OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
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Chart of the Week
Chart of the Week
The Viridian Capital Chart of the Week highlights key investment, valuation and M&A trends taken from that week’s Deal Tracker that we believe are impactful for investors, companies and acquirers.
Week ended 07/04/2025
Viridian Capital Chart of the Week: Is Credit Quality Improving?
- The Viridian Credit Tracker utilizes eleven bespoke credit ratios to evaluate four key dimensions of credit quality: Liquidity, Leverage, Profitability, and Size.
- The graph shows the summary credit score for each of the top 20-ranked MSOs in the Viridian Credit Model. The green and orange bars represent each company’s Viridian Credit Score as of July 4, 2025, and July 5, 2024, respectively.
- Green Thumb (CSE: GTII) has a Viridian Credit Score of 133, ranking it as the strongest credit of the group in 2025. Trulieve (CSE: TRUL), formerly ranked #2, has dropped to #3 in our ranking, with a score of 116, down from 124 in 2024. Vireo (VREO: CSE) takes second place with a score of 127, increasing the most of any company on the chart due to its large equity issue and completion of major all-stock acquisitions.
- Other companies with significant credit improvement include Glass House (GLASF: CSE), which has swung to positive EBITDA and funds from operations through major increases in production revenues. Vext (VEXT: CSE) and Jushi (JUSHF: OTCQB) round out the list of significant gainers on the commencement of Ohio operations and debt refinancing, respectively.
- Companies showing deterioration include MariMed’s (MRMD: CSE), whose credit score had declined due to worsening trends in leverage and liquidity. Fluent’s score has suffered due to weaker Florida results and slower-than-expected pickup in NY results. AYR is the largest percentage decliner, dropping from the 13th-ranked credit to #19 based on a significant worsening of the company’s total liabilities to market cap, and lower liquidity scores.
- Thirteen of the twenty companies on the chart show weaker credit scores than at this time last year. 2025 is clearly a difficult operating environment with many credits showing lower revenues YTD as well as reduced EBITDA Margins.
- In a low-growth and capital-constrained market, credit analysis has become the new standard for equity analysis. Sell-side equity research often fails to adequately consider the factors affecting senior securities in the capital structure, to the detriment of equity investors.