This article was updated on 6-27-2025.

The cannabis investment landscape stands at a critical juncture in 2025, presenting a paradox of extraordinary growth potential colliding with unprecedented regulatory complexity. While traditional Wall Street continues to largely shun the sector due to federal prohibition, a new generation of investors recognizes the historical parallels to the end of alcohol prohibition in 1933. Today’s cannabis market represents not just an emerging industry, but potentially one of the most significant wealth-creation opportunities of the 21st century.

With U.S. cannabis sales projected to exceed $50 billion by 2025 and global markets expanding rapidly, the sector has evolved far beyond its “penny stock” origins. Major multi-state operators now generate hundreds of millions in revenue, sophisticated REIT structures provide institutional-grade investment vehicles, and international medical cannabis markets offer exposure to normalized regulatory environments. Yet valuations remain compressed at levels that would be considered distressed in any other consumer sector, creating what many view as a generational buying opportunity for those willing to navigate the unique risks and complexities of this nascent industry.

Marijuana Stocks: What Are The Options?

Green Thumb Industries (GTBIF)

Green Thumb Industries stands as one of the largest U.S. multi-state operators (MSOs), operating over 100 dispensaries across 14 states under its RISE retail brand. The company has distinguished itself as one of the few consistently profitable cannabis companies in the sector.

Stock Performance:

• Current Price (as of June 2025): ~$9.20
• 1-Year: -18%
• Market Cap: $2.23 billion

Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles, and RYTHM. The company reported Q4 2024 revenue of $294 million, representing a 6% increase over the prior year period, with an impressive gross margin of 62%.

Investor Relations: https://investors.gtigrows.com/

Curaleaf Holdings (CURLF)

As one of the largest cannabis companies by revenue, Curaleaf operates 147 dispensaries across 17 states and employs over 5,200 team members. The company has built a diverse portfolio of brands including Select and Grassroots, alongside its flagship Curaleaf brand.

Stock Performance:

• Current Price (as of June 2025): ~$3.80
• Market positioning as a leading international provider of consumer cannabis products

Curaleaf focuses on both medical and adult-use markets, offering a wide range of products including flower, pre-rolls, vapes, concentrates, and edibles. The company has also expanded internationally, establishing itself as the largest vertically integrated cannabis company in Europe.

Investor Relations: https://ir.curaleaf.com/

Trulieve Cannabis (TCNNF)

Trulieve has established itself as a leading cannabis company with dominant market positions in Arizona, Florida, and Pennsylvania. The company operates cultivation and processing facilities across multiple states and has built a strong retail presence through its dispensary network.

Stock Performance:

• Current Price (as of June 2025): ~$3.45
• Strong operational metrics with Q1 2025 revenue of $298 million and 62% gross margin

The company reported cash flow from operations of $51 million and free cash flow of $34 million in its most recent quarter, demonstrating strong financial discipline in a challenging market environment.

Investor Relations: https://investors.trulieve.com/

Cresco Labs (CRLBF)

Cresco Labs operates as a vertically integrated multi-state operator with a presence in 8 states. The company ranks third in adjusted operating income among major MSOs, posting $26.3 million in its most recent quarter. Cresco’s strategy focuses on consumer brands and retail operations through its Sunnyside dispensaries.

Stock Performance:

• Current Price (as of June 2025): ~$0.43
• Focus on cash flow optimization and strategic market positioning

The company has been investing in core growth states and exploring merger and acquisition possibilities, positioning itself to benefit from potential federal reforms.

Investor Relations: https://investors.crescolabs.com/

Canopy Growth (CGC)

Once the darling of the cannabis industry, Canopy Growth has faced significant challenges in recent years. The company has been restructuring operations and focusing on an “asset-light” model to reduce costs and improve profitability.

Stock Performance:

• Current Price (as of June 2025): ~$1.29
• 1-Year: Down significantly
• 5-Year: Over 99% decline from all-time highs
• All-time high: $568.90 (October 2018)

Despite ongoing challenges, Canopy maintains partnerships and continues to eye the U.S. market opportunity, with pending acquisitions including Acreage Holdings that would activate upon federal legalization.

Investor Relations: https://www.canopygrowth.com/investors/

Tilray Brands (TLRY)

Tilray has diversified beyond cannabis into craft beverages, acquiring several beer brands from Anheuser-Busch InBev. This diversification strategy has made Tilray somewhat unique among cannabis companies, though it has also raised questions about the company’s core focus.

Stock Performance:

• Current Price (as of June 2025): ~$0.36
• Trades at a premium valuation compared to peers despite mixed cannabis segment performance

The company operates in Canada, the United States, Europe, Australia, and Latin America, with over 20 brands across cannabis, hemp-based foods, and alcoholic beverages.

Investor Relations: https://ir.tilray.com/

Cronos Group (CRON)

Backed by tobacco giant Altria, Cronos Group has maintained a strong balance sheet with $838 million in cash and equivalents. The company reported Q1 2025 net revenue of $32.3 million, marking a 28% increase from the previous year.

Stock Performance:

• Current Price (as of June 2025): Trading on NASDAQ
• Adjusted gross margin improved to 44% in Q1 2025
• Announced a $50 million share repurchase program

Cronos operates in Canada, Israel, and other international markets, with brands including Spinach, PEACE NATURALS, and Lord Jones.

Investor Relations: https://ir.thecronosgroup.com/

Aurora Cannabis (ACB)

Aurora Cannabis, once a leader in the Canadian market, has undergone significant restructuring. The company reported record-breaking Q3 fiscal 2025 results with all-time highs in global medical net revenue, net income, adjusted EBITDA, and free cash flow.

Stock Performance:

• Current Price (as of June 2025): ~$0.47
• 1-Year: -62%
• Significant decline from historical highs

Aurora has shifted focus to international medical cannabis markets, with international net revenue growing 112% year-over-year and accounting for 60% of global medical cannabis net revenue.

Investor Relations: https://investor.auroramj.com/

Innovative Industrial Properties (IIPR)

As the first publicly traded REIT on the NYSE focused on the cannabis industry, IIP provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions. The company owns 109 properties comprising 9.0 million rentable square feet across 19 states.

Stock Performance:

• Current Price (as of June 2025): ~$56.45
• 52-week range: $45.44 – $138.35
• Dividend yield: ~11.9%
• Trades on NYSE, unlike most cannabis stocks

As a REIT, IIP must distribute at least 90% of taxable income to shareholders, making it attractive for income-focused investors. The company benefits from long-term triple-net lease agreements with cannabis operators.

Investor Relations: https://investors.innovativeindustrialproperties.com/

Marijuana Market & Investment Considerations

The cannabis industry stands at a potential inflection point in 2025. Key factors driving the sector include:

Federal Rescheduling: The DEA’s consideration to move cannabis from Schedule I to Schedule III could eliminate the burdensome 280E tax provision, potentially adding millions in cash flow to operators’ bottom lines.

State Expansion: With 24 states having legalized recreational cannabis and 40 allowing medical use, the addressable market continues to grow. Minnesota is set to begin recreational sales in 2025.

International Opportunities: Companies like Aurora and Cronos are seeing strong growth in international markets, particularly in Israel, Germany, and Australia.

Financial Challenges: Many companies continue to face profitability challenges, limited access to traditional banking, and high tax burdens under current federal regulations.

Historical Compression: Median EV/Revenue multiples have collapsed from pre-pandemic highs to just 1.0x (Q4 2023), representing an 80%+ decline

MSO Undervaluation: Leading U.S. operators trade at 4.0-8.5x forward EV/EBITDA, compared to 15-20x for comparable consumer goods companies

Market Inefficiency: The largest cannabis companies generate similar margins to alcohol and tobacco peers but trade at 70-80% discounts. This valuation anomaly stems from structural barriers that are likely temporary:

• Federal prohibition preventing institutional ownership
• 280E tax burden crushing reported earnings
• Banking restrictions limiting capital access
• Forced OTC listing reducing liquidity and visibility

Marijuana Stock Performance & Valuation Analysis

The cannabis sector’s financial landscape reveals stark contrasts between operational excellence and market valuations, creating compelling opportunities for discerning investors:

Most Profitable – Green Thumb Industries (GTBIF) Green Thumb has emerged as the gold standard for cannabis profitability, consistently generating positive earnings since 2020. With the highest adjusted operating income of $42.6M in recent quarters and an industry-leading gross margin of 62%, GTI demonstrates that cannabis companies can achieve sustainable profitability even under the burden of 280E taxation. The company’s disciplined approach to expansion, focus on limited-license states, and strong brand portfolio position it as a prime beneficiary of federal reform.

Operational Excellence – Trulieve Cannabis (TCNNF) Matching Green Thumb’s impressive 62% gross margins, Trulieve has built a fortress in Florida’s medical market while strategically expanding into other high-growth states. The company’s Q1 2025 results showcased exceptional cash generation with $51M in operating cash flow and $34M in free cash flow, proving that well-run cannabis companies can self-fund growth without dilutive capital raises.

Financial Fortress – Cronos Group (CRON) With $838M in cash reserves and the backing of tobacco giant Altria, Cronos represents a unique risk-reward proposition. While revenues remain modest at $32.3M quarterly, the company’s war chest positions it to make transformative acquisitions when U.S. federal reform occurs. The 44% gross margin improvement and announced $50M buyback program signal management’s confidence in long-term value creation.

Income Generation – Innovative Industrial Properties (IIPR) As the only NYSE-listed pure-play cannabis investment, IIP offers institutional-quality exposure with an attractive ~11.9% dividend yield. The REIT’s triple-net lease model provides predictable cash flows while its tenants bear operational risks. With 109 properties across 19 states generating 9.0 million square feet of cultivation capacity, IIP stands to benefit regardless of which operators ultimately dominate the market.

Top Long-Term Investment Pick: Green Thumb Industries

For investors seeking the single best risk-adjusted opportunity in cannabis, Green Thumb Industries emerges as the clear leader. The company combines:

1. Proven Profitability: Four consecutive years of positive earnings in an industry known for cash burn
2. Strategic Positioning: Dominant presence in limited-license states with high barriers to entry
3. Balance Sheet Strength: The only major MSO with positive tangible book value ($551M)
4. Valuation Opportunity: Trading at just 3x tangible book value despite market leadership
5. Federal Reform Upside: Immediate beneficiary of 280E relief and potential uplisting to major exchanges

Green Thumb represents the “blue chip” of cannabis – a company that has proven it can thrive under prohibition and stands to flourish under normalization. For long-term investors willing to weather near-term volatility, GTI offers the optimal combination of fundamental strength, strategic positioning, and valuation upside.

Final Thoughts: Beyond The Green Rush

The cannabis investment thesis extends far beyond simple legalization speculation. We are witnessing the birth of an entirely new consumer category that will likely rival alcohol and tobacco in scale while offering superior margins and growth dynamics. The companies profiled here represent different approaches to capturing this opportunity – from Green Thumb’s operational excellence to Cronos’s strategic patience to Innovative Industrial Properties’ picks-and-shovels approach.

What makes this moment particularly compelling is the rare confluence of factors: proven business models generating substantial cash flows, management teams that have navigated the treacherous early years, and valuations that reflect yesterday’s risks rather than tomorrow’s opportunities. The federal rescheduling catalyst looming on the horizon could trigger a rerating that brings cannabis valuations in line with other consumer sectors, potentially creating 200-300% upside for well-positioned operators.

However, this remains a sector where fortune favors the prepared. Successful cannabis investing requires understanding not just financial metrics but also regulatory nuances, competitive dynamics, and the patience to endure volatility. For those willing to do the work and maintain conviction through inevitable turbulence, the cannabis sector offers what may be the last great inefficient market in public equities – a space where retail investors can still gain an edge over institutions paralyzed by federal prohibition.

The question isn’t whether cannabis will become a normalized, thriving industry – that outcome appears inevitable. The question is whether you’ll position yourself to benefit from the journey from prohibition to acceptance, from OTC obscurity to NYSE prominence, from speculative venture to blue-chip stalwart. The companies succeeding today under the most challenging conditions imaginable are likely to dominate tomorrow’s fully legal market. History suggests such opportunities come once in a generation. The time to act is before the rest of Wall Street arrives.

Thanks for reading!