💸 The Tape

Pennsylvania’s House made history this week by narrowly passing a bill to legalize adult-use cannabis—but the real challenge is just beginning, as top senators and Gov. Josh Shapiro (D) signal the legislation faces a steep uphill battle in the Republican-controlled Senate.

The bill, HB 1200, sponsored by Reps. Rick Krajewski and Dan Frankel (both D), proposes a state-run retail system for adult-use cannabis sales, mirroring Pennsylvania’s alcohol model. That framework is already drawing sharp criticism from key Senate Republicans and even some cannabis-friendly Democrats, who say the measure is effectively dead on arrival.

“There is no path forward in the Senate for a state store model for adult-use cannabis,” said Sen. Dan Laughlin (R), a longtime legalization advocate who chairs the Senate Law and Justice Committee. His bipartisan bill with Sen. Sharif Street (D) proposes a more traditional private-market approach.

Even Shapiro—who included legalization in three consecutive budget proposals—called the House vote “an important step” but emphasized the need for “bipartisan compromise” to get a final bill across the finish line.

Senate Majority Leader Joe Pittman (R) was more blunt, calling the House bill “an unserious bill” that lacks the bipartisan support necessary to move forward.

Democratic leaders in the House defended the proposal’s state-controlled model, arguing it prevents corporate monopolization and ensures community reinvestment. “This is a vehicle,” said Frankel, “to bring the Senate to the table.” Krajewski added, “If the Senate was serious about cannabis legislation, they would have sent us one. Now we’ve sent them ours.”

However, the state-store model faces internal opposition from legalization supporters like Sen. Street, who praised the House vote as progress but publicly stated he opposes state-run stores and Liquor Control Board (LCB) oversight.

A recent poll backs up those concerns, showing that Pennsylvania voters overwhelmingly prefer cannabis to be sold through licensed private businesses rather than government-run stores.

Meanwhile, Reps. Abby Major (R) and Emily Kinkead (D) are preparing to introduce a bipartisan bill with a privatized sales model. Major criticized the House-passed version for potentially jeopardizing state employees and funding due to federal cannabis laws, calling it a “costly and inefficient approach.”

Despite deep divisions on structure, there is growing bipartisan agreement that legalization is inevitable. Whether that consensus can produce a compromise bill this session remains to be seen.

📈 Dog Walkers.

TerrAscend Posts Solid Quarter

What’s Going On Here: TerrAscend kicked off 2025 with a quarter that’s less about fireworks and more about fundamentals. Revenue dipped a seasonal 4.5% to $71 million, but margins told a happier tale—gross margin crept up to 51.8% and Adjusted EBITDA margin reached a healthy 21.6%. Losses shrank dramatically, G&A expenses slimmed down further, and the company kept the cash flowing for the eleventh straight quarter. With a new Ohio dispensary under its belt and another in New Jersey pending, plus real estate-rich coffers and no major debt worries until 2028, TerrAscend is quietly building an empire—one disciplined quarter at a time.

Bottom line: This was a solid quarter with improving on key fundamentals and holding serve in terms on top line revenue. Jason and Ziad will be on the livestream today at 11am.

GrowGen Is Shaken and Stirred

What’s Going On Here: GrowGeneration’s Q1 2025 results tell the tale of a company pruning to bloom. With 19 store closures last year, sales dipped to $35.7 million—but proprietary brands surged, now making up 32% of Cultivation and Gardening revenue. That’s a win for Drip Hydro and the gang. Gross margin improved to 27.2%, even as the bottom line showed a $9.4 million net loss. Still, cash remains king at $52.6 million with no debt in sight. CEO Darren Lampert is betting big on B2B, regional fulfillment, and digital tools—trading retail sprawl for a leaner, brand-driven future. Think less sprawl, more growl.

Bottom line: 19 store closures. Yikes.

Jushi Continues To Climb

What’s Going On Here: Jushi’s Q1 2025 results show a company grinding toward profitability while leaning hard into brand expansion and retail growth. Revenue came in at $63.8 million with a respectable 40.4% gross margin, and while the $17 million net loss isn’t exactly a victory lap, positive operating cash flow and a growing Adjusted EBITDA suggest they’re at least jogging in the right direction. Proprietary products now make up 56% of retail sales, and the Flower Foundry brand is blooming in Virginia. With new dispensaries sprouting in Ohio and New Jersey under the “7 and 7” plan, Jushi’s planting seeds for a stronger 2025.

Bottom line: Jushi is a name that will benefit greatly from VA and PA flips with a growing footprint in Ohio that will mature.

Curalead Reports Q1

What’s Going On Here: Curaleaf kicked off 2025 with $310 million in revenue, down slightly from last year, but don’t let the dip fool you—this is a company mid-transformation. With a sleek 50% adjusted gross margin and $65 million in Adjusted EBITDA, they’re proving profitability is still within reach. International revenue popped 74%, marking a full year of sizzling overseas growth. Meanwhile, at home, Curaleaf is cranking out innovation: new drinks, new pre-rolls, and a hemp store in Florida for good measure. With 151 stores and product launches flowing like Select Seltzer, Boris Jordan’s bet on operational efficiency looks to be

Bottom line: Boris will be on Monday and we will be diving deep into all things Curaleaf.

🗞️ The News

📺 YouTube

Q1 Earnings Reveals Cannabis Divide: Operators vs Cash Burners | Trade to Black

What we will cover:

✅ host Shadd Dales and Anthony Varrell continue their Q1 2025 cannabis earnings coverage and what it’s revealing about the cannabis industry.

Joining us is NewLake Capital Partners CEO Anthony Coniglio, who breaks down the company’s latest performance and what it signals about cannabis real estate and lending in today’s volatile environment.

NewLake (OTCQX: NLCP) posted $13.2 million in revenue, $10.7 million in AFFO, and maintained an impressive 98% rent collection rate, all while keeping debt to gross assets at just 1.6%. With nearly $20 million in cash and over $100 million in liquidity, the company continues to be a steady performer amid broader industry challenges.

Plus, cannabis investor and advisor Seth Yakatan joins us to analyze Q1 results from across the sector. Trulieve (OTCQX: TCNNF) grew revenue and retail traffic but posted a $33 million net loss, while Green Thumb (OTCQX: GTBIF) remained profitable, though SG&A expenses jumped.