Is Verano Holdings stock a buy right now?

Haywood analyst Neal Gilmer maintained a “Buy” rating and $3.75 target on Verano Holdings (Verano Holdings Stock Quote, Chart, News, Analysts, Financials CBOE:VRNO) after first-quarter 2026 results came in ahead of his revenue expectations.

“Verano announced Q1/26 results that showed surprising revenue growth in a typically softer quarter on a seasonal basis,” Gilmer said on April 30, noting revenue was 5% above his estimate.

Verano reported revenue of $208.2-million, ahead of Gilmer’s $198.3-million estimate and consensus at $200.6-million. Gross margin was 47.5%, below his 49.5-per-cent estimate and down from 51.2%in the prior quarter. Adjusted EBITDA was $49.0-million, slightly below his $50.0-million estimate and consensus at $51.3-million.

Gilmer said management pointed to promotional activity and inventory movements as reasons for the margin dip. Verano generated $18.6-million in operating cash flow and ended the quarter with $74.0-million in cash and total debt of $394.9-million, excluding leases.

The company opened two Florida dispensaries during the quarter and another after quarter-end, bringing its Florida total to 85 and its national footprint to 162 stores. Verano also announced a share repurchase program of up to $20-million.

“Verano is executing on its objectives and has runway for growth going forward with a focus on cash flow generation in 2026,” Gilmer said.

Gilmer raised his 2026 revenue estimate after the first-quarter beat but lowered EBITDA slightly on more conservative margin assumptions. He expects Verano to generate Adjusted EBITDA of $228.4-million on revenue of $847.4-million in fiscal 2026, improving to $243.6-million on revenue of $863.3-million in fiscal 2027.

-30-