Verano Holdings Corp. (VRNO)

Price$6.13Cached quoteAs of 2026-09-05 04:01 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong cash yield is offset by heavy debt.

At the observed quote, 73.2 million outstanding shares imply an equity value near $422 million. Cash from operations over the latest four quarters was about $89 million; subtracting $44 million of property spending leaves roughly $46 million of free cash flow, meaning cash left after running and investing in the business. The shares therefore cost about nine times that cash. However, adding $408 million of net debt produces an enterprise value near $831 million, while recent cash generation benefited from lower tax payments.

Big pictureSales are recovering, but falling product margins still block dependable earnings.

First-half 2026 revenue rose 3% to $426 million, and second-quarter revenue increased 8% from a year earlier. Yet first-half gross margin—the share of sales left after product costs—fell from 52% to 47%, mainly because wholesale cannabis prices weakened. Verano still lost $31 million during the half. Operating cash flow improved to $49 million from $13 million, but inventory management and lower tax payments drove much of that gain. This makes the recent $22 million of first-half free cash flow encouraging but not fully durable.

Business strengthWide operations generate cash, yet debt and intangible assets weaken downside protection.

Verano operates 162 dispensaries and 14 production facilities across 13 states, providing useful scale and geographic diversity. Near-term liquidity looks comfortable: current assets were $404 million versus $109 million of current liabilities. The harder issue is $494 million of debt against $85 million of cash. Major borrowings carry floating rates with minimum rates near 9.5% to 10%, although refinancing pushed key maturities to 2029. Goodwill and other intangible assets totaled $711 million, exceeding $677 million of shareholder equity, so reported book value offers little tangible protection.

What could change the storyTax relief could unlock value, while stalled reform or dilution could erase it.

Medical-cannabis rescheduling could remove a federal rule that blocks normal business deductions once qualifying operations receive registration. Verano says medical sales form most of its retail business, making the opportunity unusually relevant. However, formal tax guidance remains pending and litigation challenges the order. The current valuation appears to require stable revenue and annual free cash flow near $45 million. Sustained cash above $70 million with debt reduction would support an undervalued case; a reversal below $20 million, renewed margin erosion, or substantial issuance under the $1 billion shelf registration would support an overvalued case.

AI: News

Mixed Second-Quarter ResultsSecond-quarter sales improved, but weaker product profitability kept the earnings recovery incomplete.

On August 5, Verano reported $218 million of revenue, up 8% year over year, and $31 million of operating cash flow. However, gross profit fell to $100 million from $113 million, while adjusted operating earnings before interest and similar charges declined to $51 million from $66 million. The shares closed about 7% lower that day. The timing is consistent with investor disappointment over weaker profitability, although it does not prove the results caused the move.

Reverse Split CompletedVerano combined every five shares into one to pursue a major United States listing.

The one-for-five reverse split became effective June 11, mechanically reducing issued shares from about 367.7 million to 73.5 million. It raised the quoted amount per share without changing each investor's economic ownership or the company's underlying value. Management presented the action as preparation for a possible listing on a major United States exchange, which could eventually improve investor access. No such listing was completed in the cited disclosures, so that benefit remains prospective.

Medical Cannabis RescheduledFederal medical-cannabis reform may sharply reduce taxes, though registration and court challenges create uncertainty.

The Justice Department moved qualifying state-licensed medical cannabis to Schedule III in April, and Verano submitted registration applications on May 13. Registered operations would no longer face the federal tax rule that disallows ordinary business deductions. Verano's second-quarter tax expense fell 92% year over year, although its filing attributes the change to forecast tax rates and other items rather than registration alone. Formal tax guidance remains pending, and legal challenges mean the size and timing of lasting savings remain uncertain.

Share Buyback StartedA modest buyback supports each remaining share, but debt makes the cash use debatable.

On April 30, Verano authorized repurchases of up to $20 million and 3.64 million post-split shares over twelve months. By June 30, it had spent $2 million buying 320,000 shares, leaving most of the authorization unused. Repurchases can increase each remaining investor's ownership, but first-half stock compensation was nearly $8 million and the outstanding share count still rose from year-end. With $408 million of net debt, further buybacks compete directly with balance-sheet repair.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$821.5M	$878.6M	$938.5M	$879.4M	$737.9M	$228.5M
Gross profit	$413.5M	$443.9M	$475.2M	$423.1M	$331.0M	$135.6M
Gross margin	50.33%	50.53%	50.64%	48.11%	44.86%	59.32%
Operating expenses	$520.6M	$681.1M	$390.1M	$585.8M	$270.9M	$43.3M
Operating income	−$107.1M	−$237.2M	$84.8M	−$161.1M	$64.7M	$95.0M
Operating margin	−13.04%	−27.00%	9.03%	−18.32%	8.77%	41.57%
EBITDA	$17.1M	−$97.5M	$225.9M	−$19.7M	$161.0M	$102.9M
EBITDA margin	2.08%	−11.10%	24.07%	−2.25%	21.81%	45.01%
Net income	−$257.9M	−$341.9M	−$117.3M	−$269.2M	−$57.5M	$38.4M
Net profit margin	−31.39%	−38.91%	−12.50%	−30.61%	−7.79%	16.80%
Basic EPSper basic share	-$3.55	-$4.90	-$1.70	-$4.05	-$1.00	$0.75
Diluted EPSper diluted share	-$3.55	-$4.90	-$1.70	-$4.05	-$1.00	$0.70

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 13 reported holders of VRNO
Holder	Shares held
Archos George Peter	28.67M
Tipton John Allen	4.79M
Kalesnik Laura Marie	607.18K
McDermott Edward Aloysious III	526.08K
Miles Aaron Nathaniel	512.88K
Tarapchak Richard C	487.01K
Spreckman David	372.78K
Leventis James Angelo	313.68K
Thompson Destiny Lynn	303.04K
Hirsh Lawrence Randall	173.84K
Nunez Cristina Maria	163.48K
Mueller Frederick Charles	91.4K
Heine Josh	10.95K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)28$225.1K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Dec 2, 2025Form 4 · 10b5-1	Kalesnik Laura MarieSee remarks	SellCommon Stock, par value $0.001	5.8K	$0.95	$5.6K	351.4K
Dec 2, 2025Form 4 · 10b5-1	Miles Aaron NathanielChief Investment Officer	SellCommon Stock, par value $0.001	5.0K	$0.95	$4.8K	332.4K
Dec 2, 2025Form 4 · 10b5-1	McDermott Edward Aloysious IIIChief Operating Officer	SellCommon Stock, par value $0.001	3.5K	$0.95	$3.3K	270.2K
Dec 2, 2025Form 4 · 10b5-1	Spreckman DavidChief Marketing Officer	SellCommon Stock, par value $0.001	4.9K	$0.95	$4.7K	235.5K
Jun 4, 2025Form 4 · 10b5-1	Weiss Darren HenryPresident	SellClass A Subordinate Voting Shares	24.9K	$0.60	$14.9K	660.3K