Core Insights - U.S.-listed cannabis stocks are gaining attention due to potential federal marijuana policy changes, specifically the reclassification of cannabis from Schedule I to Schedule III under the Controlled Substances Act [1][2] - This reclassification could lead to significant federal reforms, easing regulatory pressures, reducing taxes, and attracting institutional capital, which has already resulted in a rally in cannabis equities [2][3] Industry Overview - The potential rollback of Section 280E is a key factor, as it currently prevents cannabis companies from deducting ordinary business expenses, which would improve after-tax profitability and cash flow if reclassified [3] - Better access to banking and capital markets could support valuation expansion for financially disciplined operators [3][4] Company Analysis: Tilray Brands - Tilray Brands (NASDAQ: TLRY) is positioned to benefit from renewed optimism around federal reform, reporting approximately $200 million in revenue, with cannabis contributing nearly half [5] - The company achieved positive adjusted EBITDA of about $13 million and returned to net profitability, ending the quarter with over $400 million in cash and marketable securities [6] - Tilray's valuation is sensitive to regulatory changes, and it serves as a primary entry point for institutional investors, which could lead to accelerated capital inflows upon confirmation of reclassification [7][8] Company Analysis: Canopy Growth - Canopy Growth (NASDAQ: CG) is seen as a leveraged play on U.S. cannabis reform, with a stock rally of over 50% following regulatory news, closing at $1.74 [11] - For Q2 fiscal 2026, Canopy reported approximately $49 million in revenue, with adult-use cannabis revenue increasing by about 30% year-over-year and medical cannabis revenue rising roughly 17% [13] - Although still unprofitable, Canopy's adjusted EBITDA losses are narrowing, and its liquidity position has improved, with cash exceeding total debt by approximately $51 million [14][15]