💸 The Tape

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) closed out 2025 with a performance that underscored operational discipline and strategic focus in a consolidating cannabis landscape.

For the full year, revenue reached $656 million, generating $73 million in operating cash flow and $38 million in free cash flow. Gross profit stood at $325 million, with adjusted gross profit at $329 million and an adjusted gross margin of 50.2% — a testament to the company’s ability to protect profitability despite persistent pricing pressure. Adjusted SG&A declined 5.7% year-over-year to $200 million (30.4% of revenue), reflecting tight cost controls. Adjusted EBITDA came in at $157 million (24.0% margin), while GAAP net loss was $140 million, driven largely by one-time, non-cash impairment charges of $105 million tied to the New York reporting unit write-down and fair value adjustments in California related to the Sonoma’s Finest sale.

Fourth-quarter results showed sequential momentum: revenue of $162 million, operating cash flow of $27 million, gross profit of $83 million (adjusted $84 million, 52.2% margin), and adjusted EBITDA of $40 million (25.0% margin). SG&A was $57 million (35.3% of revenue). Net loss of $89 million included $93 million in non-cash impairment charges related to New York.

CEO Charlie Bachtell’s commentary captured the moment: “In Q4, we strengthened our financial foundation while expanding margins and generating meaningful cashflow. We delivered $162 million in revenue, $40 million in Adjusted EBITDA, and $27 million in operating cashflow, with sequential improvement across multiple profitability metrics. Our focused strategy continues to enhance our competitive position.”

Cresco’s brand dominance remained a clear differentiator. The company retained the No. 1 share position in multiple billion-dollar markets throughout the year, powered by a portfolio that includes America’s most popular branded products and the Sunnyside dispensary network. This leadership — built on differentiated retail execution and embedded operating leverage — positions Cresco to win share as the industry consolidates.

The year’s strategic moves reinforced balance-sheet resilience and optionality. By prioritizing cash generation and disciplined capital allocation, Cresco maintained flexibility for organic expansion and selective, accretive acquisitions. The company’s ability to deliver meaningful free cash flow ($38 million annually) in a challenging pricing environment highlights the strength of its vertically integrated model and operational efficiencies.

Looking forward, Bachtell emphasized the macro tailwinds: “The cannabis industry is consolidating in real time, and Cresco Labs is operating from a position of strength – we continue to show that we win where we operate. We are intentionally building a productive cash-generating platform, balancing organic expansion with selective, accretive acquisitions while maintaining a strong balance sheet. With leading brand share, differentiated retail execution, and embedded operating leverage, Cresco Labs is positioned to capitalize on industry consolidation and federal reform to create long-term value for shareholders.”

Federal reform — particularly rescheduling momentum — remains a key catalyst. Cresco’s scale, brand equity, and cash flow profile position it to benefit disproportionately from any regulatory easing that unlocks banking access, interstate commerce, or broader market opportunities. In the interim, the company’s focus on margin expansion (adjusted gross margin up to 52.2% in Q4) and cash generation provides a buffer against ongoing state-level pricing pressure.

For investors, Cresco’s 2025 story is one of resilience and readiness. While GAAP results reflect non-cash impairments tied to market-specific challenges, the underlying metrics — record adjusted EBITDA margin, meaningful free cash flow, and sustained market leadership — paint a picture of a business that is strengthening even as the broader industry navigates consolidation.

With a clear line of sight to operating leverage as new stores stabilize and federal tailwinds potentially emerging, Cresco Labs appears well-equipped for the next phase. In a sector defined by volatility, the company’s disciplined execution and competitive positioning offer a compelling case for long-term value creation.

📈 Dog Walkers

Cannabis Is Wellness

A major observational study from Oxford Population Health and the Department of Psychiatry has delivered reassuring news for older cannabis users: no evidence that the drug accelerates cognitive decline or raises dementia risk.

Published in BMJ Mental Health, the research drew on two large, long-term cohorts — the UK Biobank (UKB) and the US Million Veteran Program (MVP) — to compare cognitive performance and brain health outcomes between cannabis users and non-users over time. Nearly 19,000 UKB participants who reported ever using cannabis were grouped by frequency (low: 1–10 uses; high: 11+ uses), while MVP participants were identified via recorded cannabis use disorder diagnoses in health records.

Researchers assessed performance across five cognitive domains — numeric memory, pair matching, problem solving, and others — then tracked changes associated with ageing. Genetic analyses helped explore potential causal links.

The headline finding: cannabis use showed no association with faster cognitive decline or increased dementia risk in older adults. In fact, UKB cannabis users performed slightly better on some baseline tests than non-users. But lead author Saba Ishrat cautioned against misinterpretation: “Although cannabis users performed slightly better on some cognitive tests at baseline, this should not be interpreted as cannabis improving cognition. The differences we observed are more likely explained by underlying demographic, educational and socioeconomic factors that differ between users and non-users, rather than a protective effect of cannabis itself.”

Users in the UKB cohort tended to have higher education levels and socioeconomic status — factors known to support cognitive reserve — which likely drove the modest advantage. Genetic methods reinforced that the pattern reflected confounding rather than causation.

Senior researcher Dr. Anya Topiwala added perspective: “Across large UK and US cohorts, and using genetic approaches to explore potential causal relationships, we found no evidence that cannabis use was associated with accelerated cognitive decline or increased dementia risk in older adults. However, this should not be interpreted as cannabis being risk-free. Cannabis use is associated with other adverse health outcomes, and further research is needed to understand the effects of higher-dose, long-term use on brain health in later life.”

The study’s limitations were candidly noted. UK Biobank participants are generally healthier and less likely to be heavy users than the broader population, potentially underestimating risks. MVP data, reliant on clinical diagnoses of cannabis use disorder, skewed toward more severe cases. Potency and exact consumption patterns were also unmeasured — important gaps given today’s higher-THC products.

Still, the results challenge earlier inconsistent findings linking cannabis to memory, recall, or processing speed impairments. As cannabis use rises among older adults — fueled by medical and recreational legalization — the absence of a clear signal for accelerated cognitive ageing or dementia is noteworthy.

The takeaway: while cannabis isn’t a brain-health panacea, large-scale data now suggest it isn’t a driver of late-life cognitive decline or dementia either. Future studies will need to probe heavier, longer-term use and modern high-potency products to complete the picture.

For now, the Oxford findings offer calm reassurance amid growing senior use — and a reminder that socioeconomic and lifestyle factors often explain more than the substance itself.

$OGI ( ▲ 1.46% ) Leverages The Brand

Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), Canada’s top cannabis company by market share, just dropped a game-changer for the ingestibles category.

SHRED Shotz, a sleek 65ml single-serve cannabis beverage, leverages the company’s patent-pending FAST™ nanoemulsion technology to deliver a rapid 15-minute onset — roughly twice as fast as traditional edibles. Each bottle packs 10 mg THC in two bold flavors: Blue Razzberry and OG Lemonade. Rollout begins in March across Ontario and Atlantic Canada, with other provinces to follow shortly.

The launch builds directly on SHRED’s explosive momentum. The brand crossed $200 million in retail sales in 2025, cementing its status as one of Canada’s strongest portfolios. By extending SHRED into a compact, portable beverage format, Organigram aims to capture new consumption occasions and attract consumers seeking convenience, taste, and predictability without the wait.

Eric Williams, Vice President of Marketing, captured the strategic intent: “SHRED Shotz is another clear example of how we successfully translate consumer insights into meaningful product innovation. With FAST™ powering the formulation, we are bringing that technology into a compact, single-serve beverage under the SHRED brand, allowing us to expand into new occasions with a format built for taste, convenience and predictability.”

FAST™ itself is the real star. Backed by pharmacokinetic research from Organigram’s collaboration with BAT, the nanoemulsion platform has demonstrated up to 50% faster onset, improved bioavailability, and roughly double peak cannabinoid delivery compared with conventional edibles — results that vary by format but consistently point to a more efficient, reliable experience.

In a category where onset time remains a top consumer complaint, SHRED Shotz positions Organigram at the forefront of innovation while capitalizing on SHRED’s established brand equity. The compact size and bold flavors also make it ideal for on-the-go use, social settings, or anyone seeking a low-commitment entry point.

With Canada’s beverage segment continuing to grow, this launch reinforces Organigram’s strategy: pair proven brands with cutting-edge delivery tech to capture share and drive category expansion. SHRED Shotz isn’t just another drink — it’s a fast track to the future of ingestibles.

🗞️ The News

📺 YouTube

The Most Important Cannabis Stats of 2026 | TTB Powered by Flowhub

What we will cover:

✅ In the latest episode of Trade To Black presented by Flowhub, host Shadd Dales and Anthony Varrell sit down with the CEO of Safe Harbor Financial (NASDAQ: SHFS) to break down the surge of cannabis banking in emerging markets over the past year.

Safe Harbor reported a 29% year-over-year increase in average deposit balances across emerging U.S. markets. Those markets now account for 31% of total deposits. The growth came from more than 100 new customer accounts and expanding operators in states like New York, Ohio, Delaware, Minnesota and Florida.

In the second segment, the conversation switches to the Supreme Court, where justices appeared skeptical of the federal government’s defense of banning marijuana users from owning firearms — especially as cannabis rescheduling potentially shifts to Schedule III.In the latest episode of Trade To Black presented by Flowhub, host Shadd Dales and Anthony Varrell break down the latest developments emerging from today’s Farm Bill hearing in Washington, where lawmakers are debating how hemp and cannabis policy could be redefined moving forward.

There’s a lot riding on what happens in this bill on how hemp-derived cannabinoids will be regulated.