Verano Ends 2025 With Margin Gains and New $195 Million Credit Facility

Verano, one of the country’s largest multi‑state cannabis operators, reported sequential revenue and margin gains in the fourth quarter of 2025 and closed the year with a new $195 million credit facility at a 9.5% interest rate. The results released on Thursday show the company tightening operations and lowering its cost of capital as it prepares for potential catalysts at the federal and state levels in 2026.

Fourth‑Quarter Performance

Verano posted fourth‑quarter revenue of $207 million, a 2% increase from the third quarter and a 5% decline from the same period in 2024. Gross profit improved to $106 million, or 51% of revenue, up from 47% in the prior quarter. Adjusted EBITDA reached $56 million, representing a 27% margin and matching company guidance.

The company reported a net loss of $183 million, or 89% of revenue, compared to a loss of $273 million in the fourth quarter of 2024. SG&A expenses were $86 million, or 42% of revenue. Operating cash flow for the quarter was $14 million, and capital expenditures totaled $9 million.

Verano CEO and chairman George Archos says the quarter capped a year of disciplined execution. 

“After officially closing the books on 2025, I’m proud of our team for ending the year on a high note with sequential revenue and margin improvement in the fourth quarter, and for all we accomplished to position ourselves ahead of future opportunities, including redomiciling the company into the U.S., and securing a new $195,000,000 credit facility with favorable terms including prepayment flexibility and a current interest rate of 9.5%,” Archos tells IgniteIt in an emailed statement.

Full‑Year Results

For the full year, Verano generated $822 million in revenue, a 6% decline from 2024, driven largely by price compression across key markets. Gross profit for 2025 was $413 million, or 50% of revenue, compared to $444 million, or 51%, in the prior year. Adjusted EBITDA for the year totaled $229 million, a 28% margin.

The company’s net loss improved to $258 million, or 31% of revenue, from $342 million, or 39% of revenue, in 2024. Operating cash flow for the year was $53 million, and capital expenditures were reduced to $41 million from $99 million in 2024.

Archos said the company’s operational focus throughout 2025 helped stabilize performance in a challenging environment. 

“Throughout 2025, we successfully streamlined operations and generated efficiencies, implemented CPG technology and automation upgrades, and launched new product innovation and partnerships that solidified top three share positions for Verano brands in every category we compete in,” he said in a press release.

Operational and Strategic Developments

Verano continued to expand its retail and product footprint throughout the ending quarter of 2025 and into the next year. The company opened new Zen Leaf and MÜV dispensaries in Ohio, West Virginia, and Florida, launched the HYPHEN all‑in‑one pod system, and later introduced Swift Lifts as a standalone pre‑roll brand. It also secured exclusive partnerships with Raw Garden in New Jersey and Flower by Edie Parker in Florida.

The company redomiciled from Canada to Nevada, reached a settlement resolving all litigation with Vireo Growth Inc., and won a conditional license to begin vertical operations in Texas, pending final state approval. As of year‑end, Verano operated 160 dispensaries and 14 production facilities across 13 states, with more than 1.1 million square feet of cultivation capacity.

Balance Sheet and Capital Access

Verano ended the year with $83 million in cash and cash equivalents, working capital of $264 million, and total debt of $400 million, net of issuance costs. Alongside the new $195 million term loan, the company upsized its revolving credit facility to $100 million and used a portion of the proceeds to retire higher‑interest debt without prepayment penalties.

Looking Ahead

Archos said Verano’s footprint positions the company to benefit from several potential catalysts in 2026. 

“Verano is the only cannabis company with current or planned operations in four highly‑populated U.S. markets that are primed for major medical and adult use expansions in the coming years – Florida, Pennsylvania, and Texas, along with Virginia as soon as the second half of this year – and we remain optimistic on a final Schedule III ruling,” he writes, noting the President’s executive order to expedite rescheduling and the expected closure of the hemp loophole this November.

For a company operating in some of the most consequential emerging markets and now carrying a lower‑cost capital structure, the combination of sequential improvement, operational discipline, and regulatory momentum could make 2026 a pivotal year for Verano.