- Canadian cannabis market hits record highs in 2025, with annual retail sales projected to exceed C$5.2 billion and a 12 per cent CAGR forecast through 2030
- Aurora Cannabis leads performance, reporting $88.2M in Q3 revenue (+37 per cent YoY) and achieving positive free cash flow
- OrganiGram posts record revenue and acquires Motif Labs for up to $100M, strengthening its vape and pre-roll portfolio
- Canopy Growth focuses on restructuring and global partnerships, aiming for a turnaround despite ongoing profitability challenges
A market in transition
Seven years after legalization, Canada’s cannabis industry has matured into one of the most regulated and competitive markets globally.
In 2025, legal cannabis sales hit record highs, with May alone reaching C$482.3 million, up from C$468.8 million in December 2024. Annual retail sales are projected to surpass C$5.2 billion, reflecting steady growth despite pricing pressures and intense competition. Consumers are increasingly shifting to legal channels—72 per cent now buy exclusively from licensed sources—and demand for Cannabis 2.0 and 3.0 products like edibles, beverages, and wellness items continues to rise. The market is forecasted to grow at a 12 per cent CAGR through 2030, driven by innovation and consolidation.
This article is a journalistic opinion piece that has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Three Canadian cannabis stocks that performed well in 2025
1. Aurora Cannabis
Aurora Cannabis (TSX:ACB) has emerged as a standout performer this year, thanks to its strong focus on medical cannabis and international expansion. In fiscal Q3 2025, Aurora reported C$88.2 million in revenue, a 37 per cent increase year-over-year, and achieved positive free cash flow, a rare feat in the sector. Its global reach and disciplined cost management have positioned Aurora as a leader in the medical segment, appealing to investors seeking stability amid volatility.
Aurora Cannabis stock (TSX:ACB) has risen 4.26 per cent since the year began.
2. OrganiGram Holdings
OrganiGram (TSX:OGI) has been on an aggressive growth trajectory, posting record Q3 revenue in 2025 and completing the acquisition of Motif Labs for up to C$100 million. This move strengthens its portfolio in high-margin vape and pre-roll categories. With integration efforts underway and a focus on export markets, OrganiGram is positioning itself as a major player in both domestic and international cannabis trade.
OrganiGram stock (TSX:OGI) has risen 5.19 per cent since December 2024.
3. Tilray Brands Inc.
Tilray Brands (TSX:TLRY). Despite challenges earlier in the year, Tilray saw an 80 per cent increase over the past six months, largely driven by its diversification into beverages and international markets. The company also executed a reverse stock split to maintain Nasdaq compliance, signaling its commitment to long-term growth.
Honourable mention: Canopy Growth Corp.
Despite past struggles, Canopy Growth (TSX:WEED) remains one of Canada’s most recognized cannabis brands. In 2025, the company focused on restructuring and international sales, while maintaining leadership in medical cannabis. Although profitability remains a challenge, Canopy’s business moves—including cost-cutting and brand diversification—signal a potential turnaround. Investors are watching closely as Canopy leverages its scale and global partnerships to regain momentum.
Looking ahead to 2026
The Canadian cannabis market faces both opportunities and challenges in the coming year. Health Canada’s 2026 regulatory review could reshape licensing, marketing, and compliance standards, creating a more competitive and transparent environment. Meanwhile, consumer preferences are evolving—quality, consistency, and terpene profiles are becoming more important than THC percentages. Companies that embrace efficiency, innovation, and cross-border strategies will likely lead the next wave of growth. For investors, 2026 could be the year when disciplined operators and diversified portfolios separate winners from laggards.
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