Colorado has generated more than $1 billion by selling marijuana.
The state legalized weed in 2014. Since then, total sales have exceeded $6.56 billion, according to the state's department of revenue.
"Today's report continues to show that Colorado's cannabis industry is thriving, but we can't rest on our laurels," Colorado Gov. Jared Polis said in a statement on Wednesday. "We can and we must do better in the face of increased national competition. We want Colorado to be the best state for investment, innovation and development for this growing economic sector."
The marijuana industry is creating jobs in the state, with 2,917 licensed businesses and 41,076 individuals licensed to do such work, according to the department of revenue.
"We are committed to facilitating responsible innovation within this dynamic industry through continued engagement with our diverse group of stakeholders," Jim Burack, director of the Colorado Department of Revenue, said in a statement. "Colorado will continue to be known for its regulatory leadership."