Cannabis Stocks Are at a Turning Point: Is Now the Time to Invest?

Industry Overview - The cannabis industry is currently in a transitional phase, facing challenges but also presenting potential investment opportunities as regulatory momentum builds and valuations reach attractive lows [1][2] - The sector has experienced significant declines due to market saturation, slow federal reform in the U.S., and capital outflows [1] Investment Outlook - Current market conditions may represent a favorable entry point for long-term investors, similar to previous inflection points in emerging markets where oversold conditions led to recoveries [2] - A long-term strategy focusing on potential rebounds is advisable as the industry evolves, particularly with U.S.-based marijuana stocks gaining interest due to shifting political sentiment and discussions around federal rescheduling of cannabis [3] Company Highlights - Tilray Brands, Inc. reported a net revenue of $224.5 million in Q4 of fiscal 2025, with a gross profit of $67.6 million, down from $82.4 million in the prior year, resulting in a gross margin of 30% [6] - Canopy Growth Corporation has improved its balance sheet by prepaying $50 million of its term loan, which is expected to reduce yearly cash interest by $6.5 million [9] - Aurora Cannabis Inc. reported cannabis net revenue of $67.8 million in Q4, down from $71.9 million in the prior year, and beverage net revenue of $65.6 million, compared to $76.7 million in the previous year [13] Stocks to Watch - Key marijuana stocks to monitor include Tilray Brands, Canopy Growth Corporation, and Aurora Cannabis Inc., as they navigate the current market landscape and potential regulatory changes [4][7][9]