Canada cannabis revenue increased 4% in Q4 FY2025 year-over-year, led by 13% growth in Canada medical cannabis
Reduced total debt by $293 million or 49% during FY2025
Refined strategy, focus and organizational structure expected to accelerate growth in global medical cannabis and improve commercial execution in Canada adult-use cannabis
Additional cost reduction initiatives identified and initiated in Q4 FY2025 are expected to deliver at least $20 million in annualized savings over the next 12-18 months
Read our fiscal year and fourth quarter 2025 financial results here: 
SMITHS FALLS, ON, May 30, 2025 – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX:WEED) (Nasdaq: CGC) today announced its financial results for the fourth quarter ended March 31, 2025 (“Q4 FY2025”) and the fiscal year ended March 31, 2025 (“FY2025”) and the filing of the Company’s Annual Report on Form 10-K for FY2025 (the “Form 10-K”), including the audited consolidated financial statements for FY2025 and the unqualified report thereon of the Company’s independent registered public accounting firm. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
“Since taking over as CEO in January, we took decisive actions to accelerate growth and profitability by unifying our medical cannabis businesses globally, aligning operations with commercial focus, increasing rigor on core fundamentals and streamlining our product portfolio. With renewed focus and our resources dedicated to the most promising opportunities, I’m confident that our leading brands and product innovation pipeline can deliver meaningful growth and long-term value for both consumers and shareholders.”
Luc Mongeau, Chief Executive Officer
“We demonstrated marked year-over-year improvement in Adjusted EBITDA and cash flow in FY2025, while fortifying our balance sheet. We are committed to achieving positive Adjusted EBITDA in the near-term and positive Free Cash Flow over time as we accelerate growth across our global medical cannabis businesses, improve margins in Canada adult-use cannabis and further reduce costs in all areas of our businesses.”
Judy Hong, Chief Financial Officer
Fourth Quarter Fiscal Year 2025 Financial Summary
| (in thousands of Canadian dollars, unaudited) |
Net Revenue | Gross margin percentage |
Adjusted gross margin percentage1 |
Net loss from continuing operations | Adjusted EBITDA2 |
Free cash flow3 |
|
| Reported | $65,031 | 16% | 19% | $(221,501) | $(9,248) | $(36,241) | |
| vs. Q4 FY2024 | (11%) | (500) bps | (200) bps | (134%) | 39% | (60%) |
Fiscal Year 2025 Financial Summary
| (in thousands of Canadian dollars, unaudited) |
Net Revenue | Gross margin percentage |
Adjusted gross margin percentage4 |
Net loss from continuing operations | Adjusted EBITDA |
Free cash flow |
|
| Reported | $268,995 | 30% | 30% | $(604,138) | $(23,504) | $(176,563) | |
| vs. FY2024 | (9%) | 300 bps | 300 bps | (25%) | 60% | 24% |
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures, and for Q4 FY2025 exclude $2.0 million of restructuring costs recorded in cost of goods sold (“COGS”) (Q4 FY2024 – excludes $(0.3) million of restructuring cost reversals recorded in COGS). See “Non-GAAP Measures” and Schedule 4 for a reconciliation of net revenue to adjusted gross margin.
2 Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” and Schedule 5 for a reconciliation of net loss from continuing operations to adjusted EBITDA.
3 Free cash flow is a non-GAAP measure. See “Non-GAAP Measures” and Schedule 6 for a reconciliation of net cash used in operating activities – continuing operations to free cash flow – continuing operations.
4 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures, and for FY2025 exclude $2.0 million of restructuring costs recorded in COGS (FY2024 – excludes $(1.0) million of restructuring cost reversals recorded in COGS). See “Non-GAAP Measures” and Schedule 4 for a reconciliation of net revenue to adjusted gross margin.
Fourth Quarter and FY2025 Financial Highlights
- Net revenue in Q4 FY2025 decreased 11% compared to the fourth quarter ended March 31, 2024 (“Q4 FY2024”) primarily due to decreased international markets cannabis and Storz & Bickel net revenue, offset by higher Canadian cannabis net revenue. Net revenue in FY2025 decreased 9% compared to the fiscal year ended March 31,2024 (“FY2024”). Excluding net revenue from businesses divested in FY2024, net revenue in FY2025 decreased 1% compared to FY2024 primarily due to lower Canada cannabis sales offset by growth in Storz & Bickel and international markets cannabis net revenue.
- Consolidated Gross Margin decreased by 500 basis points (“bps”) to 16% in Q4 FY2025 compared to Q4 FY2024. Adjusted Gross Margin, which excludes restructuring costs recorded in COGS, decreased by 200 basis points year-over-year to 19% in Q4 FY2025. Gross Margin increased by 300 bps to 30% in FY2025 compared to FY2024 primarily driven by ongoing cost reduction actions and shift mix to higher margin medical cannabis sales in Canada.
- Operating loss from continuing operations was $18MM in Q4 FY2025, representing an improvement of 83% compared to Q4 FY2024. The improvement in Q4 FY2025 was driven primarily by a reduction in operating expenses. Operating loss from continuing operations was $117MM in FY2025 compared to $229MM in FY2024 with the change due primarily to a reduction in operating expenses.
- Adjusted EBITDA loss of $9MM in Q4 FY2025, representing a 39% improvement year-over-year, driven primarily by the realized benefit of the Company’s cost savings program. Adjusted EBITDA loss of $24MM in FY2025, representing a 60% improvement year-over-year, driven primarily by the realized benefit of the Company’s cost savings program.
- Free Cash Flow was an outflow of $36MM in Q4 FY2025, an increase of 60% in outflow compared to Q4 FY2024, primarily driven by an increase in working capital outflow, partially offset by lower cash interest expenses. Free cash flow was an outflow of $177MM in FY2025, a 24% improvement compared to FY2024, primarily driven by lower interest payments.
- Total debt decreased to $304MM at March 31, 2025 compared to $597MM on March 31, 2024 primarily due to reduction in Company’s senior secured term loan following a series of pre-payments.
Canada Cannabis Highlights
- Canada cannabis net revenue was $40MM in Q4 FY2025, representing an increase of 4% compared to Q4 FY2024 driven by an increase in Canada medical cannabis net revenue partially offset by a decline in Canada adult-use cannabis net revenue.
- Canada medical cannabis net revenue in Q4 FY2025 increased 13% compared to Q4 FY2024 driven primarily by an increase in the average size of medical cannabis orders placed by our Canadian customers.
- Canada adult-use cannabis net revenue in Q4 FY2025 declined 3% compared to Q4 FY2024 driven primarily by lower flower and pre-roll sales partially offset by growth in sales of infused pre-rolls.
- Claybourne infused pre-roll joints, launched in the quarter ended December 31, 2024, have ascended to #2 market share in the infused pre-roll category in Alberta, #3 in Ontario and #3 nationally5.
International Markets Cannabis Highlights
- International markets cannabis net revenue was $8MM in Q4 FY2025, representing a decrease of 35% over Q4 FY2024, 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 our U.S. CBD business to Canopy USA (as defined below), which was deconsolidated on April 30, 2024.
- Performance in the German medical cannabis market in Q4 FY2025 benefited from expansion of the product portfolio available to patients.
- International markets cannabis net revenue was $40MM in FY2025, representing a decrease of 4% over FY2024, with growth in medical cannabis net revenue in Germany and Poland offset by declines in Australia medical cannabis sales.
5 Calculated using the Company’s internal proprietary market analysis tool that applies sales data supplied by third-party providers and government agencies, last 13 weeks ended April 27, 2025.
Storz & Bickel Highlights
- Storz & Bickel delivered net revenue in Q4 FY2025 of $17MM, representing a 23% decrease compared to Q4 FY2024, driven by softer consumer demand for all devices and strong revenue generated in the first full quarter of Venty sales that occurred in Q4 FY2024.
- Storz & Bickel net revenue was $73MM in FY2025, representing an increase of 4% over FY2024, with growth driven by full year of Venty sales.
- Subsequent to the fiscal quarter end, Storz & Bickel introduced the VOLCANO CLASSIC 25 Years Edition to commemorate the 25th anniversary of the VOLCANO CLASSIC.
FY2026 Priorities and Outlook
Canopy Growth has implemented a number of initiatives aligned with its long-term strategy to improve profitability, sharpen commercial execution, and strengthen operational performance.
- Global Medical Platform Positioned for Sustainable Growth: To scale Canopy Growth’s leadership in high-growth medical cannabis markets, medical cannabis operations across Canada, Germany, Poland, and Australia have been integrated under a single global medical cannabis business unit. This structure is expected to support more consistent product availability, improved patient access, and better responsiveness to local market needs – with a continued focus on scaling European Union Good Manufacturing Practice (“EU-GMP”) certified supply and maximizing distribution through established medical channels.
- Canada Adult-Use Tightened Focus to Improve Execution and Profitability: Canopy Growth is focused on achieving profitable scale in the Canada adult-use cannabis market by refocusing on the geographies and product formats with the greatest opportunity, including pre-rolls, vapes, and high-THC flower, in alignment with consumer preferences and profitable category growth. The enhanced focus is expected to further strengthen the Company’s competitive position in these priority segments with a reliable supply of high-potency products while streamlining the product portfolio.
- Global Operations Function Designed to Support Commercial Priorities: Canopy Growth has established a dedicated global operations function for cannabis, expanding its scope beyond Canada to serve its cannabis operations globally. This change is designed to enable smarter resource allocation, improved supply chain coordination, and tighter alignment between demand and product across key geographies.
- Storz & Bickel Focused on Margin Improvement and Innovation: Storz & Bickel remains a key component of our business. In the fiscal year ending March 31, 2026 (“FY2026”), Storz & Bickel expects to focus on efficiently navigating a challenging global macroeconomic backdrop, enhancing margins through production and procurement efficiencies, alongside an expected launch of a new device later this calendar year to broaden consumer access.
- Additional Cost Reduction Initiatives to Improve Profitability: A review of selling, general and administrative (“SG&A”) expenses and COGS identified opportunities to further reduce expenses, with cost actions underway and expected annualized savings of at least $20 million over the next 12 to 18 months. The reductions in headcount, sales and marketing spending, professional fees and information technology expenses are expected to contribute to improvement in gross margin and adjusted EBITDA performance in FY2026.
In FY2026, Canopy Growth plans to continue to focus on accelerating growth in global medical cannabis, improving commercial execution and profitability in Canada’s adult-use cannabis market, maintaining global vaporizer leadership through Storz & Bickel, and advancing towards achieving positive Adjusted EBITDA – all within a disciplined, asset-right operating model and against a backdrop of continued macroeconomic uncertainty.
Fourth Quarter and Fiscal 2025 Revenue Review6
| (in millions of Canadian dollars, unaudited) | Q4 FY2025 | Q4 FY2024 | Vs. Q4 FY2024 | FY2025 | FY2024 | Vs. FY2024 | |
| Canada cannabis | |||||||
| Canadian adult-use cannabis7, 9 | $20.4 | $21.0 | (3%) | $78.8 | $92.8 | (15%) | |
| Canadian medical cannabis8, 10 | $20.0 | $17.7 | 13% | $77.0 | $66.4 | 16% | |
| $40.4 | $38.7 | 4% | $155.8 | $159.2 | (2%) | ||
| International markets cannabis11 | $7.5 | $11.6 | (35%) | $39.7 | $41.3 | (4%) | |
| Storz & Bickel | $17.1 | $22.2 | (23%) | $73.4 | $70.7 | 4% | |
| This Works | $- | $- | 0% | $- | $21.2 | (100%) | |
| Other7, 8 | $- | $0.3 | (100%) | $- | $4.7 | (100%) | |
| Net revenue | $65.0 | $72.8 | (11%) | $268.9 | $297.1 | (9%) |
The Q4 FY2025, Q4 FY2024, FY2025 and FY2024 financial results presented in this press release have been prepared in accordance with U.S. GAAP.
Canopy USA Update
From June 30, 2024 to March 31, 2025, the fair value of Canopy Growth’s equity method investments in Canopy USA and certain entities over which Canopy USA exercises control, as well as the value of our investment in Acreage (as defined below) has declined significantly. This decline is primarily attributable to the underperformance of Acreage relative to projections.
As indicated in Acreage’s last publicly available financial statements as of and for the three and nine months ended September 30, 2024 filed with the Securities and Exchange Commission (“SEC”) on November 14, 2024, Acreage’s net revenue and gross profit for the nine months ended September 30, 2024 declined 27% and 57% year-over-year, respectively.
Acreage is currently in default under its credit agreement dated as of September 13, 2024. The lenders have agreed to forbear exercising any remedies with respect to such default until June 1, 2025 while the parties discuss potential solutions, including a potential debt extension.
6 In Q4 FY2025, we are reporting our financial results for the following four reportable segments: (i) Canada cannabis; (ii) international markets cannabis; (iii) Storz & Bickel; and (iv) This Works. On December 18, 2023, the Company completed the sale of This Works and as of such date, the results of This Works are no longer included in the Company’s financial results.
7 A reclassification of $0.2M and $0.4M of ancillary cannabis revenues from Other to Canadian adult-use cannabis occurred for Q4 FY2024 and FY2024, respectively.
8 A reclassification of $1.4M and $5.0M of ancillary cannabis revenues from Other to Canadian medical cannabis occurred for Q4 FY2024 and FY2024, respectively.
9 For Q4 FY2025, amount is net of excise taxes of $10.7MM and other revenue adjustments of $0.7MM (Q4 FY2024 – $8.5MM and $1.0MM, respectively). For FY2025, amount is net of excise taxes of $36.4MM and other revenue adjustments of $4.2MM (FY2024 – $40.1MM and $3.5MM, respectively).
10 For Q4 FY2025, amount is net of excise taxes of $2.3MM (Q4 FY2024 – $1.8MM). For FY2025, amount is net of excise taxes of $8.5MM (FY2024 – $6.7MM)
11 For Q4 FY2025, amount reflects other revenue adjustments of $nil (Q4 FY2024 – $0.2MM). For FY2025, amount reflects other revenue adjustments of $0.1MM (FY2024 – $0.6MM).
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with Luc Mongeau, CEO and Judy Hong, CFO at 10:00 AM Eastern Time on May 30, 2025.
Webcast Information
A live audio webcast will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=1235414F-AB39-4A0B-871E-B1885B487ACD.
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on August 28, 2025 at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=1235414F-AB39-4A0B-871E-B1885B487ACD.
Non-GAAP Measures
Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA is a useful measure for investors because it provides meaningful and useful financial information, as this measure demonstrates the operating performance of businesses. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring costs; restructuring costs recorded in cost of goods sold; and charges related to the flow-through of inventory step-up on business combinations, and further adjusted to remove acquisition, divestiture, and other costs. Asset impairments related to periodic changes to the Company’s supply chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information as this measure demonstrates the operating performance of businesses. The Adjusted EBITDA reconciliation is presented within this news release and explained in the Form 10-K filed with the SEC.
Free Cash Flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that Free Cash Flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand our business, and that the Free Cash Flow measure provides meaningful information regarding the Company’s liquidity requirements. This measure is calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment. The Free Cash Flow reconciliation is presented within this news release and explained in the Form 10-K filed with the SEC.
Adjusted Gross Margin and Adjusted Gross Margin Percentage are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that Adjusted Gross Margin and Adjusted Gross Margin Percentage present meaningful and useful financial information as these measures provide insights into the gross margin performance of the business. Adjusted Gross Margin is calculated as gross margin excluding restructuring and other charges recorded in cost of goods sold, and charges related to the flow-through of inventory step-up on business combinations. Adjusted Gross Margin Percentage is calculated as Adjusted Gross Margin divided by net revenue. The adjusted gross margin and Adjusted Gross Margin Percentage reconciliation is presented within this news release and explained in the Form 10-K filed with the SEC.
About Canopy Growth
Canopy Growth is a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives.
Through an unwavering commitment to consumers, Canopy Growth delivers innovative products from owned and licensed brands including Tweed, 7ACRES, DOJA, Deep Space, and Claybourne, as well as category defining vaporization devices by Storz & Bickel. In addition, Canopy Growth serves medical cannabis patients globally with principal operations in Canada, Europe and Australia.
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA. Canopy USA’s portfolio includes ownership of Acreage, a vertically integrated multi‑state cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana (as defined below), a leading North American edibles brand, and majority ownership of Jetty (as defined below), a California-based producer of high-quality cannabis extracts and clean vape technology.
At Canopy Growth, we’re shaping a future where cannabis is embraced for its potential to enhance well-being and improve lives. With high-quality products, a commitment to responsible use, and a focus on enhancing the communities where we live and work, we’re paving the way for a better understanding of all that cannabis can offer.
For more information visit www.canopygrowth.com.
