Canopy Growth's Revenue Grew 13% Last Quarter. Investors Barely Reacted. Here's Why.
Revenue is growing, but the cannabis company still has a lot to prove to investors.
Overview
Canopy Growth (NASDAQ: CGC) grew its revenue by 13% year over year to $58.9 million in its fiscal 2027 first quarter, but the stock barely reacted because investors have seen plenty of nascent Canopy turnarounds that never quite materialized.
To be sure, the company's improvements weren't limited to the top line. Its adjusted gross margin increased from 25% in the prior-year period to 31%, while its adjusted EBITDA loss narrowed by 59% to $2.3 million. Canadian medical cannabis revenue increased 22%, adult-use cannabis sales grew 10%, and international cannabis sales rose 10%. But Canopy Growth still isn't profitable.
Details
The company lost $10.6 million during the quarter (which ended June 30), while its free cash outflow increased to $18.6 million, up from $8.4 million a year earlier. That's a problem for a company that has spent years burning cash, restructuring operations, and issuing more shares of stock to raise funds.
Source
Originally published at www.fool.com.