Canopy Growth Corporation Reports Q3 Revenue of $74.5 Million, Net Loss Improvement

Canopy Growth Corporation reported its financial results for the third quarter and nine months ended December 31, 2025, revealing a net revenue of $74.5 million for the quarter, a slight decrease of 0.3% from $74.8 million in the same period last year. For the nine-month period, revenue increased by 5% to $213.4 million compared to $204.0 million in the prior year. The company experienced a net loss from continuing operations of $62.6 million for the quarter, significantly improved from a loss of $121.9 million in the same quarter of the previous year. For the nine months, the net loss was $105.8 million, a substantial reduction from $382.6 million in the prior year.

The company's gross margin for the quarter was $21.5 million, representing 29% of net revenue, down from 32% in the previous year. The decline in gross margin percentage was attributed to increased costs and a shift in product mix. Canopy Growth's Cannabis segment generated $51.6 million in revenue, up 4% year-over-year, driven by growth in Canadian adult-use and medical cannabis sales. However, revenue from international markets fell by 31% to $6.2 million due to supply chain challenges. The Storz & Bickel segment reported a revenue decline of 9% to $22.9 million, reflecting a tough comparison to strong sales in the prior year.

Operationally, Canopy Growth has made significant strides in reducing its operating expenses, which totaled $47.8 million for the quarter, a marginal decrease from $47.9 million in the previous year. Notably, general and administrative expenses decreased by 24% to $12.9 million, primarily due to headcount reductions and lower third-party costs. The company also recorded a loss on asset impairment and restructuring of $2.5 million, compared to $1.3 million in the same quarter last year, mainly related to employee restructuring costs.

In terms of strategic developments, Canopy Growth has been active in the market, having established an at-the-market equity program that allowed it to raise $135.8 million in gross proceeds during the nine months ended December 31, 2025. The company also entered into a loan agreement on January 8, 2026, securing approximately $162.1 million in cash, which will be used to repay outstanding amounts under its credit facility. Looking ahead, Canopy Growth is focused on expanding its product offerings and market presence, particularly in the U.S. cannabis sector through its subsidiary, Canopy USA, while navigating the complexities of the evolving regulatory landscape.