While US cannabis stalls, Canadian growers look abroad

A second round of Q4 and full year 2025 earnings dropped, adding Verano, TerrAscend, Ascend Wellness, MariMed, and Village Farms to the picture. Little to no surprise, the story coming out is very much similar, that is, companies holding up best are the ones that focused on cutting costs and building cash instead of endlessly chasing growth.

Verano Holdings
Verano had the roughest year of the group. Full year revenue fell 6% to $821.5 million, and the company posted a net loss of $258 million. Adjusted EBITDA came in at $229 million, down from $264 million in 2024.

On a more positive note, Q4 showed some recovery, revenue of $206.6 million was up 2% from Q3, and gross margin bounced back to 51% after hitting 47% the prior quarter. The company also secured a new $195 million credit facility and moved its legal home from Canada to Nevada, positioning itself for potential U.S. stock exchange listing down the road. Founder, Chairman and CEO George Archos commented: "As we await an anticipated final rule from the President's executive order to expeditiously reschedule cannabis and as the only cannabis business with current or pending operations in Florida, Pennsylvania, Virginia, and Texas, we are well-positioned to leverage a number of potential catalysts in what may be a game-changing year for Verano and the industry in 2026."

TerrAscend
TerrAscend kept things steady. Full year revenue from continuing operations was $260.6 million, roughly in line with 2024. Gross margin improved to 52.3% from 50.7%, and adjusted EBITDA was $67.8 million. The company has now posted positive cash flow for 14 consecutive quarters.

The company has been deliberately shrinking its footprint, exiting Michigan to focus on its stronger Northeast markets. According to executive Chairman Jason Wild, it's strategy that is paying off: "In Maryland, we are operating at approximately a $75 million annual run rate with gross margins near 60%. In Pennsylvania, retail and wholesale revenue increased sequentially in the fourth quarter."

Ascend Wellness
Revenue fell 10.9% year over year to $500.6 million, the sharpest decline in the mid-tier group. But Ascend's adjusted EBITDA margin actually improved, from 20.7% in 2024 to 23.4% in 2025, meaning the company is becoming more efficient even as its top line shrinks. It ended the year with $85.7 million in cash and no major debt due for years.

CEO Sam Brill commented: "Through disciplined execution, we exceeded our $30 million annualized cost savings target and strengthened our capital structure through a strategic refinancing that extends our debt obligations to 2029."

MariMed
MariMed was one of the few to actually grow revenue, up slightly to $159.8 million from $157.7 million in 2024. It also marked its sixth consecutive year of positive adjusted EBITDA, at $16.9 million. The margin slipped to 11% from 12%, but the consistency is notable in a sector where many operators have gone through restructurings.

CEO Jon Levine said: "Wholesale continued to be a growth engine for the Company in 2025, increasing sales by 11 percent and expanding our distribution footprint to 85 percent of the dispensaries in our core markets. Our brands continue to resonate with our customers, led by Betty's Eddies fruit chews, which ranked as the top-selling edible across Massachusetts, Maryland, Delaware and Illinois."

Village Farms
Village Farms was the standout of the batch. The greenhouse-to-cannabis company posted record full year net income of $21 million and operating cash flow of $58.1 million, with no secured debt. The most striking number: international export cannabis sales were up 384% year over year in Q4. CEO Michael DeGiglio said: "We grew global cannabis sales by 17% year-over-year despite just a partial year of contributions from our expanding Netherlands business, and international exports increased more than six-fold as we continue to capitalize on our leadership position among the world's largest EU-GMP certified cannabis operators."

After this new round of earnings season, and the verdict seems to be consistent to what previous statements hinted at. US companies are focusing on operational efficiency to come out on top, while a structural ceiling prevents them from playing the same game as Village Farms. The Canadian grower international business is generating real growth that U.S.-only operators simply cannot replicate right now.