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Vireo Growth Inc. — Third Quarter 2026 Earnings Summary

VREOF

  • Financial Performance:

    • GAAP revenue for Q3 2026 was $253.7 million, a 177% increase year-over-year from $91.7 million in Q3 2025.
    • Pro forma revenue for Q3 2026 was $277.0 million, reflecting acquisitions of C21 Investments, PharmaCann Colorado assets, and Cannabist Colorado assets as if completed on July 1, 2026.
    • GAAP cannabis revenue was $198.1 million (up 116% YoY), while GAAP non-cannabis revenue was $55.6 million (up 100% YoY).
    • GAAP gross profit was $107.8 million with a margin of 42.5%, compared to $37.4 million and 40.8% in Q3 2025.
    • Adjusted gross profit was $109.2 million with a margin of 43.0%, down from 55.4% in Q3 2025.
    • Adjusted EBITDA was $42.7 million (up 68.1% YoY from $25.4 million), with an adjusted EBITDA margin of 16.8%, down from 27.7% in Q3 2025.
    • Net loss for Q3 2026 was $24.0 million, compared to a net loss of $26.3 million in Q3 2025.
    • Cash on hand was $106.8 million as of September 30, 2026.
    • Long-term debt was $293 million, with net debt (excluding convertible debt) at $186.2 million.
    • Total current assets were $369.6 million, and total current liabilities were $184.1 million.

  • Guidance and Future Outlook:

    • Q4 2026 revenue guidance is $250 million to $265 million; Adjusted EBITDA guidance is $45 million to $48 million.
    • Q1 2027 revenue guidance is $280 million to $300 million; Adjusted EBITDA guidance is $53 million to $56 million.
    • Q4 2026 guidance includes results from the FLUENT acquisition (closed November 9, 2026) and excludes pending acquisitions.
    • Pending acquisitions could contribute an additional $45 million to $55 million in revenue and $5 million to $6 million in Adjusted EBITDA for Q4 2026.
    • Pending acquisitions could contribute an additional $50 million to $60 million in revenue and $7 million to $8 million in Adjusted EBITDA for Q1 2027.
    • The company does not intend to provide full-year guidance and plans to provide sequential quarterly guidance.
    • Guidance assumes a sequential decline and seasonality in the non-cannabis business.

  • Business Segments and Product Lines:

    • Retail revenue grew 128% YoY to $173.4 million, driven by acquisitions in Colorado, New Mexico, California, and Florida.
    • Wholesale revenue grew 57% YoY to $24.7 million.
    • Non-cannabis revenue (agricultural supply) contributed $55.6 million in Q3 2026.
    • The company operates approximately 210 dispensaries across 10 states as of the report date.
    • Upon completion of announced transactions, the company expects to operate approximately 270 dispensaries across 15 states.
    • Acquired PharmaCann's Colorado retail assets and C21 Investments (three Nevada dispensaries and 104,000 sq ft of cultivation/production).
    • Acquired a 49% interest in a joint venture holding a Pennsylvania clinical registrant license (PhytoNatural).
    • Closed the FLUENT transaction, adding 33 dispensaries to the Florida footprint.
    • Announced agreements to acquire select assets of The Cannabist Company across Colorado, Illinois, Massachusetts, and New Jersey.
    • Announced an all-stock merger agreement to acquire Planet 13 Holdings Inc., expanding Nevada and Florida platforms and establishing an Illinois presence.
    • Announced four definitive acquisition agreements to establish a vertically integrated platform in Ohio (eight dispensaries and cultivation/processing).

  • Market and Competitive Landscape:

    • Pro forma retail revenue grew 4% year-over-year in Q3 2026, serving as a proxy for same-store sales growth.
    • The company is executing a consolidation strategy to achieve scale, with an annualized revenue run rate exceeding $1 billion.
    • The company is expanding into new markets including Pennsylvania, Illinois, and Ohio through acquisitions and joint ventures.
    • Received DEA registrations for all 41 state-licensed medical cannabis dispensaries in Florida.

  • Risks and Challenges:

    • Net income (loss) outlook is excluded due to unpredictability of income tax expense, purchase accounting, fair value changes in contingent consideration, and transaction/integration costs.
    • Actual results may differ materially from guidance due to market conditions, seasonality, integration results, and timing of pending acquisitions.
    • Risks include regulatory approvals for the Planet 13 merger and other pending transactions, integration difficulties, and changes in federal/state cannabis laws.
    • Potential for litigation, legal proceedings, or government investigations related to the merger and pending transactions.
    • Risks associated with the agricultural and manufacturing business segments.
    • Liquidity risks and the ability to raise additional financing.

  • Management Commentary and Tone:

    • CEO John Mazarakis described the quarter as progress in executing a "disciplined, capital-efficient consolidation" strategy.
    • Management expressed confidence in leveraging scale to drive stronger operating and financial performance.
    • Mazarakis noted encouraging results in pro forma retail revenue growth and the integration of experienced local teams.
    • Management believes the decentralized operating model and leadership bench position the company to build a platform more valuable than the sum of its parts in 2027.
    • The tone is focused on growth through acquisition and operational integration.

  • Other Key Points:

    • Announced a Normal Course Issuer Bid (NCIB) share repurchase program; repurchased 216,200 shares for $2.5 million in Q3 2026.
    • Entered a five-year, $85.0 million asset-based revolving credit facility with Bank of Montreal for the non-cannabis agricultural supply business.
    • Announced a $60.0 million real estate term loan at 8.50% fixed interest rate, secured by NY and FL facilities, refinancing a $49.0 million seller note at 15%.
    • Total assets increased to $1,383.2 million as of September 30, 2026, from $817.2 million as of December 31, 2025.
    • Total liabilities increased to $888.4 million as of September 30, 2026, from $509.8 million as of December 31, 2025.
    • Stockholders' equity increased to $494.8 million as of September 30, 2026, from $307.4 million as of December 31, 2025.
    • The company has 56.9 million subordinate voting shares outstanding on a treasury method basis as of September 30, 2026.