Industry Overview - The U.S. cannabis industry is rapidly expanding, with legal sales reaching nearly $30 billion in 2024 and projected to surpass $45 billion by 2028, driven by increased state legalization and changing consumer demand [1][3] - Federal rescheduling discussions are ongoing, with lawmakers considering moving cannabis to Schedule III, which could enhance banking access and reduce tax burdens [1][3] Key Companies - Green Thumb Industries Inc. (GTBIF), Curaleaf Holdings Inc. (CURLF), and Verano Holdings Corp. (VRNOF) are highlighted as top stocks to watch, each operating numerous dispensaries and possessing significant cultivation capacity [4][6][27] Green Thumb Industries Inc. (GTBIF) - Green Thumb operates over 90 dispensaries, primarily in Illinois, Pennsylvania, and Ohio, and is recognized as a vertically integrated operator with control over cultivation, processing, and retail [5][7] - The company reported quarterly revenue exceeding $275 million, maintaining profitability and showing resilience despite challenges in competitive markets [9][11] - Green Thumb's financials indicate improved margins due to higher retail sales and efficient operations, with stable debt levels enhancing financial flexibility [10][11] Curaleaf Holdings Inc. (CURLF) - Curaleaf operates over 140 dispensaries across more than 15 states, with a strong presence in Florida, New York, New Jersey, and Arizona [12][15] - The company posted quarterly revenue above $330 million, confirming its status as the largest revenue generator among U.S. cannabis companies, while also reducing operating losses [16][18] - Curaleaf's aggressive acquisition strategy and focus on high-demand markets position it as a competitive player in the industry [15][19] Verano Holdings Corp. (VRNOF) - Verano operates more than 140 dispensaries, primarily in Florida, New Jersey, and Illinois, and emphasizes customer experience and premium store design [19][21] - The company reported quarterly revenue of around $235 million, with positive adjusted EBITDA and improved operating income due to reduced expenses [24][25] - Verano's ongoing expansion and financial discipline, along with manageable debt levels, make it a significant competitor in the U.S. cannabis market [26][27]

Financial Performance - Record gross revenue of $110.2 million, a 73% increase year-over-year and a 7.2% sequential increase[86] - Record net revenue of $70.8 million, a 72% increase year-over-year and a 7.9% sequential increase[86] - Adjusted EBITDA of $5.7 million, a 64% increase year-over-year and a 16% sequential increase[86] - International revenue reached $7.4 million, a 208% increase year-over-year and a 21% sequential increase[86] - Free cash flow was $5.0 million, compared to ($4.8) million in the prior year period[86] Strategic Initiatives - Completed the acquisition of Motif Labs Ltd, expecting approximately $15 million in run-rate cost synergies[44] - Completed the acquisition of Collective Project Limited, fast-tracking entry into the cannabinoid beverages category and the U S market[47] - Strategic investments from BAT totaled over $345 million to fund research & development and international M&A[48] - Invested $21 million into German cannabis leader Sanity Group to establish a foothold in the rapidly growing German market and expand export volume to Europe[61] - 27% of flower harvest at Moncton facility was seed-based in Q3 Fiscal 2025[65] Market Position - Organigram is the 1 LP in market share in Canada[17] - 1 in vapes, 1 in pre-rolls, 1 in milled flower, 1 in hash, 3 in edibles, 3 in dried flower in Canada[86]

Financial Performance - SNDL achieved its first profitable quarter with approximately $6 million in Adjusted Operating Income [17] - Net revenue increased by 73% year-over-year to $245 million [14] - Gross profit increased by 162% year-over-year to $676 million [14] - Adjusted Operating Income increased by 2263% year-over-year to $58 million [14] - Free Cash Flow decreased by 407% year-over-year to negative $79 million, driven by growth investments [14, 15] Segment Performance - Liquor Retail net revenue increased by 10% year-over-year to $1419 million [34] - Cannabis Retail net revenue increased by 11% year-over-year to $844 million [37] - Cannabis Operations net revenue increased by 43% year-over-year to $358 million [43] Strategic Highlights - Cannabis Retail same-store sales grew by 82% [51] - Liquor Retail same-store sales grew by 27% [51] - Cannabis Operations revenue growth was driven by the Indiva acquisition and international sales [52]