By: Dylan Sikes - AllPennyStocks.com News

Thursday, April 30, 2026

Cannabis stocks have been in motion since April 23, when the Trump administration moved to reclassify cannabis from Schedule I to Schedule III under the DEA's controlled substances framework. As reported by CNBC, the shift does not legalize marijuana federally, but it removes longstanding research barriers, opens banking access that was previously blocked, and critically, exempts cannabis companies from IRS Code Section 280E. This exemption allows operators to deduct standard business expenses like rent and payroll for the first time, a change with direct, material implications for profitability across the sector.

Against that backdrop, one of the largest multi-state operators in the United States reported its first quarter 2026 results today, delivering sequential revenue growth for the second consecutive quarter.

Verano Holdings Corp. (Cboe Canada: VRNO) (OTCQX: VRNO) reported Q1/26 revenue of $208M, representing a 1% sequential increase over the fourth quarter, on gross profit margins of 48%. Adjusted EBITDA came in at $49M, or 24% of revenue. In a strong signal of management's confidence in future cash flows, the company also announced a new $20M share repurchase authorization.

Operationally, Verano expanded its footprint to 162 dispensaries across 13 states, supported by 14 production facilities covering more than 1.1M square feet of cultivation capacity. During the quarter, the company also moved to fortify its balance sheet, closing a new $195M senior secured term loan and upsizing its revolving credit facility to $100M, effectively retiring its prior 2022 debt obligations and extending its maturity runway.

Looking ahead, the company reiterated its 2026 capital expenditures guidance range of $30M to $50M.

"Following last week's historic rescheduling announcement and a strong first quarter highlighted by sequential revenue growth, 2026 has the potential to be a transformative year for Verano and the entire industry," said George Archos, founder, chairman, and CEO of Verano. "Verano is well-positioned to quickly capitalize on a final Schedule III designation, a game-changing catalyst that promises to unlock the full medical, research and commercial potential of America's next great industry."

The 280E exemption is the most immediate financial catalyst stemming from the rescheduling announcement. Under current law, cannabis companies essentially pay taxes on gross profit rather than net income because they cannot deduct ordinary business expenses. Removing that restriction will meaningfully improve cash flow generation across the sector. For a company like Verano, which generates over $200M in quarterly revenue, the bottom-line impact is highly significant.

VRNO on the CBOE Canada is trading at $1.77, up 6.0% on volume of 134K shares. With rescheduling moving toward formal completion, a refinanced balance sheet, an active share buyback program, and sequential revenue growth in place, the company's setup heading into the second half of 2026 is fundamentally stronger than it has been in years. 

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