Canadian Cannabis Firm Canopy Stock Falls After Q4 Earnings Fall Short: What's Next?

Canopy Growth Corp CGC reported on Thursday fourth-quarter 2025 sales of CA$65 million ($45.75 million), down from CA$72.8 million a year ago. The stock has fallen by 21% since the report.

Net revenue in the quarter decreased 11% year over year, primarily due to decreased net revenue in international markets for cannabis and Storz & Bickel, offset by higher Canadian cannabis net revenue. 

Consolidated gross margin decreased by 500 basis points to 16% in the fourth quarter of 2025. Adjusted gross margin decreased by 200 basis points year-over-year to 19%.

Operating loss from continuing operations was CA$18 million in the fourth quarter, full-year 2025, representing an improvement of 83% compared to the fourth-quarter, full year 2024, primarily driven by a reduction in operating expenses.

Also Read: Germany’s Cannabis Industry Hits 500 Million Euros: 2,500 Pharmacies Now Dispense, 211 Grow Clubs Approved

Adjusted EBITDA loss reached CA$9 million, representing a 39% improvement year-over-year, driven primarily by the realized benefit of the company's cost savings program. 

Canada cannabis net revenue was CA$40 million in the fourth quarter of 2025, representing an approximately 4% year-over-year increase driven by an increase in medical cannabis net revenue, partially offset by a decline in adult-use cannabis net revenue.

• Canada medical cannabis net revenue in the fourth-quarter, full year 2025 increased 13% year over year, driven primarily by an increase in the average size of medical cannabis orders placed by Canadian customers.
• Canada adult-use cannabis net revenue declined by 3%, driven primarily by lower flower and pre-roll sales partially offset by growth in sales of infused pre-rolls.

International markets’ cannabis net revenue was CA$8 million, down 35%, primarily due to declines in Poland medical cannabis sales caused by regulatory changes that negatively impacted the overall medical cannabis market in Poland, declines in Australia medical cannabis sales and a transition of the U.S. CBD business to Canopy USA.

Storz & Bickel delivered net revenue of $17 million, down 23%, driven by softer consumer demand for all devices and revenue generated in the first full quarter of Venty sales in fourth-quarter, full year 2024.

Canopy Growth FY2026 Priorities and Outlook:

• Global Medical Cannabis Business Set for Long-Term Growth: Canopy has combined its medical cannabis operations in Canada, Germany, Poland and Australia into one global unit. The focus will remain on expanding EU-GMP-certified supply and strengthening distribution through medical channels.
• Sharpening Focus in Canada's Recreational Market: In the Canadian adult-use market, Canopy is prioritizing product types and regions with the most growth potential — especially pre-rolls, vapes, and high-THC flowers. By narrowing the product range, Canopy aims to better meet consumer demand, improve execution, and boost profitability.
• Global Operations to Support Business Goals: A new global operations team has been created to oversee cannabis production beyond Canada to improve how resources are used, streamline supply chains, and ensure supply matches demand in key markets.
• Storz & Bickel Focused on Innovation and Efficiency: Storz & Bickel remains a key part of Canopy's strategy. In FY2026, the company aims to improve profit margins through better production and sourcing and plans to launch a new vaporizer later this year to attract more customers.
• Cutting Costs to Boost Profitability: Canopy reviewed its spending and found ways to cut at least CA$20 million in annual costs over the next 12 to 18 months.

CGC Price Action: Canopy Growth stock is down 21.78% at $1.34 at publication on Friday.

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