Rescheduling cannabis to Schedule III removes IRS 280E tax burden, boosting profitability for multi-state operators like Green Thumb and Curaleaf.
The DEA’s rescheduling of cannabis to Schedule III eliminates IRS rule 280E, allowing companies to deduct standard business expenses. This change could sharply improve profitability for multi-state operators generating hundreds of millions in revenue.
Green Thumb Industries reported $1.2 billion in 2025 revenue and $348.4 million in normalized EBITDA, positioning it as a leader in the sector. Curaleaf Holdings also stands to benefit, though its financials trail Green Thumb’s scale. The rescheduling marks the first major regulatory shift for U.S. cannabis in decades.
Analysts expect the tax relief to translate into immediate free cash flow gains for both companies, though Green Thumb’s stronger balance sheet may offer a competitive edge.