Overview

• U.S. cannabis operator's Q1 revenue rose sequentially, beating analyst expectations

• Adjusted EBITDA for Q1 missed analyst expectations, margin was 24%

• Company announced $20 mln share repurchase authorization

Outlook

• Company reiterates 2026 capital expenditures guidance of $30 mln to $50 mln

• Verano says it is positioned to capitalize on potential Schedule III regulatory changes

Result Drivers

• RETAIL PERFORMANCE - Company said sequential revenue growth was primarily driven by strong retail performance

• WHOLESALE COMPETITION - Year-over-year revenue decrease was driven by increased competition and promotional activity in wholesale markets

• PROMOTIONAL ACTIVITY - Gross profit margin decline was primarily due to increased promotional activity

Company press release: ID:nGNXbWjzN8

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$208 mln	$200.41 mln (7 Analysts)
Q1 Adjusted EBITDA	Miss	$49 mln	$51.23 mln (7 Analysts)
Q1 Capex		$15 mln
Q1 Gross Profit		$99 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the fishing & farming peer group is "buy"

• Wall Street's median 12-month price target for Verano Holdings Corp is C$5.00, about 199.4% above its April 29 closing price of C$1.67

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