Industry Overview - The U.S. cannabis industry is projected to reach approximately $45 billion by 2025 and over $75 billion by 2030, driven by federal reform discussions and expanding legalization [1][2] - Canadian cannabis companies are strategically positioning themselves for growth in the U.S. market through acquisitions and partnerships [1][2] Company Highlights Tilray Brands Inc. - Tilray operates in Canada, Europe, and the U.S., focusing on wellness and beverage sectors, distributing THC-infused beverages in over 10 U.S. states [3][5] - In Q3 fiscal 2025, Tilray reported revenue of $185.8 million, with a gross profit of $52 million, marking a 5% increase in gross margin to 28% [7][8] - Despite a net loss of $793.5 million primarily due to non-cash impairment charges, Tilray reduced its overall debt by $76 million, indicating a commitment to financial sustainability [8] Canopy Growth Corporation - Canopy Growth, a prominent cannabis producer in Canada, has shifted its U.S. strategy through Canopy USA, allowing it to engage with American operators while adhering to federal laws [9][11] - The company reported Q3 fiscal 2025 revenue of $74.8 million, a 5% decline year-over-year, but an 8% increase when excluding divested businesses [12][13] - Canopy's medical cannabis business in Canada remains strong, and the company prepaid a $100 million loan to improve cash flow and reduce interest costs [13] Village Farms International Inc. - Village Farms transitioned from greenhouse vegetable growing to cannabis production through its Pure Sunfarms subsidiary, focusing on wellness-based expansion in the U.S. [14][16] - In Q1 2025, Village Farms reported consolidated revenue of $77.1 million, slightly down from $78.1 million the previous year, but its Canadian cannabis segment achieved a net income of $3 million, a 258% increase [17][18] - The company plans to privatize part of its produce business to concentrate resources on its cannabis operations, which is expected to unlock more value [18] Investment Outlook - Canadian cannabis companies like Tilray, Canopy, and Village Farms are actively restructuring operations and improving balance sheets to capture growth in the U.S. market [19][20] - Each company has shown improvements in key financial metrics, with Tilray leading in beverages, Canopy leveraging brand strength, and Village Farms excelling in operational efficiency [20]