Financial results from four major cannabis businesses point to an industry where opportunities for growth remain, but profitability increasingly depends on scale, cost control and exposure to the right markets.
Results released by Canopy Growth, Cresco Labs, WM Technology and Trulieve in August show significantly different trajectories. Canopy and Cresco reported revenue growth, while Trulieve and WM Technology saw revenue decline compared with the previous year.
The figures suggest it would be difficult to characterize the cannabis market simply as growing or shrinking. Instead, performance appears increasingly dependent on geography, business model and companies’ ability to operate efficiently amid pricing, regulatory and financial pressures.
Canopy Growth returns to top-line growth
Canopy Growth reported C$81.2 million in net revenue for its fiscal first quarter ended June 30, 2026, up 13% from the same period a year earlier.
Growth came from every major part of the company. Canadian medical cannabis revenue increased 22% to C$25.8 million, Canadian adult-use cannabis rose 10% to C$29.7 million and international cannabis revenue climbed 10% to C$9.6 million. Storz & Bickel revenue also increased 6% to C$16.1 million.
The company attributed part of its Canadian growth to its acquisition of MTL Cannabis, particularly through increased flower sales and an expanded supply of high-quality flower.
Profitability indicators also improved. Adjusted gross margin rose from 25% to 31%, while Canopy’s adjusted EBITDA loss narrowed 59% year over year to C$3.2 million.
However, not every financial metric moved in the same direction. Free cash outflow increased from C$11.6 million to C$25.7 million, primarily due to the timing of working-capital changes.
Canopy’s medical business also illustrates how policy decisions can affect cannabis companies even when demand is growing. Growth in insured customers and the MTL acquisition contributed to higher medical revenue, but the company said these gains were partially offset by a reduction in the Veterans Affairs Canada reimbursement rate.
Cresco posts sequential growth and positive earnings
Cresco Labs reported US$173 million in second-quarter revenue, up 15% sequentially, alongside net income of US$15 million.
Adjusted EBITDA reached US$40 million, representing a 22.8% adjusted EBITDA margin and a 20% sequential increase.
Expansion and acquisitions are playing a prominent role in Cresco‘s strategy. The company completed its first full quarter operating nine acquired Pennsylvania dispensaries, where it said gross profit dollars improved 11% before the stores were rebranded. New Sunnyside locations in Ohio were also performing strongly, while Cresco began generating revenue from branded products in Kentucky in June.
At the same time, Cresco’s balance sheet shows the importance of financing in a capital-intensive industry. As of June 30, it reported US$67 million in cash, cash equivalents, and restricted cash, compared with a US$311 million senior secured term loan and a US$19 million mortgage loan.
The company’s SG&A expenses reached US$63 million, or 36.5% of revenue. Adjusted SG&A was lower at US$55 million, with Cresco attributing much of the difference to one-time and non-recurring costs related to M&A, uplisting preparations and federal reform.
Weedmaps shows pressure on established cannabis markets
WM Technology, which operates Weedmaps rather than producing cannabis itself, provides a different view of conditions within the sector.
Revenue fell to US$42.4 million in the second quarter from US$44.8 million a year earlier. Average monthly paying clients declined from 5,241 to 5,040, while average monthly revenue per paying client fell from US$2,852 to US$2,807.
The company directly linked the decline to difficult conditions for its cannabis-industry customers, including margin compression, cash-flow constraints, price deflation and consolidation in established markets.
Churn among customers in more mature markets was partially offset by new customers in developing markets, suggesting that the pressures affecting cannabis businesses are not necessarily occurring evenly across the United States.
WM Technology remained profitable, with net income rising from US$2.2 million to US$2.9 million. However, adjusted EBITDA dropped substantially, from US$11.7 million to US$5 million.
Management expects third-quarter revenue to decline by a mid-single-digit percentage sequentially, indicating that the difficulties affecting its customers could continue in the near term.
Trulieve combines strong margins with falling revenue
Trulieve generated US$271 million in second-quarter revenue, down 10% from US$302 million a year earlier and 6% from US$287 million in the previous quarter. The comparison is complicated by the June 3 deconsolidation of Harvest, which changed the composition of Trulieve’s reported operations during the quarter.
Despite the revenue decline, Trulieve maintained a 60% gross margin and generated adjusted EBITDA of US$98 million, representing 36% of revenue. It also generated US$53 million in operating cash flow and US$32 million in free cash flow during the quarter, ending June with US$325 million in cash.
Its reported US$406 million net loss requires additional context: the figure included a US$407 million impact from the Harvest deconsolidation and equity investment. Excluding specified non-recurring items and other adjustments, Trulieve reported adjusted net income of US$20 million.
Trulieve also continued expanding its medical business, beginning shipments to licensed independent pharmacies in Georgia and opening four Florida dispensaries during the quarter. The company reported operating 207 dispensaries and 3.5 million square feet of cultivation and processing capacity following another Florida opening.
What do the results say about the cannabis industry?
The four sets of results present a mixed picture.
There are clear areas of expansion. Canopy recorded double-digit growth across Canadian medical, Canadian recreational and international cannabis, while Cresco reported strong sequential revenue growth and expansion into states including Pennsylvania, Ohio and Kentucky. Trulieve is also expanding its medical distribution footprint.
But WM Technology’s results highlight the opposing pressure. Its customers in established cannabis markets are dealing with price deflation, thinner margins, constrained cash flow and consolidation. These conditions can make it harder for operators to increase revenue even where cannabis demand itself remains substantial.
Another recurring theme is operational efficiency. Canopy’s adjusted EBITDA loss narrowed as revenue increased and costs were controlled. Cresco produced a 22.8% adjusted EBITDA margin. Trulieve generated a 36% adjusted EBITDA margin despite declining revenue. WM Technology, meanwhile, remained profitable even as its top line contracted.
The results therefore suggest an industry moving beyond growth at any cost. Acquisitions, geographic expansion and new markets remain routes to higher revenue, but companies are simultaneously emphasizing margins, cash generation, expense control and balance-sheet strength.
Regulation also remains inseparable from financial performance, as Canopy was affected by a reduced Canadian medical cannabis reimbursement rate, while Cresco and Trulieve both highlighted changes connected with U.S. federal cannabis policy.
For people following the cannabis industry, the latest results show why headline revenue alone provides an incomplete picture. Some companies are expanding while others are facing pressure in mature markets, and even businesses reporting lower sales can retain strong margins or generate cash. The emerging trend across these four companies is therefore less about uninterrupted market growth and more about which businesses can convert available demand into sustainable financial performance.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
