Canopy Growth (NASDAQ:CGC) Announces Quarterly Earnings Results

Canopy Growth (NASDAQ:CGC) announced its earnings results on Monday. The company reported ($0.17) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.11), Zacks reports. Canopy Growth had a negative return on equity of 27.34% and a negative net margin of 75.27%.The business had revenue of $51.22 million for the quarter, compared to analyst estimates of $53.43 million.

Here are the key takeaways from Canopy Growth’s conference call:

• Canopy Growth said fiscal 2026 marked a turning point, with Canada adult-use revenue up 20%, Canada medical up 18%, and international cannabis gaining momentum. Management emphasized that cost restructuring and a recapitalization strengthened the business and extended debt maturities to 2031.
• The MTL Cannabis acquisition was highlighted as a major strategic win, making Canopy the leading Canadian medical cannabis business by revenue. The company said it has already achieved CAD 6 million of its CAD 10 million annualized synergy target and expects further benefits from integration.
• Fourth-quarter cannabis gross margin was pressured by CAD 10.7 million of acquisition-related inventory charges, but management said adjusted gross margin would have been 26% versus 12% a year ago. Canopy also reiterated confidence in reaching positive adjusted EBITDA during fiscal 2027.
• Canadian medical growth is expected to face headwinds from Veterans Affairs reimbursement changes, and management said the business may not maintain the same growth rate seen in fiscal 2026. The company is trying to offset the impact through pricing, mix changes, and patient retention efforts.
• Management struck an optimistic tone on international growth, especially Europe, citing strong sequential improvement and 68% year-over-year Q4 international revenue growth. It also said Canopy is targeting expansion into the U.K. and believes its Germany and Poland operations are well positioned.

Canopy Growth Trading Down 2.5%

CGC opened at $0.96 on Wednesday. Canopy Growth has a fifty-two week low of $0.84 and a fifty-two week high of $2.38. The firm has a market capitalization of $387.15 million, a PE ratio of -1.62 and a beta of 0.77. The company has a debt-to-equity ratio of 0.30, a current ratio of 5.34 and a quick ratio of 4.26. The company’s 50-day moving average is $1.08 and its 200 day moving average is $1.13.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Weiss Ratings upgraded Canopy Growth from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, June 1st. Canaccord Genuity Group began coverage on Canopy Growth in a report on Friday, March 27th. They issued a “buy” rating for the company. ATB Cormark Capital Markets upgraded Canopy Growth from a “strong sell” rating to a “moderate buy” rating in a research report on Tuesday, March 17th. Finally, Wall Street Zen lowered Canopy Growth from a “hold” rating to a “sell” rating in a research note on Sunday, March 29th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold”.

Key Headlines Impacting Canopy Growth

Here are the key news stories impacting Canopy Growth this week:

• Positive Sentiment: Canopy Growth said its fiscal 2026 reset, integration of MTL Cannabis, and growth in medical cannabis could improve margins and help the company reach positive adjusted EBITDA in fiscal 2027. CGC Q4 Earnings Call Focuses on EBITDA Path
• Positive Sentiment: The company reported double-digit full-year revenue growth and a narrower quarterly loss, suggesting its restructuring efforts are starting to show some progress. Canopy Growth revenue climbs 14% in Q4
• Neutral Sentiment: Analysts and commentators are debating the long-term outlook, with some saying the stock may have already priced in potential cannabis policy benefits and that Canopy is still a risky turnaround story. Canopy Growth Bought Time, Not A Higher Rating
• Negative Sentiment: The latest quarter also came with a revenue miss and an adjusted loss that was worse than Wall Street expected, reinforcing concerns that profitability is still far away. Canopy Growth Corporation (CGC) Reports Q4 Loss, Lags Revenue Estimates

Institutional Trading of Canopy Growth

Several institutional investors have recently made changes to their positions in CGC. Bank of Montreal Can grew its position in shares of Canopy Growth by 122.7% during the 4th quarter. Bank of Montreal Can now owns 25,174 shares of the company’s stock valued at $29,000 after acquiring an additional 135,970 shares during the period. Boothbay Fund Management LLC bought a new stake in shares of Canopy Growth during the 2nd quarter valued at $30,000. WINTON GROUP Ltd purchased a new position in Canopy Growth during the 4th quarter valued at about $63,000. Sender Co & Partners Inc. bought a new position in shares of Canopy Growth in the third quarter valued at approximately $63,000. Finally, Commonwealth Equity Services LLC grew its stake in Canopy Growth by 23.1% during the fourth quarter. Commonwealth Equity Services LLC now owns 73,739 shares of the company’s stock valued at $84,000 after acquiring an additional 13,814 shares in the last quarter. Institutional investors own 3.33% of the company’s stock.

Canopy Growth Company Profile

Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.