Completed refinancing of senior secured debt which is expected to decrease annualized interest expense by $10 million
Closed Q3 with $117 million in cash; expects to remain acquisitive in distressed environment
MINNEAPOLIS, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Vireo Growth Inc. ("Vireo" or the "Company") (CSE:VREO, OTCQX:VREOF), today reported financial results for its third fiscal quarter ended September 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
Nine Months Ended
US $in millions
September 30,
September 30,
2025
2024
Variance
2025
2024
Variance
GAAP Revenue
$
91.7
$
25.2
264.2
%
$
164.3
$
74.4
120.9
%
GAAP Gross Profit
$
37.4
$
12.3
204.1
%
$
70.2
$
38.1
84.3
%
Gross Profit Margin
40.8
%
49.0
%
-820
bps
42.7
%
51.3
%
-860
bps
Adjusted Gross Profit1
$
50.8
$
12.7
300.0
%
$
88.5
$
38.2
131.7
%
Adjusted Gross Profit Margin1
55.4
%
50.4
%
500
bps
53.9
%
51.3
%
250
bps
GAAP Operating Income
$
0.8
$
3.9
-79.0
%
$
0.8
$
14.4
-94.7
%
GAAP Operating Income Margin
0.9
%
15.5
%
-1,460
bps
0.5
%
19.4
%
-1,890
bps
Adjusted Operating Income2
$
21.0
$
5.2
303.8
%
$
38.0
$
15.8
140.5
%
Adjusted Operating Income Margin2
22.9
%
20.6
%
230
bps
23.1
%
21.2
%
190
bps
Adjusted EBITDA
$
25.4
$
6.4
297.0
%
$
45.2
$
18.5
144.7
%
Adjusted EBITDA Margin
27.7
%
25.3
%
230
bps
27.5
%
24.8
%
268
bps
1Excludes fair value adjustments and Grown Rogue termination fee2Excludes fair value adjustments, Grown Rogue termination fee, share based compensation and transaction expensesNOTE: 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 third quarter results reflect continued progress against our objective to create a portfolio of prolific brands in cannabis. Performance was in line with our expectations and is beginning to demonstrate the impact of our efforts to transform the Company through accretive M&A. As we exit 2025 and begin the new year, we will continue optimizing all areas of our business while remaining opportunistic with respect to further acquisitive growth opportunities."
Recent Developments
On September 16, 2025, the Company recorded its first sale of adult use cannabis in Minnesota at its historic downtown Minneapolis Green Goods® dispensary. The Company is now dispensing a full suite of both medical and adult-use cannabis products at all eight of its Green Goods™ dispensaries located throughout the State of Minnesota. As one of the state's operational licensed adult-use cannabis cultivators and retailers, and with a population of 5.7 million people, the launch of Minnesota's adult-use cannabis market is expected to serve as an organic revenue growth catalyst for Vireo for the foreseeable future.
On October 14, 2025, the Company announced that it closed on a transaction to acquire outstanding senior secured convertible notes of public U.S. multi-state cannabis operator Schwazze, and that it entered into a Restructuring Support Agreement with Schwazze. The parties plan to restructure the operations and capital structure of Schwazze and its subsidiaries through a series of transactions, including the UCC sale of certain assets representing a majority of the total assets of Schwazze to a newly-formed entity to be majority-owned by Vireo, and the liquidation and winding down of Schwazze's remaining operations. Schwazze currently operates 46 dispensaries and 2 manufacturing facilities throughout Colorado and New Mexico.
On October 29, 2025, the Company announced that it has reached a comprehensive settlement agreement with Verano Holdings Corp., dismissing all outstanding litigation matters between the two companies that are pending before the Supreme Court of British Columbia, Canada. The terms of the agreement were approved by the respective Boards of Directors of both companies. The value of the settlement to Vireo is approximately $10 million.
At the end of the third quarter, the Company had largely completed integration of its recent acquisitions, including streamlined accounting, finance, human resources, insurance, and procurement operations, as well as the implementation of a new Enterprise Resource Planning system across the organization. The Company has already realized corporate overhead synergies, and full integration is expected to be completed by the end of the year.
Balance Sheet and Liquidity
As of September 30, 2025, total current assets excluding New York assets held for sale and income taxes receivable were $191.1 million, including cash on hand of $117.5 million. Total current liabilities excluding New York liabilities held for sale and uncertain tax liabilities were $60.8 million. As of September 30, 2025, the Company had a total of 1,062,254,684 shares outstanding on the treasury method basis using a share price of $0.64.
Conference Call and Webcast Information
Vireo management will host a conference call with research analysts today, November 12, 2025, at 8:30 a.m. ET (7:30 a.m. CT) to discuss its financial results for its third quarter ended September 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 7974705.
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/235390523.
About Vireo Growth Inc.
Vireo was founded in 2014 as a pioneering medical cannabis company. Vireo is building a disciplined, strategically aligned, and execution-focused platform in the industry. This strategy drives our intense local market focus while leveraging the strength of a national portfolio. We are committed to hiring industry leaders and deploying capital and talent where we believe it will drive 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 serves. For more information about Vireo, visit www.vireogrowth.com.
Additional Information
Additional information relating to the Company's third 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 DuxburyChief Accounting 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 expected decrease in annualized interest expense as a result of the completion of the refinancing of senior secured debt; the Company's future M&A strategy and optimization of all areas of the Company's business; the expected benefits of the Company's expansion into the adult-use cannabis market, including expected future revenues and growth associated therewith; expectations around the proposed transactions involving Schwazze and its assets; and the Company's expectations around integration of the operations of its recent acquisitions at timing thereof. 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 and our Quarterly Reports on Form 10-Q 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; 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 Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which are 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 PERFORMANCETHREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
Three Months Ended
September 30,
2025
2024
$Change
% Change
Retail:
MN
$
11,954,050
$
11,391,969
$
562,081
5
%
NY
985,914
1,428,827
(442,913)
(31)
%
MD
6,620,115
6,919,991
(299,876)
(4)
%
UT
11,476,957
—
11,476,957
100
%
NV
24,946,810
—
24,946,810
100
%
MO
19,968,137
—
19,968,137
100
%
Total Retail
$
75,951,983
$
19,740,787
$
56,211,196
285
%
Wholesale:
MN
$
66,812
146,461
(79,649)
(54)
%
NY
5,117,153
1,321,224
3,795,929
287
%
MD
3,749,186
3,956,871
(207,685)
(5)
%
UT
1,856,967
—
1,856,967
100
%
NV
24,244
—
24,244
100
%
MO
4,888,810
—
4,888,810
100
%
Total Wholesale
$
15,703,172
$
5,424,556
$
10,278,616
189
%
Total Revenue
$
91,655,155
$
25,165,343
$
66,489,812
264
%
Nine Months Ended
September 30,
2025
2024
$Change
% Change
Retail:
MN
$
34,021,309
$
34,608,015
$
(586,706)
(2)
%
NY
3,285,510
4,854,423
(1,568,913)
(32)
%
MD
20,189,092
20,696,808
(507,716)
(2)
%
UT
17,578,578
—
17,578,578
100
%
NV
31,308,095
—
31,308,095
100
%
MO
25,575,600
—
25,575,600
100
%
Total Retail
$
131,958,184
$
60,159,246
$
71,798,938
119
%
Wholesale:
MN
507,936
153,330
354,606
231
%
NY
10,181,207
3,454,162
6,727,045
195
%
MD
12,021,131
10,594,167
1,426,964
13
%
UT
2,963,723
—
2,963,723
100
%
NV
52,450
—
52,450
100
%
MO
6,574,175
—
6,574,175
100
%
Total Wholesale
$
32,300,622
$
14,201,659
$
18,098,963
127
%
Total Revenue
$
164,258,806
