Canopy Growth Corporation (TSX:WEED, NYSE:CGC) showcased signs of financial improvement despite reporting a net loss, driven by increased revenue from its Canadian cannabis business and plans to advance its Canopy USA strategy for entry into the U.S. market.
During its fiscal 3Q, the Canadian cannabis producer reported a net loss of $216.8 million, a decrease from $264.4 million a year earlier.
Despite the loss, the company's loss per diluted share decreased significantly, from $5.34 to $2.62, due to a change in the number of outstanding shares.
Net revenue for the quarter totaled $78.5 million, down from $84.9 million the previous year. However, excluding the impact of the sale of its Canada national retail business, consolidated net revenue grew by 6% year-over-year.
Canopy Growth's Canadian business-to-business net revenue increased by 9%, while medical cannabis net revenue climbed by 11% compared to the previous year.
The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved to a loss of $9 million from a loss of $49.7 million a year earlier.
Canopy Growth also announced plans to move forward with its Canopy USA structure, allowing it to complete acquisitions of three American cannabis companies and retain its listing on the Nasdaq.
Despite challenges in the cannabis market, the company said it remains focused on demonstrating growth across all business units and expects to achieve positive adjusted EBITDA in each unit by the end of fiscal year 2024.