Third Quarter 2026
Filed Oct 29, 2026Verano Announces Strong Third Quarter 2026 Financial Results Highlighted by $212 Million in Revenue and Year-Over-Year Organic Growth
Third-quarter revenue increased 5% year-over-year and operating cash flow rose to $49 million, while gross margin remained 47% and Adjusted EBITDA declined to $50,353 from $53,109. The company remained in a GAAP net-loss position, although the loss narrowed materially from the prior year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, net of Discounts - three months ended September 30, 2026GAAP | $212.4M | – | 5% |
| Revenue, net of Discounts - nine months ended September 30, 2026GAAP | $638.5M | – | 4% |
| Cost of Goods Sold, net - three months ended September 30, 2026GAAP | 112,405 | – | – |
| Cost of Goods Sold, net - nine months ended September 30, 2026GAAP | 339,826 | – | – |
| Gross Profit - three months ended September 30, 2026GAAP | $100.0M | – | – |
| Gross Profit - nine months ended September 30, 2026GAAP | $298.7M | – | – |
| Gross Profit % - three months ended September 30, 2026GAAP | 47% | – | – |
| Gross Profit % - nine months ended September 30, 2026GAAP | 47% | – | – |
| Selling, General and Administrative Expenses - three months ended September 30, 2026GAAP | 84,506 | – | – |
| Selling, General and Administrative Expenses - nine months ended September 30, 2026GAAP | 262,877 | – | – |
| Loss on Impairment of Held for Sale Assets - three months ended September 30, 2026GAAP | 3,624 | – | – |
| Loss on Impairment of Held for Sale Assets - nine months ended September 30, 2026GAAP | 7,686 | – | – |
| Loss on Impairment of Fixed Assets - nine months ended September 30, 2026GAAP | — | – | – |
| Total Operating Expenses - three months ended September 30, 2026GAAP | $88.13M | – | – |
| Total Operating Expenses - nine months ended September 30, 2026GAAP | $270.6M | – | – |
| Income from Operations - three months ended September 30, 2026GAAP | $11.91M | – | – |
| Income from Operations - nine months ended September 30, 2026GAAP | $28.15M | – | – |
| Loss on Disposal of Property, Plant and Equipment - three months ended September 30, 2026GAAP | (796) | – | – |
| Loss on Disposal of Property, Plant and Equipment - nine months ended September 30, 2026GAAP | (811) | – | – |
| Gain on Deconsolidation - nine months ended September 30, 2026GAAP | — | – | – |
| Gain (Loss) on Debt Extinguishment - three months ended September 30, 2026GAAP | — | – | – |
| Gain (Loss) on Debt Extinguishment - nine months ended September 30, 2026GAAP | (5,738) | – | – |
| Interest Expense, net - three months ended September 30, 2026GAAP | (10,760) | – | – |
| Interest Expense, net - nine months ended September 30, 2026GAAP | (34,330) | – | – |
| Other Income (Expense), net - three months ended September 30, 2026GAAP | 2,851 | – | – |
| Other Income (Expense), net - nine months ended September 30, 2026GAAP | (754) | – | – |
| Total Other Expense, net - three months ended September 30, 2026GAAP | (8,705) | – | – |
| Total Other Expense, net - nine months ended September 30, 2026GAAP | (41,633) | – | – |
| Income (Loss) Before Provision for Income Taxes - three months ended September 30, 2026GAAP | $3.20M | – | – |
| Income (Loss) Before Provision for Income Taxes - nine months ended September 30, 2026GAAP | −$13.48M | – | – |
| Provision for Income Tax Expense - three months ended September 30, 2026GAAP | (7,268) | – | – |
| Provision for Income Tax Expense - nine months ended September 30, 2026GAAP | (21,816) | – | – |
| Net Loss Attributable to Verano Holdings Corp. & Subsidiaries - three months ended September 30, 2026GAAP | −$4.07M | – | – |
| Net Loss Attributable to Verano Holdings Corp. & Subsidiaries - nine months ended September 30, 2026GAAP | −$35.30M | – | – |
| Net Loss Margin - three months ended September 30, 2026GAAP | (2)% | – | – |
| Net Loss Margin - nine months ended September 30, 2026GAAP | (6)% | – | – |
| EBITDA - three months ended September 30, 2026non-GAAP | $43.77M | – | – |
| EBITDA - nine months ended September 30, 2026non-GAAP | $109.3M | – | – |
| Adjusted EBITDA - three months ended September 30, 2026non-GAAP | $50.35M | – | – |
| Adjusted EBITDA - nine months ended September 30, 2026non-GAAP | $150.6M | – | – |
| Adjusted EBITDA Margin - three months ended September 30, 2026non-GAAP | 24% | – | – |
| Adjusted EBITDA Margin - nine months ended September 30, 2026non-GAAP | 24% | – | – |
| Net cash provided by operating activities - three months ended September 30, 2026GAAP | $49M | – | – |
| Net cash provided by operating activities - nine months ended September 30, 2026GAAP | $98M | – | – |
| Capital expenditures - three months ended September 30, 2026other | $13M | – | – |
| Capital expenditures - nine months ended September 30, 2026other | $40M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- NoteCapital expenditures guidance range: $54 million to $60 million
What drove it
- Management cited robust retail performance for the quarter.
- The company opened MÜV Bradfordville, its 86th Florida dispensary and 163rd location nationwide.
- The company entered the cannabis beverage category with the debut of Easy Landings, its first national beverage brand.
- Current operations span 13 states and include 163 dispensaries, 14 production facilities, and more than 1.1 million square feet of cultivation capacity.
Concerns
- Gross Profit % for the nine months ended September 30, 2026 was 47%, compared with 50% for the same period in 2025.
- Adjusted EBITDA for the three months ended September 30, 2026 was $50,353, compared with $53,109 for the same period in 2025.
- The company reported a Net Loss Attributable to Verano Holdings Corp. & Subsidiaries of $(4,065) for the quarter and $(35,299) for the nine-month period.
- Total debt, net of issuance costs, was $390 million as of September 30, 2026.
What to watch
- 2026 capital expenditures guidance of $54 million to $60 million.
- The planned opening of Zen Leaf Ephrata in Pennsylvania on Friday, October 30th.
- The launch of retail adult use sales in Virginia, cited by management as a catalyst.
- Completion of several retail and CPG enhancement projects on schedule by year-end.
Balance sheet and cash flow
- Cash and Cash Equivalents as of September 30, 2026: $102,054; December 31, 2025: $82,724.
- Total Assets as of September 30, 2026: $1,707,296; December 31, 2025: $1,741,594.
- Total Current Liabilities as of September 30, 2026: 114,139; December 31, 2025: 140,261.
- Total Long-Term Liabilities as of September 30, 2026: 923,085; December 31, 2025: 898,954.
- Stockholders' Equity as of September 30, 2026: 671,888; December 31, 2025: 704,156.
- Current assets were $416 million, working capital was $301 million, and total debt, net of issuance costs, was $390 million as of September 30, 2026.
- Outstanding shares of common stock were 72,934,412 as of September 30, 2026.
Analysis
Verano reported third-quarter revenue, net of discounts, of $212,443, compared with $202,810 in the third quarter of 2025. The company characterized the increase as 5%. For the nine months ended September 30, 2026, revenue was $638,539 versus $614,891, which the company described as a 4% year-over-year increase. Management attributed the quarter to robust retail performance.
Quarterly Gross Profit was $100,038 and Gross Profit % was 47%, matching the prior-year quarterly margin of 47%. Selling, General and Administrative Expenses were 84,506, compared with 80,560, while Total Operating Expenses were $88,130, compared with $85,960. Income from Operations improved to $11,908 from $9,277. For the nine-month period, Gross Profit % was 47%, compared with 50%, and Income from Operations was $28,150 compared with $50,490.
The GAAP net loss narrowed to $(4,065) in the quarter from $(43,832) a year earlier, with Net Loss Margin of (2)% versus (22)%. Nine-month net loss was $(35,299), compared with $(74,497). Non-GAAP Adjusted EBITDA was $50,353 in the quarter versus $53,109, and Adjusted EBITDA Margin was 24% versus 26%. For the nine-month period, Adjusted EBITDA was $150,588 compared with $173,660, and Adjusted EBITDA Margin was 24% compared with 28%.
Cash generation strengthened: net cash provided by operating activities was $49 million in the third quarter, compared with $26 million, and $98 million for the nine months, compared with $39 million. Capital expenditures were $13 million for the quarter and $40 million for the nine months. The company raised its 2026 capital expenditures guidance range to $54 million to $60 million. As of September 30, 2026, cash and cash equivalents were $102,054 and total debt, net of issuance costs, was $390 million.
Operationally, Verano opened MÜV Bradfordville, its 86th Florida dispensary and 163rd location nationwide, and launched Easy Landings, its first national beverage brand. Management also identified seasonal products and promotions, retail and CPG enhancement projects, and the launch of retail adult use sales in Virginia as factors for the balance of 2026 and into 2027.
Management, verbatim
I am proud of our teams for delivering another strong quarter, highlighted by a 5% increase in revenue, robust retail performance, and achieving our highest level of operating cash flow in four years.
George Archos, Verano founder, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP diluted EPS and basic EPS were not reported.
- Non-GAAP EPS was not reported.
- Free cash flow was not reported.
- Revenue guidance was not provided.
- Gross margin guidance was not provided.
- Operating expense guidance was not provided.
- Tax-rate guidance was not provided.
- Prior-quarter financial comparisons were not reported.
- Reportable segment revenue, segment profitability, and segment comparisons were not reported.
- Share repurchases and dividends were not reported.
- A previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.