Latest news with #CanopyGrowth
Business Wire
13 hours ago
- Business
- Business Wire
CGC Deadline: Rosen Law Firm Urges Canopy Growth Corporation (NASDAQ: CGC) Stockholders with Losses in Excess of $100K to Contact the Firm for Information About Their Rights
NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, reminds investors that a shareholder filed a class action on behalf of purchasers of securities of Canopy Growth Corporation (NASDAQ: CGC) between May 30, 2024 and February 6, 2025. Canopy Growth describes itself as a company that 'produces, distributes, and sells cannabis and hemp-based products for recreational and medical purposes.' For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653. The Allegations: Rosen Law Firm is Investigating the Allegations that Canopy Growth Corporation (NASDAQ: CGC) Misled Investors Regarding its Business Operations. According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Canopy Growth had incurred significant costs producing Claybourne Co. ('Claybourne') pre-rolled joints in connection with the Claybourne product launch in Canada; (2) the foregoing costs, in addition to certain indirect costs that Canopy Growth incurred in connection with its Storz & Bickel vaporizer devices, were likely to have a significant negative impact on Canopy Growth's gross margins and overall financial results; (3) accordingly, defendants had overstated the efficacy of Canopy Growth's cost reduction measures and the health of its gross margins while downplaying issues with the same; and (4) as a result, defendants' public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages. What Now: You may be eligible to participate in the class action against Canopy Growth Corporation. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by June 3, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. About Rosen Law Firm: Some law firms issuing releases about this matter do not actually litigate securities class actions. Rosen Law Firm does. Rosen Law Firm is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. Since its inception, Rosen Law Firm has obtained over $1 billion for shareholders. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome.
Business Insider
2 days ago
- Business
- Business Insider
Canopy Growth (CGC) Gets a Sell from Bank of America Securities
In a report released yesterday, Lisa Lewandowski from Bank of America Securities maintained a Sell rating on Canopy Growth (CGC – Research Report), with a price target of C$1.15. The company's shares closed yesterday at $1.32. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Lewandowski is a 5-star analyst with an average return of 17.6% and a 76.83% success rate. Canopy Growth has an analyst consensus of Hold, with a price target consensus of $3.93. CGC market cap is currently $354.4M and has a P/E ratio of -0.33.
Yahoo
2 days ago
- Business
- Yahoo
Canopy Growth Corp (CGC) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Canada Net Revenue: $40 million in Q4, up 4% year-over-year. Canada Medical Sales Growth: 13% increase versus last year. Canada Adjusted Gross Margin: 11% in Q4; adjusted cash gross margin at 23%. International Markets Sales Decline: 35% decrease in Q4 fiscal '25 compared to Q4 fiscal '24. Storz & Bickel Revenue: $17 million in Q4, down 23% year-over-year. SG&A Expenses: Declined 28% year-over-year. Q4 Adjusted EBITDA Loss: $9 million, an improvement from a $15 million loss a year ago. Free Cash Flow: Outflow of $36 million in Q4; full year outflow of $177 million. Cash and Short-term Investments: $131 million as of March 31, 2025. Total Principal Debt Balance: $316 million as of March 31, 2025. Canopy USA Annualized Revenue: Approximately USD 210 million. Cost Reduction Target: At least $20 million over the next 12 to 18 months. Warning! GuruFocus has detected 4 Warning Signs with CGC. Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Canopy Growth Corp (NASDAQ:CGC) has unified its global medical cannabis businesses to improve speed, scalability, and market responsiveness, leading to a 13% growth in the Canadian medical business. The company has streamlined its Canadian adult-use business by removing low-performing SKUs and focusing on high-margin products, which has strengthened relationships with key accounts. Canopy Growth Corp (NASDAQ:CGC) has established a centralized global operations function to enhance supply and demand planning, resulting in improved fill rates from mid-80s to mid-90s. The company has identified $20 million in cost reductions, with 80% of savings already identified and over 50% executed, creating financial flexibility for reinvestment. Canopy Growth Corp (NASDAQ:CGC) has made a USD100 million early prepayment on its senior secured term loan, reducing annual interest expenses by approximately USD13 million. Q4 fiscal '25 results fell short of expectations due to lower revenue in Storz & Bickel, Poland, and Australian medical businesses. Free cash flow was an outflow of $36 million for Q4, compared to an outflow of $23 million a year ago, due to higher capex and increased working capital. International markets cannabis sales declined 35% in Q4 fiscal '25 compared to Q4 fiscal '24, with significant drops in Poland and Australia. Storz & Bickel experienced a 23% year-over-year revenue decline in Q4, with continued softness into Q1 fiscal '26 due to decreased vaporizer demand. Acreage's performance was negatively impacted by liquidity challenges and underperformance in the Ohio adult-use cannabis market, affecting Canopy USA's revenue expectations. Q: Can you provide more color on near-term opportunities versus long-term actions to achieve positive adjusted EBITDA? A: Luc Mongeau, CEO: We're focusing on cost reductions and growth, particularly in our medical business, which is performing well in Canada. We've streamlined operations and are focusing on high-potential areas like Canadian REC and medical cannabis in Europe and Australia. Our goal is to capitalize on near-term opportunities with the highest potential returns. Q: What makes the current streamlining and cost-saving initiatives different from past efforts? A: Luc Mongeau, CEO: The current actions are about fundamentally transforming the organization into focused, streamlined business units with centralized core capabilities. We've eliminated layers of management to speed up decision-making and empower teams, which is a significant cultural shift from past approaches. Q: What factors have contributed to Acreage's underperformance, and what is the outlook for Canopy USA? A: Judy Hong, CFO: Acreage's challenges stem from liquidity issues and underperformance in Ohio, which hasn't fully opened as an adult-use market. This has impacted their ability to invest in other core markets. Despite these challenges, we remain optimistic about the long-term potential of the US market. Q: How are you addressing supply chain inconsistencies, especially for international markets? A: Luc Mongeau, CEO: We've centralized our supply chain and sales operations to improve decision-making and resource allocation. This restructuring allows us to better manage cultivation and distribution, ensuring consistent supply without needing significant new investments. Q: Can you provide insights into the Canadian medical cannabis market and Canopy's performance? A: Judy Hong, CFO: The Canadian medical market is declining slightly, but we've outperformed with a 16% growth, gaining market share. Our focus is on high-value patients and providing excellent customer experiences, which we aim to leverage in international markets as well. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
Canopy Growth Corp (CGC) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Canada Net Revenue: $40 million in Q4, up 4% year-over-year. Canada Medical Sales Growth: 13% increase versus last year. Canada Adjusted Gross Margin: 11% in Q4; adjusted cash gross margin at 23%. International Markets Sales Decline: 35% decrease in Q4 fiscal '25 compared to Q4 fiscal '24. Storz & Bickel Revenue: $17 million in Q4, down 23% year-over-year. SG&A Expenses: Declined 28% year-over-year. Q4 Adjusted EBITDA Loss: $9 million, an improvement from a $15 million loss a year ago. Free Cash Flow: Outflow of $36 million in Q4; full year outflow of $177 million. Cash and Short-term Investments: $131 million as of March 31, 2025. Total Principal Debt Balance: $316 million as of March 31, 2025. Canopy USA Annualized Revenue: Approximately USD 210 million. Cost Reduction Target: At least $20 million over the next 12 to 18 months. Warning! GuruFocus has detected 4 Warning Signs with CGC. Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Canopy Growth Corp (NASDAQ:CGC) has unified its global medical cannabis businesses to improve speed, scalability, and market responsiveness, leading to a 13% growth in the Canadian medical business. The company has streamlined its Canadian adult-use business by removing low-performing SKUs and focusing on high-margin products, which has strengthened relationships with key accounts. Canopy Growth Corp (NASDAQ:CGC) has established a centralized global operations function to enhance supply and demand planning, resulting in improved fill rates from mid-80s to mid-90s. The company has identified $20 million in cost reductions, with 80% of savings already identified and over 50% executed, creating financial flexibility for reinvestment. Canopy Growth Corp (NASDAQ:CGC) has made a USD100 million early prepayment on its senior secured term loan, reducing annual interest expenses by approximately USD13 million. Q4 fiscal '25 results fell short of expectations due to lower revenue in Storz & Bickel, Poland, and Australian medical businesses. Free cash flow was an outflow of $36 million for Q4, compared to an outflow of $23 million a year ago, due to higher capex and increased working capital. International markets cannabis sales declined 35% in Q4 fiscal '25 compared to Q4 fiscal '24, with significant drops in Poland and Australia. Storz & Bickel experienced a 23% year-over-year revenue decline in Q4, with continued softness into Q1 fiscal '26 due to decreased vaporizer demand. Acreage's performance was negatively impacted by liquidity challenges and underperformance in the Ohio adult-use cannabis market, affecting Canopy USA's revenue expectations. Q: Can you provide more color on near-term opportunities versus long-term actions to achieve positive adjusted EBITDA? A: Luc Mongeau, CEO: We're focusing on cost reductions and growth, particularly in our medical business, which is performing well in Canada. We've streamlined operations and are focusing on high-potential areas like Canadian REC and medical cannabis in Europe and Australia. Our goal is to capitalize on near-term opportunities with the highest potential returns. Q: What makes the current streamlining and cost-saving initiatives different from past efforts? A: Luc Mongeau, CEO: The current actions are about fundamentally transforming the organization into focused, streamlined business units with centralized core capabilities. We've eliminated layers of management to speed up decision-making and empower teams, which is a significant cultural shift from past approaches. Q: What factors have contributed to Acreage's underperformance, and what is the outlook for Canopy USA? A: Judy Hong, CFO: Acreage's challenges stem from liquidity issues and underperformance in Ohio, which hasn't fully opened as an adult-use market. This has impacted their ability to invest in other core markets. Despite these challenges, we remain optimistic about the long-term potential of the US market. Q: How are you addressing supply chain inconsistencies, especially for international markets? A: Luc Mongeau, CEO: We've centralized our supply chain and sales operations to improve decision-making and resource allocation. This restructuring allows us to better manage cultivation and distribution, ensuring consistent supply without needing significant new investments. Q: Can you provide insights into the Canadian medical cannabis market and Canopy's performance? A: Judy Hong, CFO: The Canadian medical market is declining slightly, but we've outperformed with a 16% growth, gaining market share. Our focus is on high-value patients and providing excellent customer experiences, which we aim to leverage in international markets as well. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
3 days ago
- Business
- Globe and Mail
Why Canopy Growth Stock Crashed on Friday
Canopy Growth (NASDAQ: CGC) stock collapsed in morning trading Friday, down 20.5% through 11 a.m. ET after the company reported a comically bad earnings miss. Heading into today's report, analysts forecast the Canadian cannabis company would lose $0.20 per share in its fourth quarter of fiscal 2025. Instead, Canopy Growth reported a loss of (better sit down for this) $1.32 per share. Canopy Growth's gigantic Q4 miss Investors were not amused. Canopy management tried to put a brave face on the results, leading off its report by noting Canadian sales, at least, grew 4% year over year, and Canadian medical cannabis sales in particular grew 13%. CEO Luc Mongeau noted further that he has taken "decisive actions to accelerate growth and profitability by unifying our medical cannabis businesses globally" (even though he highlighted cannabis sales in Canada separately). He also argued Canopy has made "marked year-over-year improvement in Adjusted EBITDA and cash flow in FY2025," and remains "committed to achieving positive Adjusted EBITDA in the near-term and positive Free Cash Flow over time." But Canopy is not there yet. Is Canopy Growth stock a sell? Globally, Canopy's sales fell 11% in Q4, and free cash flow was negative $36.2 million. For the full year, sales were down 9% and FCF was negative $176.6 million. Viewed in the most favorable light, therefore, one could argue that at least cash burn is decelerating at Canopy (four quarters of $36.2 million cash burn would imply a FCF run rate of only negative $144.8 million). But sales growth is still negative, and it got even more negative in the year's final quarter. Sorry, folks. I just can't find a reason to want to own Canopy Growth stock until this trend improves. Should you invest $1,000 in Canopy Growth right now? Before you buy stock in Canopy Growth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Canopy Growth wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
