Shares of Canopy Growth Corporation (TSX:WEED, NYSE:CGC) tumbled on Friday after the Canadian cannabis producer reported a wider quarterly loss and a decline in revenue, as it continues to grapple with ongoing operational and market challenges.
The stock fell over 21% in New York and more than 19% in Toronto following the company’s fiscal fourth-quarter results.
Canopy reported a net loss of C$221.5 million, or C$1.43 per share, for the quarter ended March 31, widening from a loss of C$1.03 per share a year earlier. Quarterly revenue declined to C$78 million from C$83.2 million a year ago.
In US dollar terms, the company posted a loss of approximately $1.01 per share on revenue of $45.8 million.
Canopy said it reduced its total debt by 49% over the course of fiscal 2025 and launched new cost-cutting initiatives expected to generate annual savings of C$20 million.
“Since taking over as CEO in January, we took decisive actions to accelerate growth and profitability by unifying our medical cannabis businesses globally, aligning operations with commercial focus, increasing rigor on core fundamentals and streamlining our product portfolio,” said CEO David Klein in a statement.
“With renewed focus and our resources dedicated to the most promising opportunities, I'm confident that our leading brands and product innovation pipeline can deliver meaningful growth and long-term value for both consumers and shareholders.”
Once a leading name in the cannabis sector, Canopy has struggled in recent years with mounting losses and intense competition in both Canadian and international markets. The company has been cutting costs, shedding assets, and focusing on its most profitable segments in a bid to reverse its fortunes.
Shares of Canopy Growth are down more than 80% over the past 12 months.