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): 1.61
• Revenue Growth: -4.13%
• EPS Growth: -218.59%
• Country: CA
• Employees: 3,800
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.04
• Shares Outstanding: 359,718,320
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.37
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: 7.24
• 1Y Price Target: $4.49
• Price Target Upside: -28.94% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: C$6.50 ▲(2.85%Upside)

The overall score reflects financial struggles, especially with declining revenues and profitability impacting the financial performance. Technical analysis indicates potential overbought conditions, while valuation concerns due to negative earnings further weigh on the score. However, positive corporate events offer some optimism for future growth and market positioning.

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 through multiple streams, primarily from the sale of cannabis products across its retail dispensaries and wholesale distribution channels. The company cultivates and processes cannabis in its state-of-the-art facilities, ensuring a consistent supply of high-quality products. Retail sales contribute significantly to Verano's revenue, as the company operates numerous dispensaries in key markets. Additionally, it engages in wholesale transactions, supplying cannabis products to other dispensaries and third-party retailers. Verano's strategic partnerships and acquisitions often enhance its market presence and expand its product offerings, further bolstering its revenue generation capabilities. The company also benefits from its strong brand portfolio, which attracts a loyal customer base and drives sales growth.

Verano Holdings Financial Statement Overview

Summary

Verano Holdings faces significant challenges with declining revenues and profitability, compressing margins, and negative equity returns. Despite stable debt levels, cash flow generation inconsistencies raise concerns about future liquidity and financial flexibility.

Income Statement

Verano Holdings shows declining revenue and profitability. The TTM revenue is slightly lower than the previous annual period, and gross profit margin is compressing. The company struggles with negative EBIT and net profit margins, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet indicates moderate financial health. The debt-to-equity ratio remains relatively stable, showing average leverage. However, the equity ratio has decreased, and return on equity is negative, highlighting profitability issues.

Cash Flow

Cash flow analysis shows mixed results. Operating cash flow remains positive, but free cash flow has recently turned negative, indicating potential liquidity concerns. Free cash flow to net income ratios are unfavorable due to persistent net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	867.09M	878.59M	938.45M	1.14B	925.07M	306.53M
Gross Profit	430.55M	443.93M	475.21M	534.79M	405.23M	157.02M
EBITDA	-100.40M	-94.29M	239.22M	47.32M	212.51M	97.76M
Net Income	-348.55M	-341.86M	-117.35M	-350.41M	-72.10M	51.51M
Balance Sheet
Total Assets	1.97B	1.99B	3.08B	3.26B	3.22B	419.98M
Cash, Cash Equivalents and Short-Term Investments	84.22M	87.80M	230.44M	114.97M	125.20M	20.90M
Total Debt	528.71M	522.98M	542.79M	675.78M	446.27M	67.17M
Total Liabilities	1.03B	1.04B	1.45B	1.45B	1.35B	224.55M
Stockholders Equity	943.38M	952.17M	1.64B	1.82B	1.87B	187.48M
Cash Flow
Free Cash Flow	-20.27M	13.15M	99.04M	-32.32M	54.55M	10.79M
Operating Cash Flow	82.94M	112.19M	148.07M	122.83M	242.15M	100.88M
Investing Cash Flow	-128.32M	-133.25M	-63.98M	-270.59M	-582.27M	-119.07M
Financing Cash Flow	-64.20M	-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
VRNO	57 Neutral	$2.17B	―	-31.94%	―	-4.13%	-218.59%
Sector *	52 Neutral	$7.53B	0.20	-61.87%	2.28%	16.72%	1.10%
ACB		$256.33M	98.95	3.05%	―	―	―
CURLF		$753.42M	―	-25.08%	―	―	―
GTBIF		$1.40B	30.45	2.83%	―	―	―
TCNNF		$861.01M	―	-12.39%	―	―	―
CRLBF		$267.18M	―	-17.34%	―	―	―

Verano Holdings Corporate Events

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.

Verano Holdings Reports Q1 2025 Financial Results Amidst Revenue Decline

Verano Holdings reported its financial results for the first quarter of 2025, showing a decrease in revenue to $210 million, down 5% year-over-year. The decline was attributed to increased promotional activity and price compression, although partially offset by strong sales in Ohio and contributions from recent acquisitions. Despite a net loss of $12 million, Verano expanded its retail operations, opening new dispensaries in Florida and other states, and implemented automation technologies to improve efficiency and reduce costs.

Verano Expands Florida Presence with New MÜV Dispensary

Verano Holdings Corp. has expanded its retail presence in Florida with the opening of the MÜV New Smyrna Beach dispensary, marking its 81st location in the state and 155th nationwide. This new opening, strategically located near local amenities, aims to enhance customer experience and capitalize on the 420 ‘high holiday’ with significant promotions. The expansion underscores Verano’s commitment to growing its footprint in Florida, with plans for further product launches and dispensary openings throughout 2025, thereby strengthening its market position and offering a comprehensive cannabis shopping experience.