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Cannabis operators report mixed results as rescheduling reshapes the financial outlook

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The rescheduling came mid-quarter and rewrote the tax math for each medical sales operator, but the underlying revenue picture remained uneven in early 2026, with acquisitions driven at one end of the scale and continued top-line compression at the other.

Vireo Growth: Back on $106 million deal
Vireo Growth Inc. reported Q1 GAAP revenue of $106.2 million, up 333.5% year-over-year, driven almost entirely by recent acquisitions rather than organic growth. The company completed the Schwazze acquisition in March, adding 45 dispensaries and two manufacturing facilities in Colorado and New Mexico. At the end of the quarter, it closed Eaze and Hawthorne Gardening, FLUENT Corp. announced an acquisition agreement and executed a California dispensary joint venture with Glass House Brands. Treating all acquisitions as closed on January 1, 2025 on a pro forma basis, revenue was $210.2 million and adjusted EBITDA was $42.2 million. The company ended the quarter with $137.8 million in cash.

John Mazarakis, CEO of Vireo, said: “Performance in the first quarter met our expectations and we are excited to welcome Schwazze, Eaze and Hawthorne to Vireo. We are focused on integration and optimization across the platform, while remaining opportunistic regarding growth opportunities associated with further acquisitions.”

Cresco Labs: $151 million, 280E relief and Texas license
Cresco Labs reported Q1 revenue of $151 million, down from $165.8 million in Q1 2025. Adjusted gross margin was 50.7% and adjusted EBITDA margin of $33 million was 21.7%. Cash at the end of the quarter was $67 million against a $310 million secured term loan. The company was conditionally granted a Texas Compassionate Use Program license after the quarter ended and opened two new dispensaries in Ohio.

Management said, “Moving the state’s legal medical cannabis from Schedule I to Schedule III is the most impactful reform this industry has seen, and it validates the work we’ve been executing for years. We’ve built the operational foundation and balance sheet discipline to reap the immediate benefits of rescheduling, and position Cresco to take advantage of the broader path to normalization.”

Jushi Holdings: 4% growth, 460 basis point margin expansion
Jushi Holdings reported first-quarter revenue of $66.4 million, up 4% year-over-year, with gross profit margin up 460 basis points to 45%. Adjusted EBITDA was $11.4 million, up 17.2%. The margin improvement was driven by higher production volumes in Ohio, Massachusetts and Pennsylvania and the performance of grower processors. Jushi brand products accounted for 58% of retail revenue in vertical markets. The company refinanced $132.3 million in debt during the quarter, providing $160 million in new debt through 2029.

Jim Cacioppo, president and CEO, said: “The recent scheduling of state-licensed medical marijuana for Schedule III is an important milestone for the industry, eliminating 280E tax limitations for medical operations and supporting a more favorable long-term operating environment.” Medical sales accounted for about 60% of Jushi’s 2025 revenue, making this material relief.

iAnthus Capital: Revenue falls to $33.5 million
iAnthus Capital reported first-quarter revenue of $33.5 million, down $4.6 million from 2025’s first quarter. Gross margin was 47.5%, up 477 basis points from the 2025 quarter. The company did not provide a management comment in the press release.

Country farms: international export record, fourth consecutive quarter of net income
Village Farms International reported first quarter consolidated net sales of $50.2 million, up 27% year-over-year, with net income of $2.9 million and adjusted EBITDA of $9.9 million, up 118% year-over-year. International export sales increased 171% to a record $14.6 million, driven by demand for EU-GMP compliant products in Germany. Pure Sunfarms had the top Canadian market share in dried flowers for the 15th consecutive month. The company started planting the first half of its Delta 2 greenhouse expansion and expects its Phase II facility in the Netherlands to reach full capacity by the end of 2026, which would quadruple Dutch production.

Michael DeGiglio, President and CEO, said: “Our first quarter results reflect a strong start to the year and continued momentum in our largest markets, with adjusted EBITDA growth of 118% year-over-year, significantly outpacing revenue growth of 27%, driven by our international business and continued leadership in Canada.

Cronos Group: Record revenue, $822 million in cash
Cronos Group reported Q1 net income of $45.2 million, up 40% year-over-year and a record quarter, with net income of $15.7 million and adjusted EBITDA of $5.1 million. Israel led growth PEACE NATURALS grew 53% for ninth consecutive record quarter. In Canada, the Spinach brand took first place in vapes with a 9.8% share of the national market, and maintained its top spot in edibles at 20.8%. The company ended the quarter with $821.9 million in cash and authorized a new $50 million stock repurchase program. The deadline to close the acquisition of CanAdelaar, one of the ten licensed growers in the Dutch Controlled Cannabis Supply Chain Experiment, has been extended to September 9, 2026 to allow time for regulatory approvals.

Mike Gorenstein, chairman, president and CEO, said, “Cronos achieved net earnings and gross profit in the first quarter as we continue to execute against our unlimited product strategy and the additional supply from Cronos GrowCo’s expansion fuels the next phase of our growth.”

Org chart: Revenue down 9%, Sanity Group acquisition closes after quarter
Organigram Global reported fiscal second quarter net income of $59.8 million, down 9% year-over-year, with adjusted EBITDA of $0.9 million, down 82%. Lower vape and pre-infusion sales drove the decline, along with a $5.8 billion dent in the U.S. hemp business. The company achieved a record quarterly harvest of over 32,000kg at its Moncton facility, up 56% year-on-year, and launched 10 SKUs in Australia targeting over 4,000 pharmacies. At the end of the quarter, Organigram acquired Sanity Group, one of Germany’s leading cannabis companies, and updated its 2026 guidance to net revenue of more than $350 million.

James Yamanaka, CEO, said: “Q2 reflected our poor performance in vaporizers and temporary challenges in pre-infusion production, compounded by slower industry growth. We have acted quickly to address these issues, and the operational changes and product improvements we have implemented are already beginning to stabilize performance.”

Greg Guyatt, Chief Financial Officer, said: “The financial impact of the competitive and operational challenges encountered earlier in fiscal 2026 is believed to have materialized in the first half of the year, and we are now beginning to stabilize performance. We expect to resume a trajectory of margin expansion and improved profitability during the second half of the year, supported by positive revenue and international sales growth. The Sanity Group.”

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Columbia hemp business Burning Acre to close and move to North Carolina over new Tennessee rules

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9 hours ago

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June 14, 2026

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Burning Acre, a Columbia, Tennessee-based hemp company, says it will close its retail store and move operations to North Carolina ahead of new state regulations that take effect July 1, according to WSMV.

The business says its last day to open in Columbia will be June 30, the same day the Tennessee Department of Agriculture licenses for hemp-derived cannabinoids expire. As of July 1, businesses that continue to operate in the state will be required to be licensed under a new regulatory framework led by the Tennessee Alcoholic Beverage Commission.

Burning Acre says the changes have forced it to abandon plans for a new sandwich shop and bakery and close its Tennessee retail operations and relocate to Murphy, North Carolina. “I won’t sugarcoat it, it’s a very hard video for me and a message I should never have written,” the business wrote.

The business puts the annual cost of manufacturing, distribution and running the retail store at about $750. Under the new rules, he says, those costs would rise by tens of thousands of dollars, citing new licensing fees, a required $25,000 annual bond and increased testing fees.

The law, which took effect in July, changes the regulation of hemp-derived cannabinoid businesses from the Department of Agriculture to the ABC. The Department of Agriculture stopped issuing licenses at the end of 2025, and the licenses issued by the TDA will remain valid until June 30, 2026.

“Columbia, we absolutely love being a part of this community,” said Burning Acre. “We are truly heartbroken to have to say goodbye to this location.”

Read more at WSMV4










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North Carolina Lawmakers Advance Bill To Set A Minimum Age Limit For Hemp And Kratom Products

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9 hours ago

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June 14, 2026

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“Many other details about cannabis have been debated and will continue to be debated.”

By Christine Zhu, NC Newsline

Lawmakers in North Carolina are considering banning people under 21 from buying or possessing certain hemp-derived consumables, including combustible hemp flower, hemp cigarettes, gummies and drinks, or items that include the drug kratom.

The House Agriculture and Environment Committee approved a rewrite of Senate Bill 59 on Wednesday. This is the latest attempt by state legislators after years of proposals to regulate the sale of hemp products that didn’t work out in the end.

This measure would prohibit companies from selling such products to under-21s. If the seller has “reasonable grounds” to believe that the buyer is under the age of 21, the seller must verify the buyer’s ID.

Rep. Jimmy Dixon (R-Duplin), who introduced the bill, said he was motivated to bring public attention to issues surrounding cannabis. He said there was a 14-year-old boy in his neighborhood who had an emergency after buying a hemp-derived product.

“There are a lot of other details about cannabis that have been debated and will continue to be debated, but ladies and gentlemen, to make sure we have the good sense to be agents of these kinds of issues, that’s the lowest hanging fruit,” he said.

Violators would face a Class 2 felony, as well as a fine of $500 for a first offense, $1,000 for a second offense and $1,500 for subsequent offenses.

asked Rep. Pricey Harrison (D-Guilford). of the bill language resulted in potential changes to hemp-derived products. It is common for manufacturers of synthetic recreational drugs to make changes to the chemical composition of their products to avoid legal bans or restrictions.

“I assume the definition as written is broad enough to capture any future manipulation of molecules,” he said. Dixon nodded.

Legislators also voted in favor correction To add kratom products to the under-21 ban.

Rep. Jeffrey McNeely (R-Iredell), who proposed the amendment, said it was necessary to add those elements to the bill.

“I’ve been working on this for quite some time, trying to get these bills passed,” McNeely said. “We definitely have a problem. So I’m hoping we can keep posting this and we’ll get something done before we get out of the short session here.”

Both the amendment and the legislation passed unanimously without debate.

The bill moves next to the House Rules Committee. Other amendments will be heard when they appear on the House floor, which could be as soon as next week.

This story was first published by NC Newsline.

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GreenTech Amsterdam 2026 in 2026 photos

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June 13, 2026

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Well, it’s not 2026 photos, but with around 600 photos, we definitely did our best. For the past two days, the Netherlands has been the place to be for the global greenhouse industry. From Flower Trials for the horticulture sector, company visits to growers and technical suppliers, as well as dinners, get-togethers, drinks, knowledge sessions and much more. And of course with GreenTech Amsterdam.

The event brought together professionals from around the world to connect, network, share knowledge and do business.

Next week, we’ll be sharing more information on market developments, trends, what’s on display, news, business news, innovations and whatever else you can think of, but for now we’ll stick to photo reporting.

Click here for the photo report.

© Arlette Sijmonsma | MMJDaily.com










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