Industry Overview - The marijuana stock market is currently experiencing significant selling pressure, with many shareholders holding positions for extended periods and the sector trading at all-time lows [1] - Investors are adjusting their strategies and outlooks, recognizing that profitability alone may not be sufficient to drive market movement [1] Federal Reform Speculation - There has been a recent upward trend in marijuana stocks driven by speculation about potential federal reform regarding cannabis in the USA [2] - Unlike Canada, which has fully legalized cannabis, the USA is still progressing towards legalization [2][3] Key Companies to Watch - **Green Thumb Industries Inc. (OTC: GTBIF)**: This company manufactures and sells cannabis products for both medical and adult-use markets. It has recently expanded its presence in Pennsylvania with a new dispensary [4][6] - **Jushi Holdings Inc. (OTC: JUSHF)**: A vertically integrated cannabis company involved in cultivation, processing, retail, and distribution. It has modified a secured commercial loan to support capital expenditures and working capital [8][10] - **Greenlane Holdings, Inc. (NASDAQ: GNLN)**: Engages in the development and distribution of cannabis accessories and lifestyle products. The company reported a significant decline in total revenue for Q2 2025 compared to the previous year [10][12] Financial Performance Highlights - **Greenlane Holdings, Inc.**: Reported total revenue of $0.8 million for Q2 2025, down from $2.6 million in the prior year. Operating expenses decreased by 27% to $3.3 million, while the operating loss improved slightly to $3.3 million compared to $3.5 million in the previous year [12][14]

Core Viewpoint - Tilray Brands reported a surprise profit for fiscal Q1, leading to a 22% increase in stock price, but quickly followed this with a stock offering that has upset investors, resulting in a 14.7% decline in stock price shortly after the announcement [1][2]. Earnings and Offerings - Analysts had expected Tilray to report a loss, but the company instead reported a small profit of $1.5 million, which rounded to $0.00 per share [4]. - Following the positive earnings report, Tilray announced plans to sell enough shares to raise $51.6 million, potentially adding 28.7 million new shares to the market, which would dilute existing shareholders by 19% [4][6]. - Additionally, Tilray may issue up to 3,133 shares upon the exercise of certain outstanding warrants, and a shareholder may sell 8.6 million shares [5][6]. Market Reaction - The announcement of the stock offering has led to a significant drop in Tilray's stock price, indicating investor dissatisfaction with the dilution of shares [2][6]. - The potential influx of 37.3 million shares into the market could further depress the stock price, turning initial positive news into negative sentiment among investors [7].

Core Insights - The cannabis industry is showing strong profitability, with both multi-state operators (MSOs) and ancillary companies thriving in the market [1][2] - Despite the overall success in the cannabis sector, public marijuana stocks have not performed similarly, often influenced by political updates and reform issues [2][3] - A long-term investment strategy focusing on companies adapting to market volatility is recommended for potential profitability [2][3] Company Summaries - **Aurora Cannabis Inc.**: Engages in the production, distribution, and sale of cannabis products in Canada and internationally. Recently invested in a German manufacturing facility to enhance growth capacity and product quality [4][6][7] - **Cronos Group Inc.**: Operates in the cultivation, production, and marketing of cannabis products in Canada and internationally. Recently launched a new product line, SOURZ by Spinach®, which offers a variety of liquid diamond-infused gummies [8][9][11] - **SNDL Inc.**: Focuses on the production and sale of cannabis products for the adult-use market in Canada. Reported a record net revenue for its Cannabis Retail segment and significant growth in operating income [8][13][14]

Key Points Tilray was "supposed" to lose money in Q1. It delivered a surprise profit instead. Earnings in Q1 were a positive $1.5 million. 10 stocks we like better than Tilray Brands › Tilray Brands (NASDAQ: TLRY) stock exploded higher after reporting a surprise profit in its fiscal Q1 earnings report Thursday. Heading into the report, analysts forecast Tilray would lose $0.04 per share on $205.8 million in quarterly revenue. Instead, Tilray broke even on earnings with a $0.00 profit, while its r ...

Industry Overview - The cannabis sector is experiencing significant growth and success, with increasing speculation about a potential "green rush" due to stronger federal reform efforts [2] - Investors are adopting long-term trading strategies to capitalize on potential profits, despite ongoing challenges with reform [2][3] Company Highlights - **FLUENT Corp.**: Engages in the cultivation, manufacturing, processing, distribution, and sale of medical cannabis products across several states including Florida, New York, Pennsylvania, and Texas [4] - The company announced a non-brokered private placement offering of 3,500,000 common shares in late August [5] - Interim CEO David Vautrin expressed confidence in the company's strategic direction through his recent purchase [6] - **Glass House Brands Inc.**: Operates as an integrated cannabis company in the U.S. with three segments: Retail, Wholesale Biomass, and Cannabis-Related Consumer Packaged Goods [7] - The company recently reported the passing of board member George Raveling, who contributed significantly since the company's public listing in 2021 [10] - CEO Kyle Kazan acknowledged Raveling's valuable contributions to the company [11] - **Planet 13 Holdings Inc.**: Focuses on cultivating and providing cannabis and cannabis-infused products for both medical and retail markets in the U.S. [12][13] - For Q2 2025, the company reported revenue of $26.9 million, a decrease of 13.6% from $31.1 million, with a gross profit margin of 43.4% compared to 50.9% in the previous period [15]

Industry Overview - The U.S. cannabis industry is projected to generate over $45 billion in annual revenue by 2025, driven by new adult-use programs and medical market growth, showcasing resilience despite federal restrictions and market volatility [1][17] - Recent developments regarding potential federal rescheduling and banking reform have renewed interest in cannabis equities, prompting traders to look for trend reversals and volume confirmations [2][17] Company Highlights Trulieve Cannabis Corp. (TCNNF) - Trulieve is one of the largest and most profitable multistate cannabis operators in the U.S., with over 190 dispensaries, primarily in Florida, and a growing presence in Arizona, Georgia, and Pennsylvania [3][4] - The company reported revenue of approximately $305 million, with a gross profit margin of around 54% and positive adjusted EBITDA exceeding $80 million, indicating strong operational control [5][6] - Trulieve ended the quarter with over $160 million in cash, providing liquidity for expansion and regulatory adaptation, while awaiting potential adult-use approval in Florida [6][7] Cresco Labs Inc. (CRLBF) - Cresco Labs operates over 70 dispensaries across 10 states and is recognized for its commitment to compliance and quality products, with its flagship brand, Sunnyside, gaining significant recognition [7][8] - The company reported revenue of roughly $188 million, with gross margins near 50% and adjusted EBITDA of approximately $42 million, despite a year-over-year decline due to industry price pressure [9][10] - Cresco is focused on reducing long-term debt and optimizing working capital, maintaining positive operating cash flow, and positioning itself for growth as federal barriers ease [10] Verano Holdings Corp. (VRNOF) - Verano operates over 140 dispensaries across 13 states and manages 15 cultivation and production facilities, emphasizing vertical integration and brand consistency [12][14] - The company posted quarterly revenue exceeding $235 million, with adjusted EBITDA around $80 million and gross margins nearly 48%, reflecting effective cost control [15][16] - Verano has reduced total debt to approximately $330 million, showcasing fiscal discipline, and is focused on expanding into new adult-use markets and potential M&A opportunities [16]

Core Insights - The recent video posted by President Trump on Truth Social signals a potential shift in U.S. cannabis policy, indicating that marijuana legalization may be imminent [1][2][3] - The video, produced by the Commonwealth Project, advocates for integrating medical cannabis into healthcare for seniors and suggests that Medicare should cover cannabinoid purchases [4][5][6] Industry Implications - The video claims that widespread medical marijuana use could save the U.S. healthcare system up to $64 billion annually, appealing to the government's interest in reducing spending [6][7] - If the federal government decides to cover medical marijuana under Medicare, it could significantly benefit marijuana investors, as it would promote the use of cannabis over traditional pharmaceuticals [7] Market Reaction - Following the video's release, major marijuana stocks experienced significant gains, with Canopy Growth rising 17%, Aurora Cannabis increasing by 28%, and Tilray surging 60% [10] - Curaleaf Holdings, the only major U.S.-based cannabis stock, also saw a gain of over 37%, indicating strong investor confidence in the potential for legalization [10] Future Outlook - The video is perceived as a "trial balloon" to gauge public support for marijuana legalization, with expectations that a formal announcement could occur during the upcoming State of the Union address in January 2025 [8][9] - Predictions suggest that marijuana legalization could be achieved by mid-2026, contingent on Congressional approval [9]

Core Insights - The cannabis industry is experiencing a momentum shift, driven by regulatory reforms and the establishment of a stronger market foundation, which is attracting long-term investment interest [1][2][3] Industry Overview - The cannabis market is seeing increased interest from both small companies and larger multi-state operators (MSOs), with ancillary services sometimes outperforming direct cannabis sales [1] - Changing laws and consumer demand for affordable cannabis products are pushing companies to adapt and thrive within the legal landscape [2][3] Company Highlights - **FLUENT Corp.**: Engages in the cultivation, manufacturing, processing, distribution, and sale of medical cannabis products across several states [4] - **Ayr Wellness Inc.**: Operates in the cultivation, manufacturing, and retail of cannabis products [6] - **Verano Holdings Corp.**: A vertically integrated MSO that recently secured a $75 million revolving credit facility to strengthen its financial position and leverage owned real estate for future opportunities [9][11]

Core Insights - Tilray Brands (NASDAQ: TLRY) stock surged over 60% following President Donald Trump's video advocating for marijuana legalization for senior citizens, with potential Medicare coverage [1] - The stock experienced some pullback as momentum traders took profits, but rebounded with a 5.6% increase on Thursday [1] Group 1: Company Developments - Tilray is expanding its production of premium "Tilray Craft" cannabis in Germany, introducing five new cannabis flower products aimed at the medical marijuana market [3] - Currently, Tilray's European market is more significant than its U.S. market, with EMEA revenues exceeding $323 million annually compared to less than $274 million in the U.S. [5] Group 2: Financial Performance - Over the past year, Tilray has lost $2.2 billion, and its current market capitalization stands at approximately $2.2 billion [6] - Despite positive developments in production and potential market expansion, Tilray continues to face substantial financial losses [7]

Industry Overview - The U.S. cannabis industry is projected to grow significantly, with legal cannabis sales reaching over $28 billion in 2024 and expected to exceed $40 billion annually by 2030 due to expanding adult-use markets and strong consumer demand [1] - Recent discussions among U.S. lawmakers regarding banking reform and federal rescheduling have created optimism for cannabis companies, potentially improving access to capital and affecting valuations [1] Company Highlights Ascend Wellness Holdings (AAWH) - Ascend Wellness is a vertically integrated multi-state cannabis operator with a strong presence in states with limited license regimes, focusing on cultivation, manufacturing, distribution, and retail [4] - The company reported quarterly revenue of approximately $127 million, reflecting a slight decline from the previous quarter and a year-over-year decrease of about 10% due to pricing pressures [7] - Management is focused on reducing costs and improving operational efficiency, with potential for profitability if federal reforms progress [7] Cresco Labs (CRLBF) - Cresco Labs is recognized for its large retail and wholesale presence, operating around 71 Sunnyside dispensaries across multiple states [8] - The company reported quarterly revenue of about $164 million, with a gross profit of nearly $83 million and an adjusted EBITDA of roughly $41 million [10] - Despite a net loss of approximately $14 million due to non-cash impairment charges, Cresco's integrated model positions it for growth in expanding adult-use markets [10] Glass House Brands (GLASF) - Glass House Brands focuses on large-scale greenhouse cultivation in California, operating about ten dispensaries and leveraging its scale for cost efficiencies [11] - The company reported quarterly revenue of nearly $60 million, marking an 11% increase year-over-year, with gross margins above 50% and positive operating cash flow of nearly $18 million [13] - Glass House's cultivation volumes reached over 230,000 pounds, with production costs averaging just above $90 per pound, positioning it well for future growth [13] Investment Opportunities - By March 2025, Ascend Wellness, Cresco Labs, and Glass House Brands are expected to present distinct investment opportunities, with Ascend benefiting from potential tax reform, Cresco facing margin challenges but leveraging a strong brand, and Glass House demonstrating profitability despite regional headwinds [15]