Canopy Growth Today CGC Canopy Growth $6.88 +0.08 (+1.18%) 52-Week Range $2.76 ▼ $19.20 Price Target $4.53 Add to Watchlist Canopy Growth NASDAQ: CGC is one of the North American players in the cannabis industry. The company's shares have seen massive fluctuations since going public in 2014 under the name Tweed Incorporated. The company's value reached nearly $20 billion in early 2021 but now sits at just $575 million. That current valuation is despite the fact that over the last 12 months, shares are up 69 ...

Core Viewpoint - Tilray Brands has been expanding its operations and improving its financial performance, positioning itself as a more favorable investment compared to Canopy Growth in the cannabis industry [2][4][5]. Group 1: Company Strategies - Tilray Brands has diversified its business by expanding into the alcohol industry, acquiring beverage brands, and becoming a top craft brewer in the U.S. market [4]. - Canopy Growth's strategy is heavily reliant on the potential legalization of cannabis in the U.S., creating a special purpose vehicle, Canopy USA, to hold positions in U.S.-based businesses [3]. Group 2: Financial Performance - Tilray reported an adjusted gross margin of 53% in its alcohol business, compared to 40% in cannabis, and reduced its operating loss to $16.5 million from $90 million year-over-year, with net revenue growing by 25% to $229.9 million [5]. - Canopy Growth's operating loss for the three-month period ended June 30 was CA$29.1 million ($21.2 million), an improvement from CA$54.7 million in the prior-year period, but its revenue declined by 14% to CA$75.8 million [6]. Group 3: Investment Outlook - Despite both companies experiencing significant stock declines over the past three years, Tilray's expansion into alcohol may provide better future results and widen the gap with Canopy Growth [7]. - While Tilray is seen as a better investment option, there are still uncertainties regarding its long-term profitability and growth sustainability [8].

Newsflash: When marijuana is legalized, Americans will buy marijuana legally. Canopy Growth (CGC 1.89%) stock inched 3.2% higher through 10:35 a.m. ET Monday after marijuana news source Marijuana Moment reported on a new positive development for the (legalized) marijuana industry: According to cannabis telehealth platform NuggMD, most Americans now prefer to buy their weed from legal sources. The legal marijuana market There are caveats to this conclusion. As Marijuana Moment describes, NuggMD's survey focu ...

Key Takeaways Canopy Growth Corporation shares dropped Friday after reporting worse-than-expected earnings. Revenues came in 13% lower than a year earlier and net loss widened substantially. Canadian adult-use cannabis sales for the company decreased, offset by an increase in medical cannabis sales Canopy Growth Corporation (CGC) shares dropped Friday after the company's first-quarter fiscal 2025 earnings fell significantly short of expectations. The cannabis producer's revenue of 66.2 million Canadian doll ...

Canopy Growth (NASDAQ:CGC) is among the top Canada-based cannabis producers that investors are watching for clues on how the overall legal marijuana market is performing. Today's decline of more than 8% in CGC stock suggests continued weakness may be forthcoming. The cannabis producer reported revenue for the 2025 fiscal year of $75.8 million, which was down significantly from last year's total of more than $88 million. Even worse, Canopy reported that its net loss ballooned to $127.1 million, or $1.60 per ...

Financial Data and Key Metrics Changes - Canopy Growth achieved consolidated net revenue of CAD 66 million in Q1 FY 2025, a decrease of 13% year-over-year, or down 3% excluding divested businesses [16] - Consolidated gross profit dollars grew 67% year-over-year, with a gross margin of 35%, significantly up from 18% last year [16][17] - Adjusted EBITDA loss improved to CAD 5 million, a 77% improvement compared to the previous year, while free cash flow outflow was CAD 56 million, an improvement of CAD 52 million year-over-year [18][25] Business Line Data and Key Metrics Changes - Canadian cannabis net revenue was CAD 38 million, down 6% year-over-year, with the medical segment increasing 20% and adult-use down 22% [19] - International cannabis markets generated CAD 10 million in net revenue, down 1% year-over-year, with strong growth in Europe, particularly Poland [22] - Storz & Bickel revenue was CAD 18 million, up 2% year-over-year, with significant growth in Germany offset by declines in Australia [23] Market Data and Key Metrics Changes - The Canadian medical cannabis segment has shown six consecutive quarters of growth, driven by a better customer mix and product assortment [19] - The adult-use market in Canada is experiencing a decline due to supply constraints and competitive pressures [20] - International markets are focusing on growth in Germany and Poland, with plans to augment Canadian-grown flower with EU-based supply to meet demand [11][32] Company Strategy and Development Direction - The company is focused on achieving profitability through operational efficiency and prioritizing profitable revenue generation over market share [4][6] - Canopy USA is advancing its acquisitions and aims to leverage synergies from Jetty and Wana to enhance its market position [12][30] - The strategy includes an asset-light approach in Europe to optimize margins while expanding distribution [11][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's foundation and progress across operations, aiming for multimarket cannabis leadership [15] - The company anticipates modest revenue improvement in Q2, with stronger growth expected in the latter half of FY 2025 due to new product launches and improved distribution [32] - Management acknowledged ongoing supply challenges but is confident in the long-term growth potential of the medical cannabis segment [19][20] Other Important Information - The company reported a significant reduction in overall cost of goods sold by 31% and a 24% reduction in SG&A expenses year-over-year [6] - Canopy Growth has extended the maturity of its senior secured term loan to December 2026, with options for further extensions [28] - The company launched an at-the-market equity offering program of up to USD 250 million to support strategic growth initiatives [28] Q&A Session Summary Question: Canopy USA acquisition timing and financial disclosure - Management indicated that the acquisition of Wana is expected to close by the end of summer, with Acreage anticipated to close in spring 2025 pending state approvals [35][36] Question: Growth drivers in Canadian Medical Cannabis - Management highlighted strong execution and a focus on high-quality products as key drivers of growth in the medical segment, despite a stagnant overall market [40] Question: Supply dynamics in Canada and Europe - Management clarified that while there are supply constraints in Canada, they are working to optimize their supply chain and are confident in sourcing EU products to enhance margins [42][44]

分组1 - Canopy Growth Corporation reported a quarterly loss of $0.37 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.31, and compared to a loss of $0.40 per share a year ago, indicating a surprise of -19.35% [1] - The company posted revenues of $48.39 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 6.61%, and down from $80.95 million in the same quarter last year [2] - Canopy Growth shares have increased by approximately 35.4% since the beginning of the year, outperforming the S&P 500's gain of 11.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.27 on revenues of $52.49 million, and for the current fiscal year, it is -$1.07 on revenues of $218.28 million [7] - The Medical - Products industry, to which Canopy Growth belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Executive Summary & Highlights Canopy Growth reported significant Q1 FY2025 profitability improvements and balance sheet strengthening, with management expressing confidence in future growth [Q1 FY2025 Financial Highlights](index=1&type=section&id=Q1%20FY2025%20Financial%20Highlights) Canopy Growth reported significant Q1 FY2025 profitability improvements, including a 67% gross profit increase and 77% Adjusted EBITDA loss reduction, while strengthening its balance sheet | Metric (CAD millions) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | | Gross profit | $23.0 | $13.8 | +67% | | Consolidated gross margin | 35% | 18% | +1,700 bps | | Operating loss from continuing operations | $(29.1) | $(54.7) | +47% (improvement) | | Consolidated Adjusted EBITDA loss | $(5.3) | $(23.0) | +77% (improvement) | | Net revenue | $66.2 | $76.3 | -13% | | SG&A expenses | $48.0 | $62.8 | -24% | | Free Cash Flow outflow | $(55.7) | $(108.2) | +49% (improvement) | - Cash and short-term investments balance was **$195 million** at June 30, 2024, compared to **$203 million** at March 31, 2024[1](index=1&type=chunk) - Term Loan Amendment offers significant deleveraging potential of up to **US$200 million**, with an option for an additional **US$100 million** paydown, potentially saving up to **US$28 million** in annual interest expenses[4](index=4&type=chunk) - The maturity date was extended by **9 months** to December 18, 2026, with an option for further extension to September 18, 2027[4](index=4&type=chunk) [CEO & CFO Commentary](index=1&type=section&id=CEO%20%26%20CFO%20Commentary) CEO highlighted strengthening business fundamentals and profitable revenue generation, while CFO emphasized improved margins and expected consolidated positive Adjusted EBITDA in H2 FY2025 - CEO David Klein stated, "The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025"[1](index=1&type=chunk) - CFO Judy Hong noted significant improvements in **Gross Margins** and **Adjusted EBITDA**, along with reduced **SG&A expenses**, with all business units achieving positive Adjusted EBITDA in Q1 FY2025 and consolidated positive Adjusted EBITDA expected in H2 FY2025[1](index=1&type=chunk) Business Segment Performance The company's business segments showed mixed revenue performance, with Canada medical cannabis and Storz & Bickel growing, alongside strategic U.S. market expansion [Canada Cannabis](index=3&type=section&id=Canada%20Cannabis) Canada cannabis net revenue declined 6% due to lower adult-use sales, partially offset by a record 20% increase in medical cannabis revenue, with future growth anticipated | Metric (CAD millions) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | | Canada cannabis net revenue | $37.7 | $39.9 | -6% | | Canada medical cannabis net revenue | $18.8 | $15.6 | +20% | | Canadian adult-use cannabis net revenue | $18.9 | $24.3 | -22% | - Record quarter for Canada medical cannabis, driven by strong demand for Spectrum Therapeutics products and a broader assortment on the online platform[5](index=5&type=chunk) - Expected increase in Canada adult-use top line in coming quarters due to higher flower yields from Kincardine facility upgrades, increased pre-rolled production capacity, additional third-party suppliers, targeted wholesale pricing actions, and increased distribution[5](index=5&type=chunk) [International Markets Cannabis](index=4&type=section&id=International%20Markets%20Cannabis) International cannabis net revenue declined 1% with a 36% gross margin, driven by mixed regional performance and strong market share in Germany | Metric (CAD millions) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | | International markets cannabis net revenue | $10.1 | $10.2 | -1% | - International markets cannabis gross margin was **36%** in Q1 FY2025, up **200 bps** compared to Q1 FY2024[6](index=6&type=chunk) - Maintained top 4 market share in the Germany medical cannabis market, with prescriptions and volume increasing by over **20%** nationally post-legalization, and the Company is augmenting supply with EU-based sources[6](index=6&type=chunk) [Storz & Bickel](index=4&type=section&id=Storz%20%26%20Bickel) Storz & Bickel net revenue grew 2%, fueled by strong German sales and new products, with Australian regulatory changes creating new medical channel growth | Metric (CAD millions) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | | Storz & Bickel net revenue | $18.4 | $18.1 | +2% | - Strong growth in Germany, exceeding **100%**, contributed to revenue increase, along with sales of the Venty portable vaporizer (launched Q3 FY2024) and Mighty vaporizer[6](index=6&type=chunk) - Following regulatory changes in Australia's non-medical vaporizer channel, Storz & Bickel vaporizers are the only medically-certified whole flower vaporizers available for sale, expected to drive growth in the Australian medical channel[6](index=6&type=chunk) [Canopy USA](index=4&type=section&id=Canopy%20USA) Canopy USA expanded its U.S. cannabis presence by closing Jetty and Wana acquisitions, launching new products, and exercising the option to acquire Acreage Holdings - Canopy USA closed acquisitions of approximately **75%** of Jetty and two of three Wana entities (Wana Wellness, LLC and The CIMA Group, LLC), with the full acquisition of Wana expected by end of summer[7](index=7&type=chunk) - Wana Brands edibles launched in Connecticut and New York State, and the first three hemp-derived edibles were launched via partnership with Happi[7](index=7&type=chunk) - Jetty expanded its solventless vape product offering in California and launched high-THC infused pre-rolls in New York, maintaining its **1 share** of the national solventless vape market[7](index=7&type=chunk) - The option to acquire Acreage Holdings Inc. was exercised, with Canopy USA expecting to close its acquisition in the first half of calendar year 2025, and Acreage commenced non-medical cannabis sales in Ohio[7](index=7&type=chunk) Financial Review Canopy Growth's Q1 FY2025 financial review shows improved gross margin and reduced operating loss despite lower net revenue, with a strengthened balance sheet [Consolidated Statements of Operations](index=13&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 FY2025 saw a 13.1% net revenue decrease, yet gross margin improved 67.3% and operating loss narrowed 46.7%, though net loss significantly deteriorated | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :------------------------------------------------ | :-------- | :-------- | :--------- | | Revenue | 75,783 | 88,644 | -14.5% | | Excise taxes | 9,571 | 12,386 | -22.7% | | Net revenue | 66,212 | 76,258 | -13.1% | | Cost of goods sold | 43,181 | 62,496 | -30.9% | | Gross margin | 23,031 | 13,762 | +67.3% | | Operating loss from continuing operations | (29,108) | (54,652) | +46.7% (improvement) | | Other income (expense), net | (93,889) | 46,101 | Shift from income to expense | | Net loss from continuing operations | (129,191) | (10,569) | -1122% (deterioration) | | Net loss attributable to Canopy Growth Corporation | (127,138) | (38,121) | -233.5% (deterioration) | | Basic and diluted loss per share (continuing operations) | (1.63) | (0.19) | -757.9% (deterioration) | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets slightly decreased, total liabilities significantly reduced by 5.8% due to lower current debt, and shareholders' equity increased | Metric (CAD thousands) | June 30, 2024 | March 31, 2024 | Change (%) | | :--------------------- | :------------ | :------------- | :--------- | | Cash and cash equivalents | 192,156 | 170,300 | +12.8% | | Short-term investments | 2,766 | 33,161 | -91.7% | | Total current assets | 357,793 | 371,180 | -3.6% | | Total assets | 1,286,228 | 1,300,330 | -1.1% | | Current portion of long-term debt | 2,457 | 103,935 | -97.6% | | Total current liabilities | 166,599 | 234,715 | -29.0% | | Long-term debt | 558,489 | 493,294 | +13.2% | | Total liabilities | 753,305 | 799,823 | -5.8% | | Canopy Growth Corporation shareholders' equity | 532,923 | 500,507 | +6.5% | [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2025 saw a 51.2% improvement in operating cash outflow, a shift to investing cash outflow, and a substantial financing cash inflow from share issuance and debt | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change | | :------------------------------------------------ | :-------- | :-------- | :----- | | Net cash used in operating activities - continuing operations | (51,780) | (106,219) | +51.2% (improvement) | | Net cash (used in) provided by investing activities - continuing operations | (43,186) | 142,385 | Shift from inflow to outflow | | Investment in other financial assets | (95,335) | (472) | -20100% | | Net cash provided by (used in) financing activities | 105,775 | (133,110) | Shift from outflow to inflow | | Proceeds from issuance of common shares and warrants | 53,854 | - | N/A | | Issuance of long-term debt and convertible debentures | 68,255 | - | N/A | | Net increase (decrease) in cash and cash equivalents | 21,856 | (143,741) | Shift from decrease to increase | | Cash and cash equivalents, end of period | 192,156 | 533,266 | -63.9% | Non-GAAP Measures Reconciliation This section reconciles key non-GAAP financial measures, highlighting significant improvements in adjusted gross margin, adjusted EBITDA, and free cash flow [Adjusted Gross Margin Reconciliation](index=15&type=section&id=Adjusted%20Gross%20Margin%20Reconciliation) Adjusted gross margin percentage significantly improved to 35% in Q1 FY2025 from 18% in Q1 FY2024, aligning with reported gross margin | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change | | :--------------------- | :-------- | :-------- | :----- | | Net revenue | 66,212 | 76,258 | -13.1% | | Gross margin, as reported | 23,031 | 13,762 | +67.3% | | Adjusted gross margin | 23,031 | 13,762 | +67.3% | | Adjusted gross margin percentage | 35% | 18% | +1700 bps | [Adjusted EBITDA Reconciliation](index=17&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA loss significantly narrowed by 77% to $(5.3) million in Q1 FY2025, reflecting effective cost reduction and improved gross profit | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change | | :--------------------- | :-------- | :-------- | :----- | | Net loss from continuing operations | (129,191) | (10,569) | -1122% | | Adjusted EBITDA | (5,280) | (22,986) | +77.0% (improvement) | [Free Cash Flow Reconciliation](index=18&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow outflow from continuing operations improved by 48.5% to $(55.7) million in Q1 FY2025, driven by reduced net cash used in operating activities | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change | | :------------------------------------------------ | :-------- | :-------- | :----- | | Net cash used in operating activities - continuing operations | (51,780) | (106,219) | +51.2% (improvement) | | Purchases of and deposits on property, plant and equipment - continuing operations | (3,920) | (1,946) | -101.4% | | Free cash flow - continuing operations | (55,700) | (108,165) | +48.5% (improvement) | [Segmented Gross Margin and Adjusted Gross Margin Reconciliation](index=19&type=section&id=Segmented%20Gross%20Margin%20and%20Adjusted%20Gross%20Margin%20Reconciliation) Canada cannabis gross margin significantly improved to 32%, international markets maintained 36%, and Storz & Bickel saw a slight decrease to 40% | Segment (CAD thousands) | Q1 FY2025 Net Revenue | Q1 FY2025 Gross Margin % | Q1 FY2024 Net Revenue | Q1 FY2024 Gross Margin % | | :---------------------- | :-------------------- | :----------------------- | :-------------------- | :----------------------- | | Canada cannabis | 37,678 | 32% | 39,893 | (1%) | | International markets cannabis | 10,082 | 36% | 10,162 | 34% | | Storz & Bickel | 18,452 | 40% | 18,073 | 43% | | This Works | - | 0% | 6,017 | 48% | | Other | - | 0% | 2,113 | (3%) | Company Information & Forward-Looking Statements This section provides webcast and contact details, an overview of Canopy Growth's business and U.S. strategy, and a comprehensive disclaimer regarding forward-looking statements and associated risks [Webcast and Contact Information](index=6&type=section&id=Webcast%20and%20Contact%20Information) This section provides details for the Q1 FY2025 conference call and audio webcast, including access links and contact information - A conference call and audio webcast with CEO David Klein and CFO Judy Hong was scheduled for August 9, 2024, at **10:00 AM Eastern Time**[10](index=10&type=chunk) - Live audio webcast available at: https://app.webinar.net/Lm5q6QW1Apv, with a replay accessible until November 7, 2024[10](index=10&type=chunk) - Contact information provided for Nik Schwenker (VP Communications) and Tyler Burns (Director, Investor Relations)[10](index=10&type=chunk) [About Canopy Growth](index=6&type=section&id=About%20Canopy%20Growth) Canopy Growth is a global cannabis leader focused on innovative products, premium brands, Storz & Bickel technology, and building a U.S. THC market ecosystem - Canopy Growth is a world-leading cannabis company dedicated to improving lives through innovative products and premium/mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space[10](index=10&type=chunk) - The company features category-defining vaporizer technology made in Germany by Storz & Bickel[10](index=10&type=chunk) - Canopy Growth has established Canopy USA to capitalize on U.S. THC market opportunities, holding unconsolidated, non-controlling interests in Jetty Extracts, Wana Brands, and Acreage Holdings[10](index=10&type=chunk)[11](index=11&type=chunk) [Notice Regarding Forward-Looking Statements](index=7&type=section&id=Notice%20Regarding%20Forward-Looking%20Statements) This disclaimer highlights that the press release contains forward-looking statements subject to inherent risks and uncertainties, cautioning against undue reliance - The press release contains "forward-looking statements" that predict or describe future operations, business plans, strategies, and investment performance, identified by terms such as "intend," "expect," "will," and "should"[12](index=12&type=chunk) - Readers are cautioned not to place undue reliance on these statements, as actual results or outcomes may differ materially due to inherent risks and uncertainties, many of which are beyond the company's control[12](index=12&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) - Key risks include, but are not limited to, changes in laws and regulations, impairment losses, debt refinancing, the impacts of the Canopy USA strategy, timing and outcome of acquisitions (e.g., Acreage, Wana), ability to maintain effective internal control, competitive conditions, and various operational and market-related factors[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk)

Core Insights - Canopy Growth Corporation reported a 67% increase in gross profit year-over-year, achieving a gross profit of $23 million in Q1 FY2025 despite a decline in consolidated net revenue [3][4][5] - The company demonstrated significant improvements in financial metrics, including a 47% reduction in operating loss from continuing operations and a 77% improvement in consolidated Adjusted EBITDA loss [3][7][8] - The company is focused on profitable revenue generation and is well-positioned for growth in the U.S. cannabis market through its subsidiary, Canopy USA [4][12][19] Financial Performance - Consolidated net revenue decreased by 13% to $66.2 million in Q1 FY2025, primarily due to the impact of divested businesses [6][7] - The gross margin increased by 1,700 basis points to 35%, driven by improvements in the Canada cannabis segment and cost savings initiatives [7][8] - Operating loss from continuing operations was $29 million, a 47% improvement compared to Q1 FY2024, while Adjusted EBITDA loss narrowed to $5 million [3][6][7] Segment Performance - Canada cannabis segment net revenue was $38 million, a decrease of 6% year-over-year, with medical cannabis net revenue increasing by 20% [8][9] - International markets cannabis net revenue declined by 1%, with growth in Poland offset by a decline in Australia [9][10] - Storz & Bickel net revenue increased by 2%, driven by strong sales in Germany and the introduction of new products [10][11] Strategic Initiatives - The company extended the maturity of its senior secured term loan to December 18, 2026, with an option to extend further to September 18, 2027, enhancing financial flexibility [2][5][7] - Canopy USA is advancing its market position through acquisitions and product launches, including the introduction of Wana Brands edibles in Connecticut and New York [12][19] - The company is actively working to strengthen its balance sheet and reduce debt, with significant deleveraging actions planned [7][8][9]