Cronos Group

CRON

Market cap $1.03B

Bankers have argued that Pot Inc.'s far-bigger prospective business – recreational use that would include the smoking of joints and ingesting high-inducing gummies – wasn't specifically addressed by the president's edict.

The cannabis industry continues to evolve as investors look toward 2026 with renewed optimism. Canadian cannabis companies remain at the center of global expansion. They benefit from strong medical programs and growing international demand. However, investors must still navigate volatility, regulation, and shifting consumer trends.

Marijuana's potential move to Schedule III could reshape cannabis economics, putting CRON, VFF and TLRY in focus for 2026 investors.

Cronos Group operates in a highly competitive industry but has a marked advantage over its peers owing to its vastly superior balance sheet. This superiority is a result of a 2019 investment by Altria of $1.8 billion. CRON has experienced consistent cash burn and deep losses since 2019 as it has built and adapted its operations to the newly legalized adult-use cannabis industry in Canada.

Stocks took a surprise tumble after the White House moved to reclassify marijuana as a less dangerous drug.

The cannabis industry continues evolving into a bigger and more regulated global market. Legalization trends are expanding across the United States and international regions. This growth fuels long-term opportunities for marijuana stock investors and those looking to get invested in the industry. Cannabis stocks benefit from increasing consumer demand and acceptance. Medical cannabis adoption supports consistent revenue and defensive market positioning.

The cannabis industry is entering another critical growth phase, positioning 2026 as a potentially pivotal year. Particularly for long-term investors looking to make a profit with marijuana stocks. After years of regulatory uncertainty, capital constraints, and volatile price action, relief is being shown. The legal cannabis market is showing clear signs of structural improvement driven by policy reform, consolidation, and expanding global demand.

In 2026, the impact of cannabis rescheduling is expected to be far more visible in marijuana stock performance. Much more than in the initial announcement of cannabis becoming a Class 3 substance. While 2025 seemed to be a transition year, 2026 could mark another pivot point. Specifically, one where improved business operations begin to consistently translate into stronger equity valuations across the sector. Investor sentiment may also shift meaningfully.

Donald Trump's recent executive order moving cannabis off Schedule I marks a pivotal moment for the U.S. cannabis sector. While the order does not legalize marijuana at the federal level, rescheduling fundamentally changes how the plant is viewed under federal law. With meaningful implications for operators, investors, and public markets. For the cannabis industry, the most immediate impact is financial. A shift to Schedule III would effectively eradicate IRS Section 280E. This is a law that currently prevents cannabis businesses from deducting standard operating expenses.

President Donald Trump's marijuana reclassification executive order followed a yearlong push by cannabis executives, billionaire allies and political operatives combining donations, lobbying and targeted polling, according to industry insiders. Trulieve CEO Kim Rivers and Palm Beach billionaire Howard Kessler leveraged personal ties, fundraisers and political spending to press the White House, according to multiple insiders, including one CEO of a cannabis company listed on the New York Stock Exchange, who requested anonymity to speak candidly.