CORRECTED-Cannabis firm Canopy's Q1 revenue beats estimates
Overview
Canopy Growth fiscal Q1 revenue rises 9% yr/yr, beating analyst expectations
Gross margin declines to 25% from 35% due to product mix shift
SG&A expenses down 21% yr/yr, achieving C$17 mln in cost savings
Outlook
Supply chain improvements to boost cannabis supply in Europe H2 FY2026
Company to launch new Storz & Bickel vaporizer H2 2025
Canopy Growth aims to improve cannabis gross margins H2 FY2026
Company focuses on expanding retail distribution in FY2026
Result Drivers
CANADA ADULT-USE - Revenue increased 43% yr/yr driven by distribution expansion and demand for new products
COST SAVINGS - Achieved C$17 mln of planned C$20 mln annualized savings target, reducing SG&A expenses by 21% yr/yr
PRODUCT MIX SHIFT - Gross margin decreased due to shift towards higher-cost manufactured products and lower sales in Poland
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | C$72.1 mln | C$64.50 mln (4 Analysts) |
Q1 Adjusted EBITDA |
| -C$8 mln |
|
Q1 Gross Margin |
| 25.0% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy."
Wall Street's median 12-month price target for Canopy Growth Corp is C$2.15, about 32.6% above its August 7 closing price of C$1.45
Press Release: ID:nBw2CwHJRa
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