Canopy Growth Earnings: Operating Loss Slashed 61% as Medical Cannabis Surges – StockTitan

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Canopy Growth (CGC) reported Q3 FY2025 financial results, with net revenue of $74.8 million, representing a 5% decrease year-over-year. However, excluding divested businesses, net revenue increased 8% driven by growth in medical cannabis and Storz & Bickel segments.
Key highlights include: Storz & Bickel revenue grew 19% year-over-year to $22 million; Canada medical cannabis revenue increased 16%; and international markets cannabis revenue grew 14%. The company’s gross margin decreased 400 basis points to 32%. Operating loss improved 61% to $24 million, while Adjusted EBITDA loss improved 61% to $3 million.
The company successfully launched Claybourne infused pre-rolls in Canada, achieving #3 market share in British Columbia and Ontario after 6 weeks. Total debt decreased to $442 million from $554 million, primarily due to early prepayment of senior secured term loan.
Canopy Growth (CGC) ha riportato i risultati finanziari del terzo trimestre dell’anno fiscale 2025, con un fatturato netto di $74,8 milioni, che rappresenta una diminuzione del 5% rispetto all’anno precedente. Tuttavia, escludendo le attività dismesse, il fatturato netto è aumentato dell’8%, trainato dalla crescita nel settore della cannabis medica e nei segmenti Storz & Bickel.
I punti salienti includono: il fatturato di Storz & Bickel è cresciuto del 19% anno su anno, raggiungendo i $22 milioni; i ricavi della cannabis medica in Canada sono aumentati del 16%; e i ricavi della cannabis nei mercati internazionali sono aumentati del 14%. Il margine lordo dell’azienda è diminuito di 400 punti base, scendendo al 32%. La perdita operativa è migliorata del 61%, arrivando a $24 milioni, mentre la perdita di EBITDA rettificato è migliorata del 61%, fissandosi a $3 milioni.
L’azienda ha lanciato con successo i Claybourne pre-rolls infusi in Canada, raggiungendo il 3° posto in termini di quota di mercato nella British Columbia e in Ontario dopo 6 settimane. Il debito totale è diminuito a $442 milioni rispetto ai $554 milioni, principalmente a causa del rimborso anticipato di un prestito senior garantito.
Canopy Growth (CGC) reportó los resultados financieros del tercer trimestre del año fiscal 2025, con ingresos netos de $74,8 millones, lo que representa una disminución del 5% en comparación con el año anterior. Sin embargo, excluyendo los negocios desinvertidos, los ingresos netos aumentaron un 8%, impulsados por el crecimiento en la cannabis medicinal y los segmentos de Storz & Bickel.
Entre los aspectos destacados se incluyen: los ingresos de Storz & Bickel crecieron un 19% interanual hasta alcanzar los $22 millones; los ingresos de cannabis medicinal en Canadá aumentaron un 16%; y los ingresos de cannabis en mercados internacionales crecieron un 14%. El margen bruto de la compañía disminuyó 400 puntos básicos al 32%. La pérdida operativa mejoró un 61% a $24 millones, mientras que la pérdida de EBITDA ajustada mejoró un 61% a $3 millones.
La compañía lanzó con éxito los Claybourne pre-rolls infusionados en Canadá, alcanzando el tercer lugar en participación de mercado en Columbia Británica y Ontario después de 6 semanas. La deuda total disminuyó a $442 millones desde $554 millones, principalmente debido al pago anticipado de un préstamo a plazo garantizado senior.
캐노피 성장(CGC)은 2025 회계연도 3분기 재무 결과를 발표했으며, 순매출은 7480만 달러로, 전년 대비 5% 감소했습니다. 그러나 매각된 사업을 제외하면, 순매출은 8% 증가했으며, 이는 의료용 대마초 및 Storz & Bickel 부문에서의 성장에 기인합니다.
주요 하이라이트로는 Storz & Bickel의 매출이 전년 대비 19% 증가하여 2200만 달러에 이르렀으며, 캐나다의 의료용 대마초 매출이 16% 증가했습니다. 또한, 국제 시장의 대마초 매출도 14% 증가했습니다. 회사의 총 매출 총이익률은 400 베이시스 포인트 하락하여 32%에 도달했습니다. 운영 손실은 24백만 달러로 61% 개선되었고, 조정 EBITDA 손실도 3백만 달러로 61% 개선되었습니다.
회사는 성공적으로 Claybourne 주입형 프리롤을 캐나다에서 출시하였으며, 6주 만에 브리티시컬럼비아와 온타리오에서 3위 시장 점유율을 달성했습니다. 총 부채는 5억 5400만 달러에서 4억 4200만 달러로 감소했으며, 이는 주로 고위험 담보 기간 대출의 조기 상환 때문입니다.
Canopy Growth (CGC) a annoncé les résultats financiers du troisième trimestre de l’exercice 2025, avec un chiffre d’affaires net de 74,8 millions de dollars, ce qui représente une baisse de 5 % par rapport à l’année précédente. Cependant, hors des activités cédées, le chiffre d’affaires net a augmenté de 8 %, soutenu par la croissance dans le domaine du cannabis médical et des segments Storz & Bickel.
Les points saillants incluent : le chiffre d’affaires de Storz & Bickel a augmenté de 19 % d’une année sur l’autre pour atteindre 22 millions de dollars ; les revenus du cannabis médical au Canada ont augmenté de 16 % ; et les revenus du cannabis sur les marchés internationaux ont crû de 14 %. La marge brute de l’entreprise a diminué de 400 points de base à 32 %. La perte d’exploitation s’est améliorée de 61 % pour atteindre 24 millions de dollars, tandis que la perte d’EBITDA ajusté s’est également améliorée de 61 % pour atteindre 3 millions de dollars.
L’entreprise a lancé avec succès les pré-rolls infusés Claybourne au Canada, atteignant la 3e part de marché en Colombie-Britannique et en Ontario après 6 semaines. La dette totale a diminué à 442 millions de dollars contre 554 millions de dollars, principalement en raison du remboursement anticipé d’un prêt à terme garanti senior.
Canopy Growth (CGC) hat die finanziellen Ergebnisse für das 3. Quartal des Geschäftsjahres 2025 veröffentlicht. Der Nettoumsatz betrug 74,8 Millionen Dollar, was einem Rückgang von 5 % im Jahresvergleich entspricht. Ohne die abgegebenen Geschäftsbereiche stieg der Nettoumsatz jedoch um 8 %, was auf das Wachstum im Bereich medizinisches Cannabis und in den Segmente Storz & Bickel zurückzuführen ist.
Die wichtigsten Highlights umfassen: Der Umsatz von Storz & Bickel wuchs im Jahresvergleich um 19 % auf 22 Millionen Dollar; die Umsätze im Bereich medizinisches Cannabis in Kanada stiegen um 16 %; und die Umsätze aus internationalen Märkten stiegen um 14 %. Die Bruttomarge des Unternehmens sank um 400 Basispunkte auf 32 %. Der operative Verlust verbesserte sich um 61 % auf 24 Millionen Dollar, während sich der Verlust bei bereinigtem EBITDA auf 3 Millionen Dollar um 61 % verbesserte.
Das Unternehmen hat erfolgreich die Claybourne infundierten Pre-Rolls in Kanada eingeführt und erreichte nach 6 Wochen den 3. Platz im Marktanteil in British Columbia und Ontario. Die Gesamtschulden verringerten sich von 554 Millionen Dollar auf 442 Millionen Dollar, hauptsächlich aufgrund der vorzeitigen Rückzahlung eines vorrangigen besicherten Darlehens.
The Q3 results reveal a complex transformation story at Canopy Growth, with strategic bright spots emerging despite ongoing challenges. The company’s focus on higher-margin segments is gaining traction, evidenced by the impressive growth in medical cannabis (16%) and Storz & Bickel (19%). These premium segments typically command stronger margins and more stable customer bases, suggesting improved revenue quality.
The 400 basis point decline in gross margins to 32% reflects short-term investment in growth initiatives, particularly the Claybourne launch. While concerning, this margin compression appears strategic rather than structural, as the company builds market share in the premium infused pre-roll category. Reaching #3 market share in key provinces within six weeks indicates strong product-market fit and potential for margin recovery as scale improves.
The reduction in debt by $112MM significantly strengthens the balance sheet, potentially saving millions in annual interest expenses. However, the $28MM negative free cash flow, though improving, signals ongoing capital needs. The $3MM Adjusted EBITDA loss represents substantial progress but indicates further optimization is needed for sustainable profitability.
The international segment’s growth and margin expansion in markets like Poland and Germany presents a compelling diversification story, reducing dependence on the competitive Canadian market. This geographic expansion, combined with the successful integration of U.S. assets under Canopy USA, positions the company for potential upside in higher-margin markets.
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 market¹
SMITHS FALLS, ON, Feb. 7, 2025 /PRNewswire/ – Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (Nasdaq: CGC) today announces its financial results for the third fiscal quarter ended December 31, 2024 ("Q3 FY2025"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

"Canopy Growth's third quarter highlights that our business has the right ingredients for success, as demonstrated by the continued momentum in our medical cannabis businesses, Storz & Bickel, and the successful introduction of Claybourne infused pre-rolls in Canada. As I step into my role as Chief Executive Officer, I am focused on achieving sustainable profitability while maximizing our ability to create value in the key markets and segments we serve."
Luc Mongeau, Chief Executive Officer
"The third quarter marked our best Adjusted EBITDA to date, led by strong year-over-year top-line growth in our medical cannabis business and Storz & Bickel, and continued cost discipline. The balance sheet actions taken during the quarter further strengthen our financial position which we believe provides us with flexibility to invest in value creation opportunities."
Judy Hong, Chief Financial Officer
Third Quarter Fiscal Year 2025 Financial Summary
(in thousands of Canadian
dollars, unaudited)
Net Revenue
Gross margin
percentage
Net loss from
continuing operations
Adjusted
EBITDA²
Free cash
flow³
Reported
$74,761
32 %
$(121,896)
$(3,469)
$(28,181)
vs. Q3 FY2024
(5 %)
(400) bps
47 %
61 %
17 %
¹ Calculated using the Company's internal proprietary market analysis tool that applies sales data supplied by third-party providers and government agencies.
² Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 4 for a reconciliation of net loss from continuing operations to adjusted EBITDA. 
³ Free cash flow is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 5 for a reconciliation of net cash used in operating activities – continuing operations to free cash flow – continuing operations.
Canada Cannabis Highlights
International Markets Highlights
Storz & Bickel Highlights
Canopy USA Highlights
⁴   Source: https://www.newswire.ca/news-releases/canopy-usa-announces-appointment-of-mr-m-brooks-jorgensen-as-president-897361493.html    
Third Quarter Fiscal 2025 Revenue Review⁵ 
(in millions of Canadian dollars, unaudited)
Q3 FY2025
Q3 FY2024
Vs. Q3 FY2024
Canada cannabis
Canadian adult-use cannabis⁶
$21.2
$23.5
(10 %)
Canada medical cannabis⁷
$19.6
$16.9
16 %
$40.8
$40.4
1 %
International markets cannabis⁸
$12.0
$10.5
14 %
Storz & Bickel
$22.0
$18.5
19 %
This Works
$-
$8.2
(100 %)
Other
$-
$0.9
(100 %)
Net revenue
$74.8
$78.5
(5 %)
The Q3 FY2025 and Q3 FY2024 financial results presented in this press release have been prepared in accordance with U.S. GAAP.
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with Luc Mongeau, CEO and Judy Hong, CFO at 10:00 AM Eastern Time on Friday, February  7, 2025.
Webcast Information
A live audio webcast will be available at: https://app.webinar.net/yY1K7LrWq9O.  
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on May 8, 2025 at: https://app.webinar.net/yY1K7LrWq9O.
Non-GAAP Measures
Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA is a useful measure for investors because it provides meaningful and useful financial information, as this measure demonstrates the operating performance of businesses. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring costs; restructuring costs recorded in cost of goods sold; and charges related to the flow-through of inventory step-up on business combinations, and further adjusted to remove acquisition, divestiture, and other costs. Asset impairments related to periodic changes to the Company's supply chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities. The Adjusted EBITDA reconciliation is presented within this news release and explained in the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2024 (the "Form 10-Q") [to be] filed with the Securities and Exchange Commission ("SEC").
Free cash flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that free cash flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand our business, and that the free cash flow measure provides meaningful information regarding the Company's liquidity requirements. This measure is calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment. The free cash flow reconciliation is presented within this news release and explained in the Form 10-Q [to be] filed with the SEC.
Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that adjusted gross margin and adjusted gross margin percentage present meaningful and useful financial information as these measures provide insights into the gross margin performance of the business. Adjusted gross margin is calculated as gross margin excluding restructuring and other charges recorded in cost of goods sold, and charges related to the flow-through of inventory step-up on business combinations. Adjusted gross margin percentage is calculated as adjusted gross margin divided by net revenue. The adjusted gross margin and adjusted gross margin percentage reconciliation is presented within this news release and explained in the Form 10-Q [to be] filed with the SEC.
⁵ In Q3 FY2025, we are reporting our financial results for the following four reportable segments: (i) Canada cannabis; (ii) international markets cannabis; (iii) Storz & Bickel; and (iv) This Works. On December 18, 2023, the Company completed the sale of This Works and as of such date, the results of This Works are no longer included in the Company's financial results.
⁶ For Q3 FY2025, amount is net of excise taxes of $9.4MM and other revenue adjustments of $0.9MM (Q3 FY2024 – $9.7MM and $1.1MM, respectively). 
⁷ For Q3 FY2025, amount is net of excise taxes of $2.1MM (Q3 FY2024 – $1.8MM).
⁸ For Q3 FY2025, amount reflects other revenue adjustments of $0.1MM (Q3 FY2024 – $0.3MM).
About Canopy Growth
Canopy Growth is a world leading cannabis company dedicated to unleashing the power of cannabis to improve lives. 
Through an unwavering commitment to consumers, Canopy Growth delivers innovative products from owned and licensed brands including Tweed, 7ACRES, DOJA, Deep Space, and Claybourne, as well as category defining vaporization devices by Storz & Bickel. In addition, Canopy Growth serves medical cannabis patients globally with principal operations in Canada, Germany, Poland, and Australia. 
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA. Canopy USA's portfolio includes ownership of Acreage, a vertically integrated multi‑state cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana, a leading North American edibles brand, and majority ownership of Jetty, a California-based producer of high-quality cannabis extracts and clean vape technology. 
At Canopy Growth, we're shaping a future where cannabis is embraced for its potential to enhance well-being and improve lives. With high-quality products, a commitment to responsible use, and a focus on enhancing the communities where we live and work, we're paving the way for a better understanding of all that cannabis can offer. 
For more information visit www.canopygrowth.com.
Notice Regarding Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws, which involve certain known and unknown risks and uncertainties. To the extent any forward-looking statements in this news release constitutes "financial outlooks" within the meaning of applicable Canadian securities laws, the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and the performance of our investments. These forward-looking statements are generally identified by their use of such terms and phrases as "intend," "goal," "strategy," "estimate," "expect," "project," "projections," "forecasts," "plans," "seeks," "anticipates," "potential," "proposed," "will," "should," "could," "would," "may," "likely," "designed to," "foreseeable future," "believe," "scheduled" and other similar expressions. Our actual results or outcomes may differ materially from those anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Forward-looking statements include, but are not limited to, statements with respect to:
Certain of the forward-looking statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The forward-looking statements contained herein are based upon certain material assumptions , including: (i) management's perceptions of historical trends, current conditions and expected future developments; (ii) our ability to generate cash flow from operations; (iii) general economic, financial market, regulatory and political conditions in which we operate; (iv) the production and manufacturing capabilities and output from our facilities, strategic alliances and equity investments; (v) consumer interest in our products; (vi) competition; (vii) anticipated and unanticipated costs; (viii) government regulation of our activities and products including but not limited to the areas of taxation and environmental protection; (ix) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; * our ability to obtain qualified staff, equipment and services in a timely and cost-efficient manner; (xi) our ability to conduct operations in a safe, efficient and effective manner; (xii) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our recent acquisitions into our existing operations; and (xiii) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. Financial outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management's current expectations.
By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, our limited operating history; our ability to continue as a going concern; risks that we may be required to write down intangible assets, including goodwill, due to impairment; the adequacy of our capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute our business plan (either within the expected timeframe or at all); our ability to maintain an effective system of internal control; the diversion of management time on matters related to Canopy USA;  the risks that the Trust's future ownership interest in Canopy USA is not quantifiable, and the Trust may have significant ownership and influence over Canopy USA; the risks related to the financial statements of Acreage expressing doubt about its ability to continue as a going concern; the risks in the event that Acreage cannot satisfy its debt obligations as they become due; volatility in and/or degradation of general economic, market, industry or business conditions; risks relating to the overall macroeconomic environment, which may impact customer spending, our costs and our margins, including tariffs (and related retaliatory measures), the levels of inflation, and interest rates; risks relating to our current and future operations in emerging markets; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis products in vaping devices; risks and uncertainty regarding future product development; changes in regulatory requirements in relation to our business and products; our reliance on licenses issued by and contractual arrangements with various federal, state and provincial governmental authorities; inherent uncertainty associated with projections; future levels of revenues and the impact of increasing levels of competition; third-party manufacturing risks; third-party transportation risks; our exposure to risks related to an agricultural business, including wholesale price volatility and variable product quality; changes in laws, regulations and guidelines and our compliance with such laws, regulations and guidelines; risks relating to inventory write downs; risks relating to our ability to refinance debt as and when required on terms favorable to us and to comply with covenants contained in our debt facilities and debt instruments; risks associated with jointly owned investments; our ability to manage disruptions in credit markets or changes to our credit ratings; the success or timing of completion of ongoing or anticipated capital or maintenance projects; risks related to the integration of acquired businesses; the timing and manner of the legalization of cannabis in the United States; business strategies, growth opportunities and expected investment; counterparty risks and liquidity risks that may impact our ability to obtain loans and other credit facilities on favorable terms; the potential effects of judicial, regulatory or other proceedings, litigation or threatened litigation or proceedings, or reviews or investigations, on our business, financial condition, results of operations and cash flows; risks associated with divestment and restructuring; the anticipated effects of actions of third parties such as competitors, activist investors or federal, state, provincial, territorial or local regulatory authorities, self-regulatory organizations, plaintiffs in litigation or persons threatening litigation; consumer demand for cannabis and hemp products; the implementation and effectiveness of key personnel changes; risks related to stock exchange restrictions; risks related to the protection and enforcement of our intellectual property rights; the risks related to our exchangeable shares (the "Exchangeable Shares") having different rights from our common shares and there may never be a trading market for the  Exchangeable Shares; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; and the factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and in Item 1A of Part II of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2024 [to be] filed with the SEC. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.
By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, our limited operating history; risks that we may be required to write down intangible assets, including goodwill, due to impairment; the adequacy of our capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute our business plan (either within the expected timeframe or at all); our ability to maintain an effective system of internal control; the diversion of management time on matters related to Canopy USA; the risks that the Trust's future ownership interest in Canopy USA is not quantifiable, and the Trust may have significant ownership and influence over Canopy USA; the risks relating to the conditions set forth in the Floating Share Arrangement Agreement and the Existing Acreage Arrangement Agreement not being satisfied or waived; the risks related to Acreage's financial statements expressing doubt about its ability to continue as a going concern; the risks in the event that Acreage cannot satisfy its debt obligations as they become due; volatility in and/or degradation of general economic, market, industry or business conditions; risks relating to our current and future operations in emerging markets; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis products in vaping devices; risks and uncertainty regarding future product development; changes in regulatory requirements in relation to our business and products; our reliance on licenses issued by and contractual arrangements with various federal, state and provincial governmental authorities; inherent uncertainty associated with projections; future levels of revenues and the impact of increasing levels of competition; third-party manufacturing risks; third-party transportation risks; our exposure to risks related to an agricultural business, including wholesale price volatility and variable product quality; changes in laws, regulations and guidelines and our compliance with such laws, regulations and guidelines; risks relating to inventory write downs; risks relating to our ability to refinance debt as and when required on terms favorable to us and to comply with covenants contained in our debt facilities and debt instruments; risks associated with jointly owned investments; our ability to manage disruptions in credit markets or changes to our credit ratings; the success or timing of completion of ongoing or anticipated capital or maintenance projects; risks related to the integration of acquired businesses; the timing and manner of the legalization of cannabis in the United States; business strategies, growth opportunities and expected investment; counterparty risks and liquidity risks that may impact our ability to obtain loans and other credit facilities on favorable terms; the potential effects of judicial, regulatory or other proceedings, litigation or threatened litigation or proceedings, or reviews or investigations, on our business, financial condition, results of operations and cash flows; risks associated with divestment and restructuring; the anticipated effects of actions of third parties such as competitors, activist investors or federal, state, provincial, territorial or local regulatory authorities, self-regulatory organizations, plaintiffs in litigation or persons threatening litigation; consumer demand for cannabis and hemp products; the implementation and effectiveness of key personnel changes; risks related to stock exchange restrictions; risks related to the protection and enforcement of our intellectual property rights; the risks related to our exchangeable shares (the "Exchangeable Shares") having different rights from our common shares and there may never be a trading market for the  Exchangeable Shares; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; and the factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and in Item 1A of Part II of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024 to be filed with the SEC. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.
Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned that the forward-looking statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking statements, except as required by law. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.
Schedule 1
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars, except number of shares and per share data, unaudited)
December 31,
2024
March 31,
2024
ASSETS
Current assets:
Cash and cash equivalents
$
161,909
$
170,300
Short-term investments
16,435
33,161
Restricted short-term investments
7,108
7,310
Amounts receivable, net
49,058
51,847
Inventory
90,753
77,292
Assets of discontinued operations
–
8,038
Prepaid expenses and other assets
15,822
23,232
Total current assets
341,085
371,180
Equity method investments
49,834
–
Other financial assets
321,368
437,629
Property, plant and equipment
299,604
320,103
Intangible assets
89,791
104,053
Goodwill
44,093
43,239
Other assets
18,444
24,126
Total assets
$
1,164,219
$
1,300,330
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
28,918
$
28,673
Other accrued expenses and liabilities
37,191
54,039
Current portion of long-term debt
3,167
103,935
Other liabilities
27,740
48,068
Total current liabilities
97,016
234,715
Long-term debt
438,404
493,294
Other liabilities
37,324
71,814
Total liabilities
572,744
799,823
Commitments and contingencies
Canopy Growth Corporation shareholders' equity:
Share capital
   Common shares – $nil par value; Authorized – unlimited; Issued and
   outstanding – 129,153,014 shares and 91,115,501 shares, respectively.
   Exchangeable shares – $nil par value; Authorized – unlimited; Issued
   and outstanding – 26,261,474 shares and nil shares, respectively.
8,670,494
8,244,301
Additional paid-in capital
2,637,337
2,602,148
Accumulated other comprehensive loss
(8,999)
(16,051)
Deficit
(10,707,357)
(10,330,030)
Total Canopy Growth Corporation shareholders' equity
591,475
500,368
Noncontrolling interests
–
139
Total shareholders' equity
591,475
500,507
Total liabilities and shareholders' equity
$
1,164,219
$
1,300,330
Schedule 2
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of Canadian dollars, except number of shares and per share data, unaudited)
Three months ended December 31,
2024
2023
Revenue
$
86,244
$
90,061
Excise taxes
11,483
11,556
Net revenue
74,761
78,505
Cost of goods sold
50,663
50,279
Gross margin
24,098
28,226
Operating expenses
Selling, general and administrative expenses
41,476
54,436
Share-based compensation
5,159
3,693
Loss on asset impairment and restructuring
1,285
30,413
Total operating expenses
47,920
88,542
Operating loss from continuing operations
(23,822)
(60,316)
Other income (expense), net
(97,758)
(171,037)
Loss from continuing operations before income taxes
(121,580)
(231,353)
Income tax (expense) recovery
(316)
1,077
Net loss from continuing operations
(121,896)
(230,276)
Discontinued operations, net of income tax
–
13,479
Net loss
(121,896)
(216,797)
Net loss attributable to Canopy Growth Corporation
$
(121,896)
$
(216,797)
Basic and diluted loss per share
Continuing operations
$
(1.11)
$
(2.78)
Discontinued operations
–
0.16
Basic and diluted loss per share
$
(1.11)
$
(2.62)
Basic and diluted weighted average common shares
   outstanding
110,306,430
82,919,190
Schedule 3
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars, unaudited)
Nine months ended December 31,
2024
2023
Cash flows from operating activities:
Net loss
$
(377,327)
$
(583,458)
Gain (loss) from discontinued operations, net of income tax
5,310
(194,451)
Net loss from continuing operations
(382,637)
(389,007)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property, plant and equipment
15,570
22,485
Amortization of intangible assets
16,081
19,396
Share-based compensation
14,531
10,127
Loss (gain) on asset impairment and restructuring
18,971
(816)
Income tax expense
6,812
13,762
Non-cash fair value adjustments and charges related to
   settlement of long-term debt
223,591
188,452
Change in operating assets and liabilities, net of effects from
   purchases of businesses:
Amounts receivable
(3,163)
(14,460)
Inventory
(12,924)
(8,047)
Prepaid expenses and other assets
(641)
(843)
Accounts payable and accrued liabilities
(17,000)
891
Other, including non-cash foreign currency
(11,789)
(47,901)
Net cash used in operating activities – continuing operations
(132,598)
(205,961)
Net cash used in operating activities – discontinued operations
–
(53,930)
Net cash used in operating activities
(132,598)
(259,891)
Cash flows from investing activities:
Purchases of and deposits on property, plant and equipment
(7,724)
(3,200)
Purchases of intangible assets
(409)
(716)
Proceeds on sale of property, plant and equipment
4,932
153,753
Redemption of short-term investments
16,950
68,294
Net cash outflow on sale or deconsolidation of subsidiaries
(6,968)
(3,719)
Net cash inflow on loan receivable
28,353
1,279
Investment in other financial assets
(95,335)
(472)
Other investing activities
–
(10,513)
Net cash (used in) provided by investing activities – continuing operations
(60,201)
204,706
Net cash provided by (used in) investing activities – discontinued operations
13,414
(2,600)
Net cash (used in) provided by investing activities
(46,787)
202,106
Cash flows from financing activities:
Proceeds from issuance of common shares and warrants
255,989
33,795
Proceeds from exercise of stock options
112
–
Proceeds from exercise of warrants
8,454
–
Issuance of long-term debt and convertible debentures
68,255
–
Repayment of long-term debt
(148,249)
(480,080)
Other financing activities
(19,943)
(27,239)
Net cash provided by (used in) financing activities
164,618
(473,524)
Effect of exchange rate changes on cash and cash equivalents
6,376
(2,953)
Net decrease in cash and cash equivalents
(8,391)
(534,262)
Cash and cash equivalents, beginning of period¹
170,300
677,007
Cash and cash equivalents, end of period²
$
161,909
$
142,745
¹ Includes cash of our discontinued operations of $nil and $9,314 for March 31, 2024 and 2023, respectively.
² Includes cash of our discontinued operations of $nil and $nil for December 31, 2024 and 2023, respectively.
Schedule 4
Adjusted EBITDA¹ Reconciliation (Non-GAAP Measure)
Three months ended December 31,
(in thousands of Canadian dollars, unaudited)
2024
2023
Net loss from continuing operations
$
(121,896)
$
(230,276)
Income tax expense (recovery)
316
(1,077)
Other (income) expense, net
97,758
171,037
Share-based compensation
5,159
3,693
Acquisition, divestiture, and other costs
3,595
4,981
Depreciation and amortization
10,314
12,240
Loss on asset impairment and restructuring
1,285
30,413
Adjusted EBITDA¹
$
(3,469)
$
(8,989)
¹Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures".
Schedule 5
Free Cash Flow¹ Reconciliation (Non-GAAP Measure)
Three months ended December 31,
(in thousands of Canadian dollars, unaudited)
2024
2023
 Net cash used in operating activities – continuing operations
$
(26,966)
$
(33,348)
 Purchases of and deposits on property, plant and equipment
   – continuing operations
(1,215)
(564)
 Free cash flow¹ – continuing operations
$
(28,181)
$
(33,912)
¹Free cash flow is a non-GAAP measure. See "Non-GAAP Measures".
Schedule 6
Segmented Gross Margin Reconciliation
Three months ended December 31,
(in thousands of Canadian dollars except where indicated; unaudited)
2024
2023
Canada cannabis segment
Net revenue
$
40,728
$
40,384
Gross margin
10,181
11,306
Gross margin percentage
25
%
28
%
.
International markets cannabis segment
Revenue
$
12,024
$
10,527
Gross margin
4,932
4,192
Gross margin percentage
41
%
40
%
Storz & Bickel segment
Revenue
$
22,009
$
18,453
Gross margin
8,985
9,449
Gross margin percentage
41
%
51
%
This Works segment
Revenue
$
–
$
8,165
Gross margin
–
4,253
Gross margin percentage
0
%
52
%
Other
Revenue
$
–
$
976
Gross margin
–
(974)
Gross margin percentage
0
%
(100)
%
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SOURCE Canopy Growth Corporation

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