Happy Friday.
We’ve got a fun experiment for you today. Let us know what you think.
Tune into This Week in Cannabis Live at Noon Eastern/9 AM Pacific. It’ll be a good one.
Let’s get to it.
-JB, JR
Today’s newsletter is 903 words or about a 7.5-minute read.
💡 What’s the big deal?
EARNINGS
We made Claude read the earnings calls so you don’t have to
Cannabis earnings season is in full swing — and it's the first chance to hear from big MSO execs on how they plan to navigate rescheduling.
We employed Claude to parse the transcripts and financial statements of the big three that reported this week, then edited the output ourselves. Let us know if this is helpful or what you think of it.
Curaleaf led on revenue at $324 million, followed by Green Thumb Industries at $300 million, and Trulieve at $287 million.
$MSOS ( ▼ 0.57% ) is up 9.4% on the year, but gains aren't evenly distributed:
Curaleaf is up 50% year-to-date and 12% this week, powered by its medical-heavy mix and a Q1 net income swing from a $50 million loss to $70 million in profit. $CURLF ( ▲ 3.26% )
Trulieve is down 5% today despite the strongest margins of the three. $TCNNF ( ▼ 4.9% )
GTI is down 3% and flat on the year after a record Q1 with $300 million in revenue and $344 million in cash. $GTII.TSX ( 0.0% )
On Rescheduling
Medical cannabis is now Schedule III — the most transformative federal policy shift in the industry's history.
Ben Kovler, GTI: "The federal government took a meaningful and positive step by formally recognizing the medical value of cannabis."
He added: "Rescheduling is not legalization."
Boris Jordan, Curaleaf: "With the glass ceiling now broken, we are seeing increased momentum at the state level."
Jordan said DEA registration makes Curaleaf's medical business fully legal under the CSA and expects the Administrative Law Judge hearings, starting June 29, to finalize broader rescheduling.
Kim Rivers, Trulieve: "Rescheduling is the first major domino to fall."
Trulieve applied to register all 206 dispensaries in medical-only markets and is pushing to restart Georgia's independent pharmacy dispensing model.
On 280E
Kovler: Light on specifics, though GTI's net income nearly doubled to $15 million — and the company has repurchased roughly 29 million shares for about $200 million since late 2023, with another $100 million authorized in April.
Jordan: "60% of Curaleaf's business is medical and stands to get substantial 280E relief." Still waiting on IRS guidance for the retroactive look-back period.
Worth noting: the Q1 net income swing was partly driven by a one-time tax reserve release, not purely operational improvement.
Rivers: Already applying the normal tax rate in Q1.
Trulieve already filed amended returns challenging 280E for years and received more than $114 million in IRS refunds.
She added: retroactive relief is "a when, not an if."
What comes next?
Jordan: "Normalized banking relationships — critically, the ability to accept major credit cards — would remove friction at the point of sale." Expects SAFE Banking in Q3 and flagged the import/export opportunity as a major margin driver for Curaleaf’s international business.
Kovler: The bigger near-term win is institutional capital: "People are getting interested in studying the space. And that makes it very interesting."
Rivers: Texas and Georgia are the prizes. She thinks the hemp ban conversion opportunity in Florida could be significant — a large pool of unregulated consumers who could migrate into the medical market. $CURLF $GTBIF $TRUL
-JB (and Claude)
⏩ Quick hits
PEI considers raising cannabis purchase age to 21
Prince Edward Island health minister Cory Deagle wants to raise the minimum cannabis purchase age from 19 to 21, but experts say the move alone won't keep young people away from the illicit market. Read more.
Connecticut reinstates 35% THC cap on cannabis flower
Connecticut lawmakers reinstated a 35% THC cap on cannabis flower after removing it just weeks ago, following pushback from senators on both sides of the aisle who raised public health concerns — though caps on concentrates were eliminated and the THC limit in infused drinks was raised from 3 mg to 5 mg.
🔬 Science & research
Teens see cannabis as less harmful than alcohol and vapes
A new study published in Drug and Alcohol Dependence analyzing responses from more than 175,000 California students found that perceptions of cannabis risk declined as students got older, while perceptions of alcohol and tobacco harm held steady or increased, with peer use being the strongest predictor of low perceived risk across all substances.
🚀 Deals, launches, partnerships
Quebec-based Cannara Biotech acquired all outstanding shares of Medican Organic from BZAM Ltd. in an all-cash transaction, completing a process that began in 2021 when it first purchased Medican's Valleyfield cultivation facility, which at the time carried a price tag of $27 million.
Mfused, a self-funded cannabis vape company, expands into Missouri through a partnership with Curio Wellness, bringing its Super Fog vapes and pre-rolls to dispensaries statewide.
😜 One fun thing
Axios reports an entrepreneur in DC is converting an old warehouse into a combo medical dispensary/indoor golf simulator. We’re all for these cannabis-related activity spaces.
If anyone would like to build a dispensary/consumption lounge/movie theater in NYC, reach out. That’s the dream.
📰 What we’re reading
Cannabis Stocks Are Going Nowhere Quickly | New Cannabis Ventures