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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

ME Staff

Key Takeaways; Cannabis Sector

Key Takeaways; Psychedelic Sector

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for the Week

#1: Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), which is one of the largest cannabis multistate operators in the U.S., announced this week that it will fully redeem its $368 million in senior secured notes well ahead of their 2026 maturity date.

The company confirmed that the 8% notes will be repaid in full, including accrued interest, by December 5, 2025. Once completed, the notes will be delisted from the Canadian Securities Exchange.

The early redemption positions Trulieve to avoid what some analysts have dubbed a cannabis-sector “debt tsunami,” with billions in obligations set to mature across the industry in 2026.

In addition to this milestone, Trulieve also reported its third-quarter 2025 financial results this week. The company posted $288 million in revenue, with 94% coming from retail sales and an industry-leading 59% gross margin. The company also generated $77 million in cash from operations and $64 million in free cash flow, ending the quarter with $458 million in cash on hand.

Moreover, Trulieve reported that they had sold 12.5 million branded products during the quarter, a 7% year-over-year increase, and reported adjusted EBITDA of $103 million, representing 36% of revenue, and up 7% from last year. However, it also reported a net loss of $27 million, or $0.14 per share, reflecting persistent pricing pressure and rising competition, particularly in its home market of Florida.

During the earnings call, Trulieve CEO, Kim Rivers, described the decisions the company is making as part of a broader financial discipline strategy. “Our 2025 strategic plan is delivering results, with demonstrable progress on reform, customers, distribution, and branded products,” Rivers said.

Furthermore, Rivers emphasized that these initiatives strengthen Trulieve’s position for long-term growth: “Our flexible production footprint and strong cash flow provide us the ability to adapt to evolving consumer needs while maintaining solid margins,” she told investors.

Despite these gains, Trulieve still carries $110 million in remaining debt at 7.9%. Additionally, the company’s ongoing dispute with the Internal Revenue Service over Section 280E deductions remains unresolved. As a result, the company’s “uncertain tax liabilities” in the third-quarter rose to $616.3 million, up from $445.2 million last year, as it continues to challenge the federal 280E tax rule that prevents cannabis businesses from claiming standard deductions.

#2: Curaleaf

Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) reported third-quarter 2025 revenue of $320 million, surpassing market estimates and reflecting a 2% sequential increase. Despite ongoing price pressures, the cannabis operator maintained strong performance across its global operations, with international sales climbing 56% year-over-year to $46 million.

Curaleaf Chairman and CEO, Boris Jordan, highlighted the company’s steady progress, saying, “Price compression continued to be a headwind, yet our domestic segment remained stable and achieved modest growth. Our international segment continued its strong trajectory, delivering 12% sequential growth and 56% year-over-year growth.”

The company also posted a net loss of $54.5 million or $0.07 per share, slightly improving on last year’s results. Adjusted net loss came in at $48.2 million, while adjusted EBITDA reached $69 million, representing a 22% margin. Gross margin improved to 50%, up more than a full percentage point from a year earlier.

Curaleaf ended the quarter with $107 million in cash after paying down $28 million in debt. It also generated $53 million in operating cash flow and $37 million in free cash flow during the period, which are both strong indicators of improved financial discipline.

Jordan credited the company’s “Return to Our Roots” plan for its resilience. “The ‘Return to Our Roots’ plan we initiated 12 months ago is delivering tangible results. Over the past year, we have completed significant foundational work to reset the business. These actions have positioned our domestic business for renewed growth while supporting rapid international expansion,” he said.

Domestically, Curaleaf expanded its retail footprint to 158 dispensaries during the quarter, including new openings in Florida and Ohio, and expanded its Anthem product line with infused pre-rolls in multiple states.

#3: Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) reported a sharp improvement in its financial performance for the second quarter of fiscal 2026, driven by rising cannabis sales and tighter cost control.

For the three months ending September 30, 2025, the company posted $83 million in revenue and $66.7 million in net revenue, marking a 6% year-over-year increase. Most notably, Canopy’s net loss fell to just $1.6 million, a 99% decrease from the same period last year.

Canopy CEO, Luc Mongeau, said the results reflected a stronger foundation for the business. “We’re building a stronger, more competitive company defined by continued momentum in Canada adult-use cannabis, consistent growth in Canada medical cannabis, and a disciplined approach to strengthening our balance sheet,” he stated.

Adult-use cannabis led the way with $23.9 million in sales, up 30% year-over-year, which according to the company, was fueled by demand for infused pre-rolls and new all-in-one vaporizers. Canadian medical cannabis sales also grew 17% to $21.8 million, supported by a rising number of insured patients and larger average orders. However, international medical cannabis sales dropped 39% to $5.1 million, which the company attributed to ongoing supply chain challenges in Europe.

Canopy also continued to make progress on reducing costs. Selling, General and Administrative expenses dropped 13% year-over-year, while the operating loss improved 63% to $17 million. Adjusted EBITDA losses also narrowed to $3 million, compared to $6 million a year earlier.

Chief Financial Officer, Tom Stewart, emphasized the company’s improving financial discipline. “Through cost reductions, margin expansion, and balance sheet strength, we’re building a more resilient company poised for long-term success,” he said.

The company ended the quarter with $298 million in cash and equivalents, exceeding its debt by $70 million, a milestone that removed previous concerns about its ability to continue as a going concern.

#4: SNDL

SNDL Inc. (NASDAQ: SNDL) announced strong third-quarter results for 2025, posting $244.2 million in net revenue and a 50% increase in cannabis operations revenue compared to last year. Despite a $11.1 million loss, the company’s financial performance showed major improvement, with losses narrowing by over 40% year-over-year.

The company’s cannabis retail business generated $85 million in revenue, while cannabis operations contributed $37.4 million. After accounting for internal eliminations, total cannabis revenue reached $104.8 million, which was up 13.5% from the same period in 2024. Liquor retail brought in $139.4 million, down slightly by 3.6%.

SNDL attributed the strong cannabis growth to rising edibles sales following its acquisition of Indiva and growing international demand, which brought in $4.2 million in sales. CEO Zach George said, “Reaching a new record for quarterly free cash flow and, for the first time in our history, achieving positive cumulative free cash flow for the first nine months of the year underscores the strength of our ongoing operational and profitability improvements.”

SNDL reported record free cash flow of $16.7 million for the quarter, which according to the company was driven by lower working capital needs and efficient cash management. The company ended September with $240.6 million in unrestricted cash and no debt, a position that George said gives SNDL “a strategic advantage” to pursue growth opportunities without taking on high-interest loans.

SNDL operates 186 cannabis retail stores under its Value Buds and Spiritleaf brands and 165 liquor outlets mainly in Alberta under Wine and Beyond, Liquor Depot, and Ace Liquor. The company aims to continue expanding, with five new cannabis stores and two Wine and Beyond locations planned for the fourth quarter.

#5: Cronos Group

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported record financial results for the third quarter of 2025, achieving $36.3 million in net revenue, a 6% year-over-year increase, and $28.3 million in net income. The company credited the strong quarter to continued growth in its Israeli operations, disciplined cost management, and expanding product innovation.

Gross profit surged to $18.3 million, up 62% from the same period in 2024, while the cost of sales dropped 42%, reflecting improved production efficiency and favorable inventory management. Cronos CEO, Mike Gorenstein, said, “Our third quarter results reflect continued progress towards our objectives, with the business reaching record levels of net revenue, gross profit and adjusted EBITDA generation, driven by the seventh consecutive quarter of record net revenue at Cronos Israel, as well as by continued cost discipline. Our strength abroad continues to drive robust gross margins, demonstrating the success of our global strategy”

Sales in Israel rose 56% year-over-year to $11.4 million, marking the seventh consecutive quarter of record revenue in that market. Cronos’ PEACE NATURALS® brand remains the top-selling cannabis label in Israel, supported by popular strains such as Wedding CK and new limited-edition products. “Our PEACE NATURALS® brand remains the market leader in Israel, underscoring our ability to scale and innovate efficiently,” Gorenstein said.

In Canada, Cronos generated $23.1 million in revenue, a slight decline of 3.9% from last year due to temporary flower supply constraints. Nonetheless, the company stated that the Spinach® brand still maintained its strong position as the second cannabis brand nationally and the first in edibles with its popular SOURZ by Spinach® gummies. The company also reported steady performance in vape products, with Pink Lemonade ranking as the top-selling vape cartridge in the country.

Internationally, Cronos expanded the PEACE NATURALS® brand into Switzerland during the quarter, bringing its medical cannabis presence to seven global markets, including Germany, the UK, Australia, and Malta.

Backed by an industry-leading balance sheet with $824 million in cash and short-term investments, Cronos continues to operate debt-free. Gorenstein noted, “With the completion of the expansion at Cronos GrowCo unlocking additional flower capacity, we are well-positioned for growth in 2026.”

Top Psychedelic Companies for Week

#1: Atai Beckley

Atai Life Sciences and Beckley Psytech Limited officially completed their strategic merger, creating Atai Beckley N.V. (NASDAQ: ATAI), which is a clinical-stage biopharmaceutical company aiming to redefine treatment options for serious mental health disorders. The all-share transaction brought together both companies’ research, clinical expertise, and shared mission to deliver rapid-acting and durable mental health therapies.

Announcing the completion, Dr. Srinivas Rao, CEO and Co-Founder of AtaiBeckley, said, “We are bringing together the assets, expertise and vision of atai Life Sciences and Beckley Psytech to transform patient outcomes. Around the world, too many people continue to suffer without effective treatments, and AtaiBeckley is taking a decisive step toward changing this.”

The new company’s leading asset will be BPL-003, which is a novel mebufotenin benzoate nasal spray designed to produce fast and long-lasting antidepressant effects with a short psychedelic duration. BPL-003, which was recently granted Breakthrough Therapy designation by the FDA, is being developed for treatment-resistant depression (TRD). AtaiBeckley announced that it plans to meet with the FDA soon for an End-of-Phase 2 meeting, with Phase 3 trials expected to begin in Q2 2026.

Cosmo Feilding Mellen, Co-Founder and Director of AtaiBeckley, also expressed optimism about the merger’s potential, stating, “AtaiBeckley is uniquely positioned to deliver commercially scalable psychedelic-based therapies that could transform the treatment landscape for people living with serious mental health conditions.”

The combined company boasts a strong financial position, with cash and investments expected to fund operations through 2029, including completion of the first Phase 3 trial for BPL-003. Leadership will include Dr. Rao as CEO, alongside a seasoned executive team drawn from both organizations.

The company also reported that shareholders overwhelmingly supported the merger, with approximately 98% voting in favor. The transaction also includes a planned corporate re-domiciliation to Delaware, which is expected by year-end 2025.

#2: Compass Pathways

Compass Pathways plc (NASDAQ: CMPS) reported its third-quarter 2025 financial results this week, highlighting a stronger cash position and a major step forward toward commercialization of its lead therapy, COMP360, for treatment-resistant depression (TRD).

The company reported a net loss of $1.44 per share for the quarter, compared with a loss of $0.56 per share in the same period last year. As of September 30, Compass held $185.9 million in cash and cash equivalents, up from $165.1 million at the end of 2024. The company expects to use $120–145 million in operating cash over the full year and said its funds will support operations into 2027.

Chief Executive Officer Kabir Nath said Compass is moving faster toward market readiness following productive talks with U.S. regulators. “With the completion of COMP006 enrollment and our recent positive discussions with the FDA, we are excited about pulling forward our expected launch timing for COMP360 in TRD by 9–12 months,” he stated. “We are accelerating commercial launch plans to match this new expected timeline with the goal of advancing our mission of transforming the mental health landscape.”

COMP360, which is Compass’s investigational psilocybin-based treatment, is currently being evaluated in two Phase 3 trials for TRD. The first study, which was called COMP005, met its six-week primary endpoint earlier this year, showing a statistically significant and clinically meaningful reduction in depression symptoms after a single dose.

For the second study, Compass has already completed enrollment with 585 participants. Compass expects to share 9-week data from COMP006 and 26-week results from COMP005 in Q1 2026, followed by longer-term data from COMP006 in early Q3 2026.

Beyond TRD, Compass reported that it is finalizing the design of a late-stage trial of COMP360 for post-traumatic stress disorder (PTSD). A prior Phase 2 study demonstrated that the treatment was well tolerated and led to rapid and durable symptom improvements.

Looking ahead, Compass aims to submit its New Drug Application (NDA) for COMP360 on an accelerated timeline, supported by ongoing collaboration with the FDA, including a potential rolling submission.

As Nath summed up, “We’re entering an exciting phase — moving closer to bringing a new treatment option to patients who have long been left without hope.”

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