Canopy Growth Corporation (TSX: WEED) reported a mixed Q4 2025 financial performance. Quarterly net revenue fell 11% year-over-year to $65.0 million, driven by softer international and Storz & Bickel device sales, while full-year revenues declined 9% to $269.0 million.
Within Canada, medical cannabis net revenue climbed 13% to $20.0 million while adult-use cannabis dipped 3% to $20.4 million. International markets sales plunged 35% to $7.5 million, hit hardest by regulatory headwinds in Poland and Australia, even as Germany’s expanded medical portfolio offered a partial offset. Storz & Bickel revenues declined 23% to $17.1 million in Q4, though full-year device revenue grew 4% to $73.4 million on strong Venty vape sales.
Reported gross margin contracted 500 bps to 16% in Q4, but adjusted gross margin—which excludes $2.0 million of restructuring charges—held at 19%. For the full fiscal year, consolidated gross margin expanded by 300 bps to 30%.
Operating loss improved by 83% to $18.3 million in the quarter, and full-year operating loss halved to $117.1 million from $228.7 million in FY 2024.
On the bottom line, Canopy’s net loss widened to $221.5 million in Q4 (or $1.43 per share) from $94.7 million a year earlier, reflecting a $202.9 million non-cash fair-value adjustment on equity investments alongside ongoing restructuring expenses.
Adjusted EBITDA losses narrowed by 39% in Q4 to $9.2 million and by 60% for FY 2025 to $23.5 million, underscoring the tangible benefits of the company’s cost-savings program.
This contributed to an operating cash outflow for the company at $165.8 million for the year, which led to $113.8 million in cash and cash equivalents balance, a drop from last year’s $170.3 million.
Free cash flow outflow increased to $36.2 million in Q4—driven by elevated working-capital requirements—but improved 24% YoY to a $176.6 million outflow for the full year.
Looking ahead, Canopy Growth said it will streamline its Canada adult-use portfolio and unify global medical operations under a single unit to leverage EU-GMP supply and established channels. Additional cost-reduction initiatives launched in Q4 are slated to deliver at least $20 million in annualized savings over the next 12–18 months.
Canopy Growth last traded at $2.36 on the TSX.
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