Verano Holdings Corp. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenues for the third quarter were $216.7 million, a decrease of 9.7% from $240.1 million in 2023. For the nine months, revenues totaled $660.4 million, down 5.8% from $701.3 million. The decline in revenue was attributed to decreased retail sales in New Jersey and Illinois, reduced product availability in Florida, and increased competition.

Gross profit for the third quarter was $109.1 million, reflecting a gross profit margin of 50.3%, down from 55.5% in the prior year. For the nine months, gross profit was $336.4 million, with a margin of 50.9%. The increase in selling, general, and administrative (SG&A) expenses contributed to the net loss, which was $(42.6) million for the third quarter, compared to $(17.8) million in 2023, and $(69.2) million for the nine months, up from $(40.1) million. SG&A expenses rose to $92.3 million for the third quarter, a 7.0% increase from the previous year.

Verano's total assets as of September 30, 2024, were $2.31 billion, slightly down from $2.32 billion at the end of 2023. Total liabilities decreased to $1.10 billion from $1.08 billion, while shareholders' equity fell to $1.22 billion from $1.24 billion. Cash and cash equivalents significantly decreased to $65.0 million from $174.8 million, primarily due to acquisition activities and capital expenditures.

During the reported period, Verano made strategic acquisitions, including Columbia Care Eastern Virginia LLC and Cannabist AZ, which contributed to increased goodwill and intangible assets. The company also opened two new stores in Florida and acquired eight additional stores across various states.

The company’s debt as of September 30, 2024, was $420.1 million, down from $445.6 million at the end of 2023. Verano remains in compliance with its credit agreement covenants and is focused on generating cash from operations while managing its liquidity needs for acquisitions and operational expenses.

Overall, Verano's performance reflects challenges in the retail cannabis market, alongside ongoing strategic investments and acquisitions aimed at expanding its operational footprint.