Metrc

About Metrc

Metrc operates as a specialized provider of regulatory compliance systems for the legal cannabis market in the United States, offering a solution for tracking cannabis from seed to sale. The company was established in Lakeland, Florida, in 2014 by Jeff Wells, emerging from its parent company, Franwell. Wells, who co-founded Franwell in 1993, leveraged over three decades of experience in software development and more than 15 years in RFID technology to create Metrc. His background in developing track and trace solutions for the agricultural and pharmaceutical industries laid the groundwork for Metrc's application in the newly regulated cannabis sector. The initial system was developed in 2010 for Colorado's pioneering regulatory framework. Michael Johnson, who has a background in scaling high-growth technology businesses and is a certified Lean Six Sigma Black Belt, joined the company, initially as President and CFO, and was appointed CEO in May 2022. Wells then transitioned to the role of Chief Visionary Officer.

The company's business model is centered on securing exclusive government contracts to provide its track-and-trace system as the mandated regulatory tool for state agencies. Revenue is generated through a multi-tiered fee structure. State governments pay for data hosting, while licensed cannabis businesses, including growers, processors, testing labs, and dispensaries, pay a monthly software access fee. Additional revenue comes from the required purchase of the company's proprietary, serialized RFID tags for each plant and packaged product. This model ensures a recurring revenue stream tied to the scale of cannabis operations within each state it serves. As of early 2025, Metrc holds regulatory contracts in 28 jurisdictions and serves over 500,000 users.

Metrc’s core product is a comprehensive track-and-trace platform that combines a cloud-based software-as-a-service (SaaS) system with physical RFID tags. Each cannabis plant and subsequent product is assigned a unique identifier tag, which enables real-time monitoring throughout its entire lifecycle—from cultivation and harvesting to processing, testing, transport, and final retail sale. This detailed tracking provides regulators with complete supply chain visibility, helping to prevent diversion to illicit markets, ensure product safety through effective recalls, and verify tax compliance. The system is designed for scalability and can be configured to meet the specific regulatory requirements of each state. For third-party software vendors, such as point-of-sale or inventory management systems, Metrc provides an API that allows for data integration, enabling businesses to streamline their reporting and operational workflows.