June 2026 Cannabis Stock Watchlist: Growth Opportunities Ahead
The cannabis industry continues to evolve in 2026. While many marijuana operators face challenges, several supporting businesses are finding new opportunities. These companies benefit from industry growth without directly selling cannabis products. As a result, many investors view them as lower-risk ways to gain exposure to the sector.
The legal cannabis market in the United States remains one of the fastest-growing industries. More states continue expanding medical and adult-use programs. Additionally, lawmakers continue discussing potential federal reforms. Although uncertainty remains, long-term industry trends still point toward growth. Consequently, many investors are searching for companies that can benefit from increasing cultivation and consumer demand.
Ancillary cannabis companies play an important role in the industry. These businesses provide equipment, supplies, nutrients, lighting systems, and gardening products. Therefore, they can generate revenue from cannabis expansion regardless of which operators gain market share. Furthermore, they often avoid many regulatory challenges that directly impact marijuana producers and retailers.
During the past two years, cannabis-related stocks faced significant pressure. Higher interest rates and slower industry growth created headwinds. However, many companies responded by reducing costs and improving operational efficiency. As a result, several businesses entered 2026 with stronger balance sheets and better profit margins.
Investors are now looking for signs of recovery across the cannabis supply chain. Companies with strong brands, healthy finances, and expanding market opportunities may be positioned to benefit. Additionally, businesses focused on profitability could attract increased investor attention if industry conditions improve.
In this article, we examine three marijuana-related stocks worth watching in June 2026. These companies include GrowGeneration Corporation, Hydrofarm Holdings Group, and Scotts Miracle-Gro Company. Each offers a unique way to participate in the cannabis industry’s long-term growth potential. Moreover, all three have recently taken steps to strengthen operations and improve financial performance as market conditions continue to evolve.
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- GrowGeneration Corporation (NASDAQ: GRWG)
- Hydrofarm Holdings Group (NASDAQ: HYFM)
- Scotts Miracle-Gro Company (NYSE: SMG)
GrowGeneration Corporation (NASDAQ: GRWG)
GrowGeneration is one of the largest hydroponic and cultivation supply companies serving the cannabis industry. The company operates a network of specialty retail stores across the United States. These locations provide nutrients, lighting systems, environmental controls, and cultivation equipment. GrowGeneration also serves commercial cannabis cultivators through its business-to-business division.
The company’s largest presence is in major cannabis markets, including California, Colorado, Michigan, and Oklahoma. Over the past few years, management has streamlined operations and reduced its retail footprint. Today, the company operates approximately 19 retail and distribution locations nationwide. The focus has shifted toward profitability and proprietary brands.
Additionally, GrowGeneration continues expanding its private-label product portfolio. These products generally produce higher margins than third-party offerings. The company also benefits from exposure to cultivation trends without directly touching the cannabis plant. Therefore, it avoids many of the regulatory challenges faced by plant-touching operators.
Financially, GrowGeneration showed meaningful improvement during 2025 and early 2026. Full-year 2025 revenue totaled approximately $161.7 million. Although sales declined year over year, profitability metrics improved significantly. Gross margin expanded to 26.8% from 23.1% during the prior year. Furthermore, proprietary brand sales increased as a percentage of total revenue.
The company also substantially reduced its annual net loss. Management reported a 2025 net loss of roughly $24 million. That represented a major improvement from the previous year. Operating expenses declined significantly as restructuring efforts gained traction.
During the first quarter of 2026, revenue reached approximately $38.4 million. The quarterly loss narrowed further as commercial sales improved. Moreover, management expects a return to positive adjusted EBITDA during parts of 2026. The company ended 2025 with more than $46 million in cash and no debt. That strong balance sheet provides flexibility while cannabis cultivation markets recover.
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Hydrofarm Holdings Group (NASDAQ: HYFM)
Hydrofarm is another major supplier of cultivation equipment and hydroponic products. The company serves both cannabis growers and controlled-environment agriculture customers. Its portfolio includes lighting systems, nutrients, growing media, climate controls, and cultivation accessories.
Unlike traditional cannabis operators, Hydrofarm does not own dispensaries. Instead, the company supplies thousands of cultivation businesses across North America. Its products reach growers through wholesale distribution channels and direct sales networks. The company serves more than 1,800 customer accounts throughout the United States and Canada.
Hydrofarm’s largest concentration of business comes from legal cannabis cultivation markets. These include California, Michigan, Colorado, and several emerging states. The company has spent recent years restructuring operations and reducing costs. Consequently, management is focused on stabilizing margins and preserving liquidity.
Additionally, Hydrofarm continues to emphasize proprietary brands. These brands generate stronger profitability and help differentiate the company from competitors. While industry conditions remain challenging, management believes demand will improve as cannabis markets mature.
Financial performance remained difficult throughout 2025 and early 2026. Full-year 2025 revenue declined to approximately $134.3 million. Industry oversupply and reduced cultivation activity pressured demand across many markets. As a result, sales fell significantly from the prior year.
The company reported a sizable net loss during 2025. Much of that loss stemmed from impairment charges and restructuring activities. However, adjusted EBITDA improved compared with prior periods. Gross margins also showed signs of stabilization.
During the first quarter of 2026, revenue totaled approximately $28.5 million. Net sales declined again compared with the prior year. Nevertheless, management reduced operating expenses and improved cash flow metrics. Hydrofarm also completed major manufacturing consolidation initiatives. These efforts should lower costs going forward. Investors will be watching closely for signs that cultivation spending begins recovering during the second half of 2026.
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Scotts Miracle-Gro Company (NYSE: SMG)
Scotts Miracle-Gro is best known for lawn and garden products. However, the company also owns Hawthorne Gardening, a leading supplier to the cannabis cultivation industry. Hawthorne sells hydroponic equipment, lighting systems, nutrients, and environmental controls.
The Hawthorne division became one of the earliest large-scale suppliers to commercial cannabis cultivators. Its products are used throughout major cannabis states, including California, Michigan, Colorado, and Illinois. Unlike many cannabis businesses, Scott’s benefits from diversified revenue streams. Therefore, it is not entirely dependent on the marijuana industry’s performance.
Hawthorne remains one of the most recognized brands serving professional cannabis growers. The division has spent the past few years streamlining operations and focusing on higher-margin products. Additionally, management has explored strategic alternatives for Hawthorne as the cannabis market evolves.
Investors seeking cannabis exposure often overlook Scotts Miracle-Gro. However, the company’s cannabis-related operations provide indirect exposure with lower overall risk. That combination makes the stock attractive for conservative investors.
Financially, Scotts delivered strong fiscal 2025 results. Company-wide sales reached approximately $3 billion. Adjusted earnings improved significantly as consumer lawn and garden demand remained resilient. Furthermore, operating margins expanded during the year.
The Hawthorne segment generated approximately $274 million in fiscal 2025 sales. Although demand for cannabis cultivation remained below peak levels, profitability improved through cost reductions and product mix improvements. Management continued emphasizing premium products and operational efficiency.
Looking ahead, Scotts expects continued earnings growth during fiscal 2026. Management forecasts low single-digit sales growth and stronger cash generation. Additionally, the company projects adjusted earnings growth compared to the previous year. While cannabis markets remain challenging, Hawthorne appears positioned for gradual improvement. As a result, Scotts offers investors a unique way to gain exposure to long-term growth in the cannabis industry while maintaining diversification through its core consumer business.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
