Cannabis Penny Stocks to Watch as U.S. Legalization Heats Up
The U.S. cannabis industry is growing rapidly. Legal sales are expected to reach $45 billion in 2025 alone. Additionally, the sector is projected to grow at a double-digit rate annually over the decade. Adult-use marijuana is now legal in nearly half of all U.S. states. Furthermore, tax revenues continue rising as more states launch legal markets. Job creation within the industry has surpassed many other sectors. As a result, investor attention has shifted toward undervalued marijuana penny stocks. These low-priced equities often carry more volatility. Therefore, using technical analysis is essential when trading them. Identifying key support and resistance zones can enhance entry and exit points. However, success also requires managing downside risk. Setting stop losses and controlling position size can help limit exposure. This week, traders are watching several names for breakouts. Industry growth, combined with policy momentum, may create short-term price action worth trading.
Federal Reform In 2025
Recently, several regulatory updates have sparked renewed interest in marijuana stocks. Some states are beginning adult-use sales for the first time. Meanwhile, others are expanding licenses and lowering cannabis taxes. Federal reform remains in discussion, with lawmakers debating potential rescheduling and banking access. As these headlines emerge, penny cannabis stocks tend to react quickly. For this reason, traders must stay informed and disciplined. Although the sector offers big upside potential, volatility can lead to fast losses. Therefore, charting clean technical setups becomes a key strategy. Traders should monitor moving averages, volume surges, and support zones. At the same time, proper risk management should never be ignored. Scaling in slowly and locking profits early can protect capital. When combined with market news and technical indicators, these strategies provide structure. With momentum building, now may be a smart time to track top-performing marijuana penny stocks.
As the U.S. cannabis industry continues to mature, investors are increasingly watching undervalued penny stocks for opportunity. With federal reform still pending, many multistate operators remain under pressure. However, some companies are quietly expanding footprints and improving fundamentals. Here are three penny marijuana stocks to keep an eye on this July.
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Top Marijuana Penny Stocks to Watch in July 2025
- Cansortium Inc. (OTC: CNTMF)
- Cresco Labs Inc. (OTC: CRLBF)
- Verano Holdings Corp. (OTC: VRNOF)
Cansortium Inc. (OTC: CNTMF)
Cansortium Inc., also known as Fluent, is a vertically integrated cannabis company. Its largest footprint is in Florida, where it operates more than 30 dispensaries. In addition, the company holds licenses and operates in Texas and Pennsylvania. Cansortium focuses on both medical and adult-use cannabis, depending on the market. Notably, Florida remains its core revenue driver. There, it benefits from consistent patient growth and favorable regulations. Cansortium also operates cultivation and processing facilities that support retail expansion. By controlling its supply chain, it maintains quality and brand consistency. The company has shown discipline in market selection. Rather than expanding everywhere, it focuses on profitable, limited-license states. As a result, it continues to grow while maintaining operational control. In July 2025, Fluent’s steady Florida expansion makes it a stock worth watching. Its strategy of focusing on high-return markets is gaining investor attention.
Latest Financials
In its Q1 2025 report, Cansortium posted revenue of $25.1 million. This represented a 9% year-over-year increase. Notably, Florida accounted for nearly 85% of total sales. Gross margins improved to 53%, driven by higher sales and lower production costs. In terms of profitability, adjusted EBITDA came in at $7.5 million. Net income was slightly negative, at a loss of $0.4 million. Still, the company has shown year-over-year improvement. Cash flow from operations was positive, at $2.2 million. Importantly, Cansortium continues to reduce its outstanding debt. As of March 2025, total liabilities fell under $55 million. This signals a move toward balance sheet health. Moreover, Fluent has committed to opening at least five more Florida stores this year. It also plans to re-enter the Texas market as regulations evolve. While still small, the company shows steady financial improvement. Investors should note its strong margins and disciplined expansion strategy.
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Cresco Labs Inc. (OTC: CRLBF)
Cresco Labs is one of the largest cannabis operators in the United States. It has active operations in 10 states and over 60 dispensaries. Illinois remains its largest market, both in terms of retail and cultivation. The company also operates in Pennsylvania, Ohio, Florida, and Arizona. Cresco owns and distributes several cannabis brands including Cresco, FloraCal, and Mindy’s Edibles. Its products are sold in its own Sunnyside dispensaries as well as through wholesale partners. With vertical integration in most of its markets, Cresco controls production, packaging, and distribution. This allows for consistent product quality and better margins. Recently, the company began restructuring efforts to streamline operations. It exited certain lower-margin markets to focus on core states. As a result, Cresco is tightening its business while expanding high-performance areas. It remains a leading name in U.S. cannabis despite being priced like a penny stock. July could offer a pivotal entry point.
Latest Financials
For Q1 2025, Cresco Labs reported revenue of $190 million. This was slightly down from the previous quarter. However, the company improved its gross margin to 50%, reflecting better operational efficiency. Adjusted EBITDA rose to $36 million, up 15% year-over-year. Net loss for the quarter came in at $4 million. This was significantly lower than losses posted in 2024. Cash flow from operations was $12 million, a positive sign. Cresco reduced SG&A expenses by focusing on fewer, more profitable states. As of March 2025, Cresco held $70 million in cash. Its total debt remained around $200 million. Management stated that capital expenditures would be reduced for the rest of the year. The goal is to preserve cash while maintaining revenue growth. Also, Cresco expects improved wholesale volumes in the second half. Its focus on branded products and retail margins may boost profitability moving forward.
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Verano Holdings Corp. (OTC: VRNOF)
Verano Holdings is a vertically integrated cannabis company with operations in 13 states. Its largest presence is in Florida, where it owns more than 70 dispensaries. Additionally, it operates in Illinois, New Jersey, and Pennsylvania. Verano runs stores under its Zen Leaf and MÜV brands. These dispensaries offer flower, vapes, edibles, and wellness products. Verano also maintains indoor and greenhouse cultivation facilities. Its supply chain spans growing, processing, and retail. The company emphasizes premium branding and product consistency. In Florida, it ranks among the top three operators by revenue. Moreover, Verano is expanding in New Jersey as adult-use sales accelerate. It also secured new licenses in Connecticut and Maryland. While its growth has been aggressive, Verano is now focused on efficiency. Leadership recently announced plans to slow new openings and focus on profitability. Even so, it remains one of the largest penny-tier cannabis names in the U.S. sector.
Latest Financials
In its Q1 2025 earnings report, Verano posted revenue of $238 million. This was a 6% increase from the prior quarter. Florida continued to lead in sales, followed by Illinois and New Jersey. Gross margins held steady at 52%. The company reported adjusted EBITDA of $78 million, showing strong operational performance. Net income was negative $2.5 million, though much improved from prior losses. Verano generated $18 million in operating cash flow. Management emphasized a renewed focus on cost controls. SG&A expenses dropped 8% year-over-year. As of March 2025, Verano held $60 million in cash and about $280 million in debt. It expects to reduce capital spending by 20% in 2025. Additionally, it is optimizing cultivation processes to lower COGS. New dispensary licenses in the Northeast are expected to support late-year revenue growth. Despite being undervalued, Verano’s financial trends continue to move in the right direction.
Cannabis Stocks on the Move
These three marijuana penny stocks—Cansortium (CNTMF), Cresco Labs (CRLBF), and Verano Holdings (VRNOF)—show improving fundamentals and expanding U.S. footprints. While risk remains in the sector, each of these operators is positioning for long-term success. July 2025 could be a pivotal month for investors to closely monitor these tickers. As always, proper technical analysis and risk management should guide any position entry.
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