Verano Holdings (TSE:VRNO)
NEO-L:VRNO
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Verano Holdings
(NEO-L:VRNO)
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Rating:48Neutral
Price Target:
C$6.50
▲(2.85% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Verano Holdings (VRNO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.17B
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)N/A
Revenue Growth-4.58%
EPS Growth-141.91%
CountryCA
Employees3,800
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.69
Shares Outstanding363,245,500
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.65
Price to Sales (P/S)0.55
P/FCF Ratio38.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.03Price Target Upside-20.38% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.05
Revenue Forecast (FY)C$829.52M
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, Conn...
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-busin...
Verano Holdings Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong retail growth and improved margins due to cost management and efficiency efforts. However, significant challenges remain with declining wholesale revenue, increased net loss, and ongoing market pressures.Positive Updates
Strong Retail Revenue Growth
Verano generated $169 million in retail revenue in Q2 2025, marking a 3% increase compared to the prior year. This growth was driven by organic expansion in Ohio and contributions from acquired assets in Virginia and Arizona.
Negative Updates
Decline in Wholesale Revenue
Wholesale revenue fell to $73 million, down 8% sequentially and 21% year-over-year, due to increased competition and a strategic accounts receivable focus.
Read all updates
Q2-2025 Updates
Positive
Negative
Strong Retail Revenue Growth
Verano generated $169 million in retail revenue in Q2 2025, marking a 3% increase compared to the prior year. This growth was driven by organic expansion in Ohio and contributions from acquired assets in Virginia and Arizona.
Read all positive updates
Company Guidance
During the Verano Second Quarter 2025 Earnings Conference Call, the company reported a revenue of $202 million, a gross profit of $113 million, and an adjusted EBITDA of $66 million, or 33% of revenue. Despite a 4% sequential and 9% year-over-year decline in total revenue, retail revenue grew 3% compared to the previous year, driven by organic growth in Ohio and acquired assets in Virginia and Arizona. The wholesale segment generated $73 million, impacted by increased competition and a strategic accounts receivable approach. The company maintained a gross margin of 56%, attributed to operational efficiencies, especially in Florida and Illinois. SG&A expenses were stable at $86 million, with a net loss of $19 million due to higher income tax provisions. Verano ended the quarter with $69 million in cash and cash equivalents, with expectations to bolster cash reserves in the latter half of the year. Looking ahead, Verano aims to continue cost management, enhance its product pipeline, and focus on strategic growth in key markets like Florida, Virginia, and Pennsylvania, while addressing industry-wide credit challenges.Verano Holdings Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
45
Neutral
| 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
Negative
6.32
Price Trends
6.32
Positive
6.32
Negative
6.32
Negative
Market Momentum
<0.01
Neutral
100.00
Negative
81.97
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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | C$1.85B | 16.23 | 6.29% | ― | 6.18% | -28.69% | |
56 Neutral | C$1.40B | -13.95 | -9.71% | ― | 4.27% | 3.41% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | C$2.15B | -7.89 | -28.58% | ― | -3.38% | -31.35% | |
48 Neutral | C$2.17B | -1.75 | -30.10% | ― | -4.58% | -141.91% | |
47 Neutral | C$118.02M | -2.14 | 88.51% | ― | 3.17% | -24.07% | |
45 Neutral | C$507.68M | -3.01 | -33.00% | ― | -6.48% | 22.63% |
* Healthcare Sector Average
TSE:VRNO
Verano Holdings
6.32
0.00
0.00%
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0.60
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2.77
1.34
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TSE:GTII
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8.00
-0.08
-0.99%
TSE:TRUL
Trulieve Cannabis
7.30
1.78
32.25%
TSE:CL
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0.03
2.70%
Verano Holdings Corporate Events
Financial Disclosures
Verano Sets March 12 Date to Unveil Q4 and 2025 Results
Neutral
Mar 6, 2026
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 giv...
Business Operations and Strategy
Verano Extends Florida Footprint With Opening of Fifth MÜV Dispensary in Volusia County
Positive
Jan 27, 2026
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...
Business Operations and StrategyPrivate Placements and Financing
Verano Upsizes Revolving Credit Facility to $100 Million and Extends Maturity
Positive
Jan 15, 2026
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 certa...
Business Operations and StrategyProduct-Related Announcements
Verano Spins Off Swift Lifts as Standalone Brand to Target Booming Pre-Roll Market
Positive
Jan 14, 2026
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...
Business Operations and Strategy
Verano Opens Sixth West Virginia Dispensary with Zen Leaf Charleston
Positive
Dec 30, 2025
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 Wes...
Business Operations and StrategyRegulatory Filings and Compliance
Verano Hails U.S. Cannabis Rescheduling as Transformative Industry Milestone
Positive
Dec 18, 2025
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.