CRB Monitor Securities Update | February 2026

In February 2026, while many of us waited – quasi-patiently – for the coming of spring, cannabis-related equities featured predictably weak volumes as investors waited for politicians to move the ball forward. The usual hot-button issues such as the future of Intoxicating Hemp, Marijuana Rescheduling, and Legalization gave way to more pressing political issues such as a looming war in Iran and a few ongoing scandals here at home.

With that said, several developments highlighted the evolving landscape of legal cannabis in the United States. Federal lawmakers debated delaying a potential ban on intoxicating hemp-derived THC products, reflecting ongoing efforts to regulate the booming hemp and cannabis markets more clearly. At the state level, legislative activity continued across the country (we will highlight these later in this newsletter), with some states considering new legalization measures or regulatory changes while others faced disputes over ballot initiatives—such as in Florida, where officials said a proposed adult-use cannabis legalization measure may not have gathered enough signatures to qualify for the ballot. Local governments also pushed for reform; for example, the Pittsburgh City Council urged Pennsylvania lawmakers to pass comprehensive adult-use cannabis legalization during the 2026 legislative session. Overall, February’s news reflected a broader trend: while many U.S. jurisdictions already allow some form of legal cannabis, debates over market regulation, federal oversight, and expansion of legalization continue to shape the industry.

Fundamental developments also influenced sentiment. Several larger operators reported strategic results that underscored operational shifts and potential future value drivers: Canadian Tier 1B CRB Canopy Growth (TSX: WEED) reported narrowing net losses in its fiscal results, strengthened by recapitalization and cost measures, while Tier 1A MSO Trulieve Cannabis (CSE: TRUL) released strong annual revenues with expanding retail footprints. Additionally, some smaller companies such as The Cannabist Company (Cboe Canada: CBST) extended debt restructuring arrangements to manage liquidity pressures, highlighting capital stress within parts of the sector. These mixed earnings and balance sheet narratives, combined with a fade in regulatory optimism that had earlier buoyed stocks, contributed to a cautious backdrop for cannabis equities in February 2026.

The two largest US plant-touching cannabis-themed ETFs, the Amplify Alternative Harvest ETF (NYSE Arca: MJ) (-0.4%) and the actively-managed MSO-heavy Advisorshares Pure US Cannabis ETF (NYSE: MSOS) (-3.7%) survived for another month without any wild swings but still struggle to attract new capital.

Cannabis-Linked Equity Performance

The CRB Monitor equally-weighted basket of top Pure Play Tier 1 CRBs closed out February in negative territory, with a return of -5.4%. This portfolio is an equally-weighted basket of the largest pure play Ther 1 CRBs (representing both US plant-touching and non-US plant-touching MJ companies).

The CRB Monitor equally-weighted basket of Tier 2 CRBs outperformed the Tier 1 CRB basket, posting a -3.4% return for February 2026. In August 2025 CRB Monitor published an update to our article on correlations of Pure Play Tier 1 and Tier 2 CRBs, as well as correlations of MSO and Canadian operators. And what we have observed historically is that these two groups tend to display high correlation (~0.50) in the long term, while their respective performance has a tendency to diverge in the short term. This can be due to (among other factors) the lag from the impact of market forces (in this case marijuana rescheduling) that affect their sources of revenue that are derived from the Tier 1 group. If this theory holds, investors would be expected to load up on Tier 2 CRBs in the short term and we would witness this gap narrow over time.

U.S. equities delivered mixed performance in February 2026, with the large-cap S&P 500 Index experiencing modest volatility and ultimately ending the month slightly lower. Early in the month, the index rose about 1.3% as earnings season began and investor sentiment remained positive, supported by stronger-than-expected corporate earnings growth. However, gains faded later in the month amid weaker-than-expected economic data and shifting investor positioning, leading to a roughly 1% monthly decline for the S&P 500, while the Nasdaq also finished lower and the Dow Jones Industrial Average was roughly flat. Market leadership broadened during the period: sectors such as Energy, Materials, Consumer Staples, and Industrials posted strong gains, while large technology stocks lagged after dominating returns in previous years. Overall, February reflected a transitional phase for U.S. equities—characterized by sector rotation away from mega-cap technology and increased sensitivity to macroeconomic data—leaving the broader market essentially range-bound with modest losses by month-end. The S&P 500 (represented by the SPDR S&P 500 ETF Trust (NYSE Arca: SPY)) posted a return of -0.9% for the month of February.

Largest Tier 1 Pure Play & Tier 2 CRBs by Market Cap – February 2026 Returns

An equally-weighted basket of the largest Tier 1 pure-play cannabis equities (a combination of MSO and CAD companies) retreated in February, with the majority of the basket in negative territory for the month. Tier 1 CRBs finished the month behind the Tier 2 basket (-5.4% vs. -3.4%).

CRB Monitor Tier 1

Many of the companies on our list of Tier 1 CRBs closed out February 2026 with double-digit negative returns. Companies in the MSO basket struggled across the board, as investors waited for the latest developments in reform efforts. Tier 1A MSO Trulieve Cannabis Corp. (CSE: TRUL) (-6.4%), Tier 1B Cresco Labs Inc. (CSE: CL) (-4.2%), Tier 1B Verano Holdings Corp. (CSE: VRNO) (-11.7%), and Green Thumb Industries Inc. (CSE: GTII) (-1.7%) all landed in negative territory, with most of their losses occurring over the last week of the month. Tier 1B TerrAscend Corp. (TSX: TSND) (+5.8%) and Curaleaf Holdings, Inc. (CSE: CURA) (+6.0%) outperformed their peers in February.

Companies in the Canadian CRB basket, which face a lighter impact from rescheduling news (either positive or negative) than MSOs, fared a little better in February. Tier 1A SNDL, Inc. (Nasdaq: SNDL) (0.0%) and Tier 1B CRB Canopy Growth Corporation (TSX: WEED) (-0.6%) were essentially flat, while Tier 1B craft beverage giant Tilray Brands, Inc. (Nasdaq: TLRY) (+5.5%) reversed course following a disastrous January. Tier 1B High Tide Inc. (TSXV: HITI) (+13.0%) and Tier 1B Cronos Group Inc. (TSX: CRON) (+6.4%) helped boost the return of the basket.

As we have stated regarding these two groups (MSOs and CADs), short-term performance has deviated between the CAD and the MSO baskets, but they tend to mean-revert over time and historical correlations are high. It is also worth mentioning that as an industry cannabis has fallen to the point where no company’s stock can even be regarded as a small capitalization stock; over the last few years they have all shrunk (some by more than 90%) to the point where they are considered micro-caps and consequently non-investable by most institutions from a policy perspective. For more detail on the MSO/CAD relationship, please see our August 2025 Chart of the Month on our CRB Monitor News website.

CRB Monitor Tier 2

An equally-weighted basket of the largest CRB Monitor Tier 2 companies underperformed the Tier 1 basket in February 2026, posting a return of -3.6%. Historically the performance of these two portfolios (given their close business ties) has displayed high correlation (please see our recently-published August 2025 “Chart of the Month”), and we expect the returns of Tier 1 and Tier 2 CRBs to mean-revert over time. When the two baskets deviate from one another in the short term, the deviation could be a signal for investors to rebalance into (out of) the Tier 1 basket and out of (into) Tier 2’s given their direct revenue relationship. This is due to the fact that Tier 2 CRBs are direct suppliers of goods and services to (and derive their revenues from) Tier 1 CRBs. However, the precise moment when these two baskets mean revert is not easy to predict and the costs required to systematically rebalance these illiquid portfolios could eat up any expected material gains from even the best rebalance strategy. In other words, gaming these two baskets can lead to losses, so proceed with caution!

The performance of the largest CRB in the Tier 2 basket, well-known REIT Innovative Industrial Properties, Inc. (NYSE: IIPR) (CRBM Sector: Real Estate) (+10.9%) was higher for its third month in a row. On February 23rd IIPR reported its 4th quarter 2025 results which featured the following highlights:

• Total revenues of $266.0 million and net income attributable to common stockholders of $114.4 million, or $3.93 per diluted share (all per share amounts in this press release are reported on a diluted basis unless otherwise noted).
• Adjusted funds from operations (“AFFO”) of $205.4 million, or $7.24 per diluted share.
• Declared dividends to common stockholders totaling $7.60 per share, increasing IIP’s common stock dividends declared each year since its inception in 2016. Since its inception, IIP has paid over $1.1 billion in common stock dividends to its stockholders.

Tier 2 REIT Advanced Flower Capital, Inc.  (Nasdaq: AFCG) (CRBM Sector: Real Estate) (+2.7%) was modestly positive for the month of February. On March 4th AFCG reported its 4th Quarter 2025 financial results (featuring a net loss of $12.5) and the statement from CEO Daniel Neville:

“In 2025, we focused on disciplined portfolio management and the successful completion of our BDC conversion. As a BDC with a broader investment universe, we remain focused on unlocking value from underperforming loans and redeploying that capital into high-quality, cash-flowing businesses in the lower middle market…In short, we remain committed to resolving legacy positions and leveraging our robust pipeline to drive long-term value for our shareholders.”

Tier 2 technology company, WM Technology, Inc. (Nasdaq: MAPS), operates Weedmaps, the leading online listings marketplace for cannabis consumers and businesses, and WM Business, the most comprehensive SaaS subscription offering sold to cannabis retailers and brands. WM Technology’s stock plunged for the second month in a row, with a -12.9% return for February. On March 12th, MAPS reported its 4th Quarter 2025 earnings, with the following chilling headlines:

• Revenue of $174.7 million decreased from $184.5 million in the prior year. The decrease from the prior year was driven by continued headwinds across core markets, where ongoing pricing pressure and price deflation continued to compress client operating margins and constrain marketing budgets.
  • Average monthly paying clients⁽¹⁾ of 5,190 was up from 5,077 in the prior year. The increase from the prior year period was largely due to new client acquisitions across certain developing markets, partially offset by a churn in more established markets.
  • Average monthly revenues per paying client⁽²⁾ of $2,805 decreased from $3,029 in the prior year. The decrease from the prior year period was due to spend declines in established markets driven by continued industry challenges, such as price deflation and ongoing consolidation. In addition, new clients acquired across certain markets had lower levels of average spend.

• Net income decreased to $3.3 million from $12.2 million in the prior year.
• Adjusted EBITDA⁽³⁾ decreased to $39.8 million from $42.9 million in the prior year.

CRB Monitor News Featured Article: Slow Momentum for Cannabis Legalization in 2026

New cannabis legislation has started off slowly in 2026. While there could be some major developments at the federal level, states are looking like they’ll operate business as usual this year, with some refinements.

Several states have filed bills to legalize adult use, and Virginia is quickly moving to erect a regulated marketplace. Hemp, again, will likely be the story of the year as another delinquent Farm Bill has been introduced with language that redefines legal hemp, as well as federal bills aiming to halt the upcoming hemp-derived cannabinoid (HDC) ban. Meanwhile, a dozen states look to restrict the market.

Click here for the full article on our CRB Monitor News website.

CRB Monitor Securities Database Updates

The CRB Monitor research team has followed cannabis industry regulations daily for close to a decade. For that time we have remained up to date on all the information that is vital to the ongoing breadth and accuracy of our data in the CRB Monitor securities database. While the cannabis industry has faced major regulatory headwinds over those years, we have remained plugged into the news as licensed CRBs’ operations have evolved and survived in a complicated regulatory environment.

On that note, here are some of the cannabis company highlights from February 2026:

Curaleaf Expands Retail Footprint with Dispensary Opening in Findlay, Ohio

Tier 1A MSO Curaleaf announced the opening of a new cannabis dispensary in Findlay, Ohio, expanding its presence in the state to five locations and increasing its nationwide retail footprint to 162 stores. The dispensary, located on Tiffin Avenue, will serve both medical and adult-use cannabis consumers and offer a range of products including vape devices and branded flower lines. The new store reflects Curaleaf’s strategy of expanding access to cannabis products in emerging markets while strengthening its position in Ohio’s rapidly growing legal cannabis industry. Curaleaf operates in 6 countries (including the US) and holds 117 active cannabis licenses.

Canopy Growth announces MTL Cannabis shareholder approval of acquisition

Canadian Tier 1B CRB Canopy Growth announced that shareholders of MTL Cannabis overwhelmingly approved the company’s proposed acquisition by Canopy Growth during a special meeting. More than 99% of votes supported the transaction, which is designed to combine MTL’s cultivation expertise with Canopy’s scale to strengthen its medical cannabis business. The deal, valued at roughly $125 million in equity (about $179 million enterprise value), is expected to close after final regulatory and court approvals and is intended to help build one of Canada’s leading medical cannabis platforms. Canopy Growth holds 63 licenses and operates in 3 countries.

FLUENT Cannabis Opens New Orlando Sand Lake Dispensary

Tier 1B MSO FLUENT Corp. opened a new medical cannabis dispensary on Sand Lake Road in Orlando, Florida, expanding its presence in one of its core markets. The 5,000-square-foot location—one of the company’s largest—includes features such as a drive-thru and self-ordering kiosks to improve convenience for patients. Strategically located near major tourist and commercial areas, the dispensary is intended to capture high customer traffic and strengthen FLUENT’s Florida network, which now includes more than 30 dispensaries across the state. FLUENT Corp. operates in 5 countries and holds 142 active cannabis licenses.

Planet 13 Substantially Completes Exit from California, Fully Streamlining Operations to Core Growth Markets

Tier 1B MSO Planet 13 announced it has largely completed its exit from the California cannabis market after divesting its Orange County retail and distribution licenses and selling the property tied to its Coalinga cultivation facility. The move is part of a strategic effort to streamline operations and focus on higher-return markets such as Nevada and Florida. Management stated that California operations represented a small portion of revenue and were cash-flow negative, so leaving the market is expected to reduce operating complexity and allow the company to concentrate resources on growth opportunities elsewhere. Planet 13 holds 14 active licenses to operate in the US.

Organigram to acquire German Cannabis Company

Canadian CRB Organigram Global Inc. announced plans to acquire Berlin-based cannabis company Sanity Group in a deal valued at up to roughly €250 million. The acquisition is intended to strengthen Organigram’s position in Europe by using Sanity as a hub for the rapidly expanding German medical cannabis market and other emerging European markets. Sanity has experienced rapid revenue growth and operates medical brands, pharmacy distribution networks, and pilot retail stores in Switzerland, making the deal a significant step in Organigram’s international expansion strategy. With this acquisition, Organigram holds 11 cannabis licenses in active status and operates in 3 countries.

Cannabis MSO Ayr cannabis cultivation facility in Ohio sells for $28.5 million

A cannabis cultivation facility in Parma, Ohio previously used by Tier 1B MSO Ayr Wellness was sold for $28.5 million to a company affiliated with Power REIT. The property, which spans more than 58,000 square feet, had previously been owned by cannabis real-estate investor Aventine through a sale-leaseback arrangement. Despite the change in ownership, Ayr is expected to continue operating the grow facility as a tenant, reflecting the continued importance of Ohio’s cannabis market, which generated more than $1 billion in total sales during its first full year of adult-use legalization. Ayr holds 44 active cannabis licenses and operates in 12 states.

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Cannabis News: Regulatory News Updates

We continue to closely follow the cannabis regulatory news cycle, which features developments from both state and federal levels of government as well as around the world. And as we have noted over the years, cannabis-related investment performance is primarily sentiment-driven and highly sensitive to news (rather than value or growth-based), particularly when the news comes from Washington. With that said, here are some of the February 2026 highlights:

Indiana bill to ban hemp THC products dies as key deadline passes
An Indiana bill that would have banned intoxicating hemp-derived THC products, such as delta-8 and THCA, failed to advance after House lawmakers did not bring it up for a second reading before a legislative deadline. The proposal, Senate Bill 250, had previously passed the Indiana Senate in a 35–13 vote and sought to close what supporters called a “Farm Bill loophole” that allowed psychoactive hemp products to be sold legally. It also aimed to create a regulatory system for low-potency hemp products, though industry representatives argued those products would have little consumer demand. With the deadline missed, the measure is effectively dead for this session, though lawmakers could attempt to revive its language in another bill or revisit the issue in future legislative sessions.

Florida’s 54,000-signature miscount on legalization petition leads February stories
An investigation found that Florida state election officials undercounted more than 54,000 valid signatures submitted for a cannabis legalization ballot initiative backed by the group Smart & Safe Florida. County election supervisors verified significantly more signatures than the totals displayed on the state Division of Elections website, creating discrepancies across more than 30 counties. Because of the reported shortfall, officials initially said the campaign failed to meet the roughly 880,000 signatures required to qualify for the 2026 ballot. However, the campaign has challenged the state’s tally in court, arguing the miscount and disputed rejected signatures could allow the initiative to meet the threshold if corrected.

MA Regulators Consider Cultivation Freeze
Massachusetts cannabis regulators are considering a temporary freeze on new cultivation licenses due to concerns about oversupply in the state’s legal marijuana market. Officials say the large volume of licensed growers has driven wholesale prices down sharply, creating financial pressure for many operators. A pause on additional cultivation approvals could help stabilize the market while regulators evaluate long-term strategies to balance supply and demand in the state’s cannabis industry.

Ohio attorney general sues multistate cannabis operators
Ohio Attorney General Dave Yost filed an antitrust lawsuit accusing nine large multistate cannabis companies—including Curaleaf, Cresco Labs, Green Thumb Industries and Trulieve—of colluding to disadvantage smaller cannabis businesses in the state. The complaint alleges the companies formed reciprocal agreements to prioritize each other’s products in dispensaries, limit shelf space for independent operators, and share sensitive business information, actions the state claims kept prices artificially high and reduced consumer choice. The lawsuit seeks to stop the alleged practices and restore fair competition in Ohio’s growing adult-use cannabis market, which generated roughly $700 million in sales during its first year.

Maine campaign to end adult-use cannabis market misses deadline
A prohibitionist effort to eliminate Maine’s adult-use cannabis program failed to qualify for the 2026 ballot after organizers did not submit the required signatures before the state’s Feb. 2 deadline. The campaign, led by the group Mainers for a Safe and Healthy Future Inc., sought to repeal the state’s legal recreational cannabis market and significantly restrict cannabis access. Because the signatures were not filed in time, the initiative cannot appear on the 2026 ballot and proponents must now gather at least 67,682 valid signatures to attempt placement on the 2027 ballot instead. Meanwhile, critics of the campaign accused paid canvassers of misleading voters about the nature of the petition.

Tax hike crashed Michigan marijuana sales
Michigan’s legal marijuana sales dropped sharply in January after a new tax increase took effect at the start of 2026. Retailers reported about $227 million in sales during the month, a nearly 16% decline from December’s $270 million and also below January 2025 totals. Analysts attribute part of the drop to consumers stocking up before the tax hike as well as higher prices resulting from the added tax burden. While Michigan’s cannabis industry had experienced record growth in 2025, the new tax is expected to put additional pressure on retailers and could push some consumers back toward the illicit market.

Missouri lawmakers advance ban on hemp THC products
Missouri lawmakers are considering legislation that would ban intoxicating hemp-derived THC products, a market estimated to generate about $1 billion in the state. The proposed measure, House Bill 2641, recently passed the Missouri House and would prohibit the sale of hemp-based THC products that have proliferated in gas stations, bars and retail shops with limited regulation. Supporters argue the bill is needed to address safety concerns and lack of oversight surrounding these products, while critics warn it could significantly disrupt thousands of businesses that currently sell hemp-derived THC items. The bill now heads to the Missouri Senate for further debate.

Wondering what a Tier 1, Tier 2 or Tier 3 CRB is?

See our seminal ACAMS Today white paper, Defining “Marijuana-Related Business,” and its update, Defining “Cannabis-Related Business”.

Wondering what a Tier 1, Tier 2 or Tier 3 DARB is?

See our seminal ACAMS Today white paper Defining ‘Digital Asset-related Business’ and Digital-Asset Related Businesses – What Financial Institutions Need to Know