Vireo Growth Inc. Announces Second Quarter 2025 Results
Vireo Growth Inc. (OTCQX: VREOF) reported strong Q2 2025 financial results, with GAAP revenue reaching $48.1 million, a 91.4% increase year-over-year. The company completed three significant merger acquisitions in Utah, Missouri, and Nevada, expanding operations to six states. Key financial metrics include Adjusted EBITDA of $13.3 million and pro forma revenue of $90.7 million.
Notably, Vireo secured a $153 million refinancing, comprising a $120 million term loan at 8.3% interest and a $33 million second lien term loan with a $50 million accordion feature. This refinancing is expected to reduce annual interest expenses by over $10 million and has strengthened the company's balance sheet with over $100 million in cash.
Vireo Growth Inc. (OTCQX: VREOF) ha registrato solidi risultati finanziari nel secondo trimestre 2025, con ricavi GAAP pari a $48,1 milioni, in aumento del 91,4% rispetto all'anno precedente. La società ha completato tre significative operazioni di fusione/acquisizione in Utah, Missouri e Nevada, portando le attività a sei stati. Tra gli indicatori chiave figurano un EBITDA rettificato di $13,3 milioni e ricavi pro forma di $90,7 milioni.
Di rilievo, Vireo ha ottenuto un rifinanziamento da $153 milioni, composto da un prestito a termine di $120 milioni al tasso dell'8,3% e un secondo prestito a termine di $33 milioni con una clausola accordion da $50 milioni. Si prevede che questo rifinanziamento ridurrà le spese per interessi annuali di oltre $10 milioni e abbia rafforzato il bilancio della società con oltre $100 milioni in contanti.
Vireo Growth Inc. (OTCQX: VREOF) presentó sólidos resultados financieros en el segundo trimestre de 2025, con ingresos GAAP de $48,1 millones, un aumento interanual del 91,4%. La compañía completó tres importantes fusiones/adquisiciones en Utah, Missouri y Nevada, ampliando sus operaciones a seis estados. Entre las métricas clave se incluyen un EBITDA ajustado de $13,3 millones y unos ingresos pro forma de $90,7 millones.
Notablemente, Vireo aseguró un refinanciamiento de $153 millones, que consta de un préstamo a plazo de $120 millones al 8,3% de interés y un segundo préstamo a plazo de $33 millones con una opción accordion de $50 millones. Se espera que este refinanciamiento reduzca los gastos por intereses anuales en más de $10 millones y haya reforzado el balance de la compañía con más de $100 millones en efectivo.
Vireo Growth Inc. (OTCQX: VREOF)는 2025년 2분기에 견조한 실적을 발표했으며, GAAP 매출이 $48.1 million으로 전년 동기 대비 91.4% 증가했습니다. 회사는 유타, 미주리, 네바다에서 3건의 주요 합병·인수를 완료해 영업을 6개 주로 확장했습니다. 주요 재무 지표로는 조정 EBITDA $13.3 million와 프로포르마 매출 $90.7 million가 포함됩니다.
특히 Vireo는 $153 million의 리파이낸싱을 확보했으며, 이는 연이율 8.3%의 $120 million 만기 대출과 $33 million의 세컨드 린 만기 대출(또한 $50 million의 액코디언 옵션 포함)으로 구성됩니다. 이번 리파이낸싱은 연간 이자비용을 $10 million 이상 절감할 것으로 예상되며, $100 million 이상의 현금으로 재무구조를 강화했습니다.
Vireo Growth Inc. (OTCQX: VREOF) a annoncé de solides résultats pour le deuxième trimestre 2025, avec des revenus GAAP atteignant 48,1 millions $, en hausse de 91,4% par rapport à l'année précédente. La société a finalisé trois importantes opérations de fusion-acquisition dans l'Utah, le Missouri et le Nevada, étendant ses activités à six États. Parmi les indicateurs clés figurent un EBITDA ajusté de 13,3 millions $ et des revenus pro forma de 90,7 millions $.
Notamment, Vireo a obtenu un refinancement de 153 millions $, comprenant un prêt à terme de 120 millions $ au taux de 8,3% et un second prêt à terme de 33 millions $ avec une option accordion de 50 millions $. Ce refinancement devrait réduire les charges d'intérêts annuelles de plus de 10 millions $ et a renforcé le bilan de la société avec plus de 100 millions $ en liquidités.
Vireo Growth Inc. (OTCQX: VREOF) meldete starke Finanzergebnisse für das zweite Quartal 2025, wobei die GAAP-Umsätze 48,1 Mio. $ erreichten, ein Anstieg von 91,4% gegenüber dem Vorjahr. Das Unternehmen schloss drei bedeutende Fusionen/Akquisitionen in Utah, Missouri und Nevada ab und weitete damit seine Aktivitäten auf sechs Bundesstaaten aus. Zu den wichtigsten Kennzahlen gehören ein bereinigtes EBITDA von 13,3 Mio. $ und Pro-forma-Umsätze von 90,7 Mio. $.
Bemerkenswert ist, dass Vireo eine Refinanzierung in Höhe von 153 Mio. $ sicherte, bestehend aus einem Terminkredit über 120 Mio. $ mit 8,3% Zinsen und einem zweiten Terminkredit über 33 Mio. $ mit einer Accordion-Option über 50 Mio. $. Diese Refinanzierung dürfte die jährlichen Zinsaufwendungen um mehr als 10 Mio. $ senken und hat die Bilanz des Unternehmens mit über 100 Mio. $ an Barmitteln gestärkt.
- Revenue increased 91.4% year-over-year to $48.1 million in Q2 2025
- Successful completion of three strategic merger acquisitions expanding operations to six states
- $153 million refinancing secured at favorable 8.3% interest rate
- Expected annual interest expense reduction of over $10 million
- Strong liquidity position with $106.2 million cash on hand
- Pro forma Adjusted EBITDA reached $23.2 million
- GAAP Operating Income declined to -$2.0 million from $5.8 million year-over-year
- Gross Profit Margin decreased 1,150 basis points to 42.5%
- Operating Income Margin dropped significantly to -4.2% from 23.1%
- Adjusted EBITDA Margin declined 480 basis points to 27.6%
– Q2 GAAP revenue of
– Q2 pro forma financial results were in line with management’s previously communicated expectations –
– Recent
– Closing of all previously pending merger transactions during Q2 positions Company as industry leader –
MINNEAPOLIS, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Vireo Growth Inc. ("Vireo" or the "Company") (CSE: VREO; OTCQX: VREOF), today reported financial results for its second fiscal quarter ended June 30, 2025. Key financial results are presented below in summary form with supporting commentary and discussion from management of certain key operating metrics which the Company uses to judge its performance. All currency figures referenced herein are denominated in U.S. dollars.
| Summary of Key Financial Metrics | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| US $ in millions | June 30, | June 30, | |||||||||
| 2025 | 2024 | Variance | 2025 | 2024 | Variance | ||||||
| GAAP Revenue | |||||||||||
| GAAP Gross Profit | |||||||||||
| Gross Profit Margin | 42.5% | 54.0% | -1,150 bps | 45.2% | 52.4% | -720 bps | |||||
| Adjusted Gross Profit1 | |||||||||||
| Adjusted Gross Profit Margin1 | 51.6% | 54.2% | -260 bps | 51.7% | 52.4% | -80 bps | |||||
| SG&A Expenses excluding severance | |||||||||||
| SG&A Expenses (% of Sales) | 25.4% | 30.1% | -480 bps | 27.4% | 29.7% | -226 bps | |||||
| GAAP Operating Income | ( | - | - | ||||||||
| GAAP Operating Income Margin | - | 23.1% | -2,730 bps | 0.0% | 21.5% | -2,150 bps | |||||
| Adjusted Operating Income2 | $11.3 | $5.7 | 98.2% | $16.2 | $10.7 | 51.4% | |||||
| Adjusted Operating Income Margin2 | 23.5% | 22.7% | 80 bps | 22.3% | 21.7% | 60 bps | |||||
| Adjusted EBITDA (non-GAAP) | - | - | |||||||||
| Adjusted EBITDA Margin | 27.6% | 32.3% | -480 bps | 27.3% | 28.9% | -153 bps | |||||
| 1Excludes fair value adjustments and Grown Rogue termination fee | |||||||||||
| 2Excludes fair value adjustments, Grown Rogue termination fee, share based compensation and transaction expenses | |||||||||||
| 3 Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP financial measures. Please refer to the end of this press release for a definition of these measures and a reconciliation to the most directly comparable GAAP measures. | |||||||||||
Management Commentary
Chief Executive Officer John Mazarakis commented, “Our second quarter results were in line with the expectations that we communicated following the closing of our merger transactions, with pro forma revenue and pro forma adjusted EBITDA4 of
4Pro forma financial metrics assume the merger transactions closed on April 1, 2025. Pro Forma Adjusted EBITDA is a non-GAAP measure. Please refer to the end of this press release for a definition of Pro Forma Adjusted EBITDA and a reconciliation from the most directly comparable GAAP measure.
Other Events
During the second quarter, the Company closed each of its three previously-announced merger transactions, including the acquisitions of WholesomeCo in Utah, Proper Brands in Missouri, and Deep Roots Harvest in Nevada. The closing of these transactions transformed the Company into one of the largest U.S. multi-state cannabis operators and expanded the Company’s portfolio to six states with active operations.
On June 17, 2025, following the closing of all its previously-announced merger transactions, the Company announced that it expected pro forma revenue and adjusted EBITDA for the second quarter of 2025 to be in the range of
On July 8, 2025, the Company announced the closing of a series of transactions that collectively refinanced all of its existing senior secured debt and significantly expanded its credit capacity under more favorable terms. The Company refinanced all of its existing senior secured debt through a
Balance Sheet and Liquidity
As of June 30, 2025, total current assets excluding New York assets held for sale and income taxes receivable were
Conference Call and Webcast Information
Vireo management will host a conference call with research analysts today, August 13, 2025, at 8:30 a.m. ET (7:30 a.m. CT) to discuss its financial results for its second quarter ended June 30, 2025. Interested parties may attend the conference call by dialing 1-800-715-9871 (Toll-Free) (US and Canada) or 1-646-307-1963 (Toll) (International) and referencing conference ID number 3718174.
A live audio webcast of this event will also be available in the Events & Presentations section of the Company’s Investor Relations website and via the following link:
https://events.q4inc.com/attendee/687371440.
About Vireo Growth Inc.
Vireo was founded in 2014 as a medical cannabis pioneer—and we’ve never stopped pushing boundaries. We’re building the most disciplined, strategically aligned, and execution-focused platform in the industry. That means staying relentlessly local while leveraging the strength of a national portfolio, backing exceptional leaders, and deploying capital and talent where it drives the most value. Vireo operates with a long-term mindset, a bias for action, and an unapologetic commitment to its customers, employees, shareholders, industry collaborators, and the communities it calls home. For more information about Vireo, visit www.vireogrowth.com.
Additional Information
Additional information relating to the Company’s second quarter 2025 results will be available on EDGAR and SEDAR+ later today. Vireo refers to certain non-GAAP financial measures such as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, and Adjusted Operating Income Margin in circumstances in which the Company believes that doing so provides additional perspective and insights when analyzing the core operating performance of the business. These measures do not have any standardized meaning and may not be comparable to similar measures presented by other issuers. Please see the Supplemental Information and Reconciliation of Non-GAAP Financial Measures at the end of this news release for more detailed information regarding non-GAAP financial measures including a reconciliation of each measure to the most directly comparable GAAP financial measure.
Contact Information
Joe Duxbury
Chief Accounting Officer
investor@vireogrowth.com
(612) 314-8995
Forward-Looking Statement Disclosure
This press release contains “forward-looking information” within the meaning of applicable United States and Canadian securities legislation. To the extent any forward-looking information in this press release constitutes “financial outlooks” within the meaning of applicable United States or Canadian securities laws, this information is being provided as preliminary financial results; the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information contained in this press release may be identified by the use of words such as “should,” “believe,” “estimate,” “would,” “looking forward,” “may,” “continue,” “expect,” “expected,” “will,” “likely,” “subject to,” and variations of such words and phrases, or any statements or clauses containing verbs in any future tense and includes statements regarding the Company’s expected performance in 2025; and the impact and future benefits of our recently completed merger transactions and refinancing transactions and future growth opportunities for the Company. These statements should not be read as guarantees of future performance or results. Forward-looking information includes both known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company or its subsidiaries to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements or information contained in this press release. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein and in our Annual Report on Form 10-K filed with the Securities Exchange Commission. Our actual financial position and results of operations may differ materially from management’s current expectations and, as a result, our revenue, EBITDA, Adjusted EBITDA, and cash on hand may differ materially from the values provided in this press release. Forward-looking information is based upon a number of estimates and assumptions of management, believed but not certain to be reasonable, in light of management’s experience and perception of trends, current conditions, and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, the reader should not place undue reliance on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to: risks related to the timing and content of adult-use legislation in markets where the Company currently operates; current and future market conditions, including the market price of the subordinate voting shares of the Company; risks related to epidemics and pandemics; federal, state, local, and foreign government laws, rules, and regulations, including federal and state laws and regulations in the United States relating to cannabis operations in the United States and any changes to such laws or regulations; operational, regulatory and other risks; execution of business strategy; management of growth; difficulties inherent in forecasting future events; conflicts of interest; risks inherent in an agricultural business; risks inherent in a manufacturing business; liquidity and the ability of the Company to raise additional financing to continue as a going concern; the Company’s ability to meet the demand for flower in its various markets; risk of failure in the lawsuit with Verano and the cost of that litigation; our ability to dispose of our assets held for sale at an acceptable price or at all; and risk factors set out in the Company's Form 10-K for the year ended December 31, 2024, which is available on EDGAR with the U.S. Securities and Exchange Commission and filed with the Canadian securities regulators and available under the Company's profile on SEDAR+ at www.sedarplus.com.
The statements in this press release are made as of the date of this release. Except as required by law, we undertake no obligation to update any forward-looking statements or forward-looking information to reflect events or circumstances after the date of such statements.
VIREO GROWTH INC.
STATE-BY-STATE REVENUE PERFORMANCE
THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024
| Three Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2025 | 2024 | $Change | % Change | |||||||||||
| Retail: | ||||||||||||||
| MN | $ | 10,858,055 | $ | 12,238,957 | $ | (1,380,902 | ) | (11 | ) | % | ||||
| NY | 1,094,551 | 1,604,327 | (509,776 | ) | (32 | ) | % | |||||||
| MD | 6,749,585 | 6,975,735 | (226,150 | ) | (3 | ) | % | |||||||
| UT | 6,101,621 | — | 6,101,621 | 100 | % | |||||||||
| NV | 6,361,285 | — | 6,361,285 | 100 | % | |||||||||
| MO | 5,607,463 | — | 5,607,463 | 100 | % | |||||||||
| Total Retail | $ | 36,772,560 | $ | 20,819,019 | $ | 15,953,541 | 77 | % | ||||||
| Wholesale: | ||||||||||||||
| MN | $ | 159,713 | 6,869 | 152,844 | 2,225 | % | ||||||||
| NY | 4,127,703 | 998,724 | 3,128,979 | 313 | % | |||||||||
| MD | 4,182,707 | 3,283,635 | 899,072 | 27 | % | |||||||||
| UT | 1,106,756 | — | 1,106,756 | 100 | % | |||||||||
| NV | 28,206 | — | 28,206 | 100 | % | |||||||||
| MO | 1,685,365 | — | 1,685,365 | 100 | % | |||||||||
| Total Wholesale | $ | 11,290,450 | $ | 4,289,228 | $ | 7,001,222 | 163 | % | ||||||
| Total Revenue | $ | 48,063,010 | $ | 25,108,247 | $ | 22,954,763 | 91 | % | ||||||
| Six Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||||
| Retail: | ||||||||||||||
| MN | $ | 22,067,259 | $ | 23,216,046 | $ | (1,148,787 | ) | (5 | ) | % | ||||
| NY | 2,299,596 | 3,425,596 | (1,126,000 | ) | (33 | ) | % | |||||||
| MD | 13,568,977 | 13,776,817 | (207,840 | ) | (2 | ) | % | |||||||
| UT | 6,101,621 | — | 6,101,621 | 100 | % | |||||||||
| NV | 6,361,285 | — | 6,361,285 | 100 | % | |||||||||
| MO | 5,607,463 | 5,607,463 | 100 | % | ||||||||||
| Total Retail | $ | 56,006,201 | $ | 40,418,459 | $ | 15,587,742 | 39 | % | ||||||
| Wholesale: | ||||||||||||||
| MN | 441,124 | 6,869 | 434,255 | 6,322 | % | |||||||||
| NY | 5,064,054 | 2,132,938 | 2,931,116 | 137 | % | |||||||||
| MD | 8,271,945 | 6,637,296 | 1,634,649 | 25 | % | |||||||||
| UT | 1,106,756 | — | 1,106,756 | 100 | % | |||||||||
| NV | 28,206 | — | 28,206 | 100 | % | |||||||||
| MO | 1,685,365 | — | 1,685,365 | 100 | % | |||||||||
| Total Wholesale | $ | 16,597,450 | $ | 8,777,103 | $ | 7,820,347 | 89 | % | ||||||
| Total Revenue | $ | 72,603,651 | $ | 49,195,562 | $ | 23,408,089 | 48 | % | ||||||
Supplemental Information
The financial information reported in this news release is based on unaudited financial statements for the second quarter ended June 30, 2025, and June 30, 2024. All financial information contained in this news release is qualified in its entirety with reference to such financial statements. To the extent that the financial information contained in this news release is inconsistent with the information contained in the Company’s audited financial statements, the financial information contained in this news release shall be deemed to be modified or superseded by the Company’s audited financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws.
Reconciliation of Non-GAAP Financial Measures
Vireo management occasionally elects to provide certain non-GAAP financial measures such as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, and Adjusted Operating Income Margin. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, and Adjusted Operating Income Margin are non-GAAP measures and do not have standardized definitions under GAAP. The following information provides reconciliations of the supplemental non-GAAP financial measures presented herein to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented.
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
We have included this information as management believes certain investors use this information to evaluate our performance in comparison to other cannabis companies. The table below provides a reconciliation of net loss to EBITDA and to Adjusted EBITDA.
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net income (loss) | $ | (14,934,029 | ) | $ | (668,441 | ) | $ | (21,442,819 | ) | $ | (7,379,870 | ) | ||||
| Interest expense, net | 7,647,822 | 7,518,454 | 15,247,339 | 16,241,091 | ||||||||||||
| Income taxes | 4,854,000 | 440,000 | 6,529,000 | 4,385,000 | ||||||||||||
| Depreciation & Amortization | 1,101,919 | 252,958 | 1,359,053 | 506,538 | ||||||||||||
| Depreciation and amortization included in cost of sales | 858,632 | 585,740 | 1,428,672 | 1,170,698 | ||||||||||||
| EBITDA (non-GAAP) | $ | (471,656 | ) | $ | 8,128,711 | $ | 3,121,245 | $ | 14,923,457 | |||||||
| Non-cash inventory adjustments | 3,925,959 | 41,000 | 4,358,959 | 304,000 | ||||||||||||
| Grown Rogue termination fee included in cost of goods sold | 266,667 | — | 533,333 | — | ||||||||||||
| Stock-based compensation | 4,150,630 | (60,568 | ) | 5,611,480 | 179,789 | |||||||||||
| Transaction related expenses | 4,729,444 | — | 5,974,140 | — | ||||||||||||
| Other income | 407,673 | — | (382,365 | ) | (1,327,879 | ) | ||||||||||
| Severance expense | 239,924 | — | 619,839 | — | ||||||||||||
| Loss on disposal of assets | 5,844 | 5,844 | 120,856 | |||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 13,254,485 | $ | 8,109,143 | $ | 19,842,475 | $ | 14,200,223 | ||||||||
Reconciliation of Q2 Pro Forma Net Loss to Pro Forma EBITDA and Pro Forma Adjusted EBITDA
The table below provides a reconciliation of pro forma net loss to pro forma EBITDA and to pro forma Adjusted EBITDA.
| Three Months Ended | ||||
| June 30, | ||||
| Pro Forma Net income (loss) | $ | (21,034,208 | ) | |
| Interest expense, net | 9,193,304 | |||
| Income taxes | 10,804,770 | |||
| Depreciation & Amortization | 3,375,305 | |||
| Pro Forma EBITDA (non-GAAP) | $ | 2,339,171 | ||
| Non-cash inventory adjustments | 4,252,451 | |||
| Stock-based compensation | 6,328,592 | |||
| Transaction related expenses | 9,056,447 | |||
| Other (income) expense | 134,938 | |||
| Severance expense | 239,834 | |||
| Loss on disposal of assets | 844,269 | |||
| Pro Forma Adjusted EBITDA (non-GAAP) | $ | 23,195,702 | ||
Reconciliation of Q2 Gross Profit to Adjusted Gross Profit
The table below provides a reconciliation of Gross Profit to Adjusted Gross Profit. Adjusted Gross Profit Margin represents Adjusted Gross Profit divided by GAAP revenue for the relevant period.
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Gross Profit | $ | 20,417,847 | $ | 13,550,643 | $ | 32,830,159 | $ | 25,795,070 | ||||||||
| Non-cash inventory adjustments | 4,152,108 | — | 4,152,108 | — | ||||||||||||
| Grown Rogue termination fee included in cost of goods sold | 266,667 | — | 533,333 | — | ||||||||||||
| Adjusted Gross Profit (non-GAAP) | $ | 24,836,622 | $ | 13,550,643 | $ | 37,515,600 | $ | 25,795,070 | ||||||||
Reconciliation of Q2 Operating Income to Adjusted Operating Income
The table below provides a reconciliation of Gross Profit to Adjusted Gross Profit. Adjusted Operating Income Margin represents Adjusted Operating Income divided by GAAP revenue for the relevant period.
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating Income | $ | (2,018,690 | ) | $ | 5,794,022 | $ | (43,001 | ) | $ | 10,553,467 | ||||||
| Non-cash inventory adjustments | 4,152,108 | — | 4,152,108 | — | ||||||||||||
| Grown Rogue termination fee included in cost of goods sold | 266,667 | — | 533,333 | — | ||||||||||||
| Stock-based compensation | 4,150,630 | (60,568 | ) | 5,611,480 | 179,789 | |||||||||||
| Transaction related expenses | 4,729,444 | — | 5,974,140 | — | ||||||||||||
| Adjusted Operating Income (non-GAAP) | $ | 11,280,159 | $ | 5,733,454 | $ | 16,228,060 | $ | 10,733,256 | ||||||||
VIREO GROWTH INC.
CONSOLIDATED BALANCE SHEETS AS OF 6/30/2025 AND 12/31/2024
(Amounts Expressed in United States Dollars, Unaudited and Condensed)
| June 30, | December 31, | |||||||||||
| 2025 | 2024 | |||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash | $ | 99,134,913 | $ | 91,604,970 | ||||||||
| Restricted Cash | 7,054,563 | — | ||||||||||
| Marketable Securities | 1,004,479 | — | ||||||||||
| Accounts receivable, net of credit losses of | 10,620,290 | 4,590,351 | ||||||||||
| Income tax receivable | 24,759,915 | 12,027,472 | ||||||||||
| Inventory | 63,032,832 | 21,666,364 | ||||||||||
| Prepayments and other current assets | 4,130,285 | 1,650,977 | ||||||||||
| Warrants held | 1,272,440 | 2,270,964 | ||||||||||
| Assets Held for Sale | 101,778,735 | 96,560,052 | ||||||||||
| Total current assets | 312,788,452 | 230,371,150 | ||||||||||
| Property and equipment, net | 110,660,253 | 32,311,762 | ||||||||||
| Operating lease, right-of-use asset | 37,468,486 | 7,859,434 | ||||||||||
| Intangible assets, net | 86,173,838 | 7,899,328 | ||||||||||
| Goodwill | 72,644,103 | — | ||||||||||
| Investments | 13,100,000 | — | ||||||||||
| Deposits | 8,647,824 | 421,244 | ||||||||||
| Indemnified Assets | 17,529,137 | — | ||||||||||
| Other Assets | 328,166 | — | ||||||||||
| Total assets | $ | 659,340,259 | $ | 278,862,918 | ||||||||
| Liabilities | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable and accrued liabilities | $ | 47,454,840 | $ | 10,456,036 | ||||||||
| Long-Term debt, current portion | 26,483,317 | 900,000 | ||||||||||
| Right of use liability | 4,351,301 | 1,400,015 | ||||||||||
| Uncertain tax liability | 75,849,307 | 33,324,000 | ||||||||||
| Liabilities held for sale | 89,379,390 | 89,387,203 | ||||||||||
| Total current liabilities | 243,518,155 | 135,467,254 | ||||||||||
| Right-of-use liability | 43,194,576 | 16,494,439 | ||||||||||
| Other long-term liabilities | 1,316,959 | 37,278 | ||||||||||
| Contingent consideration | 10,631,000 | — | ||||||||||
| Convertible debt, net | 9,886,664 | 9,862,378 | ||||||||||
| Long-Term debt, net | 82,214,415 | 61,438,046 | ||||||||||
| Total liabilities | 390,761,769 | 223,299,395 | ||||||||||
| Stockholders’ equity | ||||||||||||
| Subordinate Voting Shares ($- par value, unlimited shares authorized; 923,839,190 shares issued and outstanding at June 30, 2025 and 337,512,681 at December 31, 2024) | — | — | ||||||||||
| Multiple Voting Shares ($- par value, unlimited shares authorized; 259,632 shares issued and outstanding at June 30, 2025 and 285,371 at December 31, 2024) | — | — | ||||||||||
| Additional paid in capital | 521,456,870 | 286,999,084 | ||||||||||
| Accumulated deficit | (252,878,380 | ) | (231,435,561 | ) | ||||||||
| Total stockholders' equity | $ | 268,578,490 | $ | 55,563,523 | ||||||||
| Total liabilities and stockholders' equity | $ | 659,340,259 | $ | 278,862,918 | ||||||||
VIREO GROWTH INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024
(Amounts Expressed in United States Dollars, Unaudited and Condensed)
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Revenue | $ | 48,063,010 | $ | 25,108,247 | $ | 72,603,651 | $ | 49,195,562 | |||||||||
| Cost of sales | |||||||||||||||||
| Product costs | 23,719,204 | 11,516,604 | 35,414,533 | 23,663,492 | |||||||||||||
| Non-cash product costs | 4,152,108 | — | 4,152,108 | — | |||||||||||||
| Inventory valuation adjustments | (226,149 | ) | 41,000 | 206,851 | (263,000 | ) | |||||||||||
| Gross profit | 20,417,847 | 13,550,643 | 32,830,159 | 25,795,070 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Selling, general and administrative expenses | 12,454,544 | 7,564,231 | 19,928,487 | 14,615,844 | |||||||||||||
| Transaction related expenses | 4,729,444 | — | 5,974,140 | — | |||||||||||||
| Stock-based compensation expenses | 4,150,630 | (60,568 | ) | 5,611,480 | 119,221 | ||||||||||||
| Depreciation | 387,596 | 72,925 | 464,698 | 146,471 | |||||||||||||
| Amortization | 714,323 | 180,033 | 894,355 | 360,067 | |||||||||||||
| Total operating expenses | 22,436,537 | 7,756,621 | 32,873,160 | 15,241,603 | |||||||||||||
| Gain (loss) from operations | (2,018,690 | ) | 5,794,022 | (43,001 | ) | 10,553,467 | |||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expenses, net | (7,647,822 | ) | (7,518,454 | ) | (15,247,339 | ) | (16,241,091 | ||||||||||
| Gain (loss) on disposal of assets | (5,844 | ) | (97,471 | ) | (5,844 | ) | (218,327 | ) | |||||||||
| Other income (expenses) | (407,673 | ) | 1,593,492 | 382,365 | 2,911,081 | ||||||||||||
| Other income (expenses), net | (8,061,339 | ) | (6,022,433 | ) | (14,870,818 | ) | (13,548,337 | ) | |||||||||
| Loss before income taxes | (10,080,029 | ) | (228,411 | ) | (14,913,819 | ) | (2,994,870 | ) | |||||||||
| Current income tax expenses | (4,854,000 | ) | (440,000 | ) | (6,529,000 | ) | (4,385,000 | ) | |||||||||
| Net loss and comprehensive loss | (14,934,029 | ) | (668,411 | ) | (21,442,819 | ) | (7,379,870 | ) | |||||||||
| Net loss per share - basic and diluted | $ | (0.03 | ) | $ | (0.00 | ) | $ | (0.05 | ) | $ | (0.05 | ) | |||||
| Weighted average shares used in computation of net loss per share - basic & diluted | 559,097,392 | 143,583,496 | 463,901,421 | 143,354,913 | |||||||||||||
VIREO GROWTH INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2025 AND 2024
(Amounts Expressed in United States Dollars, Unaudited and Condensed)
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (21,442,819 | ) | $ | (7,379,870 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Non-cash amortization of inventory step up included in product costs | 4,152,108 | — | ||||||
| Inventory valuation adjustments | 206,851 | (263,000 | ) | |||||
| Depreciation | 464,698 | 146,471 | ||||||
| Depreciation capitalized into inventory | 1,388,536 | 1,121,141 | ||||||
| Non-cash operating lease expense | 524,882 | 211,319 | ||||||
| Amortization of intangible assets | 894,355 | 360,067 | ||||||
| Amortization of intangible assets capitalized into inventory | 40,136 | 49,557 | ||||||
| Stock-based payments | 5,455,137 | 119,221 | ||||||
| Warrants held | 998,524 | (2,930,291 | ) | |||||
| Interest Expense | 2,483,994 | 2,916,255 | ||||||
| Bad debt expense | 84,444 | — | ||||||
| Accretion of interest on right-of-use finance lease liabilities | 103,376 | 108,902 | ||||||
| Loss (gain) on disposal of assets | 5,844 | 120,856 | ||||||
| Change in operating assets and liabilities: | ||||||||
| Accounts Receivable | (2,314,274 | ) | 842,353 | |||||
| Prepaid expenses | 312,788 | 565,048 | ||||||
| Inventory | 1,276,738 | (407,734 | ) | |||||
| Income taxes | (1,513,207 | ) | 16,154 | |||||
| Uncertain tax position liabilities | 5,442,000 | 4,370,000 | ||||||
| Accounts payable and accrued liabilities | (191,031 | ) | 1,215,694 | |||||
| Changes in operating lease liabilities | (831,317 | ) | (281,874 | ) | ||||
| Purchase of marketable securities | (1,004,479 | ) | — | |||||
| Change in assets and liabilities held for sale | (4,688,713 | ) | (2,100,143 | ) | ||||
| Net cash used in operating activities | (8,151,429 | ) | (1,199,874 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property, plant, and equipment | (4,804,492 | ) | (4,088,734 | ) | ||||
| Acquisition of WholesomeCo, Inc., net of cash | 7,025,811 | — | ||||||
| Acquisition of Deep Roots Holdings, Inc., net of cash | 19,037,368 | — | ||||||
| Acquisition of Proper Holdings Management, Inc., net of cash | 12,298,303 | — | ||||||
| Capitalized software development costs | (328,166 | ) | — | |||||
| Deposits | (290,798 | ) | (150,100 | ) | ||||
| Net cash used in investing activities | 32,938,026 | (4,238,834 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from long-term debt, net of issuance costs | (260,000 | ) | 1,131,400 | |||||
| Proceeds from convertible debt, net of issuance costs | — | — | ||||||
| Proceeds from issuance of shares | — | 700,000 | ||||||
| Proceeds from warrant exercises | 38,516 | 29,000 | ||||||
| Proceeds from option exercises | 80,614 | 16,500 | ||||||
| Debt principal payments | (10,061,221 | ) | (1,062,000 | ) | ||||
| Lease principal payments | — | (111,560 | ) | |||||
| Net cash used in financing activities | (10,202,091 | ) | 703,340 | |||||
| Net change in cash | 14,584,506 | (4,735,368 | ) | |||||
| Cash, beginning of period | 91,604,970 | 15,964,665 | ||||||
| Cash, end of period | $ | 106,189,476 | $ | 11,229,297 | ||||
FAQ
What was Vireo Growth's (VREOF) revenue growth in Q2 2025?
How much did Vireo Growth raise in their 2025 refinancing?
What acquisitions did Vireo Growth complete in Q2 2025?
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