The story of the cannabis sector’s financial health is increasingly split between those providing the capital and those who desperately need it.
In this edition of Beyond the Ticker, we look at how three distinct players, representing the real estate, banking, and operational tiers, are faring as the high cost of capital continues to squeeze the market.
NewLake Capital, a leading REIT continues to post stable results and pay dividends, while Safe Harbor Financial is expanding its critical financial and credit services. On the other side of the coin, Tilt Holdings has announced plans to go private and restructure debt.
Newlake Capital Q3 earnings are more positive than they first appear
NewLake Capital Partners, one of the largest cannabis-focused real estate investment trusts in the US, posted its Q3 financial figures earlier this month. While uninspiring at first glance, its success in maintaining a balance sheet ‘among the strongest in the sector’ amid such market instability should not be overlooked.
For the three months to September 30, 2025, Newlake reported total revenues of $12.59m and net profits $6.67m, up from $12.55m and $6.42m, respectively.
The company’s key cash flow measures, FFO and AFFO, increased by 3.8% and 2.4%, respectively, pointing to a consistent income amid its core portfolio even as the broader market remains uneven.
It also maintained a quarterly dividend at 43 cents per share, equal to an annualised 13%-plus yield at recent trading levels. Based on NewLake’s annualised AFFO, the payout ratio sits at about 81 to 82 percent, well within its long-term target range of 80 to 90%.
Both revenue and EPS exceeded forecasts for the reporting period, with revenue coming some $250,000 above expectations, while its EPS of $0.32 also came comfortably above forecasts of $0.2733.
NewLake Capital’s EPS of $0.32 exceeded the forecast of $0.2733, resulting in a 17.09% surprise. Revenue also surpassed expectations, coming in at $12.6 million against the projected $12.34 million. This performance highlights the company’s ability to navigate a challenging market environment effectively.
During its quarterly earnings call, Chief Financial Officer Lisa Meyer attributed the marginal revenue growth to two Cresco dispensaries acquired earlier in the year, rental income from previously funded improvements, and built-in rent escalators across the portfolio.
One notable exception was the dramatic collapse of its tenant AYR Wellness, which vacated two cultivation sites in Pennsylvania and Nevada as part of a restructuring, removing roughly 6% of rental income from the quarter.
AYR’s collapse and failure to pay rent on the cultivation facilities from August was mitigated by Newlakes’ withdrawal of $505k from AYR’s security deposits, which was then used to cover the rent. As AYR is now moving to sell off its remaining assets, Newlake says both its vacated sites are now back on the market.
Meyer also quantified the impact of AYR on future earnings, telling analysts that if both properties remain vacant, the drag on first quarter 2026 results would be ‘a little over 0.035 dollars, maybe 0.036 dollars’ per share.
Elsewhere, Newlake highlighted that tenants representing around 50% of annual rent reported solid performance in Q3, including Curaleaf, Green Thumb, Trulieve and Cresco Labs. However, with these tenants representing such a large share of Newlakes’ income (Curaleaf accounting for 24% alone), analysts note that any major disruption to these operators could be a risk for the REIT.
Meyer reiterated that the balance sheet ‘remains among the strongest in the sector’, pointing to $432m of gross real estate assets, $106m of liquidity and ‘a very conservative debt profile of just 1.6 per cent debt to total gross assets, with no maturities until May 2027’.
Notably, Chief Executive Anthony Coniglio suggested during the earnings call that Newlake could look outside of the cannabis industry in the future.
“It is our fiduciary responsibility to evaluate all avenues for creating long-term value for shareholders, and that does include considering opportunities beyond cannabis,” he said, adding that the company is monitoring the wider real estate landscape for opportunities in other highly regulated, special-purpose properties, and would take any suitable ideas to the board.
Recent analysis from IWA Research argues NewLake’s equity value may be significantly higher than current levels, citing the company’s 34 owned properties, long lease terms averaging 12.3 years, and average 13% yield on its leases. The report suggests an intrinsic value above $24 per share under conservative assumptions, compared with a market cap below $300m.
Safe Harbor Financial Clears Debt and Launches Cannabis Financial solutions platform
Safe Harbor Financial, which provides compliant banking, payments and lending services to cannabis operators in the US, has announced the completion of a major recapitalisation that eliminates almost all of its $18.8m debt load, raises $6.8m in new capital and restores full compliance with NASDAQ listing rules.
Days later, it announced the launch of a new flagship product, what it describes as the cannabis industry’s first complete financial solutions platform.
The restructuring marks a significant milestone in the firm’s turnaround under chief executive Terry Mendez, who was appointed in February 2025 to stabilise the business and rebuild liquidity.
The company is now effectively debt-free and has secured a $150m equity line of credit, expandable to $500m, to support new lending and the expansion of its fintech platform for banking cannabis related businesses. Management said the facility provides strategic flexibility for high-return deployments while also strengthening the capital structure, as 25% of any draw must be used to redeem Series B preferred shares.
The recapitalisation is part of a broader transformation that has reshaped the board and executive team, removed more than $3m in annualised costs and resolved several near-term liquidity pressures. The transaction converted $18.8m of debt into preferred equity and raised almost $7m in new cash from accredited investors, including management and board members.
Chief executive Terry Mendez said the company has spent the past eight months focused on ‘retaining our NASDAQ listing, addressing our capital structure and liquidity challenges, and developing a strategy to grow through enhanced service offerings.’
With its financial foundations strengthened, Safe Harbor this week launched its new platform, offering licenced cannabis operators everything from secure accounts, to payments support, cash logistics and detailed regulatory reporting services.
Mendez said the launch marked ‘a transformational moment for Safe Harbor and for the cannabis industry’, positioning the company as a multi-service financial platform, or the so-called ‘SoFi of cannabis’.
TILT Holdings Enters Restructuring, Signals Exit from Public Markets
As Safe Harbor solidifies its NASDAQ listing, Canadian operator Tilt Holdings has become the latest cannabis company to voluntarily exit the public markets.
On 7 November 2025, Tilt announced that it had entered into a restructuring support agreement with its senior secured noteholders and obtained an initial order under Canada’s Companies’ Creditors Arrangement Act (CCAA), marking the start of a wider formal turnaround process.
As part of the move, the company intends to delist from NASDAQ, CBOE Canada and the OTC market in the United States, cancel all existing equity interests and issue new shares to its creditors, opting to turn to private financiers.
The financial position underpinning the decision is stark. According to a Monitor’s pre-filing report filed with the court, TILT incurred a net loss of approximately $42 m for the period 1 January through 30 September 2025.
In the same report, it was noted that at 30 June 2025 the company had approximately 391.3 m common shares outstanding and a market capitalisation of around $2 m, underscoring the level of balance-sheet distress.
Alongside the restructuring plans, Tilt said it had secured a bridge-financing facility of up to $2m via senior secured promissory notes to ensure operational continuity.
Despite its financial issues, some of the holding company’s assets could be particularly valuable for the right buyer.
Jupiter Research, one of Tilt’s three subsidiaries focusing on vaping technology, has announced partnerships with two major European players this year, bringing the first EU-certified handheld liquid inhalation device to market.
In May, Curaleaf International announced that it had secured regulatory approval for the device, produced in partnership with Jupiter, enabling healthcare professionals to recommend the device across the EU, UK, Canada and Australasia.
Months later, Airo Brands, in partnership with both Jupiter and Europe’s Somai Pharmaceuticals, also received regulatory approval for its CE-marked Class IIa medical handheld liquid inhalation device across Europe and Australia.
Chief Executive Officer, Tim Conder, said in a press statement: “We recognise and understand this step impacts our current shareholders, myself included. Given continued pressure on capital markets and our existing debt profile, this path is both necessary and responsible to support the long-term health of the business.”
