Vireo Growth Inc. Reports 91% Revenue Increase to $48.1 Million, Net Loss of $14.9 Million in Latest Quarter

Vireo Growth Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved revenues of $48.1 million for the quarter, marking a 91% increase from $25.1 million in the same period last year. For the first half of 2025, total revenues reached $72.6 million, up 48% from $49.2 million in the first half of 2024. The growth in revenue is attributed primarily to the recent mergers with Deep Roots Holdings, Proper Holdings, and WholesomeCo, which expanded Vireo's operational footprint and product offerings across multiple states.

Despite the revenue increase, Vireo reported a net loss of $14.9 million for the quarter, compared to a loss of $668,411 in the prior year. The loss for the first half of 2025 totaled $21.4 million, up from $7.4 million in the same period last year. The increase in losses is largely due to higher operating expenses, which rose to $22.4 million for the quarter, driven by transaction-related costs associated with the mergers and increased stock-based compensation. The gross profit margin for the quarter was 42%, down from 54% a year earlier, primarily due to amortization of non-cash inventory fair value adjustments related to the mergers.

Operationally, Vireo has expanded its retail presence significantly, now operating 36 dispensaries across six states, including new markets in Utah, Nevada, and Missouri. The company reported that retail sales accounted for 77% of total revenue in the latest quarter, with wholesale sales contributing the remaining 23%. The company’s inventory also saw a substantial increase, rising to $63 million from $21.7 million at the end of 2024, reflecting the integration of acquired businesses.

In terms of strategic developments, Vireo completed three major mergers during the quarter, which were finalized in May and June 2025. These mergers are expected to enhance the company's market share and operational efficiencies. The company also reported a significant increase in its total assets, which grew to $659.3 million from $278.9 million at the end of 2024, largely due to the assets acquired through the mergers. Vireo's total liabilities also increased, reflecting the assumption of debt from the acquired companies.

Looking ahead, Vireo Growth anticipates continued revenue growth driven by increased demand for its products and further integration of the newly acquired businesses. However, the company also acknowledges potential challenges, including price compression in mature markets, which could impact gross margins. The management remains focused on optimizing operations and expanding its market presence while navigating the complexities of the cannabis industry.