Latest Cannabis Earnings Reports Show Signs Of Recovery Amid Persistent Headwinds

As another earnings season rolls along, a wide variety of cannabis and ancillary companies have reported and will continue to report results in the coming days. The latest financial results from Chicago Atlantic BDC, Inc. (NASDAQ: LIEN), Glass House Brands Inc. (CBOE CA: GLAS.A.U) (NYSE: GLAS), IM Cannabis Corp. (NASDAQ: IMCC) and cbdMD, Inc. (NYSE American: YCBD) show a mixed picture of the cannabis and cannabinoid industry in 2026.

Within the group, some companies have highlighted operational improvements and stronger demand this quarter, while other businesses remain challenged by weak margins and regulatory uncertainty.

Chicago Atlantic’s Q2 Financial Highlights

• Total investment income was $14 million or $0.61 per share compared to $16.7 million in the prior period, or $0.73 per share.
• Net investment income was $7.7 million or $0.34 per share, compared to $10 million, or $0.44 per share in the first quarter of fiscal 2026.
• Net assets resulting from operations increased by $6.1 million, or $0.27 per share.
• The total investment portfolio had a fair value of $334.8 million across 37 portfolio companies, with a weighted average yield of 16% on debt investments.
• Liquidity came in at $73.9 million, while outstanding borrowings dropped to $27 million from $54.5 million sequentially.
• The company declared a third-quarter dividend of $0.34 per share.

“With no investments on non-accrual status, steady portfolio risk ratings, and a 100% senior secured debt portfolio generating a weighted average yield on debt investments of 16.0%, we remain positioned to generate attractive risk-adjusted returns,” Peter Sack, the company’s CEO, said in a press release.

Chicago Atlantic’s shares traded 0.40% lower at $9.40 per share at the time of writing on Friday.

Glass House Brands’ Q2 Financial Highlights

• The company’s operating performance has recovered sequentially.
• Revenue for the quarter increased to $47 million from $28.6 million in the first quarter, and was relatively flat year-over-year.
• Consolidated gross profit amounted to $15.8 million, compared to $26.1 million in the prior year’s quarter and $4.1 million in the prior period.
• Gross profit margin was 34%, compared to 55% in the corresponding quarter of 2025 and 14% in the first quarter of 2026.
• Adjusted EBITDA came in positive at $5.7 million, compared to positive $18.1 million in the second quarter of 2025 and an adjusted EBITDA loss of $4.2 million in the first quarter of 2026.
• Operating cash flow was positive $0.2 million, compared to $17.7 million in the second quarter of 2025 and negative $(11.8) million in the first quarter of 2026.

“In light of April’s rescheduling of medical cannabis, we made significant changes to the business, our licenses and operating structure, including registering our cultivation and processing licenses with the DEA, and converting each of our cultivation and processing licenses to medical,” Kyle Kazan, the company’s co-founder, chairman and CEO, said in a press release.

Glass House Brands’ shares traded 4.21% lower at $9.55 per share as of Friday.

IM Cannabis’ Q2 Financial Highlights

• Revenue dropped to CA$7.6 million ($5.5 million) from CA$12.7 million in the second quarter of fiscal 2025.
• Gross profit decreased to CA$1.5 million from CA$3.4 million in the prior year’s period.
• Operating loss amounted to CA$2.1 million compared to CA$0.4 million in the same period in 2025.
• Net loss was CA$4.4 million, or CA$0.47 per share, compared to a net loss of CA$0.2 million, or CA$0.09 per share, in the second quarter of last year.
• For the first six months of 2026, revenue declined to CA$16.3 million from CA$25.2 million in the first half of fiscal 2026, with net loss reaching CA$6.9 million.
• The balance sheet showed CA$1.6 million in current assets against CA$30.3 million in total liabilities, with a shareholders’ deficit of approximately CA$5.5 million.

IM Cannabis’ shares traded 5.31% lower at $0.1231 per share at the time of writing on Friday.

cbdMD’s Q3 Financial Highlights

• Net sales rose 20% year-over-year to $5.6 million, due to a 61% increase in wholesale sales and growth from its Oasis beverage business.
• Direct-to-consumer (e-commerce) net sales were $3.9 million, or 70% of total net sales, representing a roughly 9% year-over-year increase.
• Gross margin decreased to 54.7% from 61.5% over the same period.
• Adjusted EBITDA loss improved to roughly $508,000 from $624,000 a year earlier.
• Net loss attributable to common shareholders amounted to approximately $1.2 million, or $0.11 per share, compared to a net loss of approximately $1.2 million, or $0.21 per share, in the corresponding quarter of last year.

“During July, we implemented cost reduction initiatives that we expect to result in savings potential of up to $150,000 per month, as we are running the business to be leaner, more flexible, and well positioned to succeed in the market following the effectiveness of pending federal regulation,” Ronan Kennedy, CEO and CFO of cbdMD, said in a press release.

cbdMD’s shares traded 10.73% lower at $0.5044 per share as of Friday.