News · Cannabis
Vireo Growth swaps a 15% seller note for an 8.5% bank loan as deals lift Q3 revenue 177%
Vireo Growth Q3 2026 results: revenue rose 177% to $253.7 million on acquisitions, and an 8.5% bank loan replaced part of a 15% seller note.
Vireo Growth's Q3 2026 results show GAAP revenue of $253.7 million, up 177% from a year earlier, after the Minneapolis cannabis operator closed a run of acquisitions. On November 10, 2026 it also detailed how it is paying for them, including an 8.50% fixed-rate bank loan that replaced part of a 15% seller note.
Key points
- Vireo reported third-quarter GAAP revenue of $253.7 million, against $91.7 million in the same quarter of 2025, and pro forma revenue of $277.0 million.
- Adjusted EBITDA, a non-GAAP measure, was $42.7 million, up from $25.4 million a year earlier, the company says.
- After the quarter, Vireo took a $60.0 million real estate term loan at a fixed 8.50%, part of which refinanced a $49.0 million seller note carrying 15% interest.
- In the quarter Bank of Montreal gave its non-cannabis agricultural supply business an $85.0 million revolving credit line, asset-based and running five years.
- For the fourth quarter of 2026, Vireo guides to revenue of $250 million to $265 million and Adjusted EBITDA of $45 million to $48 million, excluding deals not yet closed.
What did Vireo Growth report for Q3 2026?
Vireo Growth (CSE: VREO; OTCQX: VREOF) says its third quarter put it above a $1 billion annualized revenue run rate, a jump it credits to acquisitions it has closed. Cannabis revenue was $198.1 million and the newer non-cannabis business, agricultural supply, added $55.6 million. Adjusted EBITDA came to $42.7 million, and GAAP gross profit to $107.8 million.
| Three months ended September 30 (US$ millions) | 2026 | 2025 |
|---|---|---|
| GAAP revenue | 253.7 | 91.7 |
| Cannabis revenue | 198.1 | 91.7 |
| Non-cannabis revenue | 55.6 | 0.0 |
| GAAP gross profit | 107.8 | 37.4 |
| Adjusted EBITDA (non-GAAP) | 42.7 | 25.4 |
| Net loss | (24.0) | (26.3) |
| Net loss per share, basic and diluted | (0.49) | (0.83) |
The net loss narrowed to $24.0 million from $26.3 million. Over the first nine months of 2026, operating activities provided $18.8 million of cash, against $15.0 million used in the same period of 2025.
The company points to retail as an early sign of progress in the businesses it has bought: pro forma retail revenue grew 4% year over year, a figure it treats as a proxy for same-store sales.
Florida is where the newest deal lands. Vireo says it closed the FLUENT acquisition on November 9, adding 33 dispensaries in the state. Florida's Office of Medical Marijuana Use counted 943,905 qualified patients with active ID cards and 789 dispensing locations across all treatment centers in its November 6, 2026 weekly update. Vireo also says the U.S. Drug Enforcement Administration has registered all 41 of its state-licensed medical dispensaries in Florida.
With an annualized revenue run rate exceeding $1 billion, we have established significant scale, but our focus remains on leveraging that scale to drive stronger operating and financial performance.
— John Mazarakis, Chief Executive Officer, Vireo Growth
How is Vireo paying for its acquisitions?
Vireo is adding bank debt, some of it in place of seller financing. The largest change is the $60.0 million real estate term loan from a U.S. commercial bank, fixed at 8.50% and secured by cultivation and production facilities in New York and Florida. Part of it paid off the $49.0 million seller note at 15%.
The other bank line is the $85.0 million revolver from Bank of Montreal, which covers only the non-cannabis agricultural supply business. Vireo also started buying back stock under a normal course issuer bid in August, repurchasing 216,200 subordinate voting shares for $2.5 million in the quarter.
At September 30, 2026, Vireo held $106.8 million in cash. It reported long-term debt of $293 million and net debt, which it defines as long-term debt excluding convertible debt, less cash, of $186.2 million.
What deals are still pending, and what do they add?
Vireo has three sets of announced deals still to close, and it expects to run approximately 270 dispensaries in 15 states once they do. They are:
- An all-stock merger with Planet 13 Holdings, which Vireo says would expand its Nevada and Florida businesses and take it into Illinois.
- Selected assets of The Cannabist Company in Colorado, Illinois, Massachusetts and New Jersey.
- Four definitive agreements in Ohio, covering eight dispensaries plus cultivation and processing.
Separately, Vireo bought a 49% interest in a joint venture that acquired PhytoNatural, holder of a Pennsylvania clinical registrant license, which the company sees as a route into a new state.
Vireo's guidance excludes the pending deals. Alongside it, the company estimates what they could add if closed before each quarter begins:
| Guidance (US$ millions) | Q4 2026 | Q1 2027 |
|---|---|---|
| Revenue | 250 to 265 | 280 to 300 |
| Adjusted EBITDA | 45 to 48 | 53 to 56 |
| Possible added revenue from pending deals | 45 to 55 | 50 to 60 |
| Possible added Adjusted EBITDA from pending deals | 5 to 6 | 7 to 8 |
Our analysis: what finance leaders can take from Vireo's quarter
For CFOs running acquisition-led growth, Vireo's quarter shows one sequence worth noting: a seller note used to finance a deal, later refinanced with a bank loan at a lower fixed rate, secured on facilities the company now owns. The arithmetic is simple: at 15%, the $49.0 million note cost about $7.35 million a year in interest; at 8.50%, the same principal costs about $4.17 million, roughly $3.2 million a year less, by our calculation from the figures in the release. The loan is also about $11 million larger than the note it replaced, and it is secured on real estate rather than owed to a seller. The company now gives guidance one quarter at a time while it keeps buying, rather than a full-year number. Readers following cannabis consolidation can compare it with Christina Lake Cannabis turning down two takeover proposals, and those weighing refinancing terms with Codexis's $60 million Trinity Capital loan.
Frequently asked questions
Where does Vireo Growth's stock trade?
Vireo Growth trades on the Canadian Securities Exchange as VREO and on the OTCQX as VREOF.
How many dispensaries does Vireo operate today?
The company says it operates approximately 210 dispensaries in 10 states, with cultivation, manufacturing, delivery, distribution and agricultural supply businesses alongside them.
Why doesn't Vireo give full-year guidance?
Vireo says that while it keeps acquiring at a similar pace, it intends to guide one quarter ahead, usually with its quarterly results, and does not plan to give full-year guidance.
What is the FLUENT acquisition?
FLUENT is a Florida medical cannabis operator whose acquisition Vireo closed on November 9, 2026. It adds 33 dispensaries, and Vireo's fourth-quarter guidance includes FLUENT's results from that date.