If we are being honest, most of the cannabis market is dead in the water. EXCEPT this small weedco with a clean business model. Just posted a 115% growth quarter
So, weed stocks are getting their yearly few weeks of fame coming off that rescheduling news in the US. All the majors pumped hard, sold off on the news, and many are trending lower or are essentially flat.
All it did is help US operators with their tax bill when it comes to medical Marijuana. Which may help a bit but when their revenue is already flat, and earnings negative, kind of a nothing burger.
The problem is with the cannabis models themselves. These are capital heavy businesses. New state means licensing fees, construction, inventory, staff and compliance before a single dollar comes in.
What they actually need is two things. Recreational cannabis to go fully federal, and access to institutional capital. Neither has happened yet.
All that to say, it is pretty hard to be bullish on essentially any of the majors right now. But just because they are dead does not mean the whole sector is.
There is this operator I have been watching and invested in, Herbal Dispatch, $LUFFF on OTC and $HERB on the CSE. Their revenue has been climbing steadily over the past few years with their 2025 Q4 jumping 115%.
They do not have the same problems as the majors because they are basically just an e-commerce and distribution platform and don't carry all the heavy costs of growing and running dispensaries.
The part I am a big fan of is the veteran channel, they actually just put out a pretty impressive NR on that today, they got a 400% increase in registrations.
Basically they run a concierge-style service, with insurance supported through Blue Cross and Veterans Affairs Canada, with orders curated around individual medical needs and coverage parameters.
Another highlight was that their full year 2025 insured veteran sales were $675k, they just made that in their first quarter of 2026 and are apparently on track for around $3.5 to 4M by end of the year.
Gross margins on the veteran channel is over 50%.
There is a lot to like with this one. IMO but I am also a shareholder so please do your own research and realize I am going to be biased.