Canopy Growth Corporation reported $23 million in gross profit in Q1 2025, a 67% increase from Q1 2024, but also posted a $127 million loss, a nearly 204% increase from Q1 2024’s loss of $41.9 million.
This is a decrease in net revenue and net loss from the previous quarter, Q4 2024, in which Canopy reported $72.8 million in net revenue and a net loss from continuing operations in fiscal 2024 of $483.7 million for the three months ended March 31, 2024.
Despite continued losses, Canopy CEO David Klein remains positive.
“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.”
Net revenue from Canadian cannabis sales, both medical and non-medical, for the three months ended June 30, 2024, was $37.7 million. Cannabis sales in international markets brought in another $10.1 million and sales for Storz & Bickel were $18 million, for a total of $66.2 million in net revenue.
The company reported incurring $7.5 million in excise tax from Canadian adult use (non-medical) sales in Q1 2025 and $2.1 million in excise from medical sales.
The segmented gross margin for Canadian cannabis sales was $12.1 million, while international cannabis markets were $3.6 million, and Storz & Bickel was $7.3 million. After a $29.1 million operating loss and $93.9 million in other expenses, loss before income taxes was $123 million.
While $37.7 million of Canopy’s sales in the three months ended June 30, 2024, were from Canada, $15.5 million were from Germany, $8.6 million were from the US, and another $4.4 million were from other parts of the globe.
Canopy attributes a year-over-year decrease in Canadian adult-use cannabis sales to “supply constraints for certain products as a result of financial difficulties with our contract manufacturers and lower sales velocity due to increased price competition.”
The company attributes its year-over-year increase in Canadian medical cannabis sales to an increase in the average size of medical orders, an increase in the percentage of insured customers, and a more extensive assortment of cannabis product choices offered to its customers.
These increases were somewhat offset by a year-over-year decrease in the total number of medical orders, which Canopy says is due to an increasing number of adult-use cannabis retail stores across Canada. As of June 21, 2024, there were 3,663 authorized retail cannabis stores in Canada, down from 3,689 in March, but this number is still higher than the same reporting period in the previous year.
Canopy’s international cannabis sales remained relatively stable compared to the same quarter in 2024, which it says is due to increased sales in Poland and decreased sales in Australia.
Revenue from sales of Canopy’s control of Storz & Bickel was $18.5 million in the first quarter of fiscal 2025, up from $18.1 million in the first quarter of fiscal 2024. Canopy attributes this 2% increase in year-over-year sales to the growth of its Mighty vaporizer and contribution from its newly launched portable vaporizer in the third quarter of fiscal 2024.
The gross margin for Canopy’s Canada cannabis segment was $12.1 million in the first quarter of fiscal 2025, or 32% of net revenue, compared to a $300,000 loss in the first quarter of fiscal 2024, or -1% of net revenue.
Canopy has two cannabis cultivation facilities in Canada: a greenhouse facility in Kincardine, Ontario and its DOJA facility in Kelowna, British Columbia. The Kincardine facility has European Union Good Manufacturing Practices (“EU GMP”) certification which allows for export to medical markets in Europe and other medical cannabis markets around the world.
The company also operates a processing facility at its flagship site in Smiths Falls, Ontario.
Canopy sells in Canada under the Tweed, 7Acres, DOJA, Vert, Hi Way, Deep Space, Wana, and Spectrum brands, while international sales are under Canopy Medical and Spectrum Therapeutics.
