The Cannabis Industry is on the Move
42% Value Increase of SWI Portfolio in Two Months
Market Capitalization improves by 72%

Published by: StockWatchIndex Editorial Team
Rainer Poertner, Chief Analyst

The SWI Top Cannabis Players Portfolio

The Increase in Cannabis Share Prices Continues

SWI Portfolio increases by 48% in Two Months

For the fourth time, the administration is considering reclassifying marijuana under federal law, and a bipartisan commission has been established to push it through – This time with support from both sides of the aisle?. The news sent the sector’s stocks flying high nearly across the board: Tilray (TLRY) shot up 32% in one day, while industry names like Trulieve Cannabis (TRUL.CN) gained 35% and Curaleaf Holdings (CURLF) climbed 29%. Moving marijuana from Schedule I to Schedule III would make banking easier, cut tax burdens, open up more research possibilities, and give the whole industry the credibility it deserves. Let’s not forget, nearly 40 U.S. states already allow some form of cannabis use. The sector’s ETFs tell the same story, with the Roundhill Cannabis ETF (WEED) jumping almost 30% in a single session. The Ancillary Cannabis Index climbed 21.9%. It shows just how much these stocks move when regulations might shift.

SWI Portfolio 19% Increase in July – 29% in August

In our SWI portfolio (reporting since January 2022), we have seen rapid increases of 19% in July 2025, only to be topped by an increase of 29% in August for a total increase of 48% in two months. It looks like the industry is on the MOVE.

• Tilray (TLRY): Tilray runs a business that stretches across cannabis, beverages, and wellness, with operations in medical and adult-use cannabis and a lineup of hemp wellness products around the world. Over the last year, shares have fallen 44.3%, but things have flipped fast, up 129.3% in three months as policy news gives the stock some new life. The market is pricing Tilray for bigger things, with its forward price-to-earnings (P/E) ratio at 25.75 compared to the sector’s 18, showing people are willing to pay more for its mix. Wellness revenue $17 million. Analysts express cautious optimism, with a price target increase reflecting potential growth despite ongoing profitability challenges. Analysts expect Tilray to report an earnings loss of $0.03 per share, marking a 25% year-over-year growth in earnings.

• Glass House Brands (GLASF): Results surpassed expectations across key metrics. Second quarter 2025 revenue was $59.9 million, exceeding guidance and up 11% year-over-year. Gross margin was 53%, compared to 45% in Q1 2025 and 53% in Q2 2024. Adjusted EBITDA of $18.1 million, considerably higher than guidance and a notable sequential improvement compared to $4.4 million in Q1 2025. Cash and restricted cash balance rose to $44.2 million on June 30, 2025, compared to $37.6 million on March 31, 202.

• Innovative Industrial Properties (IIPR):  Their largest tenant, PharmaCann, defaulted on six leases, placing eleven leases at risk due to cross-default provisions. Shareholders’ legal actions based on claims of misleading business disclosures heightened the tenant default risk and may reshape Innovative Industrial Properties’ investment outlook and risk profile.

• Truelieve (TCNNF): Trulieve appears well-positioned as a vertically integrated, multi-state cannabis operator. It demonstrates disciplined operational execution, healthy margins, and strong cash flow without reliance on aggressive top-line growth. Analyst consensus reflects cautious optimism, with most expecting substantial upside over the next 12 months. A recent Seeking Alpha analysis suggests Trulieve remains undervalued, thanks to solid financial health and the ability to deliver returns even absent explosive growth. Motley Fool notes Trulieve as a “solid contrarian play” amidst a generally down industry environment.

SWI Portfolio Market Capitalization Improves by 72%

The market capitalization of the companies in the SWI Portfolio has increased drastically since 2022 (although still far below its initial starting point in 2022), driven by the strong turnaround in the last two months, improving by 72% over two months. For risk-adverse investors, ETFs offer diversified exposure, while individual stocks remain high-risk/high-reward. Businesses now focus on streamlining processes, expanding their product lines into the general wellness sector, improving the efficiency of their operations, and building mutually beneficial alliances to keep their profits healthy in the hope of improving the return on investment for their shareholders and investors. August 2025 marked a dramatic rebound for cannabis equities and ETFs, fueled by speculative hope around regulatory change and intensifying investor interest. While optimism is high, be prepared for roller-coaster price action.

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Dynamic Market Concepts (DMC) or its affiliate Stockwatchindex (SWI) are marketing publications with a team of writers and analysts that publish articles and research reports about subjects of interest for the editorial teams and reflect the writers’ opinions. Some of the published information has been provided by the companies covered, generated by publicly available sources, or by what the team deems reliable third-party entities. This is not meant as investment advice or stock solicitation, and the author is not responsible for any errors, mistakes, or shortcomings that may be occasioned when publishing the information in this publication and accepts no liability for any mistakes.