Benzinga Pro data showed Canopy Growth shares down 9.03% at $0.61 at publication on Friday after weaker-than-expected results for fiscal 2027's second quarter. Canopy Growth reported a loss of 7 US cents per share, compared with Wall Street's forecast loss of 3 US cents. Canopy Growth generated revenue of $58,149,000 (81.4 million Canadian dollars), below analysts' $59.12 million estimate. Canopy Growth's net loss widened by 35.7 million Canadian dollars, primarily because of fair value charges of 35.8 million Canadian dollars tied to Canopy USA assets.
Cannabis net revenue increased 30% to 66.2 million Canadian dollars, providing the main source of growth. However, Storz & Bickel revenue declined 4% to 15.1 million Canadian dollars. Reduced consumer spending in some markets hurt sales.
Canopy Growth reported an adjusted EBITDA loss of 2.9 million Canadian dollars, improving 6% from a year earlier. Increased cannabis revenue and cost savings helped reduce the adjusted EBITDA loss. However, reduced medical cannabis reimbursement rates through Canada's Veterans Affairs program offset part of those benefits. Adjusted gross margin declined from 33% a year earlier to 31%. The current margin excludes inventory step-up charges of 2.1 million Canadian dollars associated with the MTL Cannabis acquisition.
CFO Tom Stewart said Canopy Growth's progress toward profitability puts positive adjusted EBITDA within reach during fiscal 2027. Canopy Growth targets positive adjusted EBITDA during fiscal 2027 through cost controls and operational improvements. International net revenue increased 141%, supported by strong medical cannabis sales in Germany and Poland. Canopy Growth entered the U.K. market. Canopy Growth broadened the company's product portfolio in Australia. Canopy Growth also reinforced the company's supply chain in Europe. Canopy Growth expects better cultivation capabilities to support additional growth.
Trading volume totaled 4.91 million shares, approximately 71.6% above the 100-day average of 2.86 million shares. The elevated volume indicated increased trading activity and possible volatility in the micro-cap stock.
Canopy Growth Stock Falls 9% After Q2 Fiscal 2027 Earnings Miss Estimates
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Summary
Canopy Growth (NASDAQ:CGC) shares dropped 9.03% to $0.61 on Friday after the firm reported a 7-cent-per-share loss and $58.15 million in revenue for Q2 fiscal 2027, missing estimates. On-chain data shows investor sentiment turned negative as the net loss widened by 35.7 million Canadian dollars due to fair value charges on Canopy USA assets. Traders are now shifting focus to altcoins to watch amid market volatility.
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