Canopy Growth shares fall after disappointing earnings, slowing sales

Key conclusions

Shares of Canopy Growth Corporation fell on Friday after reporting worse-than-expected earnings.
Revenues were 13% lower than a year earlier, and the net loss widened significantly.
Adult-use marijuana sales in Canada have declined, offset by increases in medicinal marijuana sales

Shares of Canopy Growth Corporation (CGC) fell on Friday after the company’s fiscal first-quarter 2025 earnings fell well short of expectations.

The cannabis producer’s revenue of C$66.2 million ($48.2 million) was down 13% from a year earlier and missed analysts’ forecasts of C$72.1 million. Net loss widened to C$1.60 per share from C$0.69 per share, more than double the consensus loss per share estimate.

Adult-use marijuana sales in Canada fell 22% to C$18.9 million. That was mostly offset by a 20% increase in medical marijuana sales to C$18.8 million.

Looking ahead, Canopy is focused on the second half of the fiscal year.

“Our business fundamentals continue to strengthen and our focus on generating profitable revenue is showing clear results as we set the stage for growth in the second half of fiscal 2025,” said David Klein, Canopy’s CEO.

Shares of the Ontario-based company fell 7.95% on Friday despite being up about 32% year to date.