Vext Science (CSE: VEXT) (OTCQX: VEXTF) reported higher revenue during the fourth quarter and full year 2024 after positioning itself to benefit from Ohio’s new recreational cannabis market to help it weather challenges in Arizona.
The cannabis operator reported fourth-quarter revenue of $10.2 million, up 13% from the previous quarter’s $9 million and 21% higher than the $8.4 million reported in fourth quarter of 2023. The growth came primarily from Ohio, where recreational cannabis sales began in August.
For the full year financial period, which ended on Dec. 31, 2024, revenue was $36 million, a 3% increase over 2023.
“2024 was a pivotal year for Vext,” CEO Eric Offenberger said in a statement. “The launch of Ohio’s adult-use market marked an inflection point, and we are already seeing the benefits from our investments in the state.”
The company’s Ohio retail locations in Jackson and Columbus delivered around 40% growth in the fourth quarter. That helped offset weakness in Arizona, where statewide cannabis sales per store fell 25% versus the previous year.
While Vext reported a net loss of $9.2 million for the fourth quarter of 2024, it still was an improvement from the $22.4 million net loss for the full year. However, it’s a sharp rise from the third quarter, which had a $2.4 million net loss, which was primarily attributed to ramp up costs in its new market and impairments from joint ventures it’s trying to shed.
Still, Vext reported adjusted EBITDA of $3.2 million in the fourth quarter of 2024, up from $2.9 million in the third quarter of 2024 and significantly higher than the $550,621 recorded in fourth quarter 2023. Cash flow from operations turned positive in the fourth quarter, reaching $4 million.
The company also received regulatory approval to acquire two more Ohio dispensaries from Big Perm’s Dispensary Ohio LLC, which will add locations in Athens and Jeffersonville.
“As we move into 2025, our focus remains on driving free cash flow, reducing debt and maximizing shareholder value,” Offenberger said. “Today’s regulatory approval puts us on track to double our current retail footprint in Ohio.”
Vext reported a net loss of $22.4 million for 2024, versus a net income of $4.4 million in 2023, partly due to investments made to prepare for Ohio’s new recreational market. The company expects Arizona sales to decline in 2025 due to ongoing market challenges, while Ohio revenue should “sharply increase” with a full year of recreational sales.
Vext has a provisional license for a fifth Ohio dispensary in Portsmouth, which it expects to open by the third quarter. The company said it recently relocated and expanded its Jackson, Ohio, dispensary, doubling its retail and inventory space and adding drive-thru service.
In addition, the company said a strategic reduction of operations outside core markets is underway, with the company winding down its Oklahoma joint venture and withdrawing from its California joint operation. In March 2025, Vext acquired the remaining 50% interest in Vapen Kentucky, which has received a processing license under Kentucky’s new medical cannabis program.
The company converted $4.6 million of secured shareholder notes to equity in March 2024, lowering interest expenses and future debt obligations. Vext’s growth strategy aims to reach Ohio’s maximum allowable eight dispensaries by early 2026, subject to licensing and local permits.
Arizona’s market appears to be increasingly competitive, it admitted. According to its M&A filing, the state had 168 operating dispensaries at year-end, with the average store recording monthly sales of $591,933 in December 2024, down 15.5% from $700,675 in December 2023.
[[{“value”:”The company posted strong fourth quarter results despite existing market challenges and new ramp up costs.
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