Growth, Recovery and Strategic Moves Mark the Cannabis Sector Quarter

Quarterly results released in mid-to-late March highlighted a mix of gains and challenges across the cannabis sector, with companies posting sharply different performances as they balanced growth initiatives with ongoing market pressures.

High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA) continued its upward momentum, reporting first-quarter revenue of CA$178.3 million, up 25% year-over-year and 9% from the previous quarter, marking its third consecutive record quarter. Gross profit reached CA$44.4 million, while adjusted EBITDA was CA$11.5 million and free cash flow totaled CA$2.9 million. Net loss also narrowed to $0.4 million from $2.7 million a year earlier.

Vireo Growth Inc. (CSE: VREO) (OTCQX: VREOF) posted one of the strongest quarters in the group, with fourth-quarter revenue rising 318% year-over-year to $104.5 million. Gross profit climbed to $56.9 million, adjusted gross profit reached $58.8 million, and adjusted EBITDA came in at $29.5 million, with growth driven by acquisitions and expanded operations.

Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) reported a more mixed quarter, with fourth-quarter revenue of $25.2 million, down 16.7% from a year ago, reflecting tourism headwinds in Las Vegas and continued competition in Florida. Gross profit was $11.2 million, or 44.6% of sales, while operating expenses edged down to $13.1 million. Net loss improved to $4.6 million, compared with $26.4 million in Q4 2024, which included $18.9 million in impairments. Adjusted EBITDA was slightly negative at $0.3 million.

LEEF Brands, Inc. (CSE: LEEF) (OTCQB: LEEEF) showed steady progress, with fourth-quarter revenue of $8.3 million, up 38.9% year-over-year, and gross profit of $3.8 million, up 188.2% over the same period. That lifted gross margin to 45.5%. Adjusted EBITDA turned positive at $1 million, improving from a loss of $3.1 million, while free cash flow reached $1.2 million, up 173.4% year-over-year.

Across the sector, the quarter showed a split market: operators benefiting from scale, acquisitions, or tighter cost controls posted stronger revenue and EBITDA trends, while others continued to face pressure from competitive pricing and softer traffic in key markets.

Tilray Expands Medical Cannabis Portfolio in Australia

Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY) is continuing to position regulated medical cannabis markets outside North America as a long-term growth opportunity.

On March 19, Tilray Medical, a division of Tilray Brands, announced its largest portfolio expansion in Australia to date. The Redecan portfolio will include medical cannabis flower, extracts, vapes, and pastilles, while Good Supply is adding new medical cannabis flower offerings, according to the company.

The broader lineup is intended to give healthcare professionals more flexibility in prescribing patient-specific treatments in a regulated market.

The move also reinforces Tilray’s global growth ambitions, with Australia serving as a potential model for expansion in other regulated medical cannabis markets.