💸 The Tape

Let’s kick things off here this morning as earnings season continues, and after the two major cannabis giants, Green Thumb Industries and Trulieve, posted strong numbers, the next one up is Verano Holdings (VRNOF).

Verano is the third of the five major multi-state operators to report its Q4 2024 financial results, and there are some key takeaways you should know.

First, the less favorable news: Verano recorded a net loss of $273 million for Q4 2024, a marked increase from the $77 million loss in the comparable quarter last year. Additionally, the company's revenue declined to $218 million, down from $237 million in Q4 2023.

On the brighter side, Verano's gross profit margin remains strong at 49%, indicating that the company continues to generate profit on its products before accounting for other expenses. Furthermore, Verano's adjusted EBITDA (a measure of profitability) was $63 million, signifying that the company is still producing positive cash flow.

For the full year 2024, Verano reported total revenue of $879 million, a decrease of 6% year-over-year. The company’s gross profit for the year was $444 million, representing 51% of revenue. Despite these figures, Verano faced a net loss of $342 million for the year. A number that can’t be ignored.

While Verano has encountered challenges in the market this year, the pressing question for investors is: what lies ahead for the stock? The answer isn’t straightforward, and a big part of it depends on the company’s earnings forecast.

In conclusion, the top 5 MSO’s are now 4.

📈 Dog Walkers.

The Cannabist Extends Senior Secured Notes

What’s Going On Here: The Cannabist Company has reached an agreement to extend the due date of its senior secured notes (a type of debt) to December 2028, with options to extend through 2029.

This means the company has more time to repay its debt, which can help improve its financial stability and flexibility. For investors, this extension can be seen as a positive move, as it allows the company to manage its finances better and potentially invest in growth opportunities.

However, it's important to keep an eye on the company's overall financial health and performance. Moment of truth time for The Cannabist Company.

Canopy Growth Heads to Germany

What’s Going On Here: Canopy Growth is expanding its Tweet brand into Germany’s medical cannabis market to tap into the growing demand for medical cannabis.

Why Should You Care: Over the past 11 months, Germany’s medical cannabis market has tripled in size, from 250,000 to almost 800,000 registered medical cannabis patients. This puts it on par with Florida, which already has a $2 billion medical cannabis market.

However, there’s one key difference: Germany has 84 million people, while Florida has roughly 21 million people.

One reason for this growth is that cannabis was removed from Germany’s narcotics list, making it easier for doctors to prescribe medical cannabis.

In Germany, it’s estimated that 9 million people consume cannabis, but only 0.5% of the population is prescribed it. The industry average for countries is between 2-4%.

This growth presents an opportunity for Canopy Growth to establish a strong presence and cater to the rising demand for medical cannabis products.

🗞️ The News

📺 YouTube

Coming Up @ 11am EST:

What Investors Need To Understand

What we will cover:

✅ Coming up today at 11am EST, Anthony Coniglio, CEO on NewLake Capital (OTCQX: NLCP), along with Frank Colombo, CFA from Viridian Global Partners will join us.

Here’s what we will cover:

The trio will outline the important metrics that you should be paying attention to during this earnings season for the cannabis industry.

Looking beyond total revenue, gross margins, and adjusted EBITDA, we will dive deeper into the latest earnings reports and review cannabis companies’ current tax and lease liabilities, cash flow statements, and long-term debt versus balance sheet.

Metrics that investors really need to be paying attention to here in 2025.

Plus, news from Washington D.C. involving Senator John Fetterman, who is circulating a petition to legalize marijuana at the federal level.

See you all at 11am EST!