How to Read a Cannabis COA (California, 2025 Update)

At SQRD Lab, one of the most common questions we hear from cultivators, manufacturers, and even consumers is: “How do I actually read this COA?”

A Certificate of Analysis (COA) is the official lab report for a cannabis batch, and in California it’s required by law before products reach the market. Understanding it is key not only for compliance, but also for building consumer trust and brand reputation. Below we’ll break down the essentials—where to find potency, terpene data, and pass/fail flags—plus highlight recent changes in California testing rules.

What’s Inside a COA (and Why It Matters)

A COA summarizes all the testing performed on your batch. At SQRD Lab, every report follows California’s strict guidelines so you can be confident it will stand up to any regulatory review.

Tests you’ll see on every COA:

• Cannabinoids (THC, THCA, CBD, etc.) with Total THC and Total CBD clearly calculated
• Safety panels covering microbial impurities, mycotoxins, heavy metals, and pesticides
• Residual solvents & processing chemicals (for extracts and concentrates)
• Moisture content and water activity (to check freshness and prevent mold)
• Terpenes (optional, but highly valuable for marketing and consumer experience)

At SQRD, our COAs are designed to be clean, clear, and client-friendly—because your customers deserve transparency.

Potency: The Numbers Everyone Looks At

Cannabinoid potency is the most visible part of a COA. California requires the standardized formula:
Total THC = (THCA × 0.877) + THC

That “0.877” factor accounts for decarboxylation. You’ll also see dry-weight percentages, which allow fair comparisons across flower samples.

👉 Pro tip from SQRD: Always reference Total THC (not just THC) when you’re making claims on packaging or marketing. That’s the number regulators will check against.

The 10% Label Tolerance

Since 2024, California clarified that labels can be within ±10% of the COA’s cannabinoid percentage and still be compliant. That means if our COA says 26% Total THC, a label between 23.4% and 28.6% is acceptable.

This tolerance protects brands from minor variability while still preventing misleading claims.

Terpenes: Adding Dimension to Your COA

Terpene testing is optional, but we highly recommend it. Consumers increasingly want to understand the aroma and effect profile of a product, not just the THC %.

When clients request terpene analysis, SQRD Lab highlights the dominant compounds in both % and mg/g so your marketing team can communicate a product’s unique fingerprint with confidence.

Pass/Fail Flags: Protecting Compliance and Consumers

Every COA includes a pass/fail indicator for each test area. Here’s what to look for:

• Water Activity (Aw): Flower must be ≤ 0.65 to pass—critical for preventing microbial growth.
• Residual Solvents: Concentrates must meet strict action levels; every solvent we test is reported in µg/g.
• Pesticides, Heavy Metals, Mycotoxins, Microbial Impurities: Any exceedance = Fail. Products that fail cannot legally be sold.

Because SQRD Lab has a spotless compliance record, our partners trust that when we report a “Pass,” it means their product is truly market-ready.

Why Results Can Differ Between Labs (and What’s Changed)

We sometimes get asked: “Why does another lab’s COA show different numbers?”

A few factors explain this:

1. Sampling protocols: The state requires representative sampling from the batch. At SQRD, our technicians follow these protocols to the letter so your batch is fairly represented.
2. Moisture adjustments: Potency is reported on a dry-weight basis; moisture levels can affect results.
3. Standardized flower method: Since Jan 1, 2024, all labs must use California’s official method for testing dried flower and non-infused pre-rolls. This has reduced “lab shopping” for inflated THC results and made numbers more consistent across the industry.

Reading a COA: Quick Checklist

When reviewing a COA, here’s what to check:

• ✅ Batch ID matches the packaging
• ✅ Look at “Total THC” and “Total CBD” (these are the standardized figures)
• ✅ Check pass/fail results for safety panels (all must be “Pass”)
• ✅ Review moisture & water activity (especially for flower)
• ✅ Terpenes (if included): Note the top three compounds

At SQRD Lab, our reports are laid out so these checks are quick and intuitive. Many clients share them directly with their customers.

Why This Matters for Your Business

A COA isn’t just a compliance checkbox—it’s a trust document. It’s what regulators look at, what distributors rely on, and increasingly what consumers demand to see.

By working with a lab like SQRD, you’re not only protecting yourself from regulatory risk—you’re also building credibility for your brand. Our 48–72 hour turnaround, ISO/IEC 17025 accreditation, mean your COAs are fast, compliant, and defensible.

Final Word: Let’s Make Your COAs Work for You

At SQRD Lab, we believe COAs should do more than sit in a binder. They should empower you to:

• Market your products with confidence
• Reassure distributors and retail partners
• Give consumers the transparency they’re looking for

If you’d like help understanding your current COAs—or want to add terpene testing to your next batch—reach out to our team. We’ll walk you through the results, highlight your product’s strengths, and ensure every report keeps your brand compliant and competitive.