Quarterly earnings will highlight efficient operators' growing market share and building sustainable platforms. Pablo Zuanic, senior analyst at Zuanic & Associates, provides an overview of the cannabis market trends in key states ahead of the second quarter earnings season.

Zuanic emphasizes that federal reform expectations, IRS news on 280E, refinancing potential and M&A strategies will be the main drivers of sentiment.

State Performance Highlights

• Florida: Despite a slowing pace and price deflation, Florida's medical marijuana sales reached $479 million in 2Q24, with a slight decrease of 2% quarter-over-quarter (QoQ). Trulieve (OTC:TCNNF) remains the leader with 142 stores, followed by Verano (OTC:VRNOF) with 77 stores.

• Illinois: Sales grew to $505 million in 2Q24, a 2% QoQ increase, though the market underperforms with $158 per capita spent compared to Michigan's $333. Ascend (OTC:AAWH), Curaleaf (OTC:CURLF), Verano, Cresco (OTC:CRLBF) and Green Thumb (OTC:GTBIF) each have 10 stores in the state.

• Pennsylvania: Robust growth continues with 2Q24 sales at $426 million, up 11% year-over-year. The state boasts healthy retailer economics with annualized revenue per store at $9.4 million. Verano leads with 18 stores.

• Arizona: Sales declined 7% QoQ to $301 million in 2Q24, with ongoing deflation impacting both growers and retailers. Trulieve and Curaleaf lead with 21 and 16 stores, respectively.

• Maryland: With recreational sales starting on 7/1/23, total sales reached $284 million in 2Q24, up 130% YoY. Curaleaf and Green Thumb are significant players in the state with multiple stores each.

• New Jersey: Although growing, New Jersey lags in per capita spending with sales totaling $225 million in 1Q24. Curaleaf, Verano, and Green Thumb have a notable presence with multiple operational stores.

• Ohio: Medical marijuana sales remained flat at $120 million in 2Q24, but prices are rising as retailers begin recreational sales. Cresco, Green Thumb, and Columbia Care (OTC:CCHWF) are key operators in the state.

• Michigan: The state continues to see strong growth with 2Q24 sales at $837 million, up 6% QoQ and 11% YoY. Michigan leads in per capita spending with $333. Green Peak Innovations and Lume Cannabis Co. are significant players with extensive store networks.

These issues will be among the hot topics at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.