Verano Holdings Corp. reported a decline in financial performance for the fiscal year ended December 31, 2024, with revenues of $878.6 million, a decrease of 6.4% from $938.5 million in 2023. The company's net loss attributable to shareholders increased significantly to $341.9 million, compared to a loss of $117.3 million in the previous year. This increase in net loss was primarily driven by substantial impairment charges related to intangible assets, including $293.7 million associated with Pennsylvania retail licenses. The gross profit margin remained relatively stable at 50.5%, down slightly from 50.6% in 2023.
Operationally, Verano's retail segment saw a notable decline in revenues, which fell by 9.3% year-over-year, largely due to increased competition and promotional activity in key markets such as New Jersey and Illinois. In contrast, the cultivation (wholesale) segment experienced a modest revenue increase of 1.3%, attributed to higher third-party wholesale sales in New Jersey and Illinois, as well as the launch of adult-use sales in Ohio. The company opened nine new retail stores and acquired eight additional retail locations during the year, expanding its footprint in the cannabis market.
Strategically, Verano has focused on acquisitions to enhance its market presence. In 2024, the company completed significant acquisitions, including the purchase of retail operations in Arizona and Virginia, which contributed to its growth strategy. The company also made a $50 million prepayment on its $350 million credit facility, demonstrating a proactive approach to managing its debt obligations. As of December 31, 2024, Verano operated 153 retail dispensaries and 15 cultivation and processing facilities across 13 states, with over 1.1 million square feet of cultivation capacity.
Looking ahead, Verano's management expressed optimism about future growth, particularly with the anticipated expansion of adult-use cannabis markets in various states. However, the company acknowledged ongoing challenges, including regulatory uncertainties and competitive pressures that could impact its operations. The management team emphasized the importance of maintaining compliance with evolving regulations and adapting to market conditions to ensure sustainable growth in the cannabis industry.
About Verano Holdings Corp.
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