Canopy Growth Corporation Reports $74.8 Million Revenue, Completes Acreage Holdings Acquisition

Canopy Growth Corporation reported a net revenue of $74.8 million for the three months ended December 31, 2024, a decrease of 5% from $78.5 million in the same period last year. The company's gross margin also declined to $24.1 million, representing 32% of net revenue, down from 36% in the prior year. The net loss from continuing operations was $121.9 million, a significant improvement from the $230.3 million loss reported in the same quarter of the previous year. This reduction in loss was attributed to a decrease in operating expenses and a favorable change in other income and expenses.

In terms of strategic developments, Canopy Growth completed the acquisition of Acreage Holdings on December 9, 2024, which now operates as Canopy USA. This acquisition is part of the company's strategy to expand its footprint in the U.S. cannabis market. The company also established an at-the-market equity program, raising $256 million through the issuance of common shares during the nine months ended December 31, 2024. Additionally, Canopy Growth has been actively restructuring its operations, which has led to a significant reduction in selling, general, and administrative expenses, which fell to $41.5 million from $54.4 million year-over-year.

Operationally, Canopy Growth's Canadian cannabis segment generated $40.7 million in revenue, slightly up from $40.4 million in the previous year. The international markets segment saw revenue growth to $12.0 million, driven by increased shipments in Europe. However, the Storz & Bickel segment reported a revenue increase to $22.0 million, reflecting strong sales in key markets. The company’s total assets decreased to $1.16 billion from $1.30 billion, primarily due to the deconsolidation of Canopy USA and the liquidation of BioSteel.

Looking ahead, Canopy Growth aims to enhance its liquidity position through various strategies, including potential additional financing and cost-saving measures. The company has expressed confidence in its ability to continue as a going concern, alleviating previous doubts regarding its financial stability. As of December 31, 2024, Canopy Growth had cash and cash equivalents of $161.9 million, positioning it to navigate future challenges and capitalize on growth opportunities in the evolving cannabis market.