MeritValue

Verano Holdings Corp.

VRNOdata completeness 100%6 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Verano Holdings Corp. earns about -5% on invested capital, but has diluted owners by 24% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$737.9M1$879.4M2$938.5M3$878.6M3$821.5M3
Net income−$57.5M4−$269.2M5−$117.3M6−$341.9M6−$257.9M6
Operating cash flow$182.9M7$94.3M8$109.7M9$112.2M9$52.9M9
Capital expenditure$141.3M10$119.2M11$36.3M12$99M12$41.2M12
Free cash flow (derived)$41.6M7−$24.8M8$73.4M9$13.1M9$11.6M9
Total debt$579.9M13$826M14$891.3M15$827.7M16$799.5M16
Cash & equivalents$99.1M17$84.9M18$174.8M19$87.8M20$82.7M20
Diluted shares290.4M331.4M342.8M349.6M360.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$19.51
your share of equity
Profit it earned you last year
−$7.15
Free cash flow it threw off
$0.32
Debt you’d be carrying
$22.15

10 shares is a claim on $19.51 of net worth that earned you −$7.15 and generated $0.32 of cash last year, against $22.15 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-5% avg · 5y
FY21 1%FY22 -6%FY23 1%FY24 -14%FY25 -9%

It earned an average -5% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+24% shares · 5y

Share count is up 24% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 38% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth4.6%
  • fcfBase$13.1M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth4.6%
  • fcfBase$13.1M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-24-011506 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-008390 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-26-017011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001628280-24-011506 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-008390 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-017011 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001628280-24-011506 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-008390 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001628280-26-017011 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001628280-24-011506 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-25-008390 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001628280-26-017011 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001628280-23-009918 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001628280-24-011506 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001628280-25-008390 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001628280-26-017011 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001628280-23-009918 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001628280-24-011506 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001628280-25-008390 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001628280-26-017011 (CashAndCashEquivalentsAtCarryingValue)