Does anyone know about the Canopy Growth situation?
The stock has plummeted to the bottom 
The company’s revenue remained almost at the previous year’s level, but profitability improved significantly. Gross profit increased and the margin strengthened. The result for the financial period remained unprofitable, but this was mainly affected by non-recurring items and impairments.
In this quarter, the company focused on sales, protecting margins, reducing debt, and strengthening a stable financial structure.
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Tilray reported strong growth; revenue reached record highs and profitability improved in the cannabis business.
The company expects improved results for next year and continues international expansion, innovation manufacturing, and cost savings. The financial situation is stable.
https://x.com/earnings_guy/status/1949930846753870017
Company’s own materials
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The past few weeks have been so eventful in the sector that I think it’s justified to bring this thread up. We’ve seen tremendous days of tens of percent gains, and on the other hand, significant drops. In the background is the US S3 classification decision, which is still unresolved. Now, Donald Trump’s decision is awaited, which should come soon. Will Trump give a thumbs up or a thumbs down?
“Nearly seven months after his inauguration, Trump broke his silence on the cannabis reform topic during a White House press conference on Aug. 11, when he told reporters “we’re looking at that,” and “we’ll make a determination … over the next few weeks.”
Dan from TheChartGuys has reviewed the situation from a technical analysis perspective in several recent videos. Here’s one of them.
Will we finally get some clarity on industry regulation in the United States, or is another disappointment ahead? At the same time, Canada has seen positive signs, as the best companies have managed to get their results under control. Exports to Germany have grown significantly, and the overcapacity that plagued Canada has eased.
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Kannabisyhtiöiden kurssit ovat reagoineet vahvasti, kun Trump ilmoitti tukevansa CBD:n käyttöä vanhusten terveydenhuollossa.
Kurssinousua vauhditti myös puheet marihuanan uudelleenluokituksesta, mikä voisi helpottaa sekä selkeyttää alan sääntelyä ja verotusta.
Hemp-derived cannabidiol (CBD) could “revolutionize senior healthcare” by helping reduce disease progression and was shown as an alternative to prescription drugs, according to a video shared in a post by Trump on Truth Social on Sunday.
U.S.-listed shares of Canopy Growth and Tilray Brands both jumped nearly 20% before the bell, while Cronos Group added 9.5% and Aurora Cannabis gained 13.7%, respectively.
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Tilray reported strong results - revenue grew and earnings turned profitable. Costs have been brought down and the cash position is strong, which provides room for future investments. Growth came especially from cannabis and wellness products, although margins slightly weakened.
Management stated that the company is well-positioned to capitalize on new opportunities in the US and European markets. The goal is to expand the product range, develop innovations, and support responsible regulation (whatever that may be), so that growth continues steadily next year as well.
https://x.com/earnings_guy/status/1976241353043452215
Company’s Own Materials
Operational Efficiencies and Focus on Profitability Drove Net Income of $1.5 Million, Adjusted EBITDA Increased 9% to $10 Million and Net Cash Used in Operations Improved by $34 Million Year-Over-Year
Canadian Adult-Use Cannabis Gross Revenue Increased 12%, Maintaining the #1 Position in Revenue and Expanding Market Share; International Cannabis Revenue Grew 10% Year-Over-Year
Balance Sheet Strengthened to $265 Million in Cash; Net Debt Reduced to $4 Million
Reiterates Fiscal Year 2026 Adjusted EBITDA Outlook of $62 Million – $72 Million
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Canopy’s quarter was two-sided. The Canadian business is performing strongly, with both recreational and medical cannabis doing well, and tighter financial management is starting to show results. Debt is now less than cash, cash flow has improved, and the company is clearly on a more stable footing than before.
On the downside, international operations stalled, and Storz & Bickel is struggling, despite a new device being out and the season approaching.
Although margins improved and the “groundwork” done seems to be working in the domestic market, growth is sputtering elsewhere. Canada is carrying the load, but the international side and the device business still require more time.
https://x.com/EarningsToday/status/1986776471575425420
Company’s own materials
Here’s a story from Canada’s BNN Bloomberg about how Canadian cannabis company stocks surged (probably U.S. cannabis stocks too) when it was reported that Donald Trump is considering reclassifying marijuana in the U.S.
The change could ease regulation and open up growth opportunities for Canadian companies in the U.S. market as well.
No wall.
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These pumps related to cannabis legalization rumors come up every now and then, the last time was a while ago in the fall. We’ll see if we can get further this time. Bloomberg has a good summary here: https://www.youtube.com/watch?v=EwYvFARpmf4
The talked-about “rescheduling” could thus at best happen as early as H1 2026. However, it would not necessarily lead to full legalization, meaning US companies would not get better banking services than they currently do. The tax burden for these companies will, however, be significantly eased, meaning there is already significant economic benefit. And this potential regulatory change primarily affects MSOs located in the USA. The stock prices of Canadian firms are rising with the retail frenzy, but I don’t see them having an easy time challenging the current largest MSOs.
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Trump now openly admitted to considering an executive order regarding reclassification: https://x.com/ericldaugh/status/2000668966633591105
Organigram’s quarter went quite well; revenue grew by 79 percent and EBITDA improved significantly, aided by the Motif acquisition and international sales. However, growth consumed cash, and operating cash flow turned negative.
Net profit weakened due to non-cash items. The biggest risks relate to cash flow development and potential tightening of industry regulation in the United States.
https://x.com/EarningsToday/status/2000927776287940980
Company’s own materials
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Trump is expected to sign an executive order tonight, apparently, that would ease the federal classification of marijuana. The change could generally facilitate the industry’s operations, lower taxes, and otherwise boost the industry’s financing.
However, the timing of the decision may still change.
No paywall.
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Trump ordered the reclassification of marijuana as a less severe drug.
The change facilitates financing for the industry, and according to the article, also taxation and research, which is likely to attract investors, although full legalization will apparently not be realized.
No paywall.
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After Trump approved the S3 classification decision on Thursday, December 18th, U.S. companies saw a sharp plunge of tens of percent. Before that, even wilder rallies were experienced, so in that sense, the correction was not a surprise.
What does Trump’s executive order mean for the sector, and how do we move forward? In my opinion, these two podcasts approach the topic from a variety of perspectives.
Let’s keep the thread alive, as there is very little active discussion about companies in the sector in Finnish. The industry’s development has been full of disappointments, but for example, in New York State, the market has grown rapidly. Next year, its size is estimated to be in the two-billion-dollar range.
In Minnesota, recreational sales started this fall after a long wait. The state’s population is almost exactly the same as Finland’s.
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Which do you think are the highest quality companies benefiting from this? Buying seems to be difficult, and I don’t think many of them are available on Nordnet.
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High indebtedness and weak profitability are problems for many US cannabis companies. If we assume that S3 is realized and 280E is removed, the tax burden for companies in the sector will be significantly lightened. However, many companies in the sector have left 280E taxes unpaid in recent years and have accumulated significant debt. It remains to be seen how things will eventually be resolved with the local tax authorities. Will a settlement be reached? For example, Trulieve’s “uncertain tax position liabilities” were 616.3 million USD at the end of Q3. If heavy 280E taxes have already been left unpaid, then the bottom line won’t improve after S3 comes into effect either.
My top pick for years has been Green Thumb Industries, which has generally paid all its taxes on time and has been profitable for years. A very rare company in this regard. GTI is also buying back its own shares. I haven’t found GTI on Nordnet. This year’s stock market stars have been Glass House Brands and Village Farms.
Curaleaf can be purchased on Nordnet, but you should check the numbers. For my taste, the company is too leveraged. Additionally, the share count seems to grow year after year. A typical problem in this sector. On the other hand, Curaleaf’s founder-CEO Boris Jordan is always fun to listen to.
Canadian SNDL has invested in some US assets, but their ownership structures are scattered. When SNDL eventually gets its Sunstream ownership in order, could there be upside in the stock? At the end of Q3, the company had 175 million USD in cash, plenty of other investments, and no debt. Cronos has an even larger cash pile but no operations in the US. Instead, Cronos has a call option related to PharmaCann. I can’t assess its value. Both SNDL and Cronos can be found on Nordnet.
If you intend to enter the sector despite the turbulent ride, the most useful platforms are likely Lynx or IB. I also understand that you can trade at least some US cannabis companies on Degiro, but I haven’t checked lately.
Of course, there are many other names in the US besides the ones mentioned, such as Cresco Labs, Ascend Wellness, and Verano.
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The article behind the link contains some familiar information, but likely some new things for most as well—perhaps a slightly more comprehensive piece than the Bloomberg story I shared earlier on the topic. In the United States, cannabis has long been classified as a dangerous drug, which is why even legal shops are forced to operate in cash, as explained in the article below.
Banks and credit card companies fear federal laws; companies cannot obtain loans or standard payment terminals. Now, however, Trump has ordered the easing of the classification, meaning this change would remove the criminal stigma, ease taxation, and bring the industry within the scope of regular banking. According to the article, this would also increase safety, as shops would no longer have to keep large amounts of cash in their registers.
Once it’s completed, cannabis will be classified under federal law as Schedule III, along with regulated pharmaceuticals like anabolic steroids and Tylenol with codeine.
The primary goal of the fast-tracked reclassification plan is to “increase medical marijuana and CBD research,” according to the order.
But experts and dispensary operators say the coming status change could be a watershed moment for the cannabis industry, paving the way for dispensaries and growers to access traditional banking services, get loans and process electronic payments.
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Stocks haven’t really managed to get excited about that possible rescheduling yet, but now there’s already talk about the next steps.
President Trump is planning to sign an executive order this summer creating a federal commission to study the descheduling of marijuana, according to two sources who spoke with The Marijuana Herald. The move is expected to be made ahead of the November midterms.
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