Canopy Growth (NASDAQ:CGC) reported a significantly smaller quarterly loss than a year ago, as the cannabis producer’s aggressive cost-cutting measures and a surge in Canadian medical sales helped offset persistent supply-chain struggles in Europe.
The Smiths Falls, Ontario-based company posted a net loss for its fiscal third quarter that narrowed by 49% compared to the same period last year.
On an adjusted EBITDA basis, the loss shrank to $3 million, marking the third consecutive quarter of bottom-line improvement.
Revenue held steady at $75 million, beating the $70.96 million consensus estimate as double-digit growth in Canada’s medical and adult-use segments compensated for a 31% drop in international sales.
"The third quarter reflects improving fundamentals and a more focused, integrated operating model, led by strength in Canada," Chief Executive Officer Luc Mongeau said in a statement.
The company saw a 15% jump in Canadian medical cannabis revenue, fueled by an increase in insured patients, while new "all-in-one" vapes and infused pre-rolls boosted adult-use sales by 8%.
However, consolidated gross margins slipped to 29% from 32%, pressured by supply bottlenecks in Europe and higher U.S. tariffs on its Storz & Bickel vaporizers.