The potential for cannabis reform has made investors bullish on the industry in recent weeks.Investing in cannabis stocks has yielded abysmal returns for investors in recent years. During the past five years, the S&P 500 has roughly doubled in value. But during that time, the value of the AdvisorShares Pure US Cannabis ETF (MSOS 1.30%) has declined by a whopping 77%. Lately, however, there's been renewed interest in cannabis. The U.S. government has been talking about potentially rescheduling the substance ...

Key Points Its stock has been rallying lately due to hopes around marijuana reform in the U.S. The cannabis producer's fundamentals have not been strong to date. Tilray has struggled to generate growth, and its bottom line remains deep in the red. 10 stocks we like better than Tilray Brands › Shares of Tilray Brands (NASDAQ: TLRY) have been hot in recent months. Since the start of July, the stock has soared by around 300%. Excitement around possible cannabis reform in the U.S. has investors bullis ...

Welcome to Market Catalyst. I'm Alec Canal. We're 30 minutes into the US trading day. Let's get to the three market catalysts we're watching this hour. First up, tech stocks rally as Open AI clinches a $500 billion valuation. More details ahead. Plus, the government shutdown continues. We break down what that means for the Fed, markets, and the economy. And gold's record rally powers on. How high can the precious metal go. We'll discuss. But first, let's take a look at the major averages because we are curr ...

Industry Overview - The cannabis industry is facing both growth opportunities and uncertainties, primarily due to its long downtrend and the challenges in trading despite some companies being profitable [1] - The federal illegality of cannabis in the USA creates a grey area for legal markets, limiting banking access and other forms of assistance for operators [2] Future Outlook - There is potential for cannabis to be rescheduled in 2025, which could significantly impact the market positively, as historical trends show that federal reform leads to favorable market reactions [3] - Shareholders are closely monitoring developments regarding the rescheduling of cannabis, indicating a heightened interest in potential investment opportunities [3] Company Highlights - **FLUENT Corp**: Engages in the cultivation, manufacturing, processing, distribution, and sale of medical cannabis products across several states [4] - **Glass House Brands Inc.**: Operates as an integrated cannabis company with segments in retail, wholesale biomass, and cannabis-related consumer packaged goods [8] - **Planet 13 Holdings Inc.**: Cultivates and provides cannabis products for medical and retail markets, reporting a revenue of $26.9 million in Q2 2025, a decrease of 13.6% from the previous year [13] Financial Performance - **Planet 13 Holdings Inc.**: - Revenue: $26.9 million, down from $31.1 million [13] - Gross profit: $11.7 million (43.4%), down from $15.8 million (50.9%) [13] - Total expenses: $18.5 million, a decrease of 4.6% from $19.4 million [13] - Net loss: $13.3 million, compared to a net loss of $8.1 million [13] - Adjusted EBITDA loss: $2.4 million, compared to an adjusted EBITDA of $3.2 million [13]

Industry Overview - The cannabis industry in the USA is currently experiencing a significant push for federal reform, which has been a long-standing goal since states began legalizing cannabis. This reform is crucial but has also created challenges for investors and legal operators due to the grey area of legality [1][2] - Despite the ongoing challenges, the demand for cannabis continues to rise, supported by positive earnings reports from the second quarter of 2025 and renewed investor interest following comments from former President Trump regarding federal reform [2][3] Company Highlights - **Green Thumb Industries Inc.**: This company manufactures, distributes, markets, and sells cannabis products for both medical and adult use in the United States. Recently, it announced a transaction to sell certain consumer packaged goods brands to Agrify Corporation, along with a $45 million loan to Agrify [4][8] - **Curaleaf Holdings, Inc.**: Curaleaf has been selected for inclusion in the S&P/TSX Composite Index, effective September 22, 2025. This inclusion signifies a major milestone for the company, enhancing its visibility and positioning within the market [11][12] - **Cresco Labs Inc.**: The company recently closed a $325 million senior secured term loan refinancing with a 12.5% interest rate, maturing on August 13, 2030. This refinancing replaces a previous $360 million facility, aiming to reduce total debt and provide more flexibility for prepayment [12][14]

Industry Overview - The cannabis sector is experiencing renewed interest, particularly with potential cannabis reform that could classify cannabis as a Schedule 3 substance, which may lead to significant market movements and opportunities for top cannabis stocks [1][2] - Federal reform in the USA could provide a substantial boost to the cannabis sector, as historical trends suggest that such changes positively impact market momentum [2] Investment Strategy - Cannabis stock investors are advised to adopt a long-term perspective due to the volatility and risks associated with marijuana stocks, emphasizing the importance of having a trading plan to maximize investment returns [3] Company Highlights Trulieve Cannabis Corp. - Trulieve reported Q2 2025 revenue of $302 million, consistent with the previous year, with 94% of revenue derived from retail sales [9] - The company achieved a gross margin of 61%, slightly up from 60% year-over-year, with a GAAP gross profit of $183 million [9] - Trulieve reported a net loss of $14 million and an adjusted EBITDA of $111 million, representing 37% of revenue, which is a 3% increase year-over-year [9] - Cash flow from operations was $86 million, with free cash flow of $75 million, and cash at the end of the quarter totaled $401 million [9] Cresco Labs Inc. - Cresco Labs recently closed a $325 million refinancing of its senior secured credit facility, with a 12.5% interest rate and maturity on August 13, 2030 [10][12] - The CEO stated that this refinancing strengthens the company's balance sheet and mitigates near-term refinancing risks, allowing for a focus on growth strategies [12] Greenlane Holdings, Inc. - Greenlane reported Q2 2025 total revenue of $0.8 million, down from $2.6 million in the prior year [15] - The company reduced total operating expenses by 27% to $3.3 million compared to $4.5 million in the previous year [15] - Greenlane's operating loss improved to $3.3 million from $3.5 million year-over-year, while the net loss increased to $3.2 million from $0.6 million in the prior year [15]

Financial Data and Key Metrics Changes - The company reported net revenue of approximately $41 million for Q2 2025, exceeding guidance of $40 million and reflecting a decrease from $53.5 million in the same period last year [7][15] - Gross margins improved to 28.3% in Q2 2025, up from 26.9% in Q2 2024, driven by higher proprietary brand sales [9][17] - The net loss for Q2 2025 was $4.8 million, or negative $0.08 per share, an improvement from a net loss of $5.9 million, or negative $0.10 per share, in Q2 2024 [18] Business Line Data and Key Metrics Changes - Proprietary product sales accounted for nearly 32% of total revenue in Q2 2025, up from 21.5% in the same period last year, indicating a stronger focus on higher-margin products [8][15] - In the MMI storage solutions segment, revenue reached $8.1 million, up over 69% sequentially, reflecting strong demand and product diversification [12] Market Data and Key Metrics Changes - The company is expanding internationally, having signed a distribution agreement with V1 Solutions for commercial sales across the European Union and launched a proprietary product line in Costa Rica [11] - The company noted a significant backlog in durable goods, indicating a recovery in demand within the industry [40] Company Strategy and Development Direction - The company is focused on transforming into a leaner, more profitable, product-driven business with an emphasis on B2B customers [6] - The acquisition of Viagro is seen as a strategic move to enter the home gardening market and strengthen the proprietary brand portfolio [11][27] - The company aims to achieve gross margins in the 30% range and is actively working to mitigate tariff impacts through diversified sourcing and improved supply chain efficiency [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in the lawn and garden space and the positive impact of cannabis reform on the cultivation ecosystem [14][27] - The company is not providing full-year 2025 guidance due to uncertainties in global trade policy and cannabis reform but expects sequential revenue growth in Q3 2025 [20] Other Important Information - The company ended Q2 2025 with $48.7 million in cash and no debt, providing flexibility for working capital and growth initiatives [13][19] - The company is continuing to rationalize operations and expects further cost savings in the latter half of 2025 [20] Q&A Session Summary Question: Insights on the Viagro acquisition and opportunities in the gardening space - Management sees tremendous opportunity in the lawn and garden space with the Viagro acquisition, which brings strong relationships and products that can crossover into cannabis [27] Question: Future gross margin expectations amid tariff risks - Management aims for gross margins to reach the 30% range and is implementing strategies to mitigate tariff impacts while maintaining competitive pricing [30][33] Question: Status of expense reductions and future cuts - Management confirmed ongoing cost reductions and expects additional improvements in SG&A and operating expenses in the latter half of the year [38] Question: Industry outlook and capital investments - Management noted a significant backlog in durable goods and observed clients beginning to refurbish their portfolios, indicating a positive shift in industry dynamics [40] Question: Timeline for repositioning the business towards commercial focus - Management believes most internal needs are met and anticipates significant savings and growth opportunities by the end of Q4 2025 [46][48]

Core Viewpoint - Trulieve Cannabis Corp. has launched Redemption Cannabis products in West Virginia, emphasizing social justice and support for those affected by cannabis prohibition laws [1][4]. Company Overview - Trulieve is a leading vertically integrated cannabis company in the U.S., with significant market presence in Arizona, Florida, and Pennsylvania [7]. - The company is focused on growth and expansion through a hub strategy, enhancing retail and distribution capabilities [7]. Redemption Cannabis - Founded by Ryan Basore, Redemption Cannabis reinvests a portion of sales to assist individuals and families impacted by cannabis prohibition [2][6]. - The brand aims to provide high-quality, affordable cannabis while promoting equity and justice in the industry [6]. Product Launch - Redemption's flower products will be available at Trulieve dispensaries in West Virginia starting July 11, 2025 [3][4]. - The partnership with Trulieve allows Redemption to reach new markets and support its mission of reform and second chances [4][5].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of $47.7 million and adjusted EBITDA of $11.9 million, leading to a full-year revenue of $184.5 million and adjusted EBITDA of $42.9 million [9][27] - The net income for Q4 was $3.7 million, a significant improvement from a net loss of $11.2 million in Q4 of the previous year [26] - Full-year revenue decreased from $188 million in the prior year, primarily due to client marketing budget constraints and product sunset impacts [28] Business Line Data and Key Metrics Changes - Q4 average monthly paying clients increased to 5,225, marking a 4% increase year-over-year, driven by new client acquisition and reactivation [24] - The average monthly revenue per paying client decreased by 2% to $3,041 due to ongoing budgetary constraints faced by clients [25] - GAAP operating expenses decreased by 27% in Q4 compared to the prior year, largely due to prior year impairment charges [26] Market Data and Key Metrics Changes - The company noted that licensed cannabis markets are experiencing pricing and regulatory pressures, leading to consolidation in mature markets [11] - New markets like New York and Florida are facing regulatory challenges, with New York struggling against illicit competition and Florida's growth slowing due to legislative failures [12] Company Strategy and Development Direction - The company plans to prioritize investments in technology and marketing to strengthen the Weedmaps platform and unlock future opportunities [14] - Key initiatives include expanding into the hemp, head shop, and homegrown seed markets to drive user engagement [15][16] - The company aims to enhance its marketplace foundation to improve user and client experiences while preparing for future industry developments [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing industry challenges, including regulatory uncertainty and competition from illicit markets, but expressed hope for long-term market stabilization [12][19] - The company emphasized the need for supportive legislation and regulation to foster a thriving cannabis industry [20][21] - Management highlighted the importance of adaptability and financial discipline in navigating the evolving landscape [18] Other Important Information - The company ended 2024 with a strong balance sheet, closing with $52 million in cash and a debt-free position [10][31] - Free cash flow in 2024 was boosted by successful collections from past due accounts, which is not expected to be repeated [30] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.