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This article provides insights into the Verano (VRNOF) company, its latest (Q2) financial results, its stock performance YTD and the consensus 12-month forecast of 10 Wall Street analysts.

About Verano

Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. It engages in the cultivation, processing, wholesale, and retail distribution of cannabis.

• has a $994M market cap as of August 8th;
• operates in 13 states with 132 dispensaries and
• has 14 cultivation and production facilities

Q2 Financial Information

(All currency numbers are in USD and compared to the previous quarter.)

• Revenue: UP 3.1% to $234.1M
• Gross Profit: UP 5.6% to $115.2M
  • as a % of revenue: UP to 49.2% from 48.1%
• SG&A Expense: UP 13.3% to $85.0M
  • as a % of revenue: UP to 36.3% from 33.0%
• Adjusted EBITDA: UP 1.3% to $71.5M
  • as a % of revenue: DOWN to 30.5% from 31.1%
• Net Profit (Loss): UP 42.4% to $(13.1)M
• Cash/Cash Equivalent: $103M

For a detailed look at all the financial metrics related to Verano in the last quarter and for every year going back to 2018 go here.

2023 Guidance

• The Company raised the lower end of its Free Cash Flow guidance for the year to $65-75 million, up from $50-75 million and reiterated its capital expenditures guidance of $35-50 million.

Q2 Operational Highlights

• Expanded the Company's retail footprint across multiple markets and announced key leadership promotions to executive team.

Management Commentary

George Archos, Verano Founder, Chairman and Chief Executive Officer, said:

• "Our strong second quarter results demonstrate the effectiveness of the strategy we’ve executed since inception, and reflect the persistent rigor and discipline we harness in running our business every day.
• Our ability to generate record quarterly revenue and positive free cash flow while strengthening our balance sheet proves that despite ongoing fluctuations in the industry, we remain well-positioned to pursue potential growth opportunities.
• We successfully
  • grew our retail footprint, launched our new On the Rocks solvent-less extracts and line extensions across our most popular brands in core markets,
  • increased our retail and wholesale revenue in key states,
  • strengthened our executive leadership team with key internal promotions, and
  • leveraged our deep experience transitioning markets by welcoming adult use customers at our four Maryland Zen Leaf dispensaries on July 1.
• Since inception, we've built a sustainable business that has never depended on federal reform, and I remain confident in our ability to continue thriving in the current environment, bolstered by the strength of our brand portfolio, our expanding geographic footprint, and our increased free cash flow guidance for the remainder of 2023."

Stock Performance

The stock price as of yesterday, August 7th, was $2.82 or -9.6% YTD although it had rallied slightly to $2.92 as of noon on August 8th with the release of the Q2 financial report.

Analyst Forecasts

According to 10 stock analysts, the average 12-month stock price forecast for VRNOF stock is an average of $8.50 (High of $10; Low of $7), which represents an increase of 194% from its August 4th close. 7 analyst rate the stock as a Strong Buy, 2 as a Buy and one as a Hold. Source

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