Green Thumb Industries CEO Ben Kovler didn’t hold back during a recent earnings call, delivering a grim outlook on federal marijuana reform and taking direct aim at U.S. agencies he sees as obstacles to progress. His remarks painted a picture of an industry frustrated by bureaucratic delays and shifting political priorities.
Federal Reform? Don’t Hold Your Breath, Says Kovler
Kovler wasn’t optimistic about cannabis policy changes at the national level. Speaking to analysts on February 26, he made it clear that he doesn’t expect much movement under the Biden administration.
“At the moment, it’s hard to think anything will fundamentally change given the new administration’s appointees who seem to be descendants of the ‘Just Say No’ campaign of the ’80s and early ’90s,” he said.
That was a direct reference to the Reagan-era war on drugs, which led to harsh penalties for marijuana-related offenses. Kovler suggested that history is repeating itself, with key officials in the Biden administration showing little interest in meaningful cannabis reform.
One name he specifically called out? Health Secretary Robert F. Kennedy Jr.
Kennedy’s Flip-Flop on Cannabis Raises Questions
Kennedy’s stance on marijuana policy has shifted dramatically in recent months. Initially, he appeared supportive of reform efforts, but he later deferred to the U.S. Justice Department and Drug Enforcement Administration (DEA). That change of heart didn’t sit well with Kovler.
“We think the DEA is corrupt and misguided and out to lunch,” he said during the call.
It’s a strong statement, but not an uncommon sentiment in the cannabis industry. Many believe the DEA has resisted reform efforts, despite growing public support for legalization. The agency’s role in delaying the rescheduling of marijuana—a move that would reduce federal restrictions—has only fueled frustration.
Green Thumb’s Strategy: Ignore the Feds and Focus on Consumers
Despite the policy uncertainty, Green Thumb Industries isn’t slowing down. The company reported record revenue and earnings in the fourth quarter of 2024, proving that the legal cannabis market remains strong even without federal reform.
- Fourth-quarter revenue: $294.3 million, up 5.8% from the same period in 2023
- Adjusted EBITDA: $97.8 million, or 33.2% of revenue
- Net income: $12.7 million, up from $3.2 million a year earlier
For the full year, total revenue climbed 7.8% to $1.1 billion. Net income more than doubled to $73.1 million, a 101% increase from 2023.
Kovler made it clear that Green Thumb isn’t waiting on Washington to dictate its future.
“As we’ve said from the beginning though, we have set ourselves up to succeed regardless of what does or does not happen at a federal level,” he said. “Our North Star continues to be the American consumer.”
Expansion Continues Despite Political Uncertainty
Green Thumb Industries has been expanding aggressively, opening 10 new Rise stores in 2024. That retail growth has helped drive the company’s financial success, even as the regulatory landscape remains unpredictable.
The U.S. cannabis industry is in a strange limbo—state-level markets continue to flourish, but federal legalization remains elusive. Companies like Green Thumb are adapting by focusing on state-by-state expansion rather than waiting for a national policy shift.
For now, Kovler seems content with staying the course, even if it means going against the grain. “Being on an island away from our peers is welcome over here, no problem,” he said.
But if federal reform remains stalled, the bigger question is: How long can the industry keep thriving in a divided legal landscape?