Proactive Investors - Canopy Growth (TSX:WEED) Corporation (TSX:WEED, NYSE:CGC) shares slipped almost 10% after it posted a widening loss for the fiscal first quarter and revenue fell short of expectations.
The Smith Falls, Ontario-based cannabis producer posted a net loss of $127.1 million or C$1.60 per share, up from a loss of C$38.1 million of C$0.69 per share in the year-ago quarter.
Analysts had expected a loss per share of C$0.47.
Q1 revenue fell to C$66.2 million from C$76.3 million, missing estimates of C$70.1 million.
Canada cannabis net revenue decreased 6% year-over-year to C$38 million while Canada medical revenue was up 20%, attributed to demand for high-margin Spectrum Therapeutics products.
Canopy Growth said its gross profit of C$23 million is a 67% improvement over the year-ago quarter, despite the decline in revenue.
It also improved its operating loss by 47% to C$29 million, as it worked to cut costs.
"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,” CEO David Klein said in a statement accompanying Canopy Growth’s earnings.
“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 US, Canopy Growth is advancing rapidly and is well established for multi-market cannabis leadership."
Shares of Canopy Growth were down 9.8% at US$6.26 in early trade on Friday.