Vext Science FY22 Revenue Declines 4.92% To $35.41M, What About Adjusted EBITDA?

Vext Science, Inc. VEXTF VEXT FY 2022 revenue was $35.41 million, a decrease of 4.92% compared to $37.24 million in FY 2021.

Financial Highlights

• FY 2022 gross margin before fair value adjustments was 59% compared to 44% in FY 2021.

• FY 2022 adjusted EBITDA was $15.12 million compared to $13.39 million in FY 2021.

• Q4 2022 revenue was $8.18 million, a decrease of 12.1% compared to $9.3 million in Q4 2021.

• Q4 2022 gross margin before fair value adjustments was 50%, compared to 42% in Q4 2021.

• Q4 2022 adjusted EBITDA was $3.18 million compared to $3.37 million in Q4 2021.

Eric Offenberger, CEO of Vext stated, "Overall, I am very pleased with our performance through the challenging consumer environment that emerged, particularly during the second half of 2022, which was driven by record high inflation rates and resulting pressure on consumer discretionary income. Arizona market sales were flat for 2022 and we held our own, with revenue of $35.4 million for the year and $8.2 million for Q4. Our team continued to execute on our business objectives, launching targeted promotions to drive traffic and maximize basket, while finding consistent efficiencies, driving adjusted EBITDA of $15.1 million for the year, up 12.8% from 2021.”

“Our financial performance in 2022 reaffirms Vext's track record as a profitable operator with a keen focus on driving efficiencies. While we expect the underlying effects of this environment to persist through at least mid-2023, we expect continued results from our Arizona operations and clearly see the Ohio market as a catalyst for Vext as we close our recently announced acquisition of vertical operations in the state. With its significantly larger population, steady growth in patient count and potential for future adult-use transition, we expect Ohio to propel growth for Vext, contributing meaningfully towards revenue, profitability and cash flow over the next few years as we continue to focus on building value for our shareholders," concluded Offenberger.

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