The beat on consensus and accelerating revenue growth are positives, but the 10pp gross margin decline and halved operating income point to pricing/competitive headwinds. Watch for further margin commentary on the call and any impact from cannabis rescheduling on future wholesale pricing.
Price Chart
Executive Summary
Verano Q2 2026 revenue of $217.9M (+8% YoY) beat $209.1M consensus, driven by third consecutive quarter of organic retail growth, but gross margin deteriorated to 46% from 56% a year ago due to promotional activity, and operating income fell sharply. Net loss narrowed to -$13.4M from -$19.2M and operating cash flow improved to $31M.
Key Financial Metrics
Key Facts
- Revenue $217.9M, +8% YoY, beat $209.1M consensus (+4.2%)
- Gross margin 46% vs 56% YoY, gross profit $99.7M vs $113.0M
- Income from operations fell to $3.1M from $26.2M YoY
- Net loss -$13.4M vs -$19.2M YoY (improvement driven by tax and interest)
- Adjusted EBITDA $51.2M vs $66.2M YoY (margin 24% vs 33%)
- Operating cash flow $31M, up from $11M YoY; capex $12M
- Tightened 2026 capex guidance to $40-50M range
- Completed 1-for-5 reverse stock split during quarter; shares outstanding 73.2M post-split
Financial Impact
Revenue beat of ~$8.8M vs consensus (4.2%) but gross margin contraction of 10pp YoY signals structural pricing pressure
Risk Factors
- Continued gross margin compression from promotional activity and competition
- Dependence on Florida retail expansion for growth; regulatory tailwinds uncertain
- High adjusted EBITDA add-backs ($21M in Q2) obscure true cash earnings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-052918 |
| Document: vrnof-20260805.htm | 0001628280-26-052918 |
| Document: 0001628280-26-052918-index-headers.html | 0001628280-26-052918 |
| Document: 0001628280-26-052918-index.html | 0001628280-26-052918 |
| Document: 0001628280-26-052918.txt | 0001628280-26-052918 |
| 8-K Data (Synthetic) | 0001628280-26-052918 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 11w ago | 8-K | $5.15 $6.03 | ▲ +17.09% | ▲ +17.69% | $5.09 (−1.17%) |
Jul 16, 2026 14w ago | EFFECT | $5.74 $6.00 | ▲ +4.53% | ▲ +0.91% | $5.09 (−11.32%) |
Jun 11, 2026 19w ago | 8-K | $5.90 | awaiting T+20 | — | $5.09 (−13.73%) |
Jun 2, 2026 21w ago | 8-K | $5.60 $6.14 | ▲ +9.64% | ▲ +10.64% | $5.09 (−9.11%) |
Jun 1, 2026 21w ago | DEFA14A | $6.00 $5.77 | ▼ −3.83% | ▼ −2.54% | $5.09 (−15.17%) |
Jun 1, 2026 21w ago | 8-K | $6.00 $5.77 | ▼ −3.83% | ▼ −2.54% | $5.09 (−15.17%) |
Apr 30, 2026 25w ago | 8-K | $6.50 $5.90 | ▼ −9.23% | ▼ −14.49% | $5.09 (−21.69%) |
Mar 12, 2026 32w ago | 8-K | $1.07 $1.14 | ▲ +6.54% | ▲ +4.57% | $5.09 (+375.70%) |
US Market Status
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