NY Cannabis Hits First $500M Quarter

NEW YORK – New York’s legal Cannabis market set a new record by closing 2025 with its first quarter exceeding $500 million in sales, positioning the state for continued strong performance into 2026.

The Office of Cannabis Management (OCM) reported that total adult-use and medical sales reached $1.69 billion for 2025, approaching a $2 billion market when including cumulative figures since launch. Patrick McKeage, COO of the OCM, highlighted the momentum during a recent Cannabis Control Board meeting in Manhattan, stating that 2025 reflected a busy year in revenue growth.

Early 2026 data reinforce this trajectory. Sales in the first week of January totaled $127.1 million, a robust figure for what is typically a slower post-holiday period. At this pace, quarterly sales could surpass $500 million by the end of March. McKeage noted that the state has already sold more Cannabis in the initial three weeks of 2026 than in all of 2023, underscoring the program’s accelerating adoption.

The board approved 36 new licenses at the meeting: four for cultivation, 17 for retail, 13 for processing, and two final conditional adult-use retail dispensaries. Despite progress, backlogs persist. Applicants from the December 2023 queue await review, while 215 from November 2023 remain pending. The board has issued final licenses to 762 retail applicants from that November pool, though many outlets are not yet operational. An additional 2,704 prospective retailers from later periods are in process.

Compliance efforts continue, with 89% of operators now credentialed in the state’s seed-to-sale tracking system through Metrc. Retailers met a January 12 deadline for inventory entry, following an extended credentialing period originally set for December 12.

Officials are monitoring cultivation expansion to avoid oversupply. McKeage emphasized deliberate licensing to prevent market compression seen elsewhere, where excessive cultivation has led to aggressive price reductions by growers.

New York’s regulated market has expanded significantly, with over 500 dispensaries open by late 2025 and sales surpassing $2.5 billion cumulatively. This growth reflects broader consumer shift toward legal channels and supports thousands of jobs statewide.

As the industry matures, sustained retail openings and balanced supply management will likely determine whether New York maintains its upward sales path without the price pressures that have challenged other mature markets. The early 2026 indicators suggest the program is gaining stability, though careful oversight remains essential for long-term viability.

Image: Unsplash/Benjamin Ashton