Better Cannabis Growth Stock: Trulieve or Vireo Growth

Investing in the cannabis sector means navigating a fast-moving landscape of corporate restructurings, consolidations, and massive regulatory shifts. Trulieve Cannabis (NYSE: TRLV) and Vireo Growth (OTC: VREOF), formerly Goodness Growth Holdings, represent two fundamentally different approaches to the market: One is a massive, historic industry giant, while the other is a nimbler, mid-tier operator undergoing rapid consolidation.

Neither multi-state operator (MSO) has done particularly well so far this year, as far as their stocks are concerned. Trulieve's shares are up less than 2%, trailing the S&P 500 (SNPINDEX: ^GSPC) average of more than 9% growth this year. Vireo's shares are down more than 44%, including a 30-for-1 negative stock split on June 1.

Trulieve, despite its significant footprint of 206 dispensaries across 10 states, has been one of the more conservative cannabis stocks. To qualify for listing on the New York Stock Exchange, it deconsolidated its adult-use dispensaries into a separate subsidiary, Harvest, which has 34 dispensaries across four states.

Vireo Growth has, in recent years, lived up to its name, aggressively expanding through acquisitions. It has gone from just 36 dispensaries across six states to roughly 170 across 11 states.

Which is the better stock, now and in the long term? Let's take a look.

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Trulieve's new listing is a game changer

Trulieve executed a carve-out of its financial statements by legally splitting its medical-only business from its recreational-use business. This move made it the first U.S.-based MSO to be listed on a major stock exchange. This gives it unparalleled visibility among cannabis stocks.

Historically, institutional fund managers, pension funds, and major exchange-traded funds (ETFs) have been strictly barred from investing in U.S. multi-state cannabis operators because their stocks were listed only on the Canadian Securities Exchange (CSE) or on U.S. over-the-counter (OTC) markets. Trulieve's complex deconsolidation restructuring shattered this barrier.

By structuring its business to meet New York Stock Exchange guidelines, Trulieve unlocked access to deeper pools of institutional capital. As money managers seeking exposure to the U.S. cannabis market, Trulieve sits at the very top of a very short list, offering superior liquidity, higher trading volume, and structural valuation protection compared to OTC-listed peers.

Vireo is growing by buying distressed competitors

The company is aggressively swallowing distressed or regional assets at attractive valuations, which is having a quick impact. In the company's first-quarter earnings, it reported revenue of $106.2 million, up 333.5%, year over year. This massive jump vaulted it into the ranks of the top four largest U.S. cannabis companies by pro forma revenue. Its earnings per share (EPS) loss was unchanged from the first quarter of 2025 at $0.02.

Within just a few quarters, Vireo closed major acquisitions of Schwazze, establishing a major presence in Colorado and New Mexico, as well as Eaze, adding a powerhouse California retail and delivery infrastructure, and The Hawthorne Gardening Company, buying it from Scotts Miracle-Gro. If Vireo management can integrate this newly constructed empire and realize the corporate synergies the company has promised, the stock has immense room to rerate as a newly minted Tier-1 operator. It is a classic high-risk, high-reward consolidation play.

Trulieve is one of the safer cannabis investments

In the first quarter, Trulieve reported revenue of $287 million, down 4% year over year. EPS was $0.02, up from an EPS loss of $0.16 in the same period a year ago. Gross margin was 59%, down from 62% in the first quarter of 2025.

However, the company looks even more profitable going forward. If you strip out the company's adult-use sales and count only its medical-use revenue and expenses, it reported revenue of $214 million, EPS of $0.03, and a gross margin of 64%.

The choice is relatively easy

Cannabis has been a volatile industry in the U.S., which isn't surprising, as it is still in its infancy and federally illegal. However, Trulieve, as the largest medical marijuana operator, has some big advantages. Its large scale and low levels of debt compared to most of its competitors allows it greater flexibility in deciding how it can grow its business. The company is one of the few profitable cannabis retailers in the U.S.

Vireo, on the other hand, is taking some big swings, but that could also lead to big misses. At its current share price, some investors may be willing to take the risk on its potential, but there are safer bets in cannabis.

James Halley has no position in any of the stocks mentioned. The Motley Fool recommends Scotts Miracle-Gro. The Motley Fool has a disclosure policy.