Vireo Growth Inc. Reports $99.4 Million Revenue for Fiscal Year 2024, Driven by Adult-Use Cannabis Sales

Vireo Growth Inc., formerly known as Goodness Growth Holdings, Inc., reported a total revenue of $99.4 million for the fiscal year ending December 31, 2024, marking a 13% increase from $88.1 million in 2023. The growth was primarily driven by the commencement of adult-use cannabis sales in Maryland on July 1, 2023, which contributed significantly to the company's revenue. Retail sales accounted for 80% of total revenue, while wholesale sales made up the remaining 20%. The company also noted a gross profit of $50.8 million, resulting in a gross margin of 51%, slightly up from 50% in the previous year.

In terms of operational changes, Vireo Growth has undergone significant restructuring, including the divestiture of its New Mexico operations in June 2023. The company is currently in the process of merging with three entities: Deep Roots Holdings, Proper Holdings, and WholesomeCo, with the merger agreements signed on December 18, 2024. These mergers are structured as all-share transactions and are expected to enhance Vireo's market presence and operational capacity. The company anticipates that these mergers will be completed by the end of 2025, subject to regulatory approvals and other conditions.

As of December 31, 2024, Vireo Growth operated 14 dispensaries across Maryland, Minnesota, and New York, with a total employee count of 520. The company reported a notable increase in its cash reserves, ending the year with $91.6 million, compared to $16 million in 2023. This increase was largely attributed to a successful equity raise that generated approximately $80 million in net proceeds. The company also reported a net loss of $28 million for the year, which was an increase from the $25.5 million loss in 2023, primarily due to transaction costs associated with the ongoing mergers.

Looking ahead, Vireo Growth aims to achieve positive operating cash flow through cost discipline and operational excellence. The company is focused on improving the quality and efficiency of its flower production in Maryland and Minnesota while managing its balance sheet with capital partners. The management has expressed optimism about the potential growth opportunities arising from the mergers and the expansion of its retail operations, particularly in the adult-use cannabis market. However, the company remains cautious about the regulatory landscape and the ongoing litigation with Verano Holdings, which could impact its future operations and financial performance.