Why Is Canada-Based Cannabis Firm Canopy Growth Stock Trading Lower On Friday?

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On Friday, Canopy Growth Corporation CGC reported third-quarter 2025 sales of CA$74.76 million, down from CA$78.51 million a year ago, beating the consensus of CA$69.11 million.

Excluding net revenue from businesses divested during the prior fiscal year, net revenue increased 8%, driven primarily by growth in Canada’s medical, international markets and Storz & Bickel.

Cannabis net revenue was CA$41 million, up 1%. Medical cannabis net revenue increased 16% compared, driven primarily by an increase in the average size of medical orders placed by customers.

Also Read: Why Aurora Cannabis Stock Is Skyrocketing Wednesday: What About Canopy, Tilray, Cronos?

Adult-use cannabis net revenue declined 10%.

Storz & Bickel delivered net revenue of CA$22 million, representing a 19% increase, driven by traditionally strong holiday purchases, robust direct-to-consumer online sales and continued growth in Germany.

“Canopy Growth’s third quarter highlights that our business has the right ingredients for success, as demonstrated by the continued momentum in our medical cannabis businesses, Storz & Bickel, and the successful introduction of Claybourne infused pre-rolls in Canada,” said CEO Luc Mongeau.

“The third quarter marked our best Adjusted EBITDA to date, led by strong year-over-year top-line growth in our medical cannabis business and Storz & Bickel, and continued cost discipline,” Mongeau added.

Gross margin decreased by 400 basis points to 32%, primarily due to the incremental costs related to the Claybourne-infused pre-roll launch in Canada and an increase in indirect costs of Storz & Bickel vaporizer devices partially offset by stronger sales of higher-margin medical cannabis products.

Operating loss was CA$24 million, representing an improvement of 61%. Adjusted EBITDA loss of $3 million, representing a 61% improvement year-over-year, driven primarily by the realized benefit of the company’s cost savings program.

Price Action: CGC stock is down 23.4% at $2.13 at last check Friday.

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