The stock will trade on the rescheduling catalyst narrative and the buyback signal, but the underlying business shows no growth and margin compression. Watch for Q2 2026 results to see if rescheduling translates into revenue acceleration or margin improvement — the current trajectory does not support a re-rating on fundamentals alone.
Price Chart
Executive Summary
Verano reported Q1 2026 revenue of $208M, essentially flat YoY (-1%) and up 1% sequentially, with a GAAP net loss of -$18M (-9% of revenue) that widened from -$12M in Q1 2025. The company reiterated its 2026 capex guidance of $30-50M and announced a $20M share repurchase authorization. While sequential revenue growth and the buyback are modest positives, the core financials remain weak — revenue declined YoY, gross margin compressed to 48% from 51% in the prior quarter, and the net loss increased. The rescheduling catalyst is a potential tailwind but has not yet materialized in financial results.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $208.2M, -1% YoY (from $209.8M in Q1 2025), +1% sequentially
- GAAP net loss -$17.8M (-9% of revenue) vs -$11.5M (-5% of revenue) in Q1 2025
- Gross profit $99.0M at 48% margin, down from 51% in Q4 2025 and 47% in Q1 2025
- Adjusted EBITDA $49.0M at 24% margin, down from 26% in Q1 2025
- Operating cash flow $19M, up from $2M in Q1 2025
- Cash & equivalents $74M, total debt $395M, working capital $276M
- Board authorized $20M share repurchase (up to 5% of shares outstanding over 12 months)
- Reiterated 2026 capex guidance of $30-50M
- Subsequent to quarter end: historic cannabis rescheduling announcement on April 23, 2026
Financial Impact
Revenue essentially flat at $208M; net loss widened to -$18M from -$12M; Adjusted EBITDA declined to $49M from $54M YoY
Risk Factors
- Revenue continues to decline YoY (-1%) with no sign of inflection
- Gross margin compressed to 48% from 51% in Q4 2025 due to promotional activity
- Net loss widened to -$18M from -$12M YoY, driven by debt extinguishment costs
- Adjusted EBITDA margin declined to 24% from 26% YoY
- Cash burn: cash declined from $83M to $74M despite $19M operating cash flow (capex and debt costs)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-028573 |
| Document: vrnof-20260430.htm | 0001628280-26-028573 |
| Document: pressrelease-vrnosharerepu.htm | 0001628280-26-028573 |
| Document: 0001628280-26-028573-index-headers.html | 0001628280-26-028573 |
| Document: 0001628280-26-028573-index.html | 0001628280-26-028573 |
| Document: 0001628280-26-028573.txt | 0001628280-26-028573 |
| 8-K Data (Synthetic) | 0001628280-26-028573 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 11w ago | 8-K | $5.15 $6.03 | ▲ +17.09% | ▲ +17.69% | $5.12 (−0.58%) |
Jul 16, 2026 14w ago | EFFECT | $5.74 $6.00 | ▲ +4.53% | ▲ +0.91% | $5.12 (−10.80%) |
Jun 11, 2026 19w ago | 8-K | $5.90 | awaiting T+20 | — | $5.12 (−13.22%) |
Jun 2, 2026 21w ago | 8-K | $5.60 $6.14 | ▲ +9.64% | ▲ +10.64% | $5.12 (−8.57%) |
Jun 1, 2026 21w ago | DEFA14A | $6.00 $5.77 | ▼ −3.83% | ▼ −2.54% | $5.12 (−14.67%) |
Jun 1, 2026 21w ago | 8-K | $6.00 $5.77 | ▼ −3.83% | ▼ −2.54% | $5.12 (−14.67%) |
Apr 30, 2026 25w ago | 8-K | $6.50 $5.90 | ▼ −9.23% | ▼ −14.49% | $5.12 (−21.23%) |
Mar 12, 2026 32w ago | 8-K | $1.07 $1.14 | ▲ +6.54% | ▲ +4.57% | $5.12 (+378.50%) |
US Market Status
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