Vireo Growth Inc

Good morning and welcome to Vireo Growth Inc's Q1 2026 results call. The company would like to remind everyone that today's conference call may contain forward-looking statements within the meaning of U.S. and Canadian securities laws. These statements are based on management's current expectations and involve risks and uncertainties that could differ materially from actual events and those described in such forward-looking statements. For more information on forward-looking statements, please refer to forward-looking statement disclosure in the company's earnings release. This call may also contain non-GAAP financial measures. Please see our earnings release for reconciliations to GAAP measures. I'll now hand the call over to Chief Executive Officer John Mazarrakis.

Thank you. Good morning, everyone. Over the past several months, we've closed SchwarzEase, Hawthorne, and the Pharmacan MSA, adding over $100 million of quarterly revenue to our top line. The results are transformative, as we're now the fourth largest cannabis company by revenue on a pro forma basis. We now operate in 10 states with over 160 dispensaries and hold leading positions as the largest operator in Colorado, Utah, and Nevada, along with meaningful market share in Minnesota and Missouri. We also announced two additional transactions, Fluent and Glasshouse. The Glasshouse partnership brings together Vireo's retail and delivery ease infrastructure with Glasshouse's large-scale, low-cost production. This creates a scaled retail platform designed to improve operating efficiency and expand consumer access in the world's largest legal cannabis market, California. The Fluent opportunity expands our presence in one of the most important cannabis markets in the country. Florida's limited license structure rewards scale and combines two complementary networks with minimal overlap, creating a top three platform. We closed the first quarter with over $135 million in cash on the balance sheet. The strong financial position, along with rescheduling tailwinds and our disciplined approach to growth through accretive M&A and organic investment, positions us to deliver a strong 2026. That concludes my prepared remarks. I'll now hand over the call to Tyson. Thank you, John, and thanks to everyone for joining us.

I'll run through a quick summary of key income statement line items in the reviewer balance sheet in more detail. First quarter gap revenue of $106.2 million increased 333% year-over-year on a reported basis, giving effect to the acquisitions of Deep Roots, Proper, Olsum, Eaze, Schwoz, Hawthorne, and the Pharmacan MSA as if they were completed on January 1, 2026. First quarter pro forma revenue increased 5% relative to the prior year quarter to $210.2 million, making us the fourth largest cannabis company by revenue. This increase highlights continued organic growth, particularly in markets where post-merger integration activities are substantially complete. For a complete review of our revenue performance by state and sales channel for the first quarter, please refer to the company market sales tables in today's earnings release, which will also be filed with our 10Q later today. Excluding the impact of non-cash inventory valuation adjustments, primarily related to the required gap fair value step-up associated with our closed transactions, gross margin was 56.3% and reflected an improvement of 280 basis points compared to the prior year quarter. Adjusted EBITDA was approximately 32.7 million, or 30.8% of sales, reflecting an improvement of approximately 26.1 million and 390 basis points as compared to the first quarter of last year. On a pro forma basis, to again include all recently closed transactions, adjusted EBITDA increased 29.8% to 42.2 million, or 20.1% of sales compared to 32.5 million, or 16.2% of sales in the first quarter of last year. Moving to the balance sheet, we ended the quarter with 137.8 million of cash and an additional 1 million of marketable liquid securities. Total current assets excluding tax receivables and assets for sale were 240 million compared to current liabilities excluding uncertain tax liabilities of 82 million. The company currently has approximately 1.6 billion shares outstanding on a treasury stock method basis using a share price of 50 cents. We remain in a very healthy financial position and are focused on driving returns for shareholders through prudent capital deployment against our highest growth opportunities. That concludes my prepared remarks. I'll now hand the call back to John for some closing comments.