Trulieve Cannabis Corp.

A federal appeals court has denied a request by two parties seeking to block the Trump administration's plan to reschedule marijuana for medical purposes. The motion came from the National Drug and Alcohol Screening Association and MMJ International Holdings, which argued that marijuana abuse has consequences and that providing tax benefits to cannabis companies will lead to more sales and abuse. The Justice Department said in its brief that the challengers' attempt stemmed from "pocketbook interests served by keeping all marijuana in Schedule I," according to Marijuana Moment. An order signed in April by US Attorney General Todd Blanche would move medical marijuana from Schedule I to Schedule III under the Controlled Substances Act, giving licensed medical marijuana operators tax breaks and easing some barriers to researching cannabis. The ruling clears the way for the rescheduling to proceed, a development relevant to multi-state operators such as Curaleaf Holdings, Cresco Labs, Green Thumb, Trulieve Cannabis, Ayr Wellness, TerrAscend, Verano Holdings and Village Farms International, as well as cannabis-focused ETFs including AdvisorShares Pure Cannabis ETF, ETFMG Alternative Harvest ETF, Amplify Seymour Cannabis ETF and AdvisorShares Pure US Cannabis ETF.

Virginia and Texas are emerging as the next major battlegrounds for the U.S. cannabis industry, with established operators Green Thumb Industries, Verano Holdings, and Trulieve Cannabis holding early advantages. Virginia is set to launch adult-use sales on July 1, 2027, authorizing up to 350 retail dispensaries, and Green Thumb already operates one of the state's five vertically integrated medical licenses through its RISE dispensaries, while Verano also holds a vertically integrated medical license there. In Texas, which has a limited-license medical program serving a population of over 32 million, both Green Thumb and Trulieve secured conditional dispensing organization licenses late last year, creating barriers to entry for competitors. Green Thumb reported second-quarter 2026 revenue of $306.7 million, normalized EBITDA of $84.3 million, and positive operating cash flow of $29 million, ending the quarter with $283.6 million in cash, underscoring the financial strength that allows it to fund expansion internally. These limited-license states favor operators with existing cultivation, processing, and retail infrastructure, as well as the scale and positive cash flow to invest ahead of market openings.

Trulieve Cannabis has become the first U.S. plant-touching cannabis business to list on the New York Stock Exchange, marking a historic milestone for the industry. The company operates 240 retail dispensaries and over 4 million square feet of cultivation and processing capacity, making it one of the largest cannabis retailers in the United States. Unlike many peers, Trulieve has been profitable and free cash flow positive since 2021, reporting a GAAP gross profit of $170 million, a 59% gross margin, and $42 million in free cash flow in its most recent quarter. Revenue was essentially flat at $1.18 billion in 2025, and the stock trades at a market value of roughly $2.2 billion, or less than 2 times annual revenue and just over 5 times adjusted EBITDA. The NYSE listing could improve liquidity and institutional participation, but the company still faces challenges including slowed revenue growth, price compression, and regulatory uncertainty.