Vireo Growth Inc. reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2025, with total revenue reaching $268.8 million, a substantial increase of 170% from $99.4 million in 2024. This growth was primarily driven by the completion of several mergers, which expanded the company's operations in key markets, including Utah, Nevada, and Missouri. Retail sales accounted for 82% of total revenue, while wholesale sales contributed 18%. The company's gross profit for the year was $127.1 million, resulting in a gross margin of 47%, slightly down from 51% in the previous year, largely due to amortization related to the mergers.
The company experienced a net loss of $68.1 million for 2025, compared to a loss of $28.0 million in 2024. This increase in losses was attributed to higher operating expenses, which rose to $128.1 million from $37.2 million, driven by transaction costs associated with the mergers and increased stock-based compensation. Despite the losses, Vireo's cash flow from operations improved, with net cash provided by operating activities amounting to $3.7 million, a turnaround from the $10.2 million used in the previous year.
Strategically, Vireo Growth completed three major mergers in 2025: with WholesomeCo, Proper Holdings, and Deep Roots Holdings, enhancing its cultivation, manufacturing, and retail capabilities. The mergers were structured as all-share transactions, significantly increasing the company's asset base and operational scale. As of December 31, 2025, Vireo operated 36 dispensaries across six states, with a notable increase in retail locations in Missouri and Nevada. The company also reported a total employee headcount of 612, reflecting its growth and expansion efforts.
Looking ahead, Vireo Growth aims to continue its focus on operational excellence and product quality while managing its balance sheet prudently. The company plans to leverage its expanded footprint to enhance customer engagement and drive revenue growth. However, it remains cautious about the regulatory landscape, particularly given the ongoing federal prohibition of cannabis in the U.S. and the potential implications of changes in tax laws, including the impact of Section 280E of the Internal Revenue Code, which limits tax deductions for cannabis businesses.
In summary, Vireo Growth Inc. is positioned for growth following its recent mergers, despite facing challenges related to profitability and regulatory compliance. The company is optimistic about its future prospects, aiming to capitalize on its expanded operations and market presence while navigating the complexities of the cannabis industry.
About Vireo Growth Inc.
Vireo Growth Inc. is a vertically integrated cannabis company specializing in cultivation, manufacturing, and retail of high-quality cannabis products for medical and adult-use markets. Operating in Maryland, Minnesota, and New York, it produces proprietary strains, extracts, edibles, and topicals. The company owns dispensaries, develops innovative formulations, and emphasizes quality, safety, and community engagement within the evolving legal cannabis industry.
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