Cresco Labs Secures Conditional Medical Cannabis License in Texas

AUSTIN – Cresco Labs Inc. announced that the Texas Department of Public Safety had conditionally awarded it a license under the state’s Compassionate Use Program.

The vertically integrated permit, covering cultivation, processing and dispensing, applies to Public Health Region 5 in East Texas. It forms part of a second phase of expansion that brings the total new licenses authorized under House Bill 46 to 12. Nine companies received conditional approvals in December 2025, with Cresco Labs Texas LLC joining GTI Texas LLC, doing business as RISE Dispensaries in Region 9, and Texas Medica Collective LLC in Region 4.

Conditional status requires additional state review of financial records, background checks and compliance history before any final license issues. No cultivation or sales can begin until the department grants full approval, and each operator must open for business within 24 months or risk replacement from an eligibility list.

Texas maintains one of the more restrictive medical Cannabis frameworks in the country, limiting products to low-THC formulations for specific qualifying conditions. Patient enrollment in the Compassionate Use Registry reached roughly 135,000 by the close of 2025, a 32% increase from the prior year but still representing well under half a percent of the state’s nearly 31 million residents.

Cresco Labs, which operates cultivation and retail sites across eight states with both medical and adult-use programs, described the Texas entry as consistent with its preference for organic licensing over acquisitions. The company’s leadership pointed to its existing medical-market experience as preparation for serving patients in a state that has seen steady if gradual growth in registered users.

The award arrives as Texas lawmakers continue to adjust the program through HB 46, which broadened qualifying conditions and directed the issuance of additional licenses to improve geographic coverage. Two other large MSOs also secured conditional approvals in this latest round, suggesting the state’s selection process favors companies with established regulatory track records.

Developments like this showcase how well-established operators with solid compliance records and ample capital are gaining entry into conservative, medical-only states. As Texas remains a tightly controlled market with strict product regulations, near-term revenue will ultimately require swift establishment of compliant supply chains and meeting patient demand under state oversight. Yet, the state’s size and the program’s documented enrollment gains point to measured long-term potential for operators who execute efficiently. For now, the focus stays on clearing the final regulatory hurdles.