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Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) announced its financial results for the first quarter ended June 30th, 2024 last week. All financial information below is reported in Canadian dollars unless otherwise indicated, and compared to the previous quarter.

Q1 Financial Highlights

• Total Net Revenue: DOWN 9.1% to $66.2M
  • Adj. Gross Margin: UP to 35% from 21% 
• Canadian Cannabis: UP 1.6% to $37.7M 
  • as a % of Net Revenue: UP to 56.9% from 51.0%
•  International: DOWN 12.9% to $10.1M
  • as a % of Net Revenue: DOWN to 15.3% from15.9% 
• Storz & Bickel (vaporizers): DOWN 17.1% to $18.4M 
  • as a % of Net Revenue: DOWN to 27.8% from 30.5%
• Other: DOWN 100% to $0
• Adj. EBITDA: DOWN 67.1% to $5.0M 
• Net Loss: DOWN to $(29)M from $(92.3)M
• Cash on Hand: DOWN 3.9% to $195M
• Long-Term Debt: UP 13.2% to $558.5M

Q3 Operational Highlights

Management Commentary

David Klein, Chief Executive Officer, said:

• "The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025.
• With our core businesses delivering adjusted EBITDA profitability and primed for growth, paired with Canopy USA's positioning to benefit from near-term market opportunities in the U.S., Canopy Growth is advancing rapidly and is well established for multi-market cannabis leadership."

Judy Hong, Chief Financial Officer, said:

• "...We are pleased that all of our business units delivered positive Adjusted EBITDA during Q1 Fiscal 2025 and expect to achieve positive Adjusted EBITDA on a consolidated basis in the second half of the fiscal year.
• We've continued to enhance our financial flexibility through additional actions, including the extension of our term loan, which will enable us to fund strategic growth initiatives."

Stock Performance

Canopy's stock went DOWN 25.3% in Q1 (April-June) but has gone UP 9.6% since the release of the Q1 results last Friday and is now UP 36.6% YTD.

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