Verano Holdings Corp. reported its financial results for the first quarter of 2025, revealing a decline in revenue and an increase in net loss compared to the same period in 2024. The company generated $209.8 million in revenue, a decrease of 5.2% from $221.3 million in the prior year. This decline was attributed to heightened competition and promotional activities in key markets such as New Jersey and Illinois, partially offset by the launch of Ohio's adult-use cannabis program and recent acquisitions. The gross profit for the quarter was $99.6 million, resulting in a gross profit margin of 47.5%, down from 51.0% in the previous year.
The net loss attributable to Verano Holdings increased to $11.5 million, compared to a loss of $4.8 million in the first quarter of 2024. This increase in loss was primarily driven by the decline in revenue and gross profit, along with a higher provision for income taxes, which rose to $17.3 million from $11.5 million year-over-year. The company's selling, general, and administrative expenses decreased by 6.3% to $84.6 million, reflecting ongoing operational efficiencies despite costs associated with new store openings.
Operationally, Verano expanded its retail footprint by opening two new stores in Connecticut and Florida during the quarter. The company now operates 155 retail dispensaries across 13 states, with a cultivation capacity exceeding 1.1 million square feet. The retail segment accounted for approximately 68% of total revenue, while the cultivation segment contributed about 32%. The company also reported a decrease in cultivation revenue, which fell by 7.6% due to reduced third-party wholesale sales in New Jersey and Illinois.
In terms of strategic developments, Verano completed several acquisitions in 2024, including the purchase of Columbia Care Eastern Virginia LLC and Cannabist AZ, which are expected to enhance its operational capabilities and market presence. The company also reported a gain of $4.7 million from the deconsolidation of its Arkansas operations, which no longer met the criteria for consolidation. Looking ahead, Verano anticipates continued pressure on margins due to competition and pricing dynamics in the cannabis market, but remains focused on expanding its retail presence and optimizing operations to drive future growth.
About Verano Holdings Corp.
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