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Business Wire
3 days ago
- Business
- Business Wire
Canopy Growth Reports First Quarter Fiscal 2026 Financial Results; Cannabis Revenue Increased 24% Year-Over-Year
SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX:WEED) (Nasdaq: CGC) today announced its financial results for the first quarter ended June 30, 2025 ("Q1 FY2026"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. "We delivered strong top line growth in the first quarter of fiscal 2026, led by momentum in our Canada adult-use cannabis business where we're gaining share in high-demand categories, and steady performance across our global medical cannabis business. This reflects the early impact of our focused commercial strategy and a more disciplined execution. I'm confident we can continue to build on this momentum through the remainder of the year." Luc Mongeau, Chief Executive Officer 'Our financial discipline has already delivered meaningful operating expense reductions, and we see further opportunity to simplify and focus the business. Improving gross margin remains a key priority while maintaining topline performance in all areas of the business. These actions are critical to strengthening our financial position through the remainder of fiscal 2026 and ultimately achieving Adjusted EBITDA profitability.' Tom Stewart, Interim Chief Financial Officer First Quarter Fiscal 2026 Financial Summary First Quarter Fiscal 2026 Financial Highlights As of the three months ended June 30, 2025, the Company began reporting its financial results for the following two reportable segments: (i) Cannabis - includes the global production, distribution and sale of a diverse range of cannabis and cannabis-related products; and (ii) Storz & Bickel - includes the production, distribution and sale of vaporizers and accessories. Consolidated net revenue in Q1 FY2026 increased 9% compared to the first quarter ended June 30, 2024 ('Q1 FY2025') due to increased Canada adult-use cannabis, Canada medical cannabis and international markets cannabis net revenue offset by lower Storz & Bickel net revenue. Consolidated gross margin decreased to 25% in Q1 FY2026, compared to 35% in Q1 FY2025. This decrease was primarily driven by lower Storz & Bickel sales, lower cannabis sales in the high-margin Poland market and a shift in product mix in Canada due to increased consumer demand for manufactured adult-use cannabis products. Operating loss from continuing operations was $23MM in Q1 FY2026, representing an improvement of 21% compared to Q1 FY2025. The improvement was driven primarily by a reduction in operating expenses. Adjusted EBITDA loss of $8MM in Q1 FY2026, compared to $5MM in Q1 FY2025, driven primarily by lower consolidated gross margins offset partially by lower selling, general and administrative ("SG&A") expenses. Free cash flow was an outflow of $12MM in Q1 FY2026, representing a decrease of 79% in outflow compared to Q1 FY2025, primarily driven by lower SG&A expenses, lower working capital use, and the timing of interest payments. Cash and short-term investments increased to $144MM at June 30, 2025, from $131MM at March 31, 2025. Cannabis Highlights Canada adult-use cannabis net revenue in Q1 FY2026 was $27MM, representing an increase of 43% compared to Q1 FY2025 driven primarily by increased distribution and strong consumer demand for flower and manufactured cannabis products including infused pre-rolled joint ("PRJ") offerings. Total Claybourne infused PRJ sales increased 58% sequentially in Q1 FY2026 compared to Q4 FY2025 3. Maintained #2 category market share in the infused PRJ category in Alberta, #3 in Ontario, and #3 nationally 3. The Company is focused on maintaining commercial momentum in its adult-use cannabis business, with a focus on expanding retail distribution and executing against high-demand product segments through the remainder of fiscal year 2026 ("FY2026"). Canada medical cannabis net revenue in Q1 FY2026 increased 13% compared to Q1 FY2025 driven by an increase in the number of insured customers, increased order sizes from our insured customers, and a larger assortment of cannabis products available on the Spectrum online store. International markets cannabis net revenue was $9MM in Q1 FY2026, representing an increase of 4% over Q1 FY2025, primarily attributable to increased shipments of flower products into Europe, which was offset by a decline in the Company's Australian medical cannabis business. Supply chain improvements in international markets are expected to increase cannabis supply and consistency in margin accretive European markets in the second half of FY2026. Cannabis gross margins decreased to 24% in Q1 FY2026 compared to 33% in Q1 FY2025. This decrease was primarily attributable to a shift in Canada of the adult-use cannabis consumers to higher cost manufactured products like infused PRJs and lower sales in Poland which historically has high margins. The Company has a number of actions underway that are expected to improve cannabis gross margins in the second half of FY2026, including the deployment of automation technology and increased PRJ production capacity and the continued pursuit of margin accretive bulk cannabis sales in Canada and Europe. Storz & Bickel Highlights Storz & Bickel delivered net revenue in Q1 FY2026 of $15MM, representing a decrease of 25% compared to Q1 FY2025, primarily attributable to lapping strong sales in the prior year and consumer economic uncertainty. Lower sales and an unfavourable shift in geographic mix resulted in a reduction to gross margin, which decreased to 29% in Q1 FY2026 compared to 39% in Q1 FY2025. Storz & Bickel has implemented several cost efficiency measures, including bringing additional manufacturing capabilities in-house and headcount reductions, which are expected to reduce cost of goods sold and SG&A expenses over the coming quarters. Storz & Bickel is preparing to launch a new vaporizer in the second half of calendar year 2025. The Company believes the new device will generate strong consumer interest. First Quarter Fiscal 2026 Revenue Review 4 Appointment of Shan Atkins to Board of Directors The Company also announced the appointment of Margaret Shan Atkins to its Board of Directors, effective August 6, 2025. Ms. Atkins brings extensive experience in retail strategy and operations, consumer goods, wholesale distribution, cybersecurity oversight, accounting and finance, and private investment in both the U.S. and Canada. Ms. Atkins is a former partner in the consumer and retail practice of international consultancy Bain & Company where she developed and executed strategic plans for major retail organizations. She also served as a C-suite executive at a Fortune 15 public retailer, where she led a multi-billion-dollar business unit. She presently serves on the boards of two U.S. public companies – Darden Restaurants (NYSE: DRI) and SpartanNash (NASD: SPTN), where she chairs the audit committee at both companies and serves on the Governance and Nominating Committee at Darden and the Compensation Committee at SpartanNash. During the past five years, Ms. Atkins also served on the following public company boards of directors: Aurora Cannabis, Inc., a Canadian cannabis company, from 2019 to 2023; SunOpta, Inc., a North American manufacturer of natural and organic food products, from 2014 to 2019; LSC Communications, Inc., a leading provider of long and short-run printing services to the book, catalog and magazine publishing industries, from 2016 to 2021. ____________________ 1 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. 2 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. 3 Calculated using the Company's internal proprietary market analysis tool that applies sales data supplied by third-party providers and government agencies (last 13 weeks ended June 29, 2025). 4 In Q1 FY2026, we are reporting our financial results for the following two reportable segments: (i) Cannabis; and (ii) Storz & Bickel. 5 For Q1 FY2026, amount is net of excise taxes of $14.2MM and other revenue adjustments of $0.9MM (Q1 FY2025 - $7.5MM and $1.2MM, respectively). 6 For Q1 FY2026, amount is net of excise taxes of $2.4MM (Q1 FY2025 - $2.1MM). Expand Webcast and Conference Call Information The Company will host a conference call and audio webcast with Luc Mongeau, CEO and Tom Stewart, Interim CFO at 10:00 AM Eastern Time on August 8, 2025. Webcast Information A live audio webcast will be available at: Replay Information A replay will be accessible by webcast until 11:59 PM ET on November 6, 2025 at: 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. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information as this measure demonstrates the operating performance of businesses. The Adjusted EBITDA reconciliation is presented within this press release and explained in the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 (the 'Form 10-Q') 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 the Company's 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 press release and explained in the Form 10-Q filed with the SEC. 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, Europe 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, LLC ('Canopy USA'). Canopy USA's portfolio includes ownership of Acreage Holdings, Inc., a vertically integrated multi‑state cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana Wellness, LLC, The Cima Group, LLC, and Mountain High Products, LLC (collectively 'Wana'), a leading North American edibles brand, and majority ownership of Lemurian, Inc. ('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 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 press 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: laws and regulations and any amendments thereto applicable to our business and the impact thereof, including uncertainty regarding the application of U.S. state and federal law to cannabis and hemp (including CBD) products and the scope of any regulations by the U.S. Food and Drug Administration, the U.S. Drug Enforcement Administration, the U.S. Federal Trade Commission, the U.S. Patent and Trademark Office, the U.S. Department of Agriculture and any state equivalent regulatory agencies over cannabis and hemp (including CBD) products; expectations regarding the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill; our ability to refinance debt as and when required on terms favorable to us and comply with covenants contained in our debt facilities and debt instruments; the impacts of the Company's strategy to accelerate entry into the U.S. cannabis market through the creation of Canopy USA; expectations for Canopy USA to capitalize on the opportunity for growth in the United States cannabis sector and the anticipated benefits of such strategy; the timing and occurrence of the final tranche closing in connection with the acquisition of Jetty pursuant to the exercise of the option to acquire Jetty; the issuance of additional common shares of the Company (each whole share, a 'Canopy Share' or a 'Share') to satisfy any deferred and/or option exercise payments to the shareholders of Wana and Jetty and the issuance of additional non-voting and non-participating shares in the capital of Canopy USA issuable to Canopy Growth from Canopy USA in consideration thereof; the acquisition of additional Class A shares of Canopy USA in connection with the investment in Canopy USA by the Huneeus 2017 Irrevocable Trust (the 'Trust') in the aggregate amount of up to US$20 million, including any warrants of Canopy USA issued to the Trust in accordance with the share purchase agreement entered into by the Trust and Canopy USA; the timing and occurrence of certain prepayments of the Company's credit facility in connection with the agreement dated July 29, 2025 between the Company and certain lenders under such credit facility; expectations regarding the potential success of, and the costs and benefits associated with, our acquisitions, equity investments and dispositions; the grant, renewal and impact of any license or supplemental license to conduct activities with cannabis or any amendments thereof; our international activities, including required regulatory approvals and licensing, anticipated costs and timing, and expected impact; our ability to successfully create and launch brands and further create, launch and scale products in jurisdictions where such products are legal and that we currently operate in; the benefits, viability, safety, efficacy, dosing and social acceptance of cannabis, including CBD and other cannabinoids; our ability to continue as a going concern; our ability to maintain effective internal control over financial reporting; expectations regarding the use of proceeds of equity financings; the legalization of the use of cannabis for medical or adult-use in jurisdictions outside of Canada, the related timing and impact thereof and our intentions to participate in such markets, if and when such use is legalized; our ability to execute on our strategy and the anticipated benefits of such strategy; the ongoing impact of the legalization of additional cannabis product types and forms for adult-use in Canada, including federal, provincial, territorial and municipal regulations pertaining thereto, the related timing and impact thereof and our intentions to participate in such markets; the ongoing impact of developing provincial, state, territorial and municipal regulations pertaining to the sale and distribution of cannabis, the related timing and impact thereof, as well as the restrictions on federally regulated cannabis producers participating in certain retail markets and our intentions to participate in such markets to the extent permissible; the timing and nature of legislative changes in the U.S. regarding the regulation of cannabis including tetrahydrocannabinol; the future performance of our business and operations; our competitive advantages and business strategies; the competitive conditions of the industry; the expected growth in the number of customers using our products; expectations regarding revenues, expenses and anticipated cash needs; expectations regarding cash flow, liquidity and sources of funding; expectations regarding capital expenditures; the expansion of our production and manufacturing, the costs and timing associated therewith and the receipt of applicable production and sale licenses; expectations with respect to our growing, production and supply chain capacities; expectations regarding the resolution of litigation and other legal and regulatory proceedings, reviews and investigations; expectations with respect to future production costs; expectations with respect to future sales and distribution channels and networks; the expected methods to be used to distribute and sell our products; our future product offerings; the anticipated future gross margins of our operations; accounting standards and estimates; expectations regarding our distribution network; expectations regarding the costs and benefits associated with our contracts and agreements with third parties, including under our third-party supply and manufacturing agreements; our ability to comply with the listing requirements of the Nasdaq Stock Market LLC and the Toronto Stock Exchange; and expectations on price changes for products in cannabis markets. 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; (x) 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 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, interest rates and trade policy; risks relating to the evolving regulatory landscape in the United States; 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 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 Canopy 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; risks related to finalization of the consideration payable by us for the acquisition by Canopy USA of the remaining interests in Jetty; 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, 2025 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 2 Three months ended June 30, 2025 2024 Revenue $ 88,748 $ 75,783 Excise taxes 16,614 9,571 Net revenue 72,134 66,212 Cost of goods sold 54,096 43,181 Gross margin 18,038 23,031 Operating expenses Selling, general and administrative expenses 38,108 47,968 Share-based compensation (99 ) 4,151 Loss on asset impairment and restructuring 2,653 20 Total operating expenses 40,662 52,139 Operating loss from continuing operations (22,624 ) (29,108 ) Other income (expense), net (18,612 ) (93,889 ) Loss from continuing operations before income taxes (41,236 ) (122,997 ) Income tax expense (291 ) (6,194 ) Net loss from continuing operations (41,527 ) (129,191 ) Discontinued operations, net of income tax - 2,053 Net loss attributable to Canopy Growth Corporation $ (41,527 ) $ (127,138 ) Basic and diluted loss per share Continuing operations $ (0.22 ) $ (1.63 ) Discontinued operations - 0.03 Basic and diluted loss per share $ (0.22 ) $ (1.60 ) Basic and diluted weighted average common shares outstanding 188,321,555 79,243,020 Expand Schedule 3 CANOPY GROWTH CORPORATION CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of Canadian dollars, unaudited) Three months ended June 30, 2025 2024 Cash flows from operating activities: Net loss $ (41,527 ) $ (127,138 ) Gain from discontinued operations, net of income tax - 2,053 Net loss from continuing operations (41,527 ) (129,191 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation of property, plant and equipment 4,753 5,682 Amortization of intangible assets 4,917 5,348 Share-based compensation (99 ) 4,151 Loss on asset impairment and restructuring 109 86 Income tax expense 291 6,194 Non-cash fair value adjustments and charges related to settlement of long-term debt 10,049 79,793 Change in operating assets and liabilities, net of effects from purchases of businesses: Amounts receivable 2,915 668 Inventory 2,838 (7,008 ) Prepaid expenses and other assets (2,668 ) (185 ) Accounts payable and accrued liabilities 5,184 (5,911 ) Other, including non-cash foreign currency 2,901 (11,407 ) Net cash used in operating activities (10,337 ) (51,780 ) Cash flows from investing activities: Purchases of and deposits on property, plant and equipment (1,306 ) (3,920 ) Purchases of intangible assets (183 ) (14 ) Proceeds on sale of property, plant and equipment 5 4,926 Redemption of short-term investments 779 30,022 Net cash outflow on sale or deconsolidation of subsidiaries - (6,968 ) Net cash inflow on loan receivable - 28,103 Investment in other financial assets - (95,335 ) Net cash used in investing activities - continuing operations (705 ) (43,186 ) Net cash provided by investing activities - discontinued operations - 10,157 Net cash used in investing activities (705 ) (33,029 ) Cash flows from financing activities: Proceeds from issuance of common shares and warrants 38,261 53,854 Issuance of long-term debt and convertible debentures - 68,255 Repayment of long-term debt (916 ) (11,836 ) Other financing activities (11,885 ) (4,498 ) Net cash provided by financing activities 25,460 105,775 Effect of exchange rate changes on cash and cash equivalents (2,027 ) 890 Net increase in cash and cash equivalents 12,391 21,856 Cash and cash equivalents, beginning of period 113,811 170,300 Cash and cash equivalents, end of period $ 126,202 $ 192,156 Expand Schedule 4 Adjusted EBITDA 1 Reconciliation (Non-GAAP Measure) Three months ended June 30, (in thousands of Canadian dollars, unaudited) 2025 2024 Net loss from continuing operations $ (41,527 ) $ (129,191 ) Income tax expense 291 6,194 Other (income) expense, net 18,612 93,889 Share-based compensation (99 ) 4,151 Acquisition, divestiture, and other costs 2,484 8,627 Depreciation and amortization 9,670 11,030 Loss on asset impairment and restructuring 2,653 20 Adjusted EBITDA 1 $ (7,916 ) $ (5,280 ) 1 Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures". Expand Schedule 5 Free Cash Flow 1 Reconciliation (Non-GAAP Measure) Three months ended June 30, (in thousands of Canadian dollars, unaudited) 2025 2024 Net cash used in operating activities - continuing operations $ (10,337 ) $ (51,780 ) Purchases of and deposits on property, plant and equipment - continuing operations (1,306 ) (3,920 ) Free cash flow 1 - continuing operations $ (11,643 ) $ (55,700 ) 1 Free cash flow is a non-GAAP measure. See "Non-GAAP Measures". Expand
Business Wire
08-07-2025
- Business
- Business Wire
Storz & Bickel Named 'Equipment Provider of the Year' at Business of Cannabis Awards 2025
SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation ('Canopy Growth' or the 'Company') (TSX: WEED) (Nasdaq: CGC), a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives, is pleased to share that Storz & Bickel has been awarded Equipment Provider of the Year at the 2025 Business of Cannabis Awards, held during the Cannabis Europa conference in London. The award recognizes companies delivering best-in-class equipment across the cannabis value chain - from cultivation and extraction to packaging and vaporization. Winners are selected by a panel of independent industry judges following a multi-step evaluation based on written submissions. Storz & Bickel's nomination, Pioneering Precision in Cannabis Vaporization, showcased the brand's nearly three-decade leadership in vaporization. Known for their engineering precision and product durability, highlights from the submission included: The iconic VOLCANO tabletop vaporizer, launched in 2000 with patented convection technology. The VENTY, released in 2024, offering rapid 20-second heat-up, adjustable airflow up to 20 L/min, and full temperature control. Broad impact across both medical and recreational markets, with the VOLCANO MEDIC certified for medical use in several countries, as well as notable culinary applications by global chefs. 'Storz & Bickel continues to raise the bar for what's possible in vaporization technology,' said Luc Mongeau, Chief Executive Officer, Canopy Growth. 'This award is a testament to their commitment to innovation, precision, and delivering a world-class vaporization experience to adult consumers and patients around the world.' Storz & Bickel's vaporizers are available in over 120 countries and trusted by medical patients and wellness consumers. Their reputation is built on precision engineering, product reliability, and compliance with international quality standards like ISO 13485. 'We're honored to be recognized with awards like these, which reflect the dedication of our entire team to pushing the boundaries of vaporization technology,' said Jürgen Bickel, Co-Founder and Managing Director, Storz & Bickel. 'From the VOLCANO to the VENTY, our focus has always been on engineering high-performance, reliable devices that meet the needs of patients and adult consumers around the world.' The Business of Cannabis Award adds to a growing list of recent honours for Storz & Bickel. The VENTY was named 'Vaporizer of the Year' at The EMJAYs 1 and 'Best Portable Vaporizer' by Vaping360 2. The company also picked up American Accessory Brand of the Year from ADCANN 3 and its Marketing and PR efforts earned first prize at the 2024 MarCom Awards for event execution 4. 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 our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis 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, Europe 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 Holdings, a vertically integrated multi-state cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana Brands, a leading North American edibles brand, and majority ownership of Jetty Extracts, 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 About STORZ & BICKEL GmbH: STORZ & BICKEL GmbH is the global leading manufacturer of high-end and medically certified cannabis vaporizers. With their commitment to quality, innovation, and compliance, the company has consistently delivered exceptional products that meet the highest industry standards. Based in Tuttlingen, Germany, STORZ & BICKEL continuously drives the advancement of vaporization technology, providing a safe and efficient means of consuming cannabis for medical purposes.
Business Wire
03-06-2025
- Business
- Business Wire
CGC Investors Have the Opportunity to Lead the Canopy Growth Securities Fraud Lawsuit with Faruqi & Faruqi, LLP
NEW YORK--(BUSINESS WIRE)-- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Canopy Growth Corporation ('Canopy' or the 'Company') (NASDAQ: CGC) and reminds investors of the June 3, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements Share Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Canopy had incurred significant costs producing 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 incurred in connection with its Storz & Bickel vaporizer devices, were likely to have a significant negative impact on the Company's gross margins and overall financial results; (3) accordingly, Defendants had overstated the efficacy of Canopy'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. On February 7, 2025, during pre-market hours, Canopy issued a press release announcing its financial results for the third quarter ("Q3") of its FY 2025. Among other items, Canopy reported that its "[g]ross margin decreased by 400 basis points to 32% in [Q3 2025] compared to [the same quarter the year prior] primarily due to the incremental costs related to the Claybourne infused pre-roll launch in Canada, and an increase in indirect costs of Storz & Bickel vaporizer devices[.]" These factors contributed to Canopy reporting a wider-than-anticipated Q3 2025 loss of C$1.11 per share compared to the C$0.48 per share loss estimated by analysts. The same day, Canopy held a conference call with investors and analysts to discuss its Q3 2025 financial results. During the call, Canopy's Chief Financial Officer, Defendant Judy Hong ("Hong"), revealed that the Company's Claybourne product launch costs were "primarily attributable to [the] higher initial cost to produce Claybourne" products. Defendant Hong also disclosed that the "indirect costs" related to Storz & Bickel vaporizer devices were attributable to, inter alia, shipping costs. On this news, Canopy's common share price fell $0.76 per share, or 27.34%, to close at $2.02 per share on February 7, 2025. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding Canopy's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the Canopy Growth class action, go to or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
Business Wire
02-06-2025
- Business
- Business Wire
Deadline Soon: Canopy Growth Corporation (CGC) Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit
LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz reminds investors of the upcoming June 3, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired Canopy Growth Corporation ('Canopy' or the 'Company') (NASDAQ: CGC) securities between , inclusive (the 'Class Period'). IF YOU ARE AN INVESTOR WHO LOST MONEY ON CANOPY GROWTH CORPORATION (CGC), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT. What Happened? On February 7, 2025, Canopy released its third quarter fiscal year 2025 financial results, missing consensus estimates and reporting that its gross margin had decreased by 400 basis points to 32% 'due to the incremental costs related to the Claybourne infused pre-roll launch in Canada, and an increase in indirect costs of Storz & Bickel vaporizer devices[.]' On this news, Canopy's stock price fell $0.76, or 27.3%, to close at $2.02 per share on February 7, 2025, thereby injuring investors. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Canopy had incurred significant costs producing 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 incurred in connection with its Storz & Bickel vaporizer devices, were likely to have a significant negative impact on the Company's gross margins and overall financial results; (3) accordingly, Defendants had overstated the efficacy of Canopy's cost reduction measures and the health of its gross margins while downplaying issues with the same; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased or otherwise acquired Canopy securities between May 30, 2024 and February 6, 2025, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is June 3, 2025. Contact Us To Participate or Learn More: If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us: Frank R. Cruz The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 Email us at: info@ Call us at: 310-914-5007 Visit our website at Follow us for updates on Twitter: If you inquire by email, please include your mailing address, telephone number, and number of shares purchased. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Malaysian Reserve
30-05-2025
- Business
- Malaysian Reserve
Contact The Gross Law Firm Before June 3, 2025 to Discuss Your Rights
NEW YORK, May 29, 2025 /PRNewswire/ — The Gross Law Firm issues the following notice to shareholders of Canopy Growth Corporation (NASDAQ: CGC). Shareholders who purchased shares of CGC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: CLASS PERIOD: May 30, 2024 to February 6, 2025 ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) Canopy had incurred significant costs producing Claybourne pre-rolled joints in connection with the Claybourne product launch in Canada; (ii) the foregoing costs, in addition to certain indirect costs that Canopy incurred in connection with its Storz & Bickel vaporizer devices, were likely to have a significant negative impact on the Company's gross margins and overall financial results; (iii) accordingly, defendants had overstated the efficacy of Canopy's cost reduction measures and the health of its gross margins while downplaying issues with the same; and (iv) as a result, defendants' public statements were materially false and misleading at all relevant times. DEADLINE: June 3, 2025 Shareholders should not delay in registering for this class action. Register your information here: NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of CGC during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is June 3, 2025. There is no cost or obligation to you to participate in this case. WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT:The Gross Law Firm15 West 38th Street, 12th floorNew York, NY, 10018Email: dg@ (646) 453-8903
