🗒️ Q1 2025 Earnings: Q/Q Revenue Declines
Bill to sell Cannabis through PA State stores rejected. NY pauses sales of popular vapes. Vireo closes Wholesome & Arches transactions. TerrAscend closes acquisition of Ratio Cannabis.
🌿 Industry
Bill to sell Cannabis through state stores rejected by GOP-led panel. State Sen. Dan Laughlin (R., Erie), leader of the committee, supports legalizing marijuana but said the state store approach would unfairly shut out the private sector and small businesses, and create serious logistical hurdles and legal challenges. — Spotlight PA
The Law & Justice Committee voted 7-3 to reject the bill, with one Democrat joining all Republicans in rejecting the measure
Critics say the state already has a robust medical marijuana market that should be expanded, and that the state store model, which hasn’t been attempted in any other state, could lead to criminal liability for the commonwealth because cannabis is still federally illegal
New York Pauses Sales of Popular Vapes Amid Investigation. Regulators are looking into whether several cannabis companies are making illegal products (worth more than $10M) for sale in New York. — The New York Times
In a series of orders issued on April 23, the Office of Cannabis Management directed dispensaries to remove from their shelves mostly vapes and pre-rolled joints from Stiiizy and mfused, among other products
Investigators were questioning the origin of cannabis oil that was used to fill the vapes and the accuracy of lab tests that certified all of the mfused varieties as safe
As MJBizDaily has reported, New York lacks a functioning track-and-trace system, leaving regulators mostly in the dark as to where products are sourced and where they eventually are sold
Texas House Approves Plan to Expand Low-THC Medical Cannabis Program. The bill would add additional medical cannabis product options allowed under Texas law, increase the state’s qualifying conditions, allow honorably discharged veterans to use medical cannabis for any condition, and license additional businesses. — CBT
According to the Texas Department of Public Safety (DPS), there were 110,026 unique patients in Texas’ compassionate use registry as of March 2025. However, a 2024 evaluation of the state’s low-THC program revealed that less than half of the state’s unique patients are active: About 45% of patients had filled at least one prescription in the past 12 months
California governor won’t stop July increase in excise tax. While there are calls for tougher action against illicit operators and no increase in licensing fees, there will be no tax relief. — MJBizDaily
The revision will not delay the tax increase or cut it entirely; it merely passes to state lawmakers the difficult task of cutting the excise tax in a budget-deficit year
America's cannabis industry supports 425,002 FTE jobs, a decline of 3.4% (15,443 roles). 2025 industry revenue is forecast to grow another 13.1%, reaching $34 billion, with employment expected to rebound in growth-friendly states. — Vangst
Michigan Adult-Use Cannabis Sales down (2.5%) YoY to $269.7M
Arizona Adult-Use Cannabis Sales of $261M in Q1 2025, down (9.6%) YoY
💵 Deals
Vireo Closes WholesomeCo Cannabis & Arches Merger Transactions. Vireo has closed its previously-announced transactions to acquire Utah-based Wholesome and the Arches proprietary technology and analytics platform. Wholesome is a dominant player in the Utah medical market, fueled by a large delivery operation with one single dispensary. The company initially developed the Arches proprietary technology stack in-house, which has developed sophisticated digital marketing and consumer loyalty capabilities. Total consideration for the transactions was $69.8M, paid in the form of 134.2M Subordinate Voting Shares of Vireo at a reference price per share of $0.52. The purchase price of the Wholesome transaction represents a multiple of 4.175x 2024 “Reference EBITDA” of $16M. The Wholesome transaction is subject to clawback provisions if they don’t meet performance milestones as of December 31, 2026. The selling shareholders all agreed to voluntary share lock-up provisions, with tranches of shares unlocking over a 33-month period.
TerrAscend closes acquisition of Ratio Cannabis, dispensary located in Goshen Township, OH for $10.3M. The acquisition represents TerrAscend's initial entry into its sixth state, Ohio, and is expected to be immediately accretive on an EBITDA and cashflow basis. This acquisition increases TerrAscend's retail footprint to 39 dispensaries across six U.S. states and Canada.
The Company intends to acquire additional Ohio dispensaries in the future. The dispensary has no competition within a 20-mile radius and generates $9M in annualized revenue. Jason Wild, Executive Chairman of TerrAscend, stated that entering Ohio has long been a priority for the Company and it will continue to aggressively pursue additional accretive dispensary acquisitions, up to the eight dispensary state limit.
Glass House Brands x LEEF MSA for Palm Desert, CA Dispensary and Off-take Agreement. Under the MSA, Glass House will manage operation of LEEF’s Palm Desert, CA dispensary “The LEAF El Paseo” on behalf of LEEF. The agreement includes an off-take agreement from Glass House to LEEF, securing a significant portion of the annual raw cannabis material required to power LEEF’s extraction lines.
Village Farms spins off $169M fresh produce business. Canadian cannabis producer Village Farms International is spinning off its fresh produce unit, which generated $169M in sales in 2024. The company will transfer the fresh produce business to newly established holding company Vanguard Food, which is backed by private investment firms such as Sweat Equities. The consideration for the transaction includes 37.9% of Vanguard’s initial equity along with $40M in cash. Village Farms said the deal will allow it to “focus on its growing international business.”
📄 Company Updates / Earnings
Curaleaf Q1 Revenue of $310M (50% adjusted GM), Adjusted EBITDA of $65.2M (margin of 21%), Net Loss of ($60.3M). Cash of $121.9M.
Trulieve Q1 Revenue of $298M increased slightly YoY, 62% GM (vs. 58% last year), adjusted EBITDA of $109M (37% margin), net loss attributable to common shareholders of ($33M), Cash at quarter end was $329M.
GTI Q1 Revenue of $280M, up 1% YoY, Adjusted EBITDA of $85M, Net income of $8M. Cash of $211M, debt of $252M. GTI oOpened two RISE Dispensaries (NV, OH).
Verano Q1 Revenue of $210M, down (5%) YoY and (4%) QoQ, Gross profit of $100M (47% GM), Adjusted EBITDA of $54M (26% margin), Net Loss of $(12M). Cash of $84M, debt of $421M. The decrease in revenue was driven primarily by an increase in promotional activity and price compression in key markets, which was partially offset by Ohio adult use sales, strong performance in Florida, and contributions from Arizona and Virginia operations acquired from The Cannabist Co.
AWH Q1 Revenue declined 5.9% QoQ to $128M, Net loss of ($19.3M), Adjusted EBITDA was $27M (21.1% margin). Cash of $100M, Net debt was $233M. Currently, the Company is targeting ten new stores to come online in 2025, including three in Ohio and one in Pennsylvania. In Illinois, three partner stores have now opened, Markham in Q1, and North Riverside and Lynwood in Q2, with an additional partnership opportunity recently identified. In New Jersey, the Company expects to open its first partner store in Little Falls in the coming months, with three additional partner locations identified for later this year.
The Cannabist Co. Q1 Revenue of $87M (36% Adjusted GM), down (9%) compared to Q4, Adjusted EBITDA of $7.1M (9.5% margin), Net Loss of ($32.2M). Cash of $18.9M. The company has additional retail locations in development, including one in Virginia and three in Ohio, with one Ohio location expected to open in Q3.
TerrAscend Q1 Revenue of $71M, down (4.5%) QoQ, GM of 51.8%, up 160 basis points QoQ, EBITDA was $12.4M, net loss was ($12.3M). Cash of $29.4M.
Jushi Q1 Revenue of $63.8M (40.4% GM), Adjusted EBITDA of $9.8M (15.4% margin). Cash of $27.9M, $212.7M of debt. Jushi introduced 391 new unique SKUs to the product portfolio.
Vireo Q1 revenue of $24.5M (50.6% GM), up 1.9% YoY, Adjusted EBITDA of $6.6M (26.8% margin). Cash of $86.3M.
Glass House Brands Q1 Revenue of $44.8M (45% GM), up 49% YoY and reflecting a 78% increase in wholesale revenue and 19% increase in retail revenue, Adjusted EBITDA was $4.4M. Cash of $37.6M. Equivalent Dry Pound Production was 152,568 pounds, up 149% YoY. Cost per Equivalent Dry Pound of Production was $108 per pound, a decrease of 41% compared to the same period last year.
WM Technology Q1 Revenue of $44.6M, Adjusted EBITDA of $10.1M, Net income of $2.5M. Cash of $53.3M. The marginal increase in revenue was due to an increase in Weedmaps for Business and display advertising revenue, partially offset by a decrease in revenues from featured and deal listings.
Cresco Postpones Earnings Call. Originally scheduled for May 9, 2025, the earnings call will be postponed to provide additional time to complete procedures for the review of its first quarter interim financial statements.
Organigram Q2 FY2025 Gross Revenue of $102.8M, Net Revenue of $65.6M, Adjusted EBITDA of $4.9M, Net income of $42.5M, increase in anticipated Motif cost synergies to $15M from $10M, cash position of $83.4M and negligible debt. The increase in net income from the prior period is primarily attributable to higher fair value gains recognized in relation to top-up-rights of BAT and other financial instruments.
Arizona regulators flag Kaycha Labs for multiple violations. Following annual inspections in March, the Arizona Department of Health Services on April 24 informed Kaycha Labs of more than a dozen alleged “deficiencies,” including problems with the lab’s potency testing and pesticide and microbial detection methods.
🏬 Retail
The Travel Agency opens dispensary in Soho. This is The Travel Agency’s fourth location, with storefronts also in Union Square, Downtown Brooklyn, and Fifth Avenue.
Trulieve-branded dispensary to open in Lorain, OH. Harvest Grows LLC will operate the dispensary under the Trulieve brand through a licensing agreement.
🌱 Product
Curaleaf issued a voluntary recall for one of its products in CT. The product, Curaleaf Whole Flower 3.5g Auburn, has been recalled after 60-day stability test showed its yeast and mold levels fell outside the "acceptable range," according to the recall notice that Curaleaf sent to customers and the state forwarded to CT Insider.
FLUENT Debuts "New York Minute" – A Bold, Exclusive Flavor for MOODS Vaporizers. Flavored with Apple Apricot Tsunami botanical terpenes, this sativa-leaning cannabis oil will be available in two All-in-One device formats: a 1g Mini and a 0.5g Dash, catering to consumers who seek portability, performance and taste.
Tilray Brands Launch XMG Atomic Sours: New THC Beverages and Edibles. XMG Atomic Sours includes two cannabis-infused drinks, Cherry Blasted Lime and Foggy Peaches, and two cannabis-infused gummies, Very Berry Rocket and Cherry Blasted Lime, all crafted to provide consumers with nostalgic sour flavours.
Boston Beer Company launches new TeaPot Iced Teas and Emerald Hour Cocktails. TeaPot’s new Rosin-Infused Lemon Black Iced Tea contains 10mg of THC and is infused with solventless cannabis extract for a full-spectrum experience. Emerald Hour, the non-alcoholic cannabis cocktail brand, is launching two new summer recipes (Agave, Lime, & Sea Salt and Lime & Mint) and expanding its availability into British Columbia.
🧔 People
Springbig adds James Cabral as COO and Jason Moos as CFO. Cabral most recently served as COO at Warehouse Exchange, he oversaw sales, marketing, and operations for a platform dedicated to optimizing commercial real estate usage. Moos previously served as CFO at Fleetworthy Solutions, where he led two major acquisitions and expanded the company’s market presence in the fleet software sector.
🎙️ Interviews
What Christine Apple learned while building her edibles business | MJBizDaily
The Global Playbook with Zachary George, CEO of SNDL | Higher Exchanges
Edible Brands CEO Leads Expansion into Hemp-Derived THC Market | mg
Tommy Chong: Up In Smoke | Cannabis Science with Staci Gruber