Verano Posts Third Straight Quarterly Revenue Gain as Cash Flow Improves

Verano Holdings reported $218 million in second-quarter revenue on August 5, 2026, up 5% from the prior quarter and 8% from the same period a year earlier, marking the multi-state operator’s third consecutive quarter of top-line growth. Net cash from operating activities reached $31 million, nearly triple the $11 million generated in the second quarter of 2025, according to the company’s quarterly earnings release.

Gross profit came in at $100 million, or 46% of revenue, while adjusted EBITDA landed at $51 million, a 24% margin. The company posted a net loss of $13 million, an improvement from the $19 million loss in the year-ago quarter, and cut its interest expense to $11.3 million from $14.2 million a year earlier.

“We are thrilled to report strong second quarter results highlighted by organic growth, improved operational cash flow, and our third consecutive quarter of revenue gains that also outperformed the prior year period,” said George Archos, Verano founder, chairman and chief executive officer.

Archos said the company used the quarter to deepen its engagement in U.S. capital markets, repurchasing $2 million of its own stock and completing a 1-for-5 reverse stock split aimed at a prospective listing on a major U.S. exchange.

Margin compression beneath the revenue growth

The quarter’s top-line momentum sits alongside a visible squeeze on profitability. Gross margin fell to 46% from 56% in the second quarter of 2025, and adjusted EBITDA dropped to $51 million from $66 million a year earlier even as revenue grew. Operating income narrowed sharply, to $3.1 million from $26.2 million, and the quarter included a $4.1 million impairment loss on assets held for sale. Selling, general and administrative expenses rose to $92 million, or 42% of revenue, from $86 million a year earlier.

The balance sheet shows a company still carrying a heavy debt load: total debt net of issuance costs stood at $393 million as of June 30, 2026, against $85 million in cash and equivalents and $295 million in working capital. The declining interest expense line, down roughly $3 million year-over-year, is one of the clearest signs of the balance-sheet repair Archos described.

Verano’s push toward a U.S. exchange listing

The quarter capped a year of deliberate repositioning. Verano redomiciled from British Columbia to Nevada in November 2025, then on June 1, 2026 announced the 1-for-5 reverse stock split as a step toward meeting the price requirements of a major U.S. exchange. The split took effect June 11, 2026, cutting outstanding shares to roughly 73.9 million and reducing authorized shares from 5 billion to 1 billion. Shares continue to trade on Cboe Canada and the OTCQX under the VRNO symbol.

That path mirrors moves across the sector. Ascend Wellness set a reverse-split vote for its own U.S. exchange listing bid in July 2026, and Curaleaf resumed trading under its CURLF ticker after its own reverse split the same month. Trulieve became the first U.S. cannabis company to list on the New York Stock Exchange in June 2026.

The earnings release also notes that Verano submitted applications with the U.S. Drug Enforcement Administration during the quarter to register certain state-licensed medical cannabis operations, following the federal government’s move of medical cannabis from Schedule I to Schedule III. The tax relief tied to that shift is already showing up in peer results: Green Thumb Industries lifted revenue 5% in its own second quarter as Schedule III tax relief kicked in.

Retail footprint and the road ahead

Verano opened MÜV Miramar Beach during the quarter, its 85th Florida dispensary, and followed it with MÜV Bradfordville, bringing its network to 163 dispensaries across 13 states with 14 production facilities and more than 1.1 million square feet of cultivation capacity. The company also tightened its 2026 capital expenditure guidance to a range of $40 million to $50 million, against $12 million spent in the second quarter, and said further retail expansion and new product launches are planned for the remainder of the year.

Virginia is on that horizon: the release notes the state’s passage of the South’s first retail adult-use cannabis market, with sales scheduled to begin July 1, 2027. Executives were set to discuss the quarter with analysts on an earnings call at 8:30 a.m. Eastern on August 5, 2026, with the webcast archived on the company’s investor relations site.