OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
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Credit Tracker By Industry Sector
Credit Tracker By Sector
Credit ratings are not currently available for public cannabis companies leaving companies, lenders and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.
Week ended 08/08/2025
Weekly Sector Credit – Cultivation and Retail
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- The cannabis equity market is on fire! Stock prices, as measured by the MSOS ETF, are up over 40% in the last five trading days, and earnings reports were generally better than expected. Credit measures for the sector have improved accordingly.
- Median Debt to 2026 EBITDA didn’t change much at 2.01x on 8/11/25 vs 2.02x as on 8/1/25. Still, the figure continues to show that over half of the companies have sustainable leverage, even in a continuing 280E environment.
- The median total liabilities to market capitalization ratio has improved more significantly to 1.47x on 8/11/25 vs 1.92x on 8/1/25.
- Liquidity has actually deteriorated somewhat. Our bespoke, free cash flow-adjusted current ratio has a median value of only 0.84x as of 8/11/25, compared to 0.93x on 8/1/25. This impact is all related to the updated 2nd quarter financials. A median of under 1x indicates that more than half of the 71 companies we were able to measure will require additional funding during the next twelve months. Furthermore, this ratio is likely to deteriorate further toward the end of 2025 as 2026 debt maturities become current liabilities.
Week ended 08/08/2025
Weekly Sector Credit – Cultivation and Retail
-
- The cannabis equity market is on fire! Stock prices, as measured by the MSOS ETF, are up over 40% in the last five trading days, and earnings reports were generally better than expected. Credit measures for the sector have improved accordingly.
- Median Debt to 2026 EBITDA didn’t change much at 2.01x on 8/11/25 vs 2.02x as on 8/1/25. Still, the figure continues to show that over half of the companies have sustainable leverage, even in a continuing 280E environment.
- The median total liabilities to market capitalization ratio has improved more significantly to 1.47x on 8/11/25 vs 1.92x on 8/1/25.
- Liquidity has actually deteriorated somewhat. Our bespoke, free cash flow-adjusted current ratio has a median value of only 0.84x as of 8/11/25, compared to 0.93x on 8/1/25. This impact is all related to the updated 2nd quarter financials. A median of under 1x indicates that more than half of the 71 companies we were able to measure will require additional funding during the next twelve months. Furthermore, this ratio is likely to deteriorate further toward the end of 2025 as 2026 debt maturities become current liabilities.
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