Marijuana shares may be gearing up for a resurgence after years of sluggish performance, as investors grow hopeful about possible federal reforms.
Publicly listed cannabis companies have experienced mixed fortunes in recent quarters. Verano Holdings, for instance, posted $203 million in revenue—slightly higher than the previous quarter but 6% below last year’s levels. The company also posted a $44 million net loss, citing a $5 million write-down on a Pennsylvania facility and $10 million in legal expenses tied to a settlement.
Two major players, Trulieve and Curaleaf, are expected to announce their earnings this week.
Three key developments are fueling investor hopes: Trump’s apparent support for CBD Medicare coverage, his openness to reclassifying cannabis, and congressional efforts to regulate hemp.
Cannabis use has also hit record levels. A 2024 Carnegie Mellon University study found that daily cannabis consumption now exceeds daily alcohol use in the United States. The Agriculture Department reported that the total value of U.S. marijuana production jumped 40% in 2024, while research firm Grand View projects the global cannabis market could reach $160 billion by 2032.
Optimism surged in September when the president shared a video promoting CBD for seniors. The clip, made by The Commonwealth Project, a pro-marijuana advocacy group funded by billionaire Howard Kessler, triggered a surge in marijuana shares. Tilray rose 42 percent, Aurora Cannabis 25 percent, Canopy Growth 18 percent, and Cronos Group 15.5 percent.
The discussion around hemp regulation has also intensified. Congress is preparing to revise the 2018 Farm Bill, which legalized hemp with less than 0.3 percent THC but left its regulation largely undefined. Lawmakers are considering new national standards for safety, labeling, and testing.
Some legislators want to tighten THC restrictions or even prohibit hemp-derived intoxicants altogether, while industry leaders push for a model similar to alcohol regulation, splitting oversight between the Alcohol and Tobacco Tax and Trade Bureau and the Food and Drug Administration. Industry advocates warn that a sweeping ban could jeopardize hundreds of thousands of jobs tied to the hemp economy.
Meanwhile, Trump’s comments about possibly reclassifying cannabis from Schedule I to Schedule III have fueled speculation about broader policy shifts. Such a move would not legalize recreational cannabis nationwide but could ease access to banking and research by removing certain federal tax barriers.
An official from the White House said the review process is ongoing and that all legal requirements are being considered. Industry insiders note that optimism partly stems from Trump’s inner circle. His chief of staff, Susie Wiles, has ties to Trulieve, whose CEO, Kim Rivers, has been a vocal advocate for reclassification.
Still, not everyone in Washington shares the enthusiasm. Some GOP legislators have moved to curb hemp-derived products, citing health risks and the lack of regulation since legalization. A measure introduced by Representative Andy Harris would redefine hemp to exclude any products containing measurable THC, while a Senate committee backed similar language in July.
As the industry waits for clearer signals from Trump and Congress, investors are betting that even the possibility of reform could mark the start of a new phase for U.S. marijuana markets, and firms like Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) will be hoping those reforms come sooner rather than later.
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