The cannabis-focused real estate investment trust is scheduled to report fourth-quarter earnings on Feb. 23.Innovative Industrial Properties (IIPR 1.92%), the nation's largest cannabis-focused real estate investment trust (REIT), has been a nightmare for its shareholders for some time now. The stock is down by more than 79% over the past five years and off by more than 37% in the past year alone. The REIT is scheduled to report its fourth-quarter results on Feb. 23. If you're thinking about buying this beat ...

Key Takeaways SNDL stock fell 31% in six months amid intense Canadian cannabis competition.SNDL's cannabis sales rose 16% in nine months; free cash flow turned positive for the first time.SNDL is expanding via 1CM store buys but lacks U.S. operations, limiting diversification.Shares of SNDL Inc. (SNDL) , one of the largest vertically integrated cannabis players in Canada, have been declining steadily over the past six months.This pullback does not stem from company-specific setbacks but rather from the inte ...

Core Viewpoint - Tilray Brands stock has experienced a significant decline, dropping over 68% from its peak in October, with a current price of $7.45, indicating a bearish trend but potential for a bullish reversal pattern to emerge [1] Group 1: Stock Performance - Tilray Brands stock price has fallen to its lowest level since December, with a notable drop from $15.75 in December to $7.45 currently [1] - The AdvisorShares Pure US Cannabis ETF has also seen a decline, falling from $7.25 in December to $4.10 [1] Group 2: Reasons for Decline - The stock's decline is attributed to the lack of progress in cannabis rescheduling, as Attorney General Pam Bondi has not taken steps to reschedule cannabis from Schedule 1 to Schedule 3, despite requests from former President Donald Trump [1] - The rescheduling process is expected to take months or years, and it is not anticipated to provide immediate benefits to companies like Tilray Brands, which face challenges in the banking sector [1] Group 3: Business Performance - Tilray Brands reported a 3% increase in revenue for the second quarter, totaling $217 million, but gross profit decreased from $61.2 million to $57.5 million [1] - Cannabis revenue remained stable at $65.7 million, while distribution revenue increased significantly from $67.6 million to $85.3 million, becoming the largest segment [1] - The beverage segment, however, saw a decline in revenue from $63 million to $50 million, and the wellness segment remained flat at $14.6 million [1] - The net loss improved slightly from $43.5 million to $41.8 million, with analysts projecting single-digit revenue growth moving forward [1] Group 4: Technical Analysis - The stock has moved below key technical levels, including the 78.6% Fibonacci Retracement level at $7.73 and the 50-day and 100-day Exponential Moving Averages [1] - Signs of a potential double-bottom pattern are emerging at $7, with a neckline at $15, suggesting a possible rebound in the coming weeks [1] - The next resistance level to monitor is the Major S&R Pivot Point at $12.5, with historical volatility indicating potential for a pullback following any rebound [1]

Financial Data and Key Metrics Changes - High Tide reported record revenue of CAD 164 million for Q4 2025, representing a 19% year-over-year increase and a 10% sequential increase [7][26] - The annual revenue run rate exceeded CAD 650 million, with record Adjusted EBITDA of CAD 12.4 million, up 51% year-over-year [7][28] - Consolidated gross margins were 26% in Q4, consistent with the previous year, while Adjusted EBITDA margins reached a new record of 9.4% [27][28] Business Line Data and Key Metrics Changes - The brick-and-mortar segment led revenue growth, achieving a 15% year-over-year increase, driven by same-store sales growth of 5.5% [7][26] - Cabanalytics, the business data and insight platform, generated CAD 13.1 million in Q4, up 20% year-over-year [26] - The adjusted EBITDA for the brick-and-mortar segment was CAD 14.1 million, highlighting strong cost controls and operational efficiency [28] Market Data and Key Metrics Changes - Canna Cabana's market share in the five provinces increased to 12%, up from 11% a year ago, while total industry sales in these provinces grew by only 4% [11][12] - The average Canna Cabana store generated an annual revenue run rate of CAD 2.6 million, significantly higher than the peer average of CAD 1.2 million [11] - The company has expanded its store count by 27% in Ontario, accounting for all growth in the province, while the rest of the industry remained flat [15] Company Strategy and Development Direction - High Tide aims to add another 20-30 new stores in 2026, continuing its focus on organic growth [8] - The company is exploring M&A opportunities, with discussions ongoing regarding potential acquisitions [8][56] - High Tide's strategy includes leveraging relationships with licensed producers to enhance procurement and operational efficiency, particularly in the German market through the acquisition of Remaxion [19][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in the German medical cannabis market, despite short-term challenges related to inventory [22][40] - The company anticipates that the U.S. regulatory environment may shift positively, creating opportunities for strategic partnerships and market entry [75] - Management highlighted the resilience of the business model, noting that competitors are exiting the market, which could provide further growth opportunities [56] Other Important Information - High Tide generated CAD 12 million of Free Cash Flow for the fiscal year, meeting its goal of remaining positive [32] - The company has a strong balance sheet with total debt of CAD 65.5 million and CAD 47.9 million in cash and cash equivalents [32] - The Cabana Club loyalty program has grown to 2.5 million members, up 45% year-over-year, contributing to customer retention and sales growth [9][47] Q&A Session Summary Question: Impact of inventory issues in Germany on Q1 results - Management acknowledged that inventory issues in Portugal would impact Q1 results but expressed confidence in future growth once these challenges are resolved [36][40] Question: Brick-and-mortar business margins and growth - Management confirmed that brick-and-mortar margins have increased for four consecutive quarters, driven by strong sales and operational efficiencies [41][46] Question: M&A environment and competitor exits - Management noted that smaller competitors are exiting the market, creating opportunities for potential acquisitions, and expressed optimism about future M&A activity [56][57] Question: Budtender training and engagement - Management emphasized the importance of budtender training and engagement to enhance customer experience and brand loyalty [64] Question: January performance and Remaxion's outlook - Management reported improved performance in January compared to previous months and expressed optimism about future gross margins for Remaxion [67][68]

Financial Data and Key Metrics Changes - High Tide reported record revenue of CAD 164 million for Q4 2025, representing a 19% year-over-year increase and a 10% sequential increase [7][26] - The annual revenue run rate exceeded CAD 650 million, with record Adjusted EBITDA of CAD 12.4 million, up 51% year-over-year [7][28] - Consolidated gross margins were 26% in Q4, consistent with the previous year, while Adjusted EBITDA margins reached a new record of 9.4% [27][28] Business Line Data and Key Metrics Changes - The brick-and-mortar segment led revenue growth, achieving a 15% year-over-year increase, driven by same-store sales growth of 5.5% [7][26] - Cabanalytics, the business data and insight platform, generated CAD 13.1 million in Q4, up 20% year-over-year [26] - The adjusted EBITDA for the brick-and-mortar segment was CAD 14.1 million, highlighting strong cost controls and operational efficiency [28] Market Data and Key Metrics Changes - Canna Cabana's market share in the five provinces increased to 12%, up from 11% a year ago, while total industry sales in these provinces grew by only 4% [11][12] - The average Canna Cabana store generated an annual revenue run rate of CAD 2.6 million, significantly higher than the peer average of CAD 1.2 million [11] - The company added 27 stores in 2025, with plans to add another 20-30 stores in 2026, despite increased competition [8][24] Company Strategy and Development Direction - High Tide aims to continue organic growth through store expansion and enhancing its brand presence, with a robust pipeline of new store locations [8][24] - The company is exploring M&A opportunities, particularly in light of the retail shakeout in the cannabis industry, with discussions ongoing regarding potential acquisitions [8][56] - High Tide's strategy includes leveraging relationships with licensed producers to enhance procurement and operational efficiencies, particularly in the German medical cannabis market through the acquisition of Remaxion [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in the German market, despite short-term challenges related to inventory and supply chain issues [16][22] - The company remains confident in its ability to outperform competitors and capitalize on market opportunities, especially as weaker operators exit the market [14][54] - Management highlighted the importance of the Cabana Club loyalty program, which has seen significant growth, contributing to customer retention and brand loyalty [10][47] Other Important Information - High Tide generated CAD 12 million in free cash flow for the fiscal year, meeting its goal of remaining positive [9][32] - The company has a strong balance sheet with total debt of CAD 65.5 million and CAD 47.9 million in cash and cash equivalents [32] - An impairment of CAD 23.6 million was recorded for the e-commerce segment, reflecting challenges faced in that area [29] Q&A Session Summary Question: Impact of inventory issues in Germany on Q1 results - Management acknowledged that inventory issues in Portugal would impact Q1 results but expressed optimism for recovery in subsequent quarters [36][38] Question: Brick-and-mortar business margins - Management confirmed that brick-and-mortar margins have increased for four consecutive quarters, driven by strong sales and operational efficiencies [41][46] Question: M&A environment and competitor exit - Management noted that smaller competitors are exiting the market, creating opportunities for potential acquisitions, and expressed confidence in High Tide's growth strategy [55][56] Question: Budtender training and engagement - Management emphasized the importance of budtender training and engagement to enhance customer experience and brand loyalty [64][66] Question: Remaxion's performance and future prospects - Management reported improved performance in January and expressed confidence in achieving higher gross margins as new biomass is procured [67][70]

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Core Insights - President Trump's executive order to reschedule cannabis to Schedule 3 is considered a significant shift in federal cannabis policy, potentially alleviating the burdensome tax regime affecting U.S. cannabis operators for decades [1][2]. Tax Implications - The executive order could lead to the elimination of Section 280E of the Internal Revenue Code, which currently taxes legal cannabis operators as if they were narcotics traffickers, preventing them from deducting any business expenses [2][3]. - Rescheduling cannabis to Schedule 3 would allow U.S. companies to deduct standard operating costs, significantly improving their financial health and cash flow [3]. Market Reaction - The cannabis industry is responding positively to the news, especially after a strong performance in 2025, where the AdvisorShares MSOS ETF outperformed the S&P 500 [4]. - Despite the optimistic outlook, the sector is still viewed as highly volatile, with many institutional investors remaining cautious due to past political inaction [4]. Remaining Challenges - Even with the potential rescheduling, U.S. cannabis companies still face hurdles, such as the inability to list on major exchanges like NASDAQ or NYSE, which is available to Canadian companies [5]. - The industry is also awaiting "safe harbor" provisions for banking, which remain unresolved [5]. Stock Performance - Recent performance data for cannabis stocks and ETFs shows varied results, with AdvisorShares Pure U.S. Cannabis ETF (NYSE:MSOS) leading with a 68.55% increase over six months, while other companies like Tilray Brands Inc. (NASDAQ:TLRY) and Canopy Growth Corp. (NASDAQ:CGC) show mixed performance [7].

Core Viewpoint - The discussion centers on the investment potential of Innovative Industrial Properties (IIPR) within the cannabis sector, particularly in light of recent regulatory developments regarding cannabis rescheduling and its implications for REITs [4][10][11]. Group 1: Investment Thesis on IIPR - IIPR is viewed as an attractive investment opportunity due to its current valuation, which is perceived to be cheaper compared to multi-state operators (MSOs) despite the latter facing significant price compression and tax burdens [14][17]. - The potential rescheduling of cannabis from Schedule I to Schedule III is expected to eliminate the burdensome 280E taxes, significantly improving the profitability of MSOs and, by extension, the rental income for IIPR [11][13]. - IIPR's dividend yield is currently around 15%, and its valuation metrics, such as 12 times earnings and 8 times funds from operations (FFO), suggest a favorable risk-reward profile compared to its tenants [14][15]. Group 2: Dividend Safety and Financial Health - IIPR's dividend is currently not fully covered by adjusted funds from operations (AFFO), with a payout of $1.90 against an AFFO of $1.70 per share, indicating potential risks [18][23]. - Approximately 20% of IIPR's tenants are not paying rent, but this situation could improve with the anticipated regulatory changes, leading to increased demand for properties [20][26]. - The company maintains a low debt level, with a debt-to-EBITDA ratio of 1.3, which is significantly lower than industry averages, providing a buffer against financial distress [21][60]. Group 3: Management and Strategic Decisions - Management is recognized for maintaining low leverage, which is crucial for the stability of a REIT, and for making strategic decisions that could enhance the company's long-term prospects [73][75]. - There are mixed views on management's recent diversification efforts into life sciences, with concerns about potential conflicts of interest and the challenges in that sector [78][79]. - The internal management structure of IIPR is seen as a positive factor, reducing the risks associated with external management compensation structures that can misalign interests with shareholders [82][85]. Group 4: Market Dynamics and Regulatory Environment - The cannabis sector is experiencing significant regulatory changes, with the potential for rescheduling to create a more favorable operating environment for MSOs and related REITs like IIPR [9][39]. - While outright legalization could lead to increased competition and price compression, it is also expected to drive long-term growth in the cannabis market [46][50]. - The current market sentiment towards cannabis stocks is cautious, with investors advised to focus on fundamental valuations rather than hype surrounding regulatory changes [87][90].

TAMPA, Fla., Dec. 31, 2025 (GLOBE NEWSWIRE) -- FLUENT Corp. (CSE: FNT.U) (OTCQB: CNTMF) (“FLUENT” or the “Company”), today announced that it has completed the sale of its Pennsylvania operations to HIVE Holdings, Inc., effective December 31, 2025 for US$12.5 million in cash. The proceeds from the transaction were used to reduce FLUENT’s outstanding debt, which is expected to meaningfully enhance its balance sheet, allowing the Company to further concentrate capital and operational resources on its core grow ...

Core Insights - The cannabis sector is expected to experience significant changes in stock performance in 2026, driven by the rescheduling of cannabis to a Class 3 substance, which may lead to improved business operations and stronger equity valuations [1][2] - Investor sentiment is anticipated to shift towards a focus on business performance rather than speculation, attracting long-term institutional investors who previously avoided the sector due to high risks [2][3] Industry Overview - The cannabis sector's growth will increasingly favor companies that demonstrate effective execution and responsible capital management, positioning themselves as sustainable consumer and healthcare businesses rather than merely regulatory trades [3] - More states are preparing to vote on cannabis legalization and other regulatory matters, indicating a potential ramp-up in market activity for the 2026 trading year [3] Company Highlights - **Tilray Brands, Inc.**: Engages in the research, cultivation, processing, and distribution of medical cannabis products across multiple regions, with a second quarter fiscal Year 2026 report scheduled for January 8 [4] - **Cronos Group Inc.**: Recently entered the Netherlands cannabis market through the acquisition of CanAdelaar B.V., Europe's largest adult-use cannabis company, which is expected to enhance its strategic footprint in Europe [7][9] - **Aurora Cannabis Inc.**: Launched a new product, Daily Special, in Germany, aimed at providing high-quality and affordable medical cannabis, showcasing its commitment to the European market [11]