- Canopy Growth (TSX:WEED) reported its financial results for Q4 and full fiscal year ended March 31, 2025
- Q4 FY2025 net revenue decreased 11 per cent year-over-year, primarily due to declines in international cannabis markets
- The company is concentrating on high-growth product segments such as pre-rolls, vapes, and high-THC flower
- Canopy Growth stock (TSX:WEED) last traded at C$2.36
Canopy Growth (TSX:WEED), a global cannabis and consumer packaged goods company, reported its financial results for Q4 and full fiscal year ended March 31, 2025. The company highlighted progress in debt reduction and operational efficiency, despite continued revenue pressures.
Financial highlights
- Q4 FY2025 net revenue: Decreased 11 per cent year-over-year, primarily due to declines in international cannabis markets and Storz & Bickel sales. However, Canadian cannabis revenue rose 4 per cent , driven by a 13 per cent increase in medical cannabis sales.
- FY2025 net revenue: Fell 9 per cent compared to FY2024. Excluding divested businesses, the decline was just 1 per cent, reflecting a more stable core business.
- Gross margin: Q4 FY2025 consolidated gross margin dropped 500 basis points to 16 per cent , while adjusted gross margin declined 200 basis points to 19 per cent . For the full year, gross margin improved by 300 basis points to 30 per cent , aided by cost-cutting and a shift toward higher-margin medical cannabis.
- Operating loss: Q4 FY2025 operating loss narrowed to $18 million, an 83 per cent improvement from the prior year. FY2025 operating loss was $117 million, down from $229 million in FY2024.
- Debt reduction: The company reduced its total debt by $293 million, or 49 per cent, over the fiscal year.
FY2026 outlook
Canopy Growth is sharpening its focus on profitability and operational execution. Key initiatives include:
- Global medical cannabis integration: Operations in Canada, Germany, Poland, and Australia have been unified under a single business unit to enhance product availability, patient access, and market responsiveness. The company aims to scale its EU-GMP certified supply and expand distribution through established medical channels.
- Refocused Canadian adult-use strategy: The company is concentrating on high-growth product segments such as pre-rolls, vapes, and high-THC flower. This targeted approach is expected to improve profitability and strengthen Canopy’s competitive position in the Canadian market.
Earnings miss
Canopy reported a quarterly loss of $0.94 per share, significantly wider than the Zacks Consensus Estimate of a $0.10 loss. This also compares unfavorably to a $0.28 loss per share in the same quarter last year. The company has now missed consensus EPS estimates for four consecutive quarters.
Class action lawsuit
A class action lawsuit has been filed against Canopy Growth Corp. that seeks to recover damages against the company for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Canopy securities. Canopy has been accused of making materially false and misleading statements regarding its business, operations, and prospects.
Management’s take
“Since taking over as CEO in January, we took decisive actions to accelerate growth and profitability by unifying our medical cannabis businesses globally, aligning operations with commercial focus, increasing rigor on core fundamentals and streamlining our product portfolio,” Luc Mongeau, Canopy’s CEO said in a news release. “With renewed focus and our resources dedicated to the most promising opportunities, I’m confident that our leading brands and product innovation pipeline can deliver meaningful growth and long-term value for both consumers and shareholders.”
About Canopy Growth
Canopy Growth Corp. delivers products with a focus on premium and mainstream cannabis brands, in addition to vaporizer technology made in Germany.
Canopy Growth stock (TSX:WEED) last traded at C$2.36. Though it has risen 27.57 per cent in the month of May, it has lost 40.10 per cent since the year began and 79.64 per cent since this time last year.
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