second quarter 2026
Filed Aug 5, 2026Verano Announces Strong Second Quarter 2026 Financial Results Highlighted by $218 Million in Revenue
Revenue increased both sequentially and year-over-year, operating cash flow improved versus the prior-year period, and adjusted EBITDA increased sequentially. Gross profit margin declined from both comparison periods, income from operations declined from both periods, and the company remained in a net-loss position.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, net of discountsGAAP | $217,918 (in thousands) | 5% | 8% |
| Gross profitGAAP | $99,699 (in thousands) | – | – |
| Gross profit marginGAAP | 46% of revenue | – | – |
| SG&A expensesGAAP | $92 million | – | – |
| SG&A expenses as a percentage of revenueGAAP | 42% of revenue | – | – |
| Income from operationsGAAP | $3,143 (in thousands) | – | – |
| Net loss attributable to Verano Holdings Corp. & SubsidiariesGAAP | ($13,411) (in thousands) | – | – |
| Net loss marginGAAP | (6)% of revenue | – | – |
| Adjusted EBITDAnon-GAAP | $51,231 (in thousands) | – | – |
| Adjusted EBITDA Marginnon-GAAP | 24% of revenue | – | – |
| Net cash provided by operating activitiesGAAP | $31 million | – | – |
| Capital expendituresother | $12 million | – | – |
| Current assetsGAAP | $404 million | – | – |
| Cash and cash equivalentsGAAP | $85 million | – | – |
| Working capitalGAAP | $295 million | – | – |
| Total debt, net of issuance costsGAAP | $393 million | – | – |
| Outstanding shares of common stockother | 73,217,970 | – | – |
2026 outlook
- NoteCapital expenditures guidance range: $40 million to $50 million
Capital returns
- Repurchased $2 million of Company stock.
- Announced a $20 million stock repurchase authorization.
- Completed a 1-for-5 reverse-stock-split.
What drove it
- The company cited organic growth, improved operational cash flow, and its third consecutive quarter of revenue gains.
- The company cited the ongoing strength of its retail operations and product portfolio.
- The company opened MÜV Miramar Beach, its 85th Florida dispensary and 162nd location nationwide.
- Subsequent to quarter-end, the company opened MÜV Bradfordville, its 86th retail location in Florida and 163rd in the nation.
Concerns
- Gross profit margin was 46% of revenue, compared with 48% of revenue for the first quarter 2026 and 56% of revenue for the second quarter 2025.
- Income from operations was $3,143 (in thousands), compared with $13,099 (in thousands) for the first quarter 2026 and $26,211 (in thousands) for the second quarter 2025.
- The company reported a net loss attributable to Verano Holdings Corp. & Subsidiaries of ($13,411) (in thousands).
- Total debt, net of issuance costs, was $393 million as of June 30, 2026.
What to watch
- Execution against the tightened 2026 capital expenditures guidance range of $40 million to $50 million.
- Additional retail expansion and new product innovation planned for the remainder of the year.
- Applications submitted with the U.S. Drug Enforcement Agency to register certain state-licensed medical cannabis operations.
- Virginia retail adult use cannabis sales are stated to commence July 1, 2027.
Balance sheet and cash flow
- Net cash provided by operating activities was $31 million.
- Capital expenditures were $12 million.
- As of June 30, 2026, current assets were $404 million, including cash and cash equivalents of $85 million.
- Working capital was $295 million.
- Total debt, net of issuance costs, was $393 million.
Analysis
Verano reported revenues, net of discounts, of $217,918 (in thousands) in the second quarter 2026, compared with $208,178 (in thousands) in the first quarter 2026 and $202,272 (in thousands) in the second quarter 2025. The company described the result as its third consecutive quarter of revenue gains and cited organic growth, retail operations, and its product portfolio. Operational expansion continued with the opening of MÜV Miramar Beach, followed after quarter-end by MÜV Bradfordville.
Profitability was mixed. Gross profit was $99,699 (in thousands), while gross profit margin was 46% of revenue, below 48% of revenue in the first quarter 2026 and 56% of revenue in the second quarter 2025. SG&A expenses were $92 million, or 42% of revenue, versus $86 million, or 41% of revenue, in the prior quarter. Income from operations was $3,143 (in thousands), down from $13,099 (in thousands) sequentially and $26,211 (in thousands) in the prior-year period.
The GAAP net loss attributable to Verano Holdings Corp. & Subsidiaries was ($13,411) (in thousands), compared with ($17,823) (in thousands) in the first quarter 2026 and ($19,150) (in thousands) in the second quarter 2025. Adjusted EBITDA was $51,231 (in thousands), compared with $49,004 (in thousands) in the first quarter 2026 and $66,153 (in thousands) in the second quarter 2025. Adjusted EBITDA Margin was 24% of revenue.
Cash generation improved against the prior-year comparison, with net cash provided by operating activities of $31 million versus $11 million. Capital expenditures were $12 million, compared with $15 million in the first quarter 2026 and $10 million in the second quarter 2025. At June 30, 2026, the company reported $85 million of cash and cash equivalents, $295 million of working capital, and $393 million of total debt, net of issuance costs.
Capital allocation included repurchasing $2 million of Company stock, announcing a $20 million stock repurchase authorization, and completing a 1-for-5 reverse-stock-split. For 2026, Verano tightened its capital expenditures guidance range to $40 million to $50 million. The principal reported items to monitor are execution on that capital spending range, the company’s planned retail and product expansion, and whether operating cash flow and adjusted EBITDA gains can coincide with improvement in gross profit margin and income from operations.
Management, verbatim
We are thrilled to report strong second quarter results highlighted by organic growth, improved operational cash flow, and our third consecutive quarter of revenue gains that also outperformed the prior year period.
George Archos, Verano founder, chairman and Chief Executive Officer
As we continue fortifying the balance sheet, with additional retail expansion and new product innovation planned for the remainder of the year, we are in a strong position to accelerate further business momentum in what may be a pivotal year for Verano and the industry at large.
George Archos, Verano founder, chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Revenue by reportable segment and segment revenue comparisons were not provided.
- GAAP earnings per share and diluted share count were not provided.
- Non-GAAP earnings per share were not provided.
- Free cash flow was not provided.
- Dividends were not provided.
- Gross profit year-over-year and sequential percentage changes were not provided.
- SG&A expense year-over-year and sequential percentage changes were not provided.
- Income from operations year-over-year and sequential percentage changes were not provided.
- Net loss year-over-year and sequential percentage changes were not provided.
- Adjusted EBITDA year-over-year and sequential percentage changes were not provided.
- Operating cash flow sequential comparison was not provided.
- Cash, working capital, current assets, debt, and outstanding-share prior-period comparisons were not provided.
- Revenue, gross margin, operating expenses, and tax-rate guidance were not provided.
- The prior release outlook was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.