Canada's Canopy Growth Q2 revenue rises 22%, but slightly misses estimates

Overview

• Canadaian cannabis producer's Q2 net revenue rose 22% yr/yr, but slightly missed analyst expectations

• Adjusted EBITDA loss for Q2 narrowed 6% yr/yr as revenue grew and cost savings took effect

• International cannabis revenue surged 141% on strong sales in Germany and Poland

Outlook

• Company expects to reach positive adjusted EBITDA during fiscal 2027

• Canopy Growth anticipates ongoing momentum from international expansion and cultivation upgrades

Result Drivers

• INTERNATIONAL GROWTH - 141% increase in international cannabis revenue driven by strong medical cannabis sales in Germany and Poland, as well as entry into the UK and expanded offerings in Australia

• MTL CANNABIS ACQUISITION - Growth in Canada medical and adult-use cannabis revenue was partly attributed to the acquisition of MTL Cannabis, which increased insured customer numbers and flower sales

• VAC REIMBURSEMENT RATE - Reduction in Veterans Affairs Canada reimbursement rate for medical cannabis negatively impacted medical cannabis gross margin and partially offset revenue growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "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 Corporation is C$1.60, about 68.4% above its November 5 closing price of C$0.95

Reuters Recommended Reads

• Nov 3 - Curaleaf Q3 revenue rises 11% on international segment growth

• Nov 4 - Green Thumb Q3 revenue beats estimates on retail, CPG growth

• Nov 5 - Canada's Cronos Q3 revenue up 75% on cannabis flower demand in Israel, Germany

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)