Cannabis Market Intelligence
Q4 2025 Industry Report
Navigate regulatory complexity and market shifts with specialized insights from cannabis industry experts
The cannabis industry entered a more disciplined phase in Q4 2025. Capital has become more selective as pricing pressure, regulatory uncertainty, and uneven state-level dynamics continue to reshape performance expectations.
Momentum toward federal rescheduling has improved sentiment, but execution risk remains high. This report explores how profitability, product mix, and regulatory positioning are influencing valuations and strategic decisions across the cannabis landscape.
What's Inside the Q4 2025 Cannabis Industry Report
Market Trends & Operating Performance
- A clear shift away from growth-at-all-costs toward execution, margins, and cash flow discipline
- What consumer price sensitivity is signaling about demand durability and product mix
Financial Performance & Valuation Insights
- Public market multiples reflecting heightened risk sensitivity and uneven operator performance
- Where margin pressure is coming from and why it has been difficult to reverse
M&A Activity & Consolidation
- Transaction volume reaching a two-year low as buyers remain selective
- What strategic acquirers are prioritizing in a constrained deal environment
Regulatory & Policy Developments
- Federal rescheduling momentum beginning to influence capital allocation decisions
- How fragmented state policies continue to complicate expansion and scale strategies
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About Houlihan Capital's Cannabis Expertise
For over 25 years, Houlihan Capital has provided specialized financial services to cannabis businesses across cultivation, retail, processing, and ancillary services. Our team understands the unique valuation challenges, regulatory complexities, and strategic considerations that define success in this rapidly evolving industry.
Cannabis Services: Business Valuations | Fairness Opinions | Transaction Advisory | Exit Planning | Compliance-Ready Financial Analysis
Questions? Contact our cannabis specialists at info@houlihancapital.com or 312.450.8600
This content is for informational purposes only and does not constitute investment or legal advice. Always consult qualified professionals regarding cannabis business operations and compliance.