Vext Science is a buy, Ventum Capital says

In a May 21 update, Ventum Capital Markets analyst Andrew Semple maintained a “Buy” rating and $0.50 target for Vext Science (Vext Science Stock Quote, Chart, News, Analysts, Financials CSE:VEXT), citing stronger-than-expected cash flow and improving liquidity.

Vext reported $3.1-million in operating cash flow for the quarter, well above the forecasted $0.5-million, which helped reduce debt and ease prior concerns about its 2025 liquidity. Semple said the company is now well-positioned to fund growth.

Vext Science operates cannabis production facilities and retail dispensaries in several U.S. states. Its core business includes two vertically integrated cannabis licensees in Arizona and similar operations in Ohio, with joint venture prospects in other states.

Semple said cash flow remains strong and that new Ohio stores are expected to drive growth in 2025 and 2026. Vext Science reported strong Q1 2025 results, with sales and EBITDA beating expectations. The company posted solid wholesale revenue in Ohio and continued outperforming the market with its Arizona retail stores.

“Ohio remains a key market for the company’s growth outlook,” Semple said. “Vext commenced adult-use sales in the state in August 2024. It has so far been consolidating the results of two dispensaries and a cultivation/manufacturing facility. The company closed the acquisition of two additional stores in April 2025, which will now be fully consolidated, and plans to open four additional stores (reaching eight total) in the state. We believe there is ample upside remaining in the underserved Ohio market, with the potential for statewide sales to reach over $3B in sales over time (more than triple current levels).”

Semple forecasts Vext will generate $12.9-million in Adjusted EBITDA on $46.2-million in revenue for fiscal 2025, rising to $16.5-million in EBITDA on $54.1-million in revenue in 2026.

Semple also welcomed Vext’s renewed focus on its core markets following the company’s exit from several joint ventures in competitive states where it had only minor operations.

“In April, the company further condensed its strategic focus with the sale of a Kentucky processing license for $880K,” he said. “The decision to exit JV interests has already reduced the cash drag in Q1/25 results, and the subsequent sale of Kentucky will further allow management to reallocate resources to core operations in Arizona and Ohio.

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