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Canopy Growth Corporation (CGC) Reports Q3 Loss, Tops Revenue Estimates
ZACKS· 2025-02-07 14:21
Canopy Growth Corporation (CGC) came out with a quarterly loss of $0.76 per share versus the Zacks Consensus Estimate of a loss of $0.48. This compares to loss of $1.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -58.33%. A quarter ago, it was expected that this company would post a loss of $0.38 per share when it actually produced a loss of $0.95, delivering a surprise of -150%.Over the last four quarters, the company has ...
Canopy Growth(CGC) - 2025 Q3 - Quarterly Results
2025-02-07 12:06
Exhibit 99.1 Canopy Growth Reports Third Quarter Fiscal Year 2025 Financial Results Strong holiday sales drove Storz & Bickel net revenue growth of 19% year-over-year Record quarter for Canada medical cannabis with net revenue increasing 16%; international markets cannabis net revenue grew 14% year-over-year Successfully launched Claybourne infused pre-rolls across Canada, Claybourne rose to #3 market share in the infused pre-roll category in British Columbia and Ontario after 6 weeks in market 1 SMITHS FAL ...
Canopy Growth Reports Third Quarter Fiscal Year 2025 Financial Results
Prnewswire· 2025-02-07 12:00
Strong holiday sales drove Storz & Bickel net revenue growth of 19% year-over-year   Record quarter for Canada medical cannabis with net revenue increasing 16%; international markets cannabis net revenue grew 14% year-over-year    Successfully launched Claybourne infused pre-rolls across Canada, Claybourne rose to #3 market share in the infused pre-roll category in British Columbia and Ontario after 6 weeks in market1SMITHS FALLS, ON, Feb. 7, 2025 /PRNewswire/ - Canopy Growth Corporation ("Canopy Growth" or ...
Canopy Growth(CGC) - 2025 Q3 - Quarterly Report
2025-02-07 11:45
[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed interim consolidated financial statements for the period ended December 31, 2024, reflect decreased assets, a net loss, and the alleviation of going concern doubts through strategic financial actions [Condensed Interim Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Balance%20Sheets) As of December 31, 2024, total assets decreased to $1.16 billion, total liabilities significantly reduced to $572.7 million, and shareholders' equity increased to $591.5 million Consolidated Balance Sheet Highlights (in thousands of CAD) | Balance Sheet Item | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $161,909 | $170,300 | | Total current assets | $341,085 | $371,180 | | Total assets | $1,164,219 | $1,300,330 | | **Liabilities & Equity** | | | | Total current liabilities | $97,016 | $234,715 | | Long-term debt | $438,404 | $493,294 | | Total liabilities | $572,744 | $799,823 | | Total shareholders' equity | $591,475 | $500,507 | [Condensed Interim Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q3 2024, net revenue decreased 5% to $74.8 million, while net loss from continuing operations improved to $121.9 million, reflecting a similar trend for the nine-month period Q3 & Nine-Month Performance (in thousands of CAD, except per share data) | Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $74,761 | $78,505 | $203,964 | $224,358 | | Gross margin | $24,098 | $28,226 | $68,967 | $65,414 | | Operating loss from continuing operations | $(23,822) | $(60,316) | $(98,873) | $(121,975) | | Net loss from continuing operations | $(121,896) | $(230,276) | $(382,637) | $(389,007) | | Basic and diluted loss per share (Continuing ops) | $(1.11) | $(2.78) | $(4.15) | $(5.56) | [Condensed Interim Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended December 31, 2024, net cash used in operating activities improved to $132.6 million, while financing activities provided $164.6 million, leading to a net decrease in cash Cash Flow Summary (Nine months ended Dec 31, in thousands of CAD) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(132,598) | $(259,891) | | Net cash (used in) provided by investing activities | $(46,787) | $202,106 | | Net cash provided by (used in) financing activities | $164,618 | $(473,524) | | **Net decrease in cash and cash equivalents** | **$(8,391)** | **$(534,262)** | [Notes to the Condensed Interim Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) The notes detail accounting policies and significant events, including the alleviation of going concern doubts, deconsolidation of Canopy USA and BioSteel, and debt restructuring - Management concluded that substantial doubt about the Company's ability to continue as a going concern has been alleviated through balance sheet actions, cost-savings, and additional financing, including the ATM Program[31](index=31&type=chunk)[33](index=33&type=chunk) - Canopy Growth deconsolidated Canopy USA's financial results on April 30, 2024, to comply with Nasdaq listing rules, derecognizing **$384.7 million** in net assets and recognizing an equity method investment and loan receivable[54](index=54&type=chunk)[58](index=58&type=chunk)[72](index=72&type=chunk) - The BioSteel business unit was placed under CCAA proceedings and deconsolidated effective September 14, 2023, with its results now classified as discontinued operations[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - The company established an at-the-market (ATM) equity program in June 2024, selling **39.5 million** common shares for gross proceeds of **$256.0 million** during the nine months ended December 31, 2024[141](index=141&type=chunk)[142](index=142&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 FY2025 performance, noting a 5% net revenue decrease, reduced operating expenses, improved gross margin, and successful alleviation of going concern risk through strategic financial actions [Results of Operations](index=66&type=section&id=Results%20of%20Operations) Q3 FY2025 net revenue decreased 5% to $74.8 million, driven by divestitures, while operating expenses dropped 46% and Adjusted EBITDA loss improved to $3.5 million Q3 FY2025 Net Revenue by Segment (in thousands of CAD) | Segment | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Canadian adult-use cannabis | $21,153 | $23,490 | (10%) | | Canadian medical cannabis | $19,575 | $16,894 | 16% | | International markets cannabis | $12,024 | $10,527 | 14% | | Storz & Bickel | $22,009 | $18,453 | 19% | | This Works | $- | $8,165 | (100%) | | **Total Net Revenue** | **$74,761** | **$78,505** | **(5%)** | - Operating expenses for Q3 FY2025 decreased by **46%** to **$47.9 million** from **$88.5 million** in Q3 FY2024, driven by a **96%** reduction in asset impairment and restructuring losses and a **24%** decrease in SG&A[264](index=264&type=chunk) Adjusted EBITDA (Non-GAAP) Reconciliation (Q3, in thousands of CAD) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net loss from continuing operations | $(121,896) | $(230,276) | | Adjustments | $118,427 | $221,287 | | **Adjusted EBITDA** | **$(3,469)** | **$(8,989)** | [Financial Liquidity and Capital Resources](index=84&type=section&id=Financial%20Liquidity%20and%20Capital%20Resources) The company alleviated going concern doubts, reduced total debt to $441.6 million, and raised $256.0 million through its ATM program, improving free cash flow to a $140.3 million outflow - Management concluded that substantial doubt about the company's ability to continue as a going concern has been alleviated through balance sheet actions, including debt reduction and equity financing[314](index=314&type=chunk)[316](index=316&type=chunk) - Total debt was reduced by **$155.6 million**, from **$597.2 million** on March 31, 2024, to **$441.6 million** on December 31, 2024[333](index=333&type=chunk) - The company raised **$256.0 million** in gross proceeds from its ATM program and received **$68.3 million** from a convertible debenture exchange and subscription agreement in the nine months ended December 31, 2024[314](index=314&type=chunk)[317](index=317&type=chunk)[328](index=328&type=chunk) Free Cash Flow (Non-GAAP, in thousands of CAD) | Period | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(132,598) | $(205,961) | | Purchases of PP&E | $(7,724) | $(3,200) | | **Free cash flow** | **$(140,322)** | **$(209,161)** | [Quantitative and Qualitative Disclosures About Market Risk](index=94&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency exchange rates, interest rates, and equity prices, with hypothetical 10% USD and EUR changes impacting net assets by $9.4 million and $20.5 million respectively - A hypothetical **10%** change in the U.S. dollar against the Canadian dollar would affect net assets by approximately **$9.4 million**[358](index=358&type=chunk) - A hypothetical **10%** change in the euro against the Canadian dollar would affect net assets by approximately **$20.5 million**[358](index=358&type=chunk) - The company is exposed to equity price risk through its holdings of shares, warrants, options, and other financial assets and liabilities measured at fair value[365](index=365&type=chunk) [Controls and Procedures](index=97&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of December 31, 2024, the company's disclosure controls and procedures are effective[369](index=369&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[370](index=370&type=chunk) [PART II. OTHER INFORMATION](index=98&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=98&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing legal proceedings, including dismissed U.S. class actions, ongoing Canadian class actions, and an SEC investigation related to BioSteel - A U.S. securities class action related to BioSteel was dismissed with prejudice, and the subsequent appeal was voluntarily dismissed and closed as of October 9, 2024[375](index=375&type=chunk) - Putative class action lawsuits are ongoing in Ontario and British Columbia alleging misrepresentations in public disclosures[377](index=377&type=chunk)[379](index=379&type=chunk) - The company is subject to an ongoing SEC investigation following its self-reporting of an internal review of BioSteel Canada's financial reporting matters[381](index=381&type=chunk) [Risk Factors](index=100&type=section&id=Item%201A.%20Risk%20Factors) A material risk factor concerns Acreage Holdings, Inc.'s going concern doubts, which could negatively impact Canopy USA's operations and Canopy Growth's US$106 million debt investment - Acreage Holdings, Inc.'s financial statements express substantial doubt about its ability to continue as a going concern, posing a significant risk to Canopy USA's business and Canopy Growth's U.S. strategy[385](index=385&type=chunk) - Canopy Growth holds approximately **US$106 million** of Acreage's debt, subordinate to **US$65 million** owed to another lender, risking total loss if Acreage fails[387](index=387&type=chunk)[388](index=388&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=102&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period - No unregistered sales of equity securities occurred[390](index=390&type=chunk) [Defaults Upon Senior Securities](index=102&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - No defaults upon senior securities occurred[391](index=391&type=chunk) [Other Information](index=102&type=section&id=Item%205.%20Other%20Information) No director or officer reported adopting or terminating a Rule 10b5-1 trading arrangement during the third quarter of fiscal 2025 - No director or officer reported adopting or terminating a Rule 10b5-1 trading arrangement during the quarter[393](index=393&type=chunk) [Exhibits](index=102&type=section&id=Item%206.%20Exhibits) The report includes various exhibits filed with the SEC, such as corporate governance documents, CEO employment agreement, and required certifications - Exhibits filed include corporate governance documents, an employment agreement for CEO Luc Mongeau, and required CEO/CFO certifications[394](index=394&type=chunk)
Canopy Growth: Still A Disaster Heading Into Fiscal Q3 Results
Seeking Alpha· 2025-02-06 16:41
Group 1 - The article discusses the potential for investors to identify undervalued stocks that are mispriced by the market as February approaches [1][2] - It highlights the services offered by the investing group Out Fox The Street, which includes stock picks, model portfolios, daily updates, and community engagement [2] - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [3] Group 2 - The content serves as a reminder that past performance does not guarantee future results, and no specific investment recommendations are provided [4] - It clarifies that the analysts involved may not be licensed or certified, indicating a diverse range of authors contributing to the insights [4]
Canopy Growth Corporation (CGC) Rises As Market Takes a Dip: Key Facts
ZACKS· 2025-01-25 00:06
In the latest market close, Canopy Growth Corporation (CGC) reached $2.22, with a +0.91% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw a decrease of 0.5%.Heading into today, shares of the company had lost 22.54% over the past month, lagging the Medical sector's gain of 1.54% and the S&P 500's gain of 2.52% in that time.The investment community will be c ...
Canopy Growth to Report Third Quarter Fiscal 2025 Financial Results on February 7, 2025
Prnewswire· 2025-01-24 12:30
SMITHS FALLS, ON, Jan. 24, 2025 /PRNewswire/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NASDAQ: CGC) will release its financial results for the third quarter fiscal year 2025 ended December 31, 2024 before financial markets open on February 7, 2025.Following the release of its third quarter fiscal year 2025 financial results, Canopy Growth will host an audio webcast with Luc Mongeau, CEO and Judy Hong, CFO on February 7 at 10 AM Eastern Time (ET). Canopy Growth to Report ...
Canadian Marijuana Stocks To Watch To Close Out The Week
Marijuana Stocks | Cannabis Investments And News. Roots Of A Budding Industry.™· 2025-01-17 13:43
Marijuana Stock Picks In 2025 That Are In Position To RiseMarijuana stock investing in 2025 may be easier than you think. With a new year just getting started volatility could change to upward momentum. As 2025 is underway the chances to vote on bills and change the cannabis industry are upon us in the USA. In addition to other global regions looking to enter the space. What initially makes it easier is currently the sector is currently trading at low entry points.So with most of the top pot stocks showing ...
Canopy Growth Corporation (CGC) Stock Falls Amid Market Uptick: What Investors Need to Know
ZACKS· 2025-01-16 00:01
The most recent trading session ended with Canopy Growth Corporation (CGC) standing at $2.21, reflecting a -0.45% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.Coming into today, shares of the company had lost 27.21% in the past month. In that same time, the Medical sector lost 3.48%, while the S&P 500 lost 3.31%.The upcoming earn ...
Is Trending Stock Canopy Growth Corporation (CGC) a Buy Now?
ZACKS· 2025-01-09 15:01
Canopy Growth Corporation (CGC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this company have returned -18.9%, compared to the Zacks S&P 500 composite's -2.7% change. During this period, the Zacks Medical - Products industry, which Canopy Growth falls in, has lost 1.1%. The key question now is: What could be the stock's future direction?While m ...