SNDL Inc. SNDL rose over 10% on Election Day at market close, following the release of its third-quarter earnings, reporting CA$236.9 million ($170.65 million) in revenue.

Although the company faced a slight decline in its liquor retail segment, its core cannabis operations showed strong growth.

SNDL’s record gross margin, positive cash flow and cash reserves of over CA$263 million with zero debt-fueled investor confidence.

In contrast, Trulieve Cannabis Corp. TCNNF saw an 8% decline in its stock, attributed to both its Q3 earnings report and what might be the boldest move in the cannabis industry so far, since the company has made a significant investment in Florida’s legalization campaign.

Reporting $284 million in revenue—a 3% increase year-over-year—Trulieve demonstrated operational strength with a gross margin of 61% and adjusted EBITDA of $96 million. However, the company allocated $48 million to support the Florida legalization ballot initiative, which weighed heavily on its finances. Total investment in Florida’s Amendment 3 amounts to nearly $90 million. Should voters approve recreational cannabis, Trulieve stands to benefit from its established presence, potentially reversing recent losses. However, a negative result could add strain to Trulieve’s finances.

Read Also: Trulieve’s Q3 Revenue Up Slightly Year-Over-Year, Net Loss Grows Amid $48M In Cannabis Legalization Support

Cannabis Stocks On Election Day

While SNDL’s resilient financials spurred a bullish reaction, Trulieve’s fortunes now rest on the outcome of Florida’s vote.

The general market is a different story.

The average daily change in cannabis stock prices in Benzinga’s watchlist on Tuesday is up approximately +2.34%, indicating a generally positive sentiment in the market for cannabis stocks.

Election day underscores the heightened stakes for the cannabis sector, with investors closely watching for both state-level outcomes and federal reform, which could set the stage for a massive shift in the cannabis landscape.

If true reform materializes, cannabis stocks could experience unprecedented growth, attracting institutional investors and stabilizing a historically volatile market. However, the complexity of the political landscape could lead investors to remain cautious until concrete legislative changes are enacted.

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