Canopy Growth (WEED) Q3 2025 earnings summary

Executive summary

• New CEO Luc Mongeau emphasized a renewed focus on profitability, innovation, and operational excellence, leveraging strong fundamentals in medical cannabis and international markets.

• Q3 FY2025 net revenue was $74.8M, down 5% year-over-year, but up 8% excluding divested businesses, driven by medical cannabis, international markets, and Storz & Bickel growth.

• Storz & Bickel net revenue rose 19% year-over-year; Canada medical cannabis net revenue increased 16%; international cannabis net revenue grew 14%.

• Integration of U.S. acquisitions (Wana, Jetty, Acreage) under Canopy USA is underway, with early cost and marketing synergies realized.

• Claybourne infused pre-rolls launched in Canada, reaching #3 market share in BC and Ontario within 6 weeks.

Financial highlights

• Q3 FY2025 consolidated net revenue was CAD 75 million, down 5% year-over-year, but up 8% excluding divested businesses.

• Adjusted EBITDA loss narrowed to CAD 3 million, a 61% improvement year-over-year.

• Free cash flow outflow was CAD 28 million, improving 17% from Q3 FY2024.

• Gross margin was 32%, down from 36% a year ago, but within target range.

• Net loss from continuing operations was $121.9M, a 47% improvement year-over-year.

Outlook and guidance

• Expect continued strength in medical cannabis and improved adult use performance in Canada, with focus on new product launches and expanded distribution.

• International markets, especially Europe, are expected to maintain momentum, leveraging regulatory changes and expanded supply.

• STORZ & BICKEL anticipated to have a solid Q4, though year-over-year growth may be challenged due to tough comparisons.

• Positive consolidated Adjusted EBITDA is targeted in the coming quarters, with further profitability and cash flow improvements into FY2026.

• Focus remains on achieving sustainable profitability and maximizing value in key markets and segments.