Vireo Growth Inc. (formerly Goodness Growth Holdings, Inc.) reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments.

For the three months ended September 30, 2024, Vireo Growth generated total revenue of $25.2 million, a 2% increase from $24.7 million in the same period of 2023. Retail revenue decreased slightly to $19.7 million, down 2% from $20.1 million, primarily due to reduced contributions from New York. Conversely, wholesale revenue rose by 20% to $5.4 million, driven by increased sales in Maryland's adult-use market. For the nine-month period, total revenue reached $74.4 million, reflecting a 16% increase from $64.0 million in 2023, with retail revenue up 12% and wholesale revenue up 39%.

Despite the revenue growth, Vireo's gross profit for Q3 2024 was $12.3 million, down from $13.2 million in Q3 2023, resulting in a gross margin decline from 53% to 49%. Operating income before other income and taxes for Q3 2024 was $3.9 million, a decrease from $5.9 million in the prior year. The company reported a net loss of $4.9 million for Q3 2024, an improvement from a loss of $5.2 million in Q3 2023. For the nine months, the net loss narrowed to $12.3 million from $21.0 million in the previous year.

Vireo's total current assets decreased to $144.0 million as of September 30, 2024, from $148.9 million at the end of 2023, while total assets increased to $193.9 million. Current liabilities significantly decreased to $128.8 million from $179.5 million, contributing to an improved total stockholders' deficiency of $(11.0 million) compared to $(16.0 million) at the end of 2023.

Strategically, Vireo has been active in managing its debt and operational costs. The company repaid a $1.1 million promissory note during the nine months ended September 30, 2024, and has engaged in various financing activities, including a new convertible debt facility. The company also divested its New Mexico assets in June 2023 and has identified certain properties in New York, Nevada, and Massachusetts as held for sale.

In terms of management changes, CEO Joshua Rosen resigned on October 10, 2024, with a severance package that includes a salary continuation and stock options. The company is also facing ongoing litigation with Verano Holdings Corp., seeking $860.9 million in damages for breach of contract, which may impact its financial stability and growth initiatives.

Overall, Vireo Growth's financial performance reflects a mix of revenue growth and ongoing challenges in profitability and operational efficiency, alongside significant strategic maneuvers to address its financial obligations and market positioning.