Cannabis Industry Debt: The $6B Maturity Wall by 2026
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A $6 billion maturity wall is closing in on the U.S. cannabis market, with roughly $6 billion in debt coming due by the end of 2026. That timeline matters because the industry has relied on expensive, hard-to-refinance borrowing for years—and now the bill is due. If you’re an operator, lender, vendor, or investor, understanding cannabis industry debt is no longer optional: it’s a day-to-day risk management issue that could reshape who survives, who sells, and who consolidates.
Roughly $6 billion in U.S. cannabis debt comes due by the end of 2026, and the top five borrowers account for about $3.4 billion of that total. (Sources: Cannabis Industry Insights, MJBizDaily)
Cannabis industry debt in 2026: what’s coming due and who holds it
Multiple industry reports describe the same core problem: a concentrated wave of maturities. Cannabis Industry Insights calls it a “debt avalanche,” noting that about $6 billion comes due by the end of 2026, and that the top five multi-state operators (MSOs) hold about $3.4 billion of it.
MJBizDaily breaks out several of the largest upcoming maturities for the biggest MSOs, including the timing:
- Curaleaf Holdings: $460 million due in December 2026.
- Cresco Labs: $400 million due in August 2026.
- Trulieve Cannabis Corp.: $390 million coming due.
- Ayr Wellness: about $358 million coming due (MJBizDaily also separately cites $368 million maturing in 2026 in later coverage).
- Verano Holdings: about $350 million due in October 2026 (with broader debt figures also discussed in MJBizDaily’s follow-up reporting).
MJBizDaily also highlights why this concentration matters: when a handful of large borrowers face the same deadline, the refinancing market can tighten fast—especially in a sector already dealing with limited capital access and higher rates.
Why cannabis companies leaned so hard on debt (and why refinancing is hard)
The debt wall didn’t appear overnight. MJBizDaily reports that cannabis companies have been more reliant on borrowing because they lack access to traditional sources of capital. The same article notes that debt financing eclipsed equity as the cannabis industry’s preferred source of capital in 2022 (per MJBizDaily’s reporting), in part because rising interest rates and falling stock prices made equity raises less attractive for public operators.
Cost of capital and covenant pressure
Even when refinancing is possible, it may not be cheap. Cannabis Industry Insights notes that rates remain elevated for cannabis credits and that even successful refinancings are likely to come with higher pricing and tighter covenants. In practical terms, that can mean less flexibility to miss forecasts, slower expansion, and more lender oversight.
Growth assumptions can break when markets don’t open
Debt becomes more dangerous when growth stalls. MJBizDaily points to how major MSOs have “significant presences in Florida,” and ties recent pressure to the fact that an “enormously expensive push” to legalize adult-use cannabis there failed in November, eliminating what would have been a major near-term growth catalyst. (Source: MJBizDaily)
Cannabis Industry Insights adds another real-world headwind: local policy and permitting friction can slow store rollout, making debt service harder. One example cited is Somerville, MA’s nine-month extension of a moratorium on new Host Community Agreements, which restricts new retail entries. (Source: Cannabis Industry Insights)
How MSOs are responding: refinancing talks, restructurings, and asset sales
As maturities get closer, operators are taking different paths—some proactive, some forced.
Proactive refinancing discussions
MJBizDaily’s coverage of Verano offers a clear example of early action. The outlet reports that Verano has $403 million in debt, with $350 million due in October 2026. It also notes that Verano burned $19 million in cash in the first half of the year and that the company’s CFO said Verano is in proactive refinancing discussions ahead of the due date. (Source: MJBizDaily)
Restructuring and wind-down strategies
Other operators are choosing restructuring and asset liquidation. MJBizDaily reports that Ayr Wellness had $368 million in debt maturing in 2026 and announced a restructuring deal that includes selling licenses in eight states to satisfy lenders, followed by a wind-down of the remainder of operations. The same reporting notes Ayr previously announced plans to sell 97 stores across eight states. (Source: MJBizDaily)
Expect more consolidation and “asset churn”
Cannabis Industry Insights expects more sales of licenses, retail footprints, and cultivation assets, predicting that companies with stronger balance sheets will buy distressed assets at revised valuations. (Source: Cannabis Industry Insights)
This is one of the most important second-order effects of cannabis industry debt: even if the sector doesn’t “collapse,” ownership can change quickly as lenders push for recoveries and buyers look for bargain acquisitions.
The operational risks: “zombie” companies, uneven competition, and legal cost
The maturity wall creates risks beyond a single balance sheet. Cannabis Industry Insights warns about “zombie” operators—companies that keep serving customers while functionally insolvent, tying up capital and distorting competition until creditors force a resolution. (Source: Cannabis Industry Insights)
MJBizDaily also emphasizes the practical burden of working through these situations. One source quoted in its reporting warns that restructuring “is going to involve a significant investment of time and legal expenses,” and advises companies to “get some experts who have been through it before.” (Source: MJBizDaily)
Those points matter for day-to-day planning because they frame debt not just as a financing tool, but as a trigger for operational disruption: tighter vendor terms, delayed expansion, workforce cuts, and forced asset sales can all follow when creditors start driving decisions.
A practical playbook for operators, lenders, and vendors facing cannabis industry debt pressure
The reporting and expert commentary across the sources point to one theme: act early, and treat cannabis as a specialized restructuring environment.
1) Start lender conversations before you “have to”
Verano’s example shows why timing matters: MJBizDaily describes the company as a candidate for early negotiation given its cash burn and upcoming maturity, and notes the company is already in refinancing discussions. The lesson is simple: waiting can reduce options. (Source: MJBizDaily)
2) Build a cash-flow proof story (not a hype story)
MJBizDaily reports that it’s important for cannabis companies to demonstrate cash flow so investors can reasonably expect repayment. That standard is especially relevant when maturities are concentrated and lenders can be selective. (Source: MJBizDaily)
- Action step: Prepare a lender-ready package that focuses on near-term cash generation and downside scenarios, not just expansion plans that depend on new store openings or policy changes.
3) Be realistic about rates and covenants
Cannabis Industry Insights explicitly warns that cost of capital remains elevated and refinancings may come with tighter covenants. (Source: Cannabis Industry Insights)
- Action step: Stress-test your operating plan against stricter covenant headroom and limited growth optionality, especially if local permitting slows openings (as Cannabis Industry Insights illustrates with Somerville, MA).
4) Consider strategic asset sales early—before you’re forced
Both Cannabis Industry Insights and MJBizDaily show asset sales are becoming a core tool: Ayr’s sale of licenses and stores is part of a restructuring approach, and Cannabis Industry Insights expects more license and asset churn as stronger balance sheets buy distressed assets. (Sources: MJBizDaily, Cannabis Industry Insights)
- Action step: Identify non-core markets, underperforming retail footprints, or excess cultivation assets that could be sold to reduce leverage ahead of maturity dates.
5) Use cannabis-specialist advisors and service providers
Cannabis Industry Insights recommends partnering with experienced cannabis lenders, workout advisors, and restructuring counsel who understand licensing and regulatory terrain. MJBizDaily similarly emphasizes that the process takes time and legal expense and recommends experts who have done it before. (Sources: Cannabis Industry Insights, MJBizDaily)
6) Tighten receivables and collection systems (especially for vendors)
Debt stress often shows up first as slow pay. A cannabis-focused collections guide highlights tactics designed for this industry’s unique constraints, including invoice terms that trigger an automatic requirement to pay all outstanding invoices if one invoice is late, and creating internal risk scoring systems that consider market share, regulatory risk by jurisdiction, and product demand volatility. It also notes that specialized cannabis debt collection agencies can help recover debts while minimizing internal resource drain through contingency fee structures. (Source: Cannabiz Collects)
- Action step: Add clear late-payment triggers and escalation steps to your credit policy, and review customer risk using cannabis-specific factors (jurisdiction and regulatory risk, demand volatility, and market penetration).
Combined, these steps help companies manage cannabis industry debt pressure from both sides: what you owe (capital structure) and what you’re owed (receivables).
Frequently Asked Questions
How big is the cannabis industry debt maturity wall?
Industry reports cite roughly $6 billion in U.S. cannabis debt coming due by the end of 2026, with the top five borrowers accounting for about $3.4 billion. (Sources: Cannabis Industry Insights, MJBizDaily)
Which cannabis companies have major debt due in 2026?
MJBizDaily identifies major MSOs with large maturities, including Curaleaf ($460M due Dec 2026), Cresco ($400M due Aug 2026), Trulieve ($390M), Ayr (~$358M), and Verano (~$350M due Oct 2026). (Source: MJBizDaily)
What options do cannabis companies have if they can’t refinance?
MJBizDaily’s reporting on Ayr Wellness describes a restructuring approach that includes selling licenses in eight states and selling stores to satisfy lenders. Cannabis Industry Insights also expects more asset sales of licenses and facilities as stronger balance sheets pick up distressed assets. (Sources: MJBizDaily, Cannabis Industry Insights)
Why is refinancing cannabis debt still expensive?
Cannabis Industry Insights reports that rates remain elevated for cannabis credits and that even refinancings that do get done may carry higher pricing and tighter covenants. (Source: Cannabis Industry Insights)
How can vendors reduce risk when customers are under debt pressure?
A cannabis-focused debt collection resource recommends using strong payment terms (including triggers that accelerate payment of outstanding invoices), building internal risk scoring tailored to cannabis (jurisdiction risk and product demand volatility), and considering specialized cannabis debt collection agencies to improve recovery while limiting internal resource strain. (Source: Cannabiz Collects)
With maturities approaching, the clearest takeaway is that cannabis industry debt is no longer just a capital markets story—it’s an operating reality. Companies that engage early, prove cash flow, and plan for asset sales or restructuring will be better positioned as the 2026 deadline approaches. (Sources: MJBizDaily, Cannabis Industry Insights)
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