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Good Morning! With earnings rolling in, there's plenty to digest, so I’ve distilled it all into a snapshot of the action. Nicolás Rodríguez here, ready to take you through the rollercoaster of Q3 results, from sharp drops to resilient rebounds. Today’s lineup includes some big hits, painful misses, and a few bold moves aimed at reshaping the game.

Bloodbath Bounce-Back

The cannabis sector took a hard hit following Donald Trump's election win, with major players suffering double-digit losses.

AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) led the plunge, dropping 28.17% to close at $4.935, followed closely by Curaleaf Holdings (OTC: CURLF), down 28.39%. Trulieve (OTC: TCNFF) saw the steepest decline, losing a staggering 43.81%, while Cansortium (OTC: CNTMF) and Cresco Labs (OTC: CRLBF) weren't far behind, shedding 37.16% and 25.87%, respectively.

Meanwhile, some stocks weathered the storm better, with Village Farms International (NASDAQ: VFF) only dipping 7.33% and OrganiGram Holdings (NASDAQ: OGI) down 9.46%. Despite the collapse, several stocks are already showing signs of recovery this morning.

OTC Earnings Blitz: Mixed Bag For Market Survivors

The OTC cannabis crew delivered a rollercoaster of Q3 results, showing the resilience (and hard knocks) facing the industry. Curaleaf (OTC: CURLF) pulled in $331M in revenue with a hefty $160.5M gross profit at a 49% margin—yet still reported a $44M net loss, leaving investors eyeing its international growth.

Verano (OTC: VRNOF) saw revenue slip to $216.7M, as its net loss swelled to $42.6M, weighed down by retail slowdowns. TerrAscend (OTC: TSNDF) kept gross margins solid at 48.8%, even with a $21.4M net loss, and made a bold $140M loan play to expand in Ohio.

Meanwhile, MariMed (OTC: MRMD) inched revenue up to $40.6M, shrinking its net loss to under $1M and posting a $4.7M adjusted EBITDA.

Lender Ledger

Cannabis real estate investment trusts posted mixed results. Innovative Industrial Properties (NYSE: IIPR) reported Q3 revenue of $76.5M, with net income at $39.7M despite tenant rent delays impacting gross profit and reducing gross margin.

Meanwhile, Chicago Atlantic Real Estate Finance (NASDAQ: REFI) saw a 19% YoY rise in net income, reporting $11.2M, driven by a growing loan portfolio and a strong adjusted EBITDA. Both lenders are navigating a turbulent cannabis market with varied outcomes.

North Stars & Big Drops

Canada’s cannabis giants and a U.S. heavyweight made their mark this quarter. Aurora Cannabis (NASDAQ: ACB) flexed its global muscle with CA$81.1M in revenue—a 29% jump—driven by international markets in Europe and Australia. Gross profit hit CA$42.6M ($31.95M), and with a 54% margin, Aurora posted a tidy CA$1.7M ($1.275M) net income, proving its international pivot’s paying off.

Village Farms (NASDAQ: VFF) scored $83.37M in revenue, up 20%, doubling international cannabis sales with adjusted EBITDA at $5.3M. Over at SNDL (NASDAQ: SNDL), Q3 brought in CA$236.9M ($177.675M) revenue and recorded 26.6% gross margins, even as its liquor segment softened.

Meanwhile, Scotts Miracle-Gro’s (NYSE: SMG) Hawthorne sales plummeted 46%, but overall net sales climbed 11% to $414.7M as its mainstream products held strong.

Stories In The Spotlight:

• Elon Musk And Joe Rogan Criticize Psychedelics And Big Pharma's Legacy Of Profit Over Public Health

• Jazz Pharmaceuticals Reports Strong Q3: Will Debt Weigh On Its Future Growth?

• The Cannabist Co. Q3 Revenue Declines 8%, Completes $5M Asset Sale, Exits Florida Market Amid Restructuring

• Cannabis Operator Deep Roots Harvest Secures $30M From Chicago Atlantic To Expand Across Nevada

Our Writer Today

Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development.

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