Canopy Growth (NASDAQ:CGC) Issues Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Canopy Growth (NASDAQ:CGC) released its earnings results on Monday. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.11), Zacks reports. Canopy Growth had a negative return on equity of 27.34% and a negative net margin of 75.27%.The business had revenue of $51.22 million for the quarter, compared to analyst estimates of $53.43 million.

Here are the key takeaways from Canopy Growth’s conference call:

• Canopy Growth said fiscal 2026 marked a turning point, with Canada adult-use revenue up 20%, Canada medical up 18%, and international cannabis gaining momentum. Management emphasized that cost restructuring and a recapitalization strengthened the business and extended debt maturities to 2031.
• The MTL Cannabis acquisition was highlighted as a major strategic win, making Canopy the leading Canadian medical cannabis business by revenue. The company said it has already achieved CAD 6 million of its CAD 10 million annualized synergy target and expects further benefits from integration.
• Fourth-quarter cannabis gross margin was pressured by CAD 10.7 million of acquisition-related inventory charges, but management said adjusted gross margin would have been 26% versus 12% a year ago. Canopy also reiterated confidence in reaching positive adjusted EBITDA during fiscal 2027.
• Canadian medical growth is expected to face headwinds from Veterans Affairs reimbursement changes, and management said the business may not maintain the same growth rate seen in fiscal 2026. The company is trying to offset the impact through pricing, mix changes, and patient retention efforts.
• Management struck an optimistic tone on international growth, especially Europe, citing strong sequential improvement and 68% year-over-year Q4 international revenue growth. It also said Canopy is targeting expansion into the U.K. and believes its Germany and Poland operations are well positioned.

Canopy Growth Price Performance

CGC opened at $0.96 on Wednesday. The company has a debt-to-equity ratio of 0.30, a current ratio of 5.34 and a quick ratio of 4.26. The company has a market capitalization of $387.15 million, a price-to-earnings ratio of -1.62 and a beta of 0.77. The firm’s fifty day moving average price is $1.08 and its two-hundred day moving average price is $1.13. Canopy Growth has a 1 year low of $0.84 and a 1 year high of $2.38.

Hedge Funds Weigh In On Canopy Growth

A number of hedge funds have recently bought and sold shares of the company. Tidal Investments LLC boosted its holdings in Canopy Growth by 31.5% during the 2nd quarter. Tidal Investments LLC now owns 5,033,793 shares of the company’s stock worth $6,141,000 after acquiring an additional 1,204,530 shares during the last quarter. Millennium Management LLC boosted its holdings in Canopy Growth by 196.9% during the 3rd quarter. Millennium Management LLC now owns 3,137,696 shares of the company’s stock worth $4,579,000 after acquiring an additional 2,080,994 shares during the last quarter. Two Sigma Investments LP purchased a new position in Canopy Growth during the 3rd quarter worth $1,767,000. Headlands Technologies LLC boosted its holdings in Canopy Growth by 355.0% during the 4th quarter. Headlands Technologies LLC now owns 987,809 shares of the company’s stock worth $1,126,000 after acquiring an additional 770,717 shares during the last quarter. Finally, Jones Financial Companies Lllp boosted its holdings in Canopy Growth by 10,308.3% during the 1st quarter. Jones Financial Companies Lllp now owns 969,533 shares of the company’s stock worth $882,000 after acquiring an additional 960,218 shares during the last quarter. 3.33% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Canopy Growth

Here are the key news stories impacting Canopy Growth this week:

• Positive Sentiment: Canopy Growth said its fiscal 2026 reset, integration of MTL Cannabis, and growth in medical cannabis could improve margins and help the company reach positive adjusted EBITDA in fiscal 2027. CGC Q4 Earnings Call Focuses on EBITDA Path
• Positive Sentiment: The company reported double-digit full-year revenue growth and a narrower quarterly loss, suggesting its restructuring efforts are starting to show some progress. Canopy Growth revenue climbs 14% in Q4
• Neutral Sentiment: Analysts and commentators are debating the long-term outlook, with some saying the stock may have already priced in potential cannabis policy benefits and that Canopy is still a risky turnaround story. Canopy Growth Bought Time, Not A Higher Rating
• Negative Sentiment: The latest quarter also came with a revenue miss and an adjusted loss that was worse than Wall Street expected, reinforcing concerns that profitability is still far away. Canopy Growth Corporation (CGC) Reports Q4 Loss, Lags Revenue Estimates

Analyst Ratings Changes

Several equities research analysts have recently commented on CGC shares. Wall Street Zen downgraded Canopy Growth from a “hold” rating to a “sell” rating in a report on Sunday, March 29th. Weiss Ratings downgraded Canopy Growth from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday. Canaccord Genuity Group started coverage on Canopy Growth in a report on Friday, March 27th. They set a “buy” rating for the company. Finally, ATB Cormark Capital Markets upgraded Canopy Growth from a “strong sell” rating to a “moderate buy” rating in a report on Tuesday, March 17th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold”.

Canopy Growth Company Profile

Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.