[PRESS RELEASE] – CHICAGO, Feb. 27, 2025 – Verano Holdings Corp., a leading multistate cannabis company, announced its financial results for the fourth quarter and full year ended Dec. 31, 2024, which were prepared in accordance with U.S. generally accepted accounting principles (GAAP).
Fourth Quarter 2024 Financial Highlights
Revenues, net of discounts, of $218 million, a decrease of 8% year-over-year, and an increase of 1% versus the prior quarter.Gross profit of $108 million or 49% of revenue.SG&A expense of $84 million or 38% of revenue.Net loss of $(273) million or (125)% of revenue.Adjusted EBITDA1 of $63 million or 29% of revenue.Net cash provided by operating activities of $44 million.Capital expenditures of $14 million.
Full Year 2024 Financial Highlights
Revenues, net of discounts, of $879 million, a decrease of 6% year-over-year.Gross profit of $444 million or 51% of revenue.SG&A expense of $353 million or 40% of revenue.Net loss of $(342) million or (39)% of revenue.Adjusted EBITDA1 of $264 million or 30% of revenue.Net cash provided by operating activities of $112 million.Capital expenditures of $99 million.
A line-by-line breakdown of the fourth quarter and full-year 2024 financial highlights is viewable here.
Management Commentary
“I am tremendously proud of our team’s resilience in 2024, a year in which we laid the foundation to strengthen and optimize our core business to pursue long-term growth,” Verano founder, Chairman and CEO George Archos said. “Throughout a dynamic 2024, we entered the valuable Virginia market and bolstered our footprint in Arizona, brought 17 new dispensaries online in six key markets, celebrated adult-use sales in Ohio, and launched a series of exciting new products across the fastest-growing categories.
“Looking ahead, we have a clear vision to harness innovation, automation and differentiation across all parts of the business to fuel our continued evolution and never-ending pursuit of quality and excellence. I’m confident in our ability to move with speed and agility in pursuit of growth and look forward to continuing to build Verano into a cannabis powerhouse in 2025 and beyond.”
Fourth Quarter 2024 Financial Overview
Revenue for the fourth quarter of 2024 was $218 million, down from $237 million for the fourth quarter of 2023, and up from $217 million for the third quarter of 2024. The decrease in revenue for the fourth quarter of 2024 compared to the fourth quarter of 2023 was driven primarily by an increase in promotional activity and price compression in key markets.
Gross profit for the fourth quarter of 2024 was $108 million or 49% of revenue, down from $118 million or 50% of revenue for the fourth quarter of 2023, and down from $109 million or 50% of revenue for the third quarter of 2024. The decrease in gross profit for the fourth quarter of 2024 compared to the fourth quarter of 2023 was primarily due to declines in revenue.
SG&A expense for the fourth quarter of 2024 was $84 million or 38% of revenue, down from $86 million or 36% of revenue for the fourth quarter of 2023, and down from $92 million or 43% of revenue for the third quarter of 2024. The decrease in SG&A expense for the fourth quarter of 2024 compared to the fourth quarter of 2023 was driven primarily by operational and headcount optimization and limited new store openings.
Net loss for the fourth quarter of 2024 was $(273) million or (125)% of revenue, versus $(77) million or (33)% of revenue in the fourth quarter of 2023. The increase in net loss for the fourth quarter of 2024 compared to the fourth quarter of 2023 was attributed to the fixed and intangible asset impairments and fair value measurements.
Adjusted EBITDA1 for the fourth quarter of 2024 was $63 million or 29% of revenue.
Net cash provided by operating activities for the fourth quarter of 2024 was $44 million, up from $32 million for the fourth quarter of 2023.
Capital expenditures for the fourth quarter of 2024 were $14 million, up from $10 million for the fourth quarter of 2023.
Full Year 2024 Financial Overview
Revenue for the full year of 2024 was $879 million, down from $938 million for the full year of 2023. The decrease in revenue for the full year of 2024 compared to the full year of 2023 was driven primarily by expected declines in Illinois and New Jersey due to increased retail competition, and a temporary shift in cultivation output in Florida.
Gross profit for the full year of 2024 was $444 million or 51% of revenue, down from $475 million or 51% of revenue for the full year of 2023. The decrease in gross profit for the full year of 2024 compared to the full year of 2023 was primarily attributable to the decline in 2024 revenue.
SG&A expense for the full year of 2024 was $353 million or 40% of revenue, up from $332 million or 35% of revenue for the full year 2023. The increase in SG&A expense for the full year 2024 compared to the full year 2023 was driven primarily by enhancements in processes and technology, and an increase in salaries and benefits, due to new store openings and acquisition activity.
Net loss for the full year of 2024 was $(342) million, or (39)% of revenue, up from $(117) million, or (13)% of revenue in the full year of 2023. The increase in net loss for the full year of 2024 compared to the full year of 2023 was largely driven by fixed and intangible asset impairments and fair value measurements.
Adjusted EBITDA1 for the full year of 2024 was $264 million or 30% of revenue.
Net cash provided by operating activities for the full year of 2024 was $112 million, up from $110 million for the full year of 2023.
Capital expenditures for the full year of 2024 were $99 million, up from $36 million for the full year of 2023.
2025 Guidance
The company anticipates 2025 capital expenditures to range between $25 million and $40 million.
Fourth Quarter 2024 Operational Highlights
Initiated “Save the BITS,” a fundraising campaign featuring BITS edibles and a coalition of hundreds of dispensaries across eight states in support of the Lynn Sage Breast Cancer Foundation. Commenced adult-use sales at Zen Leaf Waterbury, completing the conversion of all five existing Connecticut Zen Leaf dispensaries from medical to hybrid sales. Expanded the company’s retail footprint by opening Zen Leaf Mount Holly, elevating the company’s New Jersey footprint to four dispensaries statewide. Launched three new product extensions to respond to market demand and growing consumer trends, including: BITS Dragonfruit LOL gummies, the brand’s sixth flavor offering a tailored combination of 5 milligrams of THC, cannabinoids and adaptogens; (the) Essence J’s barrel-style pre-roll joints, tapping into the industry’s fastest-growing category while harnessing the power of cutting-edge manufacturing innovation that exponentially increases output; and Extra Savvy 2-gram vape cartridges in Illinois, New Jersey, Maryland and Arizona, accounting for three of the top five best-selling products in Zen Leaf stores in Illinois since launching in December.
Subsequent Operational Highlights
In January, the company terminated commercial agreements pertaining to a retail dispensary in Arkansas and sold the real estate leased by the dispensary for a profit. Expanded the company’s retail footprint in Florida, with the opening of MÜV™ North Miami, raising the company’s current statewide retail footprint to 80 dispensaries. Current operations span 13 states, comprised of 153 dispensaries and 15 production facilities with more than 1.1 million square feet of cultivation capacity.
Balance Sheet and Liquidity
As of Dec. 31, 2024, the company’s current assets were $358 million, including cash and cash equivalents of $88 million. The company had a working capital of $160 million and total debt, net of issuance costs, of $414 million.
The company’s total Class A subordinate voting shares outstanding was 358,747,290 as of Dec. 31, 2024.
1Adjusted EBITDA and adjusted EBITDA as a percentage of revenue (“adjusted EBITDA margin”) are non-U.S. GAAP financial measures. Each is derived from EBITDA, another non-U.S. GAAP financial measure, and is defined in this news release in the section below titled “Non-U.S. GAAP Financial Measures.” The most directly comparable U.S. GAAP financial measure to adjusted EBITDA is net income (loss) and the most directly comparable measure to adjusted EBITDA margin is net income (loss) as a percentage of revenue (“net income (loss) margin”). The reconciliation of (i) adjusted EBITDA to U.S. GAAP net income (loss) and (ii) adjusted EBITDA margin to net income (loss) margin is set forth below in the tables included in this news release.
The cannabis company also reported a gross profit of $444 million but a net loss of $342 million for the year. Read More
