Vireo Growth Inc. Announces Second Quarter 2025 Results

Core Insights - Vireo Growth Inc. reported a significant increase in Q2 GAAP revenue, reaching $48.1 million, a 91% year-over-year growth, primarily driven by completed merger transactions [1][2] - The company's pro forma financial results aligned with management's expectations, with pro forma revenue and adjusted EBITDA estimated at $90.7 million and $23.2 million, respectively [3][6] - A recent refinancing of $153 million has positioned the company with a competitive cost of capital and over $100 million in cash, enhancing its financial stability [1][7] Financial Performance - Q2 GAAP revenue was $48.1 million, up from $25.1 million in Q2 2024, marking a 91.4% increase [2] - GAAP gross profit for Q2 was $20.4 million, a 50% increase from $13.6 million in the same quarter last year [2] - The gross profit margin decreased to 42.5% from 54.0% year-over-year [2] - Adjusted gross profit was $24.8 million, reflecting an 82.4% increase compared to $13.6 million in Q2 2024 [2] - SG&A expenses rose to $12.2 million, a 61.5% increase from $7.6 million in Q2 2024 [2] Mergers and Acquisitions - The company successfully closed three merger transactions during Q2, acquiring WholesomeCo in Utah, Proper Brands in Missouri, and Deep Roots Harvest in Nevada, which expanded its operational footprint to six states [4][5] - These acquisitions have positioned Vireo as one of the largest multi-state cannabis operators in the U.S. [5] Balance Sheet and Liquidity - As of June 30, 2025, total current assets were $186.2 million, including cash of $106.2 million, while total current liabilities were $51.8 million [8] - The company had a total of 1,058,617,377 shares outstanding at a share price of $0.52 [8] Future Outlook - Management expressed confidence in the company's growth trajectory following the merger transactions and refinancing, indicating a strong position for future acquisitions and industry leadership [3][6]