Operating Cash Flow	53.78M	112.19M	148.07M	122.83M	242.15M
Investing Cash Flow	-33.17M	-133.25M	-63.98M	-270.59M	-582.27M
Financing Cash Flow	-25.76M	-65.93M	27.60M	129.20M	443.82M

Verano Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Neutral
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VRNO, the sentiment is Negative. The current price of 6.32 is above the 20-day moving average (MA) of 6.32, above the 50-day MA of 6.32, and below the 200-day MA of 6.32, indicating a neutral trend. The MACD of <0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 81.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VRNO.

Verano Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTII	65 Neutral	C$1.97B	16.23	6.29%	―	6.18%	-28.69%
TRUL	56 Neutral	C$1.58B	-13.95	-9.71%	―	4.27%	3.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CURA	50 Neutral	C$2.33B	-8.05	-28.58%	―	-3.38%	-31.35%
VRNO	48 Neutral	C$2.17B	-1.75	-30.10%	―	-4.58%	-141.91%
JUSH	47 Neutral	C$121.95M	-2.14	88.51%	―	3.17%	-24.07%
CL	45 Neutral	C$570.03M	-3.01	-33.00%	―	-6.48%	22.63%

Verano Holdings Corporate Events

Verano Sets March 12 Date to Unveil Q4 and 2025 Results

Verano Holdings said it will release its fourth-quarter and full-year 2025 financial results before the market opens on March 12, 2026, followed by a conference call and webcast with analysts and investors that morning. The disclosure timeline gives shareholders and market watchers a near-term catalyst to assess the company’s performance and strategy in the competitive U.S. cannabis sector, with the webcast also archived on its investor relations site for broader accessibility.

The most recent analyst rating on (TSE:VRNO) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Extends Florida Footprint With Opening of Fifth MÜV Dispensary in Volusia County

Verano Holdings has expanded its Florida retail presence with the opening of MÜV Deltona, its fifth dispensary in Volusia County and 83rd in the state, bringing its nationwide dispensary count to 160. The new store, strategically located on a busy Deltona thoroughfare, underscores Verano’s continued push into Florida’s growing medical cannabis market, supported by aggressive promotional offers, recent product launches in fast-growing categories such as multi-pack pre-rolls and therapeutic topicals, and a focus on patient services and digital ordering that strengthens its competitive position and deepens its footprint in a key growth region.

The most recent analyst rating on (TSE:VRNO) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Upsizes Revolving Credit Facility to $100 Million and Extends Maturity

Verano Holdings has amended its revolving credit facility, increasing the commitment from $75 million to $100 million and extending the maturity date from September 29, 2028 to February 28, 2029, without pledging additional collateral beyond certain owned real estate. The upsized facility, under which $50 million has already been drawn, carries a floating interest rate of SOFR plus 6% (with a 4% SOFR floor), requires no amortization payments, and offers flexible repayment and the potential release of pledged real estate, enhancing Verano’s access to lower-cost debt and financial flexibility as it continues to optimize its balance sheet and pursue ongoing debt refinancing efforts.

The most recent analyst rating on (TSE:VRNO) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Spins Off Swift Lifts as Standalone Brand to Target Booming Pre-Roll Market

Verano Holdings has launched Swift Lifts as a standalone pre-roll brand, separating it from the flagship Verano line and positioning it squarely in the fast-growing pre-rolled joint segment. The Swift Lifts portfolio features three core formats—Short Lifts, Swift Lifts and Long Lifts—tailored for different consumption occasions, and is initially rolling out across Zen Leaf dispensaries and third-party partners in Arizona, Illinois, Maryland, New Jersey and Nevada, with expansion planned to Connecticut, Virginia and Florida’s MÜV stores. The company plans to follow with infused and coated variants, including Diamond Infused products, underscoring a strategy to deepen its presence in pre-rolls, which grew more than 22% in 2025 and now represent over 13% of U.S. cannabis sales, potentially strengthening Verano’s competitive position and share in one of the industry’s most dynamic categories.

The most recent analyst rating on (TSE:VRNO) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Opens Sixth West Virginia Dispensary with Zen Leaf Charleston

Verano has expanded its medical cannabis retail presence in West Virginia with the opening of Zen Leaf Charleston, its sixth dispensary in the state and 159th location nationwide, strategically located in the state capital to serve patients in West Virginia’s most populous city. The new outlet builds on Verano’s vertically integrated operations in the state, which include a 40,000-square-foot cultivation and processing facility in Beaver producing multiple in-house brands, and underscores the company’s push to deepen its footprint in a market with more than 35,000 registered medical cannabis patients, enhancing access, brand visibility and scale advantages for both patients and the company’s broader U.S. network.

The most recent analyst rating on (TSE:VRNO) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Hails U.S. Cannabis Rescheduling as Transformative Industry Milestone

Verano Holdings Corp., a major U.S. cannabis operator with 158 dispensaries across 13 states and extensive cultivation and processing capacity, sells a broad portfolio of branded cannabis products for both medical and adult-use markets through its Zen Leaf and MÜV retail banners and related consumer offerings. The company is publicly celebrating President Donald Trump’s executive order directing the Department of Justice to move cannabis from Schedule I to Schedule III under the Controlled Substances Act, highlighting the potential for expanded medical research, improved access to banking, tax relief and the possibility of a U.S. stock exchange listing; Verano’s leadership frames the policy shift as a transformative milestone that could accelerate industry normalization, job creation, and broader economic and community benefits for cannabis businesses of all sizes.

The most recent analyst rating on (TSE:VRNO) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.