Marijuana Stocks Surge Following Trump's Efforts to Reclassify Cannabis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 12 2025
0mins
Should l Buy SNDL?
Source: SeekingAlpha
Cannabis Stock Surge: Cannabis producer stocks saw significant gains in U.S. premarket trading, with Tilray Brands up 29% and Canopy Growth up 21%, following reports that President Trump may push for reclassifying marijuana to a less dangerous category.
Proposed Reclassification: Trump is considering moving cannabis from Schedule I, which indicates no medical use, to Schedule III, which allows for accepted medical uses but still recognizes potential for abuse and dependence.
Discussions with Officials: Trump held discussions with House Speaker Mike Johnson and several marijuana industry executives regarding the reclassification, although no final decision has been made yet.
Previous Administration's Actions: In March 2024, the Biden administration's Department of Justice proposed rescheduling marijuana to Schedule III, but the DEA later canceled a hearing on the matter.
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Analyst Views on SNDL
About SNDL
SNDL Inc., through its wholly owned subsidiaries, is a vertically integrated cannabis company and a private-sector liquor and cannabis retailer in Canada. Its retail banners include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds and Spiritleaf. With products available in licensed cannabis retail locations nationally, its consumer-facing cannabis brands include Top Leaf, Contraband, Palmetto, Bon Jak, La Plogue, Versus, Value Buds, Grasslands, Vacay, Pearls by Gron, No Future and Bhang Chocolate. Its liquor retail segment includes the sales of wines, beers and spirits. Its cannabis retail segment includes the sales of cannabis products and accessories through corporate-owned and franchised cannabis retail operations. Its cannabis operations segment operates as a licensed producer that grows cannabis using indoor facilities and manufactures cannabis products, providing cannabis processing services. Its investments segment includes deployment of capital to investment opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cannabis Edibles Market Experiences Rapid Growth
- Market Size Projections: The global cannabis edibles market is expected to reach approximately $7.1 billion by 2025 and climb to around $16.6 billion by 2030, indicating a strong growth trajectory driven by consumer demand for cleaner, more discreet consumption methods.
- Successful International Export: Herbal Dispatch has successfully completed its first export of medical cannabis gummies to Australia, generating approximately $350,000 in revenue, marking a significant milestone in the company's international growth strategy and reinforcing its position as a trusted supplier in the global medical cannabis market.
- Product Diversification Strategy: Herbal Dispatch is actively expanding its gummies and edibles offerings domestically under the Chomp brand, responding to strong consumer demand across both medical and recreational channels, highlighting the company's focus on convenient, dose-controlled formats to drive long-term growth.
- Emerging Investment Opportunities: With potential U.S. federal reform and the ongoing expansion of medical programs globally, the cannabis edibles market is positioned at the intersection of several powerful trends, likely capturing a larger market share and driving revenue diversification in high-growth categories.
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SNDL Reports Lower-Than-Expected Q1 2026 Revenue Amid Market Headwinds
- Revenue Decline: SNDL reported Q1 2026 revenue of C$195.9 million, reflecting a ~4% year-over-year decline, marking the company's first topline contraction in three quarters, indicating severe market challenges.
- Cannabis Segment Struggles: The net revenue from cannabis operations fell ~14% year-over-year to C$29.4 million, directly impacted by market softness, which exacerbates the company's financial pressures.
- Margin Adjustments: While GAAP earnings per share stood at -C$0.04, beating consensus by C$0.01, the adjusted gross margin slipped 60 basis points to 27%, highlighting ongoing cost control challenges.
- Strategic Initiatives: The CEO noted that the company is rolling out several initiatives expected to generate nearly C$20 million in additional operating income over the remaining quarter, aiming to adapt to market softness and optimize commercial execution and cost structure.
See More
SNDL Q1 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: SNDL reported a Q1 GAAP EPS of -C$0.04, beating expectations by C$0.01, indicating some improvement in cost management despite still posting a loss.
- Revenue Decline: The company generated revenue of C$195.9M, a 4.4% year-over-year decrease, missing the market expectation of C$210.31M, which highlights challenges in achieving sales growth in a competitive landscape.
- Stock Reaction: Following the earnings report, SNDL shares fell by 6%, reflecting investor concerns about the company's future growth prospects, particularly amid increasing uncertainty in the cannabis sector.
- Uncertain Industry Outlook: Despite positive news regarding DEA rescheduling, SNDL remains rated as a 'Hold', indicating analysts' cautious stance on the company's performance in the current market environment, which could impact future investor confidence.
See More
SNDL to Announce Q1 Earnings on April 29
- Earnings Announcement: SNDL is set to release its Q1 earnings on April 29 before market open, with consensus EPS estimate at -C$0.05 and revenue estimate at C$210.31M, indicating cautious investor sentiment regarding the company's future performance.
- Historical Performance Review: Over the past two years, SNDL has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, reflecting volatility in its profitability that may impact investor confidence.
- Expectation Revisions: In the last three months, there have been no upward or downward revisions to EPS estimates, while revenue estimates saw one upward and one downward revision, suggesting a divergence in market perceptions of the company's future performance, which could lead to stock price fluctuations.
- Industry Context: Amid increasing uncertainty in the cannabis sector, SNDL maintains a 'Hold' rating, as its low valuation comes with significant risks, prompting investors to carefully assess market dynamics.
See More
SNDL to Release Q1 2026 Financial Results and Host Conference Call
- Earnings Release Schedule: SNDL will announce its Q1 2026 financial results on April 29, 2026, before market open, which is expected to provide investors with insights into its latest financial performance and market trends.
- Conference Call Details: Following the earnings release, SNDL will host a conference call and webcast on April 29, 2026, at 10:00 a.m. EDT (8:00 a.m. MDT), aimed at sharing financial data and future outlook with investors and analysts.
- Company Overview: SNDL is one of Canada's largest vertically integrated cannabis companies and the largest private-sector liquor and cannabis retailer, with multiple retail brands covering the national legal cannabis retail market, showcasing its leadership in the industry.
- Investment Strategy: SNDL actively deploys strategic capital through direct and indirect investments and partnerships in the North American cannabis industry, aiming to enhance its market competitiveness and business expansion capabilities.
See More
SNDL Executive Change: Robson Departs
- Executive Departure: SNDL Inc. announced that Tyler Robson, President of Cannabis, has left the company to pursue other opportunities, indicating potential shifts in strategic direction and market confidence due to leadership changes.
- Interim Appointment: Current Chief Strategy Officer Ryan Hellard will assume the role of Interim President of Cannabis, which may influence decision-making processes and future business development within the company.
- Company Overview: SNDL is one of the largest vertically integrated cannabis companies and the largest private-sector liquor and cannabis retailer in Canada, with multiple retail brands, highlighting its significant market position and influence.
- Investment Strategy: SNDL seeks to deploy strategic capital through direct and indirect investments in the North American cannabis industry; despite the executive changes potentially introducing uncertainty, the company remains committed to expanding its investment portfolio to enhance market competitiveness.
See More
Cannabis Edibles Market Experiences Rapid Growth
- Market Size Projections: The global cannabis edibles market is expected to reach approximately $7.1 billion by 2025 and climb to around $16.6 billion by 2030, indicating a strong growth trajectory driven by consumer demand for cleaner, more discreet consumption methods.
- Successful International Export: Herbal Dispatch has successfully completed its first export of medical cannabis gummies to Australia, generating approximately $350,000 in revenue, marking a significant milestone in the company's international growth strategy and reinforcing its position as a trusted supplier in the global medical cannabis market.
- Product Diversification Strategy: Herbal Dispatch is actively expanding its gummies and edibles offerings domestically under the Chomp brand, responding to strong consumer demand across both medical and recreational channels, highlighting the company's focus on convenient, dose-controlled formats to drive long-term growth.
- Emerging Investment Opportunities: With potential U.S. federal reform and the ongoing expansion of medical programs globally, the cannabis edibles market is positioned at the intersection of several powerful trends, likely capturing a larger market share and driving revenue diversification in high-growth categories.
See More
SNDL Reports Lower-Than-Expected Q1 2026 Revenue Amid Market Headwinds
- Revenue Decline: SNDL reported Q1 2026 revenue of C$195.9 million, reflecting a ~4% year-over-year decline, marking the company's first topline contraction in three quarters, indicating severe market challenges.
- Cannabis Segment Struggles: The net revenue from cannabis operations fell ~14% year-over-year to C$29.4 million, directly impacted by market softness, which exacerbates the company's financial pressures.
- Margin Adjustments: While GAAP earnings per share stood at -C$0.04, beating consensus by C$0.01, the adjusted gross margin slipped 60 basis points to 27%, highlighting ongoing cost control challenges.
- Strategic Initiatives: The CEO noted that the company is rolling out several initiatives expected to generate nearly C$20 million in additional operating income over the remaining quarter, aiming to adapt to market softness and optimize commercial execution and cost structure.
See More
SNDL Q1 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: SNDL reported a Q1 GAAP EPS of -C$0.04, beating expectations by C$0.01, indicating some improvement in cost management despite still posting a loss.
- Revenue Decline: The company generated revenue of C$195.9M, a 4.4% year-over-year decrease, missing the market expectation of C$210.31M, which highlights challenges in achieving sales growth in a competitive landscape.
- Stock Reaction: Following the earnings report, SNDL shares fell by 6%, reflecting investor concerns about the company's future growth prospects, particularly amid increasing uncertainty in the cannabis sector.
- Uncertain Industry Outlook: Despite positive news regarding DEA rescheduling, SNDL remains rated as a 'Hold', indicating analysts' cautious stance on the company's performance in the current market environment, which could impact future investor confidence.
See More
SNDL to Announce Q1 Earnings on April 29
- Earnings Announcement: SNDL is set to release its Q1 earnings on April 29 before market open, with consensus EPS estimate at -C$0.05 and revenue estimate at C$210.31M, indicating cautious investor sentiment regarding the company's future performance.
- Historical Performance Review: Over the past two years, SNDL has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, reflecting volatility in its profitability that may impact investor confidence.
- Expectation Revisions: In the last three months, there have been no upward or downward revisions to EPS estimates, while revenue estimates saw one upward and one downward revision, suggesting a divergence in market perceptions of the company's future performance, which could lead to stock price fluctuations.
- Industry Context: Amid increasing uncertainty in the cannabis sector, SNDL maintains a 'Hold' rating, as its low valuation comes with significant risks, prompting investors to carefully assess market dynamics.
See More
SNDL to Release Q1 2026 Financial Results and Host Conference Call
- Earnings Release Schedule: SNDL will announce its Q1 2026 financial results on April 29, 2026, before market open, which is expected to provide investors with insights into its latest financial performance and market trends.
- Conference Call Details: Following the earnings release, SNDL will host a conference call and webcast on April 29, 2026, at 10:00 a.m. EDT (8:00 a.m. MDT), aimed at sharing financial data and future outlook with investors and analysts.
- Company Overview: SNDL is one of Canada's largest vertically integrated cannabis companies and the largest private-sector liquor and cannabis retailer, with multiple retail brands covering the national legal cannabis retail market, showcasing its leadership in the industry.
- Investment Strategy: SNDL actively deploys strategic capital through direct and indirect investments and partnerships in the North American cannabis industry, aiming to enhance its market competitiveness and business expansion capabilities.
See More
SNDL Executive Change: Robson Departs
- Executive Departure: SNDL Inc. announced that Tyler Robson, President of Cannabis, has left the company to pursue other opportunities, indicating potential shifts in strategic direction and market confidence due to leadership changes.
- Interim Appointment: Current Chief Strategy Officer Ryan Hellard will assume the role of Interim President of Cannabis, which may influence decision-making processes and future business development within the company.
- Company Overview: SNDL is one of the largest vertically integrated cannabis companies and the largest private-sector liquor and cannabis retailer in Canada, with multiple retail brands, highlighting its significant market position and influence.
- Investment Strategy: SNDL seeks to deploy strategic capital through direct and indirect investments in the North American cannabis industry; despite the executive changes potentially introducing uncertainty, the company remains committed to expanding its investment portfolio to enhance market competitiveness.
See More
