Cannabis Stocks Face Global Instability in 2025 and Close Lower

The capital market focused on the sector faced another period of instability throughout 2025. According to analysis released by Alan Brochstein, from New Cannabis Ventures, cannabis stocks in the Global Index ended the year with a cumulative depreciation of 4.2%.

Despite the negative annual result, December saw a recovery of 8.4%. This upward movement raised the index score to 6.59 at the year-end.

The report indicates that volatility was a constant for cannabis stocks. The index hit a historic low of 4.97 at the end of March, followed by fluctuations in the following months. Although the third quarter showed a 53% increase, the fourth quarter partially reversed these gains with a 14.2% decrease.

Since the peak recorded in February 2021, the global index has accumulated a significant retraction of 92.9%. The sector will undergo rebalancing for the first quarter of 2026, totaling 27 companies on the list.

Highlights of Highs and Lows in Cannabis Stocks

In the December analysis, the positive performance was mainly driven by Multi-State Operators (MSOs). Check out the companies that showed the highest variations in the period:

Trulieve (OTC: TCNNF): Led the gains with a +61.2% increase;

Cresco Labs (OTC: CRLBF): Recorded growth of +24.9%;

TerrAscend (OTC: TSNDF): Presented an appreciation of +11.4%;

Lows: Companies like iPower and SHF Holdings dropped by more than 28%, while Aurora Cannabis fell by 8.3%.

Scenario of Cannabis Stocks in the US and Canada

While the global index fell, the American Cannabis Operators Index (ACOI) showed a divergent and positive performance. The indicator ended 2025 with a cumulative increase of 57.7%, closing at 13.18 points.

Just in December, the appreciation was 43.7%. This result significantly outperformed the ETF AdvisorShares Pure US Cannabis (MSOS), which rose by 23.9% in the same period, consolidating the strength of cannabis stocks in the United States.

On the other hand, the ancillary services sector, which does not involve the plant directly, did not follow this optimism. The Ancillary Index closed 2025 with a 19.5% decrease, despite a slight recovery in the last month.

In the Canadian market, the Licensed Producers Index (LPs) had a positive year for cannabis stocks, with a 17.8% increase. The highlight in December was MTL Cannabis, which appreciated by 62.5% after receiving a takeover offer.