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Canopy Growth Corporation (CGC-0.62%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports net revenue of $74.8 million for the third quarter of fiscal 2025, a decrease from $78.5 million in the same quarter of the previous year. The decrease is attributed to lower sales in the Canadian adult-use cannabis market due to increased price competition.
Cost of goods sold for the quarter was $50.7 million, resulting in a gross margin of $24.1 million, or 32% of net revenue, compared to 36% in the previous year. This decrease in gross margin percentage is primarily due to costs related to new product launches and increased competition.
Operating expenses totaled $47.9 million, down from $88.5 million in the previous year. The reduction is mainly due to decreased general and administrative expenses and lower acquisition costs.
The company reported a net loss from continuing operations of $121.9 million, an improvement from the $230.3 million loss in the prior year. The improvement is largely due to a decrease in other expenses and operating losses.
Cash used in operating activities for the nine months ended December 31, 2024, was $132.6 million, a reduction from $259.9 million in the previous year, reflecting lower working capital spending and interest payments.
Canopy Growth's total debt was reported at $441.6 million, down from $597.2 million as of March 31, 2024. The decrease is primarily due to various debt repayments and exchanges, including the settlement of the CBI Note.
The company continues to evaluate strategies to increase its liquidity position, including potential equity and debt financing. It has raised $256.0 million through its at-the-market equity program during the nine months ended December 31, 2024.
Canopy Growth has deconsolidated the financial results of Canopy USA, which now operates independently, holding interests in U.S. cannabis companies such as Acreage Holdings and Wana Brands.
The filing also details ongoing legal proceedings, including class action lawsuits and an investigation by the SEC related to the company's financial reporting of its BioSteel segment.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Canopy Growth Corporation quarterly 10-Q report dated February 7, 2025. To report an error, please email earnings@qz.com.