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Verano’s New Quarter Puts Cash Generation Ahead of Sales Momentum

Verano’s October 29 results show higher annual sales and a narrower loss, but a comparison with June gives the quarter a different shape.

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Verano’s latest results show why a cannabis company’s quarter can improve in one important respect while losing momentum in another. The operator reported stronger operating cash generation and a smaller net loss for the three months ended September 30, even as revenue slipped from the previous quarter.

The figures come from Verano’s October 29 earnings announcement. They describe the company’s reported performance, not an independent measure of the entire cannabis market. Reading them against both June and the same period last year gives a more useful picture than the announcement’s headline alone.

The release’s financial tables are presented in thousands of dollars. That detail matters when comparing a table entry with the prose summary: 212,443 in the revenue row represents about $212.4 million. Reading the units first avoids turning a precise disclosure into an exaggerated number.

Annual growth and a sequential decline can coexist

Revenue, net of discounts, reached $212.443 million, compared with $202.810 million in the third quarter of 2025. That is roughly 4.7 percent growth, rounded to 5 percent in the release. It establishes an improvement over the year-earlier period.

But Verano’s August 5 report for the June quarter showed revenue of $217.918 million. Comparing the two published tables puts September-quarter sales about $5.5 million lower, a sequential decline of roughly 2.5 percent. Those calculations use the reported figures rather than the rounded headline totals.

There is no contradiction between the two comparisons. They answer different questions: whether sales exceeded last year’s level, and whether the business grew from the immediately preceding quarter. Keeping the reference period visible prevents either statement from swallowing the other.

The loss narrowed substantially

The latest table shows a net loss attributable to Verano and its subsidiaries of $4.065 million. The corresponding loss was $43.832 million a year earlier and $13.411 million in the June quarter. That is a significant narrowing, while still remaining a loss.

Operating income also increased from June, rising from $3.143 million to $11.908 million. Gross profit was approximately $100 million in both quarters. Taken together, those figures suggest that changes below the gross-profit line deserve attention alongside the sales trend.

A reader should resist translating a smaller loss into a claim that every store or product line became more profitable. Consolidated results combine a business’s activities. Without the appropriate detail, they cannot establish how a particular location performed or why an individual product gained or lost ground.

Cash generation is the sharper change

Verano reported $49 million in cash provided by operating activities for the quarter, compared with $31 million in June. Capital expenditures increased from $12 million to $13 million. Using those rounded disclosures, operating cash less capital spending rises from approximately $19 million to $36 million.

That subtraction is a simple comparison, not a new audited measure or a replacement for the full cash-flow statement. It does show why a sales decline alone would miss an important part of this quarter’s story.

The SEC’s guide to financial statements explains that income and cash flow track different things. The operating section adjusts net earnings for non-cash items and changes in operating assets and liabilities. Investing and financing activities appear separately.

Consequently, positive operating cash flow does not erase a net loss. Nor does a net loss prove that operations consumed cash during the same period. Both can be true because the statements measure different aspects of the business.

Adjusted earnings need their own label

The company reported adjusted EBITDA of $50.353 million, versus $51.231 million in the June quarter. That relatively small sequential decline sits beside the stronger operating cash figure and the narrower net loss. Treating all three as interchangeable would obscure what actually changed.

Verano identifies adjusted EBITDA as a non-GAAP measure and provides a reconciliation. Its usefulness depends on understanding the adjustments, rather than treating the word adjusted as a reason to disregard the net result. The figures can supplement each other without describing the same outcome.

Our recent Jushi results coverage makes a related distinction between sales, adjusted earnings and profitability. It is a useful reading approach across company reports, while each business still needs to be assessed on its own disclosures.

What the next comparison should test

The next report will help show whether the stronger cash generation continues and whether sales regain sequential momentum. Neither conclusion can be settled by assuming the latest quarter will repeat unchanged.

For now, the clearest description is a mixed but more informative one: sales exceeded the year-earlier period, revenue eased from June, and reported cash generation improved while the net loss narrowed. Keeping those separate gives readers a better account of Verano’s position than assigning the entire quarter a single positive or negative label.

Illustrative office photograph; not Verano records or personnel. Photo: Mikhail Nilov / Pexels.

Cannabis

Michigan Bill Would Pause the Cannabis Wholesale Tax for One Year

A newly introduced Michigan bill seeks a one-year pause in the 24% wholesale cannabis tax. It would leave separate retail taxes untouched.

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Hands using a calculator beside financial paperwork on a desk

A new Michigan bill would suspend the state’s 24% wholesale cannabis tax for one year, reopening a debate with consequences for licensed businesses and the prices shoppers encounter. House Bill 6440 was introduced October 28 by Republican Rep. Jay DeBoyer and referred to the House Appropriations Committee. It has not become law, and the existing tax remains in effect.

The proposal targets the wholesale levy rather than Michigan’s separate retail taxes. That distinction matters: a pause upstream in the supply chain would not automatically erase the tax lines on a customer’s dispensary receipt or require a retailer to cut its prices by a matching percentage.

What the bill actually says

The introduced text adds a temporary exception to section 5 of the Comprehensive Road Funding Tax Act. It would stop the wholesale tax from being levied during a period beginning on the amendment’s effective date and ending one year later. It does not set an immediate October 28 start to a tax holiday.

The legislative record establishes introduction and committee referral, not passage. A bill number gives the proposal a concrete document to evaluate, but businesses should distinguish that milestone from an enacted change with an operative date. For now, there is no approved one-year suspension to build into a purchase or tax payment.

Tom Angell’s October 29 reporting for Marijuana Moment follows the filing after DeBoyer outlined his plan the previous week. It places the proposal within the wider political debate over Michigan’s cannabis tax. The actual bill offers a narrower and more useful starting point than campaign shorthand about eliminating taxes.

Where the wholesale tax sits

According to the Michigan Department of Treasury’s explanation, the levy began January 1, 2026. It applies to specified adult-use cannabis sales and transfers at the wholesale level, including the first transfer from a licensed establishment to a retail licensee. The state’s 10% retail excise tax and 6% sales tax are separate.

For a typical wholesale transaction, the wholesaler is legally responsible for paying and remitting the tax, even when it collects that cost from a retailer. This is one reason a wholesale-tax debate affects more than the final checkout screen: the obligation arises as product moves into retail inventory, before the eventual consumer purchase.

Treasury’s wholesale-price FAQ distinguishes transactions between unrelated businesses from transfers between affiliated entities. The former use the actual wholesale price as defined by law; the latter use Treasury’s quarterly average wholesale prices. A vertically integrated business therefore cannot assume that moving its own inventory avoids the tax question.

Why a pause would not equal a fixed discount

Treasury’s collection guidance provides a simple example: a $1,000 taxable wholesale sale, assuming no other invoice costs, produces $240 in wholesale tax. A wholesaler may collect that amount from the retailer. That illustrates the levy’s scale at one transaction point; it does not calculate the shelf price of each product in that shipment.

Retail pricing also reflects the underlying product cost and the business decisions made between acquisition and sale. Removing one cost could create room for lower prices, stronger margins or another adjustment. The proposed legislation does not promise which response an individual operator would choose. Shoppers should therefore be wary of translating a 24% wholesale rate into a guaranteed 24% retail discount.

There is also a timing issue for operators carrying unpaid customer invoices. Treasury says the wholesale tax is due for the quarter in which product is sold to the retailer, regardless of when that retailer pays. Changing a tax going forward is therefore different from resolving existing receivables or earlier liabilities. The introduced suspension language contains no blanket instruction to disregard prior transactions. Following the bill alongside Treasury’s published administration guidance gives a clearer picture than assuming a proposed pause would reset every outstanding business obligation.

The competing claims need evidence

In his October 22 statement, DeBoyer argued that a pause would give lawmakers time to reconsider the tax’s effectiveness and ease pressure on lawful businesses. His assertions about revenue performance and the illicit market are arguments for the proposal, not findings established simply by introducing it.

Treasury’s March implementation guidance identifies the department as the administrator and describes quarterly payments, calculations and transition-year provisions. It also explains that revenue supports roads and bridges. Evaluating a pause requires considering both business costs and the public funding affected, rather than treating either side’s desired outcome as automatic.

The next meaningful developments are committee action, any amended text and ultimately a change in law. Until then, HB 6440 is a proposal for temporary relief. The useful takeaway for readers is its precise scope: one wholesale tax, one proposed year, and no suspension currently in force.

Illustrative stock finance photograph; not Michigan tax records or a cannabis business. Photo: Kindel Media / Pexels.

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New York’s Cannabis Wage-Board Plan Heads for a Rewrite

The signed bill and the promised chapter amendments tell different parts of the story. Existing wage protections remain a separate issue.

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New York City buildings of different heights beside a construction crane

New York’s debate over cannabis wages has reached a complicated legislative turn. Governor Kathy Hochul signed the industry’s labor bill on October 28, but an agreement to change it in the next legislative session would remove the proposed cannabis wage board.

The distinction matters for anyone reading the bill online. The Senate’s official record for S10643 lists it as signed, with Chapter 369 and an approval memorandum dated October 28. That status does not, by itself, explain the governor’s agreement over what comes next.

A signed bill with another step ahead

The Times Union’s Brendan J. Lyons reported October 29 that Hochul negotiated chapter amendments with legislative leaders to eliminate the wage board and additional ownership-reporting provisions while preserving the repeal of mandatory labor peace agreements.

Marijuana Moment’s account, citing the governor’s memorandum, says Hochul objected to reporting burdens and potential labor-cost increases. She argued those costs could make licensed businesses less competitive with the illicit market. Those are the governor’s stated concerns, not proof of a particular future price increase.

A chapter amendment is an additional legislative action. The practical takeaway is to follow both the signed measure and the promised changes, rather than treat a headline about the wage board as a complete description of the law. The next session’s text and action will be important to understanding the final structure.

What lawmakers originally proposed

The bill passed by lawmakers would create a three-person board with representatives of the licensed industry, the state AFL-CIO and the public. Its assignment would be to recommend wages across cultivation, processing and packaging, distribution, retail and delivery.

It called for at least three public hearings, a first hearing by March 1, 2027, and recommendations by December 31, 2027. The board could also conclude that industry wages were adequate. In other words, the proposal was a process for examining pay, not an immediate, specified cannabis wage increase.

The Senate sponsor’s memorandum described the bill as replacing labor peace requirements with a mechanism for considering workers’ compensation. Senator Jessica Ramos sponsored the Senate measure; the Assembly counterpart was A11562. The official history records Senate passage June 4 and Assembly passage June 5.

That original tradeoff is why the rewrite deserves attention. Removing one mechanism while retaining the removal of another changes how the package should be understood. The question for workers and employers is what protections and obligations the final arrangement will contain, not simply whether the original proposal received a signature.

The passed text sets January 31, 2027, as the effective date for its new reporting and wage-board sections. That timing helps explain why the upcoming session matters. A future effective date and a promised amendment should be read together, without describing the proposed board as already operating or the replacement language as already enacted.

When checking an update, keep the bill number, action date and version together. A quotation from the June text can accurately describe the original proposal while still leaving out the October agreement and whatever lawmakers ultimately adopt.

Existing pay requirements are a separate matter

The wage-board dispute does not mean New York lacks minimum-wage rules. The Department of Labor’s 2026 notice lists a basic hourly minimum of $17 in New York City, Long Island and Westchester County, and $16 in the rest of the state.

The notice also explains that industry-specific wage orders can affect the applicable rules. Readers should therefore check their actual job and work location rather than assume one headline establishes the correct rate for every position in a cannabis business.

For an employee reviewing a paycheck, the immediate questions remain concrete: what rate applies to the job, how many hours were worked and what was paid? A proposed sector board would add a policy process; it is not the source of every existing wage obligation.

Organizing rights need their own reading

A state licensing condition is also different from the federal right to organize. The National Labor Relations Board’s employee guidance describes rights for covered workers to form or support a union and to act together over workplace conditions. Coverage and the details of a particular dispute still matter.

That distinction helps avoid an overly broad conclusion that changing labor peace requirements would erase all workplace rights. It also avoids promising that every cannabis worker falls under precisely the same legal framework. The relevant agency guidance, final statute and facts of a particular job have different roles.

For now, watch the promised chapter amendment rather than assume the bill’s original wage-board calendar will proceed unchanged. The signed record establishes what happened October 28; the next legislative action will show how the agreement is carried into law.

Illustrative New York City photograph; not a cannabis workplace. Photo: Yesim G. Ozdemir / Pexels.

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Hi! People’s New Haven Buildout Moves Ahead, but Opening Still Depends on Final Licensing

A State Street construction update brings Hi! People’s New Haven plans back into focus. A final state license and completed buildout still stand between plans and sales.

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Unfinished interior with exposed masonry, building materials and a ladder

A planned Hi! People dispensary in New Haven is moving through construction, but shoppers should keep a winter opening in the category of an ambition rather than a booking. In an October 28 report for the New Haven Independent, republished by InnerCity News, Brandon Cortes reported that owner David Salinas told neighbors work was underway at 1041 State Street.

The update came at the East Rock Community Management Team’s October 26 meeting. Salinas described an ideal construction timeline of 120 days or less, including final state licensing, and said he envisioned a winter opening. His business, Let’s Grow Hartford LLC, currently holds a provisional license, according to his account to the Independent.

For a neighborhood watching a long-planned storefront take shape, that is progress with an important qualification. Construction activity, an operator’s target and permission to start selling are separate milestones. None should be substituted for another when deciding whether a dispensary is open.

What the neighborhood discussion established

Cortes’s reporting also documented residents’ questions about parking and requests for written assurances. Salinas described an on-site lot and an entrance on the opposite side of the building from Mill River Street. Those descriptions remain the operator’s plans, not an independent finding that surrounding parking concerns have been resolved.

That distinction matters for how the project is followed from here. A meeting gives residents an opportunity to ask specific questions, but an answer at a meeting is not the same as an enforceable condition or a completed inspection. The next useful information will be documentary: what approvals apply, what the finished site provides and when regulators permit operations.

A provisional license is a stage, not a storefront launch

The Connecticut Department of Consumer Protection’s licensing explanation is explicit that a provisional adult-use license does not authorize a business to begin operating. It allows the holder to work toward the final license required to commence operations. The department also cautions that an address on a provisional certificate may not reflect the final establishment location.

Its final-license requirements include a site inspection, necessary municipal zoning approval, the right to occupy the premises and security compliance. The list also covers an approved electronic seed-to-sale tracking contract, diversion-prevention policies and applicable social equity and workforce development plans. These are statewide requirements; they should not be read as a list of deficiencies that this particular project has been found to have.

A buildout therefore has to produce more than a finished retail interior. The business must be able to demonstrate that its location and operations satisfy the rules for its license. A construction estimate cannot, by itself, answer when all of those steps will be complete.

Retail licensing has its own requirements

DCP’s separate retailer-license page defines the licensed activity as purchasing cannabis from authorized producers and manufacturers and selling it to consumers and research programs. It points applicants to the state’s cannabis statutes, department policies and relevant local rules. A retail license is a specific authorization, rather than a general business registration.

The page also distinguishes general and social equity fees and identifies both lottery and non-lottery pathways. That does not establish which pathway applies to this operator or what it has paid. Readers should resist using a general fee table or application description to infer facts about an individual business that the state has not confirmed.

For the same reason, a provisional license should not be described as a final retail license with a minor task left over. The difference changes what the business may legally do. It is a meaningful stage in the process, but it is still part of the process.

What to watch before planning a visit

The practical next steps for readers are straightforward: look for a confirmed opening announcement, check that the operating location matches it and verify the business through the state’s license lookup linked from DCP’s guidance. Proposed hours and an estimated construction window are useful planning information, but they should remain labeled as proposals until the store is authorized and ready.

Neighbors have a different set of questions to follow: parking arrangements, the actual entrance configuration and any written conditions governing the site. Keeping those questions specific makes it easier to compare the completed project with what was presented, without assuming that every concern has already been settled or that every concern proves a violation.

The State Street update brings the project closer to a tangible storefront. It does not yet supply a date for the first purchase. Until final licensing and a firm opening are confirmed, the most accurate description is a dispensary under development with a winter target.

Illustrative stock renovation; not the Hi! People State Street property. Photo: Francesco Ungaro / Pexels.

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