Corrected: BRIEF-Canopy Growth Q1 Revenue CAD 72.1 Million Vs. IBES Estimate CAD 64.5 Million

Canopy Growth

08/08/2025 12:00

Corrects headline, overview and key details table to say Q1 revenue beat expectations; corrects revenue figure in key details

Overview

Canopy Growth fiscal Q1 revenue rises 9% yr/yr, beating analyst expectations

Gross margin declines to 25% from 35% due to product mix shift

SG&A expenses down 21% yr/yr, achieving C$17 mln in cost savings

Outlook

Supply chain improvements to boost cannabis supply in Europe H2 FY2026

Company to launch new Storz & Bickel vaporizer H2 2025

Canopy Growth aims to improve cannabis gross margins H2 FY2026

Company focuses on expanding retail distribution in FY2026

Result Drivers

CANADA ADULT-USE - Revenue increased 43% yr/yr driven by distribution expansion and demand for new products

COST SAVINGS - Achieved C$17 mln of planned C$20 mln annualized savings target, reducing SG&A expenses by 21% yr/yr

PRODUCT MIX SHIFT - Gross margin decreased due to shift towards higher-cost manufactured products and lower sales in Poland

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$72.1 mln
C$64.50 mln (4 Analysts)
Q1 Adjusted EBITDA
-C$8 mln
Q1 Gross Margin
25.0%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy."

Wall Street's median 12-month price target for Canopy Growth Corp is C$2.15, about 32.6% above its August 7 closing price of C$1.45

Press Release: ID:nBw2CwHJRa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)