Verano Holdings (VRNO) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 3.31
• Revenue Growth: -5.30%
• EPS Growth: -191.63%
• Country: CA
• Employees: 3,800
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.07
• Shares Outstanding: 361,779,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $4.78
• Price Target Upside: -24.32% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 43 Neutral
• Price Target: C$6.00 ▼(-5.06% Downside)

Verano Holdings' overall stock score reflects significant financial challenges, including declining revenues and profitability issues. The technical analysis indicates potential risks due to volatility and overbought conditions. While there are some positive developments in retail growth and cost management, these are overshadowed by ongoing market pressures and financial instability.

Positive Factors

Earnings

Verano reported strong Q2 results, with profitability margins and adjusted EBITDA contribution both exceeding expectations, demonstrating strong operational execution.

Growth Potential

Verano launched adult-use sales in Ohio on the first day of market launch, positioning it as a key growth lever with significant sales potential.

Market Expansion

The acquisition of CBST's assets in Arizona and Virginia will expand Verano's operations and penetrate the Virginia medical market for the first time.

Negative Factors

Revenue Challenges

Solid growth in wholesale revenue offset by a decline in retail revenue, primarily driven by the expected productivity decline in NJ.

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 Holdings generates revenue primarily through the sale of cannabis products via its extensive retail network of dispensaries and wholesale operations. The company's vertically integrated business model allows it to control the entire supply chain from cultivation to retail, optimizing cost efficiency and product quality. Key revenue streams include direct sales to consumers through owned dispensaries, wholesale distribution to other retailers, and private label products. Strategic partnerships and acquisitions also play a role in expanding its market reach and enhancing its product offerings, further contributing to its revenue growth.

Verano Holdings Financial Statement Overview

Summary

Verano Holdings is facing financial challenges with declining revenues, significant net losses, and negative cash flow growth. While the gross profit margin is stable, the company struggles with profitability and cash flow management. The balance sheet shows moderate leverage, but the negative return on equity highlights ongoing profitability issues.

Income Statement

Verano Holdings shows declining revenue with a negative growth rate of -2.32% in TTM. The company is experiencing significant losses, with a net profit margin of -40.20% and negative EBIT and EBITDA margins, indicating operational challenges. The gross profit margin remains relatively stable at 49.18%, suggesting some efficiency in cost management despite overall financial struggles.

Balance Sheet

The debt-to-equity ratio is moderate at 0.56, indicating a balanced approach to leveraging. However, the return on equity is negative at -25.67%, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio stands at 47.76%, showing a reasonable level of equity financing relative to total assets.

Cash Flow

The company faces challenges with cash flow, as evidenced by a significant decline in free cash flow growth of -54.39% in TTM. The operating cash flow to net income ratio is 0.50, indicating some ability to generate cash from operations despite losses. However, the negative free cash flow to net income ratio highlights ongoing cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	846.97M	878.59M	938.45M	1.14B	925.07M	306.53M
Gross Profit	429.20M	443.93M	475.21M	534.79M	405.23M	157.02M
EBITDA	-98.31M	-94.29M	239.22M	47.32M	212.51M	97.76M
Net Income	-345.94M	-341.86M	-117.35M	-350.41M	-72.10M	51.51M
Balance Sheet
Total Assets	1.94B	1.99B	3.08B	3.26B	3.22B	419.98M
Cash, Cash Equivalents and Short-Term Investments	68.57M	87.80M	230.44M	114.97M	125.20M	20.90M
Total Debt	508.96M	522.98M	542.79M	675.78M	446.27M	67.17M
Total Liabilities	1.02B	1.04B	1.45B	1.45B	1.35B	224.55M
Stockholders Equity	927.23M	952.17M	1.64B	1.82B	1.87B	187.48M
Cash Flow
Free Cash Flow	-9.25M	13.15M	99.04M	-32.32M	54.55M	10.79M
Operating Cash Flow	85.92M	112.19M	148.07M	122.83M	242.15M	100.88M
Investing Cash Flow	-120.22M	-133.25M	-63.98M	-270.59M	-582.27M	-119.07M
Financing Cash Flow	-27.18M	-65.93M	27.60M	129.20M	443.82M	33.89M

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
Sector *	51 Neutral	$7.85B	-0.21	-41.41%	2.22%	22.81%	-2.01%
VRNO	43 Neutral	$2.17B	―	-32.20%	―	-5.30%	-191.63%
ACB	―	$303.95M	97.05	-0.70%	―	―	―
CURLF	―	$2.51B	―	-24.93%	―	―	―
GTBIF	―	$2.01B	71.51	1.63%	―	―	―
TCNNF	―	$1.68B	―	-12.60%	―	―	―
CRLBF	―	$667.80M	―	-10.02%	―	―	―

Verano Holdings Corporate Events

Verano Holdings Promotes James Leventis to Chief Strategy and Compliance Officer

Verano Holdings has promoted James Leventis to Chief Strategy and Compliance Officer, effective July 1, 2025. Leventis, a seasoned cannabis executive and licensed attorney, has been with the company since 2019 and has significantly contributed to its growth. His new role will involve strategic leadership over regulatory, licensing, compliance, and government affairs, enhancing Verano’s executive team as it navigates the dynamic cannabis sector. This appointment is expected to strengthen Verano’s industry positioning and support legislative advancements, benefiting the company and the broader cannabis industry.

The most recent analyst rating on (TSE:VRNO) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Holdings to Release Q2 2025 Financial Results on August 7

Verano Holdings Corp. announced it will release its second-quarter 2025 financial results on August 7, 2025, before the market opens. A conference call and webcast with analysts and investors will follow to discuss the results, reflecting the company’s commitment to transparency and engagement with its stakeholders. This announcement underscores Verano’s active role in the cannabis industry and its ongoing efforts to maintain strong investor relations.

The most recent analyst rating on (TSE:VRNO) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Holdings Launches Innovative Bodega-Style Dispensary in Phoenix

Verano Holdings has introduced a new bodega-style dispensary format at its Zen Leaf Cave Creek location in Phoenix, Arizona, aiming to revolutionize the cannabis retail experience. This innovative model allows customers to browse and select products directly from shelves, offering a modern and convenient shopping experience. The company plans to expand this format across its Arizona retail footprint and introduce in-store activation opportunities for wholesale partners, potentially enhancing consumer engagement and market positioning.

The most recent analyst rating on (TSE:VRNO) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Holdings Partners with Grow Sciences to Expand Cannabis Offerings in Illinois

Verano Holdings has announced an exclusive partnership with Arizona-based Grow Sciences to introduce a range of premium cannabis products to the Illinois market. This collaboration will see Grow Sciences’ award-winning flower, pre-rolls, and solventless extracts sold at Zen Leaf dispensaries, enhancing Verano’s product offerings and strengthening its market position in Illinois.

The most recent analyst rating on (TSE:VRNO) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Holdings Expands Connecticut Presence with Zen Leaf Enfield Opening

Verano Holdings announced the grand opening of Zen Leaf Enfield, its seventh dispensary in Connecticut, which coincides with the $250 million redevelopment of Enfield Square Mall into Enfield Marketplace. The company is actively engaging with the local community by supporting charitable causes and providing career opportunities, positioning itself as a key player in the region’s economic growth and the legal marijuana industry.

The most recent analyst rating on (TSE:VRNO) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.