Canopy Growth (WEED) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net revenue was CAD 63 million, down 9% year-over-year, but up 3% excluding divested businesses.

• Storz & Bickel net revenue grew 32% year-over-year, driven by Germany and U.S. demand and new product launches.

• Canadian medical cannabis revenue increased 16% year-over-year, now over half of Canada segment revenue.

• Canopy USA ecosystem advanced with Wana and Jetty acquisitions; Acreage deal on track for H1 2025.

• Balance sheet strengthened by early prepayment of CAD 100 million (US$100M) on term loan.

Financial highlights

• Consolidated gross margin reached 35%, a 100-basis point improvement year-over-year.

• Adjusted EBITDA loss was CAD 6 million (US$5.5M), improving 54% from last year.

• Free cash flow outflow was CAD 56 million (US$56.4M), a 16% improvement year-over-year.

• Net loss from continuing operations was CAD 131.6 million, an 11% improvement year-over-year.

• Cash and short-term investments increased to CAD 231 million at quarter-end.

Outlook and guidance

• Expect continued strength in Canadian medical and improved adult-use performance in H2 FY2025 as Wana supply is restored.

• International focus on consistent supply and new launches in Poland and Germany; actions underway to strengthen Australia.

• Storz & Bickel growth to continue, with Q3 benefiting from VENTY, but Q4 growth to moderate.

• Remain on path to achieve positive Adjusted EBITDA at consolidated level in coming quarters.

• Anticipates growth in EU medical cannabis markets and U.S. expansion through Canopy USA.