General Cannabis (CANN) AI Stock Analysis

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General Cannabis

(Other OTC:CANN)

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Rating:39Underperform

Price Target:$0.02▲(6.25% Upside)

Action:reiterated

Date:07/31/26

The overall score of 39 reflects severe financial distress, a bearish technical outlook, and an unattractive valuation. The company's negative equity, persistent cash burn, and lack of profitability are the primary concerns. While there are slight improvements in operating profit and gross margin, they are insufficient to offset the substantial risks. The stock's price action confirms the negative sentiment, trading well below all major moving averages. Given these factors, the investment risk is very high.

Positive Factors

Operating profitability improvingEBIT turning positive in 2025 and sustained gross profit demonstrate material improvement in core unit economics. Durable margin recovery reduces cash burn risk, supports reinvestment or debt reduction, and increases the probability that the business can reach sustained profitability if revenue stabilizes.

Negative Factors

Negative shareholder equityNegative equity is a structural weakness that impairs financial flexibility and increases refinancing risk. It restricts access to conventional capital, can trigger covenant or counterparty issues, and typically forces dilutive issuances or costly debt solutions, affecting long-term solvency and strategy execution.

General Cannabis (CANN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.84M
Dividend Yield: ―
Average Volume (3M): 28.19K
Price to Earnings (P/E): -2.1
Beta (1Y): 0.51
Revenue Growth: ―
EPS Growth: ―
Country: US
Employees: 91
Sector: Healthcare
Sector Strength: 51
Industry: Drug Manufacturers - Specialty & Generic

General Cannabis Business Overview & Revenue Model

Company Description

Denver, Colorado-based Trees Corporation, founded in 2013, specializes in delivering products and services to both the regulated cannabis sector and general consumers throughout the United States. Its business activities are organized into distinct r...

How the Company Makes Money

null

General Cannabis Financial Statement Overview

Summary

Revenue declined 14.6% to $11.7M, though gross margin improved to 46.1% and operating profit turned positive. However, net loss persists, stockholders' equity is negative (-$3.9M), total debt exceeds assets, and cash flow remains negative. These indicate severe financial distress.

Income Statement

38Negative

Balance Sheet

12Very Negative

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	13.66M	11.67M	13.66M	18.14M	13.44M	5.93M
Gross Profit	5.82M	5.37M	5.45M	6.57M	4.87M	1.49M
EBITDA	849.74K	1.14M	900.75K	-1.64M	-2.84M	-6.60M
Net Income	-4.15M	-842.82K	-3.48M	-7.08M	-9.48M	-8.87M
Balance Sheet
Total Assets	20.76M	22.65M	20.76M	23.25M	31.69M	22.02M
Cash, Cash Equivalents and Short-Term Investments	214.33K	1.48M	214.33K	969.68K	2.58M	2.05M
Total Debt	17.31M	22.79M	17.31M	17.88M	22.54M	10.15M
Total Liabilities	23.84M	26.50M	23.84M	23.10M	25.29M	12.42M
Stockholders Equity	-3.07M	-3.93M	-3.07M	148.16K	6.41M	9.61M
Cash Flow
Free Cash Flow	-704.76K	-1.40M	-704.76K	-1.43M	-2.11M	-2.98M
Operating Cash Flow	-654.15K	-1.40M	-654.15K	-1.13M	-2.05M	-2.65M
Investing Cash Flow	-50.60K	55.92K	-50.60K	-304.42K	-1.95M	-978.74K
Financing Cash Flow	-50.59K	2.60M	-50.59K	-184.25K	4.53M	4.93M

General Cannabis Technical Analysis

Technical Analysis SentimentNegative

Last Price0.02

Price Trends

50DMA0.02Positive

100DMA0.02Negative

200DMA0.02Negative

Market Momentum

MACD-0.00Negative

RSI45.67Neutral

STOCH117.86Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CANN, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 117.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CANN.

General Cannabis Risk Analysis

General Cannabis disclosed 33 risk factors in its most recent earnings report. General Cannabis reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

General Cannabis Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

CANN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AQST	47Neutral	$448.71M	-6.11	255.11%	―	12.54%	8.82%
IXHL	43Neutral	$25.34M	-2.94	-12.40%	―	-100.00%	96.25%
YCBD	43Neutral	$4.40M	-1.22	-34.25%	―	10.01%	95.01%
CANN	39Underperform	$1.84M	-2.05	24.07%	―	―	―
IMCC	29Underperform	$911.06K	-0.02	841.81%	―	-11.91%	-285.26%

* Healthcare Sector Average

Performance Comparison

CANN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CANN	General Cannabis	0.02	-0.03	-61.90%
YCBD	Cbdmd INc	0.37	-0.23	-37.67%
AQST	Aquestive Therapeutics, Inc.	3.91	-1.91	-32.82%
IMCC	Im Cannabis Corp	0.57	-29.39	-98.10%
IXHL	Incannex Healthcare Limited Sponsored ADR	1.97	-8.21	-80.65%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Jul 30, 2026

General Cannabis AI Stock Analysis