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Revenue: $12.7 million, up 41% year-over-year.

Year-to-Date Revenue: $37.6 million, up 46% from 2024.

Adjusted EBITDA: $2.1 million, representing a 16.7% margin.

Operating Cash Flow: $1.26 million, or a 9.9% cash flow margin.

Inventory: $8.3 million, with a sequential decline.

Cash on Balance Sheet: $3.7 million at the end of the quarter.

Ohio Dispensaries: Four operating dispensaries with plans to expand to eight by 2026.

Arizona Market: Sales exceeded state averages despite a 12% sequential and 6% year-over-year decline in statewide sales.

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Release Date: November 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Revenue increased by 41% year-over-year, reaching $12.7 million, driven by contributions from Ohio dispensaries and resilience in Arizona.

Vext Science Inc (VEXTF) generated positive operating cash flow for the fourth consecutive quarter, strengthening its business foundation.

Ohio is identified as a growth engine with expanding adult-use sales and retail footprint, supported by strong customer retention and drive-through additions.

Cultivation yields have improved significantly, with pilot programs delivering test yields nearly 50% above current averages, indicating potential for cost efficiency.

Operating expenses decreased year-over-year and as a percentage of revenue, reflecting effective cost discipline and operational leverage.

Arizona market remains challenging with excess supply and lower pricing, leading to a 12% sequential and 6% year-over-year decline in statewide sales.

Adjusted EBITDA margin declined to 16.7% due to lower wholesale flower prices in Arizona, impacting margins and IFRS fair value of biological assets.

The opening of the Fairfield store in Ohio has been delayed to early 2026 due to permitting issues, affecting short-term revenue and cash flow.

Operating cash flow margin decreased to 9.9%, influenced by wholesale pricing movements and legacy income tax payments.

The wholesale market in Arizona has not yet bottomed out, with ongoing pricing pressures and oversupply affecting profitability.

Q: On Arizona, are there any positive impacts from the enforcement on hemp-related products? Can you provide insights into seasonality on traffic trends and average spend during the summer? Also, do you think the wholesale market has bottomed in Arizona? A: Eric Offenberger, CEO: The seasonal traffic patterns were similar to last year, with pricing compression being the main issue. The wholesale market has not bottomed out yet, although the rate of decline may slow. Some producers are selling below cash numbers to generate cash, which is causing oversupply issues.

Q: In Ohio, where do you see the most upside in terms of traffic or average basket size? What are the best and worst-case scenarios for opening all eight stores by 2026? How many of these stores can have drive-throughs? A: Eric Offenberger, CEO: Seven out of eight stores can have drive-throughs. The timeline for opening all stores depends on permitting and zoning. Traffic patterns in Ohio are strong, and our vertical model helps maintain market share despite price competition. We focus on selling our own brands to maintain margins.

Q: Do you view the operating cash flow margin as bottoming this quarter? A: Trevor Smith, CFO: Yes, the operating cash flow margin is expected to improve. The decline was primarily due to markdowns in average selling prices and legacy income tax payments. We expect margins to normalize as inventory sells through in Q4.

Q: Where do you expect margins to stabilize once all stores are open and the vertically integrated model is operational in Ohio? A: Trevor Smith, CFO: Margins are expected to revert closer to the first half of the year, driven by cost efficiencies and improved yields. The noise in margins is due to IFRS accounting and market conditions, but we anticipate stabilization as operations mature.

Q: Regarding cultivation yields, how does Vext compare to peers? Are you catching up or leapfrogging others? A: Trevor Smith, CFO: Historically, Vext may have lagged, but recent improvements in cultivation yields suggest we are catching up and potentially leapfrogging peers. Pilot programs have shown yields 50% above current averages, indicating significant progress.

Q: What are your expectations for the Ohio wholesale business as more stores come online? A: Eric Offenberger, CEO: We will continue to support our stores with a 70% internal product strategy. Wholesale will remain elevated for several quarters due to improved cultivation yields and delayed store openings. Long-term, our facility will support all eight stores.

Q: Are you experiencing any accounts receivable issues similar to other operators? A: Trevor Smith, CFO: No, our team is managing accounts receivable well. Despite a 50% increase in wholesale, accounts receivable is only up 35%, with 90% current status. We maintain strong customer relationships and are aware of industry-wide concerns.

Q: For the remaining three stores in Ohio, do your expectations still hold given market conditions? A: Eric Offenberger, CEO: Yes, we are optimistic about the strategy and locations for the remaining stores. We are pleased with the real estate acquisitions and expect strong performance as these stores open.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.