Verano Q3 Revenue Grows To $240M, Raises Free Cash Flow Guidance, 'Encouraged' By Cannabis Reform Developments

Chicago-based cannabis company Verano Holdings Corp. VRNO VRNOF reported its financial results on Wednesday for the third quarter with revenue of $240.09 million, compared to $234.12 million in the previous quarter. 

“I am tremendously proud of the strong results we delivered in the third quarter, highlighted by raising and tightening our free cash flow guidance range and generating record revenue, and the recent strategic elevation of our capital markets strategy by uplisting to Cboe Canada,” stated George Archos, Verano founder, chairman and CEO. “Our strong performance resulted from key drivers that include another seamless adult use transition in Maryland, the continued expansion of our wholesale business and market-leading positions in Connecticut and New Jersey, successful new product launches and line extensions across our growing brand portfolio, and the addition of new dispensaries to bolster our expanding retail footprint in key states.”

Q3 Financial Highlights 

• Gross profit amounted to $133.22 million, versus $115.19 million in the previous quarter and $123 million in the same period last year.
• Net loss was $17.84 million, significantly lower than in the third quarter of 2022 when it reached $43 million, but still higher than in the previous quarter when it amounted to $13.06 million.
• Adjusted EBITDA was a gain of $89.35 million, compared to $71.51 million in the second quarter.
• The third quarter has seen a free cash flow of $27 million

2023 Guidance

Verano raised its free cash flow guidance for the year to $72-76 million, up from $65-75 million and lowered its capital expenditures guidance to $30-37 million, down from $35-50 million.

“While we never run our business based on legislative assumptions, we are encouraged by the multi-faceted federal reform efforts surrounding cannabis, and although we remain confident in our ability to continue growing our business in the current environment, we will continue to position ourselves to capitalize on growth opportunities should any federal reforms materialize,” Archos added.

Price Action 

Verano shares closed Tuesday's market session 9.47% higher at $3.93 per share. 

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