New York Cannabis Industry Reports Financial Losses

A survey of licensed operators highlighted significant profitability challenges across the state industry.

Updated on Sept. 21, 2026 in Employment

Bold flat-color editorial illustration featuring stacked industrial crates and a glass jar, representing the economic challenges of New York's cannabis sector. — A new industry survey finds that over half of licensed New York cannabis operators reported net financial losses in their most recent fiscal year. AI Illustration. Upload story photo >

Live Poll

Should the state mandate new wage boards for industries that are currently struggling to turn profits?

A new survey conducted by FTI Consulting reveals that 57 percent of participating licensed cannabis operators in New York reported net losses during their most recent fiscal year. Industry representatives are now urging Governor Kathy Hochul to veto legislation that would establish a minimum wage board for the sector.

Why it matters

The industry association contends that state-mandated wage boards would increase operating costs for already struggling businesses. They warn that such measures could lead to widespread closures and push more consumers toward the illicit cannabis market.

A survey of over 40 licensees showed 57 percent of respondents reported net losses, while 79 percent of those unprofitable operators have been losing money for an average of 15 months. The participating businesses collectively employ more than 1,400 people.

The players

Kathy Hochul

She is the Governor of New York and faces calls from the cannabis industry to veto proposed minimum wage board legislation.

FTI Consulting

This is a global business advisory firm that conducted the survey on profitability and wage trends among licensed cannabis operators.

The details

The report, which focused on independent businesses that make up over 90 percent of respondents, detailed salary ranges and workforce trends. While 43 percent of these companies reported growing their teams over the past year, the underlying financial data suggests that many are struggling to reach profitability.

2021: New York legalized marijuana through state law.
September 21, 2026: The FTI Consulting survey results were released.
Past 15 months: Average duration of financial losses for unprofitable operators.
Past year: Period tracked for workforce growth or decline.
Most recent fiscal year: Period for which profitability data was collected.

Macro View

The current struggle for profitability follows a pattern set by the 2021 Marijuana Regulation and Taxation Act, which legalized the industry but created a highly regulated market environment. Industry participants are now navigating a transition period similar to other states that have faced initial market maturation difficulties.

Consumers may face higher retail prices if industry operators are forced to pass increased wage costs onto the buyer. Residents should also note that potential business closures could impact local product availability as the industry continues to stabilize.

The takeaway

The data suggests that the majority of New York cannabis operators are currently operating at a net loss. This highlights the ongoing financial tension between regulatory mandates and the economic sustainability of emerging legal markets.