Trulieve kicks off cannabis earnings season 💰

EARNINGS
Trulieve kicks off cannabis earnings season 💰

Trulieve reported a $33 million net loss on $298 million in revenue with $183 million in gross profit for the first quarter.

The company launched a hemp beverage brand, opened new dispensaries in Florida, Arizona and Pennsylvania and continued investing in political efforts to legalize or reschedule cannabis. 

Trulieve flagged $466.9 million in uncertain tax positions, based on its interpretation that 280E — a federal rule that prohibits cannabis companies from deducting expenses — does not prevent the company from lawfully deducting business expenses. The company did not report any additional response to this position from the government. 

What they’re saying: "We are excited to report another strong quarter and fantastic start to the year. Best-in-class gross margin and strong operating cash flow during a seasonally slower quarter clearly demonstrate our commitment to operational excellence," CEO Kim Rivers said.  

Hemp beverages: Trulieve launched Onward, a line of what it calls "Farm Bill compliant" THC drinks that can be sold in liquor stores. They are currently available in Florida with plans to slowly roll them out in other states. 

The company plans to sell Onward directly to consumers, but the product will primarily be a vehicle for establishing a national distribution network. 

“We believe strongly that this is ultimately going to be a distribution play,” said Rivers. 

What else they’re saying: Trulieve’s management discussed the effort to put cannabis legalization back on the Florida ballot after it failed last year. 

RIvers said that the effort, backed by Trulieve, has collected 700,000 petitions. The company spent over $23 million on political and campaign contributions. 

On potential M&A: "There's significant debt coming due for a lot of companies out there — unless something dramatically changes — have the ability to pay that down like we do. So I think folks are gonna be facing some tough decisions and that creates opportunity. 

“I think that we are gonna make sure that we're in a position to be opportunistic when those opportunities arise. I also think that there's no benefit here in not being patient.”

-ZH

Green Thumb Industries posts profitable quarter 🌿

Green Thumb Industries reported an $8 million profit on steady revenue of $280 million, a 1% increase from the same period last year. The company ended the quarter with $211 million in available cash. 

On federal reform: "As we look ahead, our expectations on regulatory reform remain grounded in reality. We said before that we don't expect sweeping federal reform anytime soon, and nothing we've seen recently has changed that view. We all listen to the same DEA hearing you did, and we remain confused by the industry's false sense of optimism." GTI CEO Ben Kovler said during the company’s earnings call after market close yesterday. 

The company opened two new store openings in Nevada and Ohio, and said it plans to continue supporting political efforts in Pennsylvania and Virginia to get recreational cannabis passed. 

-ZH

Zig-Zag owner sees sales increase in Q1 🔥

Turning Point Brands announced $106.4 million in net sales for the first quarter, a 28.1% increase from the same period in 2024. Zig-Zag rolling paper products saw a 1.2% increase in sales, while tobacco products under the company's Stoker brand led the sales increase with a 62.7% change.

Here’s what’s on tap for the rest of the week:

• Cannabist — Today 8 AM

• MariMed — Today 8 AM

• Cronos Group — Today 8:30 AM

• Verano Holdings — Today 8:30 AM

• TerrAscend — Today 5 PM

• Curaleaf — Today 5 PM

• Cresco Labs — Friday 8:30 AM

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“How does flooding our community with addictive or high potency drugs heal our communities?,” Pennsylvania State Rep. Charity Krupa (R), said during Wednesday’s House hearing on a bill that would legalize cannabis sales via state-run stores in the state. 

The bill passed the House along party lines 102-101, with all Democrats in favor and Republicans opposed. The bill now heads to the state’s Republican-controlled Senate, where it’s unlikely to advance, per Spotlight PA’s Stephen Caruso.

Michigan regulator bans first operator from the market 🚫

Youssef Barakat, the former owner of Big Rapids Tree House Club and Bay City Tree House Club, is officially the first operator that Michigan's Cannabis Regulatory Agency has placed on its permanent exclusion list. Barakat's store allegedly sold 1.5 ounces of cannabis flower  in unmarked sandwich bags to a 20-year-old state police trainee in 2023. 

Medical sales in D.C. spiked in March 📈

Total cannabis sales in DC hit $5.91 million in March up from $4.61 million the month before, according to data from the district's Alcoholic Beverage and Cannabis Administration. The sales spike came along with increases in the number of local and non-resident temporary patients, which in turn were a likely result of the city bringing in more gray market shops into the legitimate medical market, per the The Outlaw Report.

Alabama hemp regulation awaits governor's signature 🖊️

Alabama may still not be able to get its medical market off the ground due to years of lawsuits, but it could soon be ready to regulate the state's existing hemp market with the passage of HB 445. While some states are attempting to ban hemp, this bill would increase the THC dosage limit from 5mg to 10mg, and would allow grocery store sales, but not sales in gas stations or convenience stores. 

TerrAscend gets into Ohio 🛍️

TerrAscend closed its acquisition of Ohio dispensary Ratio Cannabis. The shop, which is TerrAscend's first in Ohio, generates $9 million in annual revenue, according to a press release. The company now has 39 dispensaries across six U.S. states and Canada and it intends to continue buying up shops. 

The Travel Agency opens Soho location 🚀

New York cannabis dispensary chain The Travel Agency opened its fourth shop in the city in Soho. Read more.

The Last Prisoner Project says that constituent Daniel Gallegos, imprisoned on a 20-year sentence for cannabis charges, was released to a halfway house this week. Gallegos was pardoned by former President Joe Biden and served 14 years.

'A betrayal': Calif. plan to help Black shop owners leaves business with millions in debt | SF Gate

Congress takes more conservative approach to marijuana policy | Politico Pro

Billions In Cannabis Debt Loom, But One Lender Sees Plenty Of Green Ahead |BISNOW

More and more companies are offering THC beverages as 'sober' alternatives – what are the Risks? | Women's Health

Weed reform crusades hit two more states | GreenState