The Week In Cannabis: Tilray Earnings, NY Hits $1B In Sales, DoorDash Embraces Hemp, Ukraine And More

The cannabis industry saw significant developments this week, with key updates from New York, New Jersey, Tilray, DoorDash, Ukraine, Agrify, Safe Harbor, the DEA and Canopy USA shaping the landscape. Here’s a closer look at the highlights.

New York Cannabis Industry Reports $1 Billion In 2024 Sales

New York's Office of Cannabis Management (OCM) released its 2024 annual report, showing robust growth despite a rocky start. Cannabis retailers in the state achieved nearly $1 billion in sales for 2024, supported by the issuance of 1,394 adult-use licenses, 52% of which were granted to Social and Economic Equity (SEE) applicants. The state opened 156 dispensaries, contributing over $64 million in tax revenue.

Looking ahead, the OCM aims to have 625 dispensaries operational by the end of 2025. To enhance transparency and accessibility, it launched the Legal Online Cannabis Activities Locator (LOCAL) Map, helping residents locate legal dispensaries and track license applications. However, challenges persist, including lawsuits from operators opposing recent regulatory changes and ongoing competition from unlicensed markets.

More details on Cultivated.

New Jersey Outpaces New York

Neighboring New Jersey's cannabis market reported $1 billion in sales for 2024, a 25% year-over-year increase. The Cannabis Regulatory Commission (CRC) attributed the growth to consumer trust and economic opportunities.

"This momentum sets a solid foundation for continued success in the years ahead," said Chris Riggs, acting CRC director. These sales generated an estimated $43 million in tax revenue.

Tilray Reports Q2 2025 Financial Results

Shares of Tilray Brands TLRY traded down by double digits on Friday after the company reported its second-quarter financial results for fiscal year 2025.

Net revenue increased by 9% to $211 million compared to $194 million in the prior year quarter, with a 10% increase on a constant currency basis. Gross profit grew 29% year-over-year to $61 million, driven by improvements across all four business segments.

Key highlights include:

• Beverage alcohol revenue surged 36% to $63 million, with gross margins improving to 40%.
• Wellness segment revenue grew 13% to $15 million.
• International cannabis revenue increased by 25%, demonstrating Tilray's expanding global footprint.
• Cannabis segment revenue fell slightly by 2% year-over-year to $66 million.
• Adjusted EBITDA reached $9 million, a 10% decrease year-over-year, impacted by SKU rationalization in the beverage segment.

Tilray's Project 420, a $25 million synergy plan aimed at optimizing its beverage business, achieved $17 million in savings by the quarter's end. The company reaffirmed its fiscal year 2025 guidance, expecting net revenues between $950 million and $1 billion, ahead of consensus estimates of $900 million.

"As we enter the second half of the year, we remain committed to delivering on our financial guidance and driving shareholder value,” stated CEO Irwin Simon. “Tilray is trailblazing the future of consumer products through the infrastructure we have built, and I am enthusiastic about what lies ahead, including the potential future legalization of cannabis in the U.S."

DoorDash Expands Offerings To Include Hemp-Derived Products

DoorDash DASH announced it is now offering hemp-derived THC and CBD products, including gummies and beverages, in select states. The expansion is facilitated through partnerships with merchants like DashMart, Total Wine & More, and ABC Fine Wine & Spirits.

"With the growing demand for hemp-derived THC and CBD products, we're excited to expand access to a wide selection of products consumers crave," said Jacob Morello, director and general manager of alcohol and emerging categories at DoorDash. Customers can now find a "CBD/THC" tab on the app to browse hemp-derived items in states where such products are legal.

DoorDash emphasized compliance with federal laws, ensuring all products adhere to the 2018 Farm Bill's definition of hemp, which limits THC content to 0.3% by dry weight. As part of its launch, DoorDash partnered with the cannabis beverage company Cann, offering users a $2 discount on multipack purchases through the end of January.

Ukraine Registers Its First Medical Cannabis Product

Ukraine has taken a significant step forward in its medical cannabis program, registering the country's first approved cannabis product. The oral cannabis drops, developed in Spain, are expected to be available in pharmacies early this year. Deputy Prime Minister Olha Stefanyshyna highlighted the progress made since the legalization of medical marijuana in 2023. "The first medicines will soon appear in pharmacies."

The law legalizes medical cannabis for patients with severe illnesses and PTSD related to the ongoing conflict with Russia. Ukraine's Ministry of Health clarified that cannabis and its derivatives are no longer listed as particularly dangerous substances, allowing for controlled medical use.

President Volodymyr Zelensky, a strong advocate for medical marijuana legalization, emphasized the importance of providing relief to Ukrainians facing pain and trauma. Training programs for doctors to treat patients with cannabis are also underway as the country expands its regulatory framework.

Agrify Sells Cultivation Operation for $7 Million

Agrify Corp. AGFY. has sold its cannabis cultivation operation to CP Acquisitions, an investment firm affiliated with former CEO Raymond Chang. The $7 million transaction includes vertical farming units, related assets and Agrify Insights software applications. Interim CEO Ben Kovler stated, "This move allows us to focus on more attractive growth categories tied to THC demand."

Agrify will now prioritize its hemp-derived THC beverage lines, including its popular Señorita THC-infused margaritas, which are sold in nine states and online.

Safe Harbor Eliminates $1.2 Million Liability

SHF Holdings SHFS, operating as Safe Harbor Financial, announced a key agreement with Partner Colorado Credit Union, eliminating $1.2 million in indemnity liability.

CEO Sundie Seefried described the updated agreement as "a positive and pivotal development," simplifying business processes and aligning expenses with income. Safe Harbor serves more than 600 cannabis clients across 40 states and has facilitated more than $20 billion in transactions.

Amplify U.S. Alternative Harvest ETF To Liquidate

Amplify ETFs announced plans to liquidate its U.S. Alternative Harvest ETF MJUS, ending trading on January 27. The fund's struggles reflect broader sector challenges, including the DEA's hesitance to reschedule cannabis from Schedule I.

Cannabis ETFs like MJUS and others saw significant declines in 2024, partly due to regulatory uncertainties and limited capital access.

DEA Faces Scrutiny Over Cannabis Rescheduling Process

In a new twist, a DEA judge ordered the agency to respond to allegations of bias in its cannabis rescheduling hearings. Cannabis advocates argue the DEA's late submissions and alleged coordination with anti-rescheduling groups undermine the process. The DEA's cautious stance continues to impact investor confidence and industry growth.

Canopy USA Appoints First President

Canopy USA, a U.S.-focused entity affiliated with Canopy Growth Corporation CGC, named Brooks Jorgensen as its first president. Jorgensen, with over 25 years of leadership experience in cannabis and other high-growth industries, aims to unify the company's portfolio of brands, including Wana, Jetty and Acreage's Superflux.

"Canopy USA is a unique platform with the right combination of ingredients to deliver success," Jorgensen stated.