Key Points
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Trulieve and Cronos are both outperforming the S&P 500.
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Trulieve generated $74 million in first-half free cash flow.
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Cronos' second-quarter revenue rose 58% year over year.
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Cannabis stocks haven't exactly been the hottest corner of the market in 2026. But two names have quietly outpaced the S&P 500. Trulieve Cannabis (NYSE: TRLV) and Cronos Group (NASDAQ: CRON) have both gained roughly 27% this year through Sept. 18. By comparison, the S&P 500 is up about 12%. And unlike many cannabis rallies we've seen over the years, these gains haven't been driven entirely by speculation. Indeed, both companies have given investors some actual numbers to work with.
1. Trulieve Cannabis
Trulieve has undergone a major transformation this year. After the federal rescheduling of state-licensed medical marijuana to the less restrictive Schedule III, Trulieve restructured its business so that its consolidated operations consist of medical marijuana facilities. That helped clear the way for Trulieve to become the first U.S. cannabis company listed on the New York Stock Exchange in June.
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That alone could broaden the company's potential investor base and improve trading liquidity. But Trulieve also generates something many cannabis companies have struggled to produce consistently: cash.
Q2 revenue reached $271 million, with a gross margin of 60%. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) clocked in at $98 million, representing 36% of revenue. Trulieve also generated $109 million in operating cash flow and $74 million in free cash flow during the first half of 2026. It ended June with $325 million in cash.
It's worth noting that Trulieve isn't without risk. Q2 revenue did fall 10% year over year, although the comparison was affected by a restructuring. Cannabis also remains heavily regulated, and Trulieve's future growth will still depend partly on how the U.S. regulatory environment develops.
But a cannabis company generating real free cash flow, holding hundreds of millions of dollars in cash, and now trading on the NYSE looks very different from the speculative cannabis stocks that dominated the market several years ago.
2. Cronos Group
Cronos is delivering some impressive growth, too. Q2 net revenue jumped 58% year over year to a record $53 million. On a constant-currency basis, organic revenue increased 51%. Gross profit nearly doubled to $28.5 million, while gross margin expanded to 54% from 43% a year earlier.
The growth, however, isn't coming from just one market. In Canada, Cronos' Spinach brand maintained the No. 1 market-share position in both vapes and edibles during the quarter. In Israel, its Peace Naturals brand delivered its 10th consecutive quarter of record revenue, with sales increasing 60% year over year. Revenue from international markets outside Israel also reached a record, climbing 88%, led by demand in Germany.
Then there's the balance sheet. Cronos ended June with about $827 million in cash, short-term investments, and long-term interest-bearing deposits. That's an enormous financial cushion for a cannabis company.
Management is also returning some of that capital to shareholders. Cronos repurchased 12.3 million shares during the first half of 2026, reducing the number of shares outstanding while continuing to invest in international expansion.
As with Trulieve, there are risks here. Cronos remains exposed to cannabis pricing pressure and regulatory changes across multiple countries. Israel is also investigating allegations that Canadian producers are selling medical cannabis in the country at unfairly low prices, potentially hurting domestic growers.
A previous investigation ultimately resulted in no anti-dumping duty being imposed, but Israel launched a new investigation in August after producers filed another complaint. Cronos disputes the allegations, but warns that any future tariffs or import restrictions could hurt its Israeli business, which has become an important source of international growth.
Still, the operating trajectory has clearly improved. Cronos' revenue is rising at more than a 50% rate, expanding margins, gaining international traction, and sitting on more than $800 million in financial resources. Trulieve, meanwhile, is producing substantial free cash flow and has gained access to the NYSE.
With both stocks up significantly this year, the market is taking notice. But if these businesses continue to improve their financial performance, their 2026 rallies may have more behind them than another short-lived burst of cannabis enthusiasm.
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Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cronos Group. The Motley Fool has a disclosure policy.