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1. Company Snapshot

1.a. Company Description

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in Canada, the United States, and Germany.It operates through two segments, Global Cannabis and Other Consumer Products.The company's products include dried cannabis flower, extracts and concentrates, beverages, gummies, and vapes.


It offers its products under the Tweed, 7ACRES, 7ACRES Craft Collective, DOJA, Ace Valley, Quatreau, Deep Space, First + Free, Surity Pro, Spectrum Therapeutics, Vert, Tokyo Smoke, Twd, Martha Stewart CBD, DNA Genetics, BioSteel, Storz & Bickel, This Works, HiWay, Simple Stash, Whisl, and Truverra brands.The company was formerly known as Tweed Marijuana Inc.and changed its name to Canopy Growth Corporation in September 2015.


Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.

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1.b. Last Insights on WEED

Negative drivers behind Canopy Growth Corporation's recent performance include mixed Q3 results and outlook, with adult use remaining challenging and operational costs still needing to fall further to achieve positive consolidated EBITDA. The company's weak guidance and slowing growth in the cannabis sector, as well as increased competition, have also contributed to its struggles. Additionally, Canopy Growth's high operational costs and declining revenue have raised concerns among investors, leading to a price target reduction by BofA to C$2 from C$5.

1.c. Company Highlights

2. Canopy Growth: A Step Closer to Profitability

Canopy Growth reported its second-quarter fiscal 2026 financial results, with the Canadian adult-use cannabis business seeing a 30% year-over-year increase in net revenue, driven by demand for Claybourne infused pre-rolls and new All-In-One vapes. The company's adjusted EBITDA loss narrowed significantly year-over-year to $3 million, compared to a loss of $6 million a year ago. The actual EPS came out at '-0.01', beating estimates at '-0.09'. Revenue growth was largely driven by the Canadian cannabis business, while international markets saw a decline in net revenues of $3 million due to supply constraints and internal process challenges in Europe.

Publication Date: Nov -30

📋 Highlights
  • Canadian adult-use cannabis revenue growth:: Net revenue rose 30% YoY to $X, driven by Claybourne pre-rolls and All-In-One vapes.
  • Strong cash position:: $298M cash equivalents, exceeding debt by $70M, with $50M prepaid on loans securing $6.5M annualized interest savings.
  • Improved profitability:: Adjusted EBITDA loss narrowed to $3M (vs. $6M YoY), with SG&A expenses down 13% and $21M annualized savings achieved.
  • Medical cannabis expansion:: 17% YoY revenue growth and 20% patient registration increase, projecting back-half fiscal 2026 top-line gains.
  • International stabilization:: $3M revenue decline due to supply issues in Europe, but confidence in self-sourced Canadian GMP flower to resolve challenges.

Financial Performance

The company's cash and cash equivalents stood at $298 million as of September 30, 2025, exceeding debt balances by $70 million. During Q2, it prepaid $50 million on its senior secured term loan, capturing $6.5 million in annualized interest savings. The free cash flow was an outflow of $19 million, down from an outflow of $56 million in the same period last year. The reduction in SG&A expenses by 13% year-over-year reflects disciplined cost management and restructuring program benefits.

Operational Highlights

The company is confident in its ability to supply its international markets from its own Canadian GMP facilities, having resolved challenges with flower sourced from Portugal. Canopy Growth is focusing on improving yield and quality with limited investment, believing its current footprint is sufficient to meet demand. The successful launch of All-In-One vapes has shown encouraging early results, with plans to expand product lines. As the company's CEO mentioned, "we're encouraged by gross margins and plan to expand product lines."

Valuation and Outlook

With a net cash position of $300 million, Canopy Growth has flexibility for capital allocation. The company's valuation metrics show a 'P/S Ratio' of 1.08 and an 'EV/EBITDA' of -1.21. Analysts estimate next year's revenue growth at 1.4%. The company's progress towards positive EBITDA is evident, with the strongest quarter yet, albeit a loss. They expect continued improvement but won't speculate on specific timelines, aiming for positive adjusted EBITDA.

Growth Prospects

Canopy Growth expects improved performance in its Canada adult-use channel, driven by a robust innovation pipeline and tight alignment with cannabis boards and retailers. The company anticipates Canada medical cannabis top-line growth in the back half of fiscal '26. International markets are expected to stabilize and grow as the company exits the fiscal year. With a focus on execution, Canopy USA operates independently with no guarantees or funding from Canopy Growth.

3. NewsRoom

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Canopy Growth Launches Claybourne Gassers Liquid Diamonds All-In-One Vapes in Canada, Expanding Footprint in High-Growth Vape Segment

Dec -04

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Leading Food Tech Platform MenuSano Launches Rapid Customization Program for Brands Navigating Regulatory and Clean Label Demands

Dec -01

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Canopy Growth Corporation (CGC) Sets Sights on Australia Cannabis Market with Expanded Portfolio

Nov -25

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Nov -23

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Canopy Growth Expands Spectrum Therapeutics Portfolio in Australia with New Softgels

Nov -18

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This AI Stock Goes On 149% Run, Tests Entry As It Eyes Profitability Milestone

Nov -14

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Canopy Growth Just Topped Earnings Estimates. Should You Buy, Sell, or Hold CGC Stock for November 2025?

Nov -13

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Nov -10

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.16%)

6. Segments

Canada Cannabis

Expected Growth: 7%

Strong demand for recreational cannabis, increasing market share in Canada, strategic partnerships, and expansion into new markets such as edibles and vapes drive Canopy Growth Corporation's 7% growth. Additionally, the company's focus on research and development, cost savings initiatives, and a strong balance sheet contribute to its growth momentum.

BioSteel

Expected Growth: 3%

BioSteel's 3x growth is driven by increasing demand for natural, healthy beverages, expanding distribution channels, and strategic partnerships. Canopy Growth's established brand reputation and investment in marketing campaigns also contribute to growth. Additionally, the sports drink market's shift towards low-sugar, high-performance products aligns with BioSteel's product offerings, further fueling growth.

Storz & Bickel

Expected Growth: 4%

Storz & Bickel's 4x growth is driven by increasing demand for premium vaporizers, strategic partnerships, and expansion into new markets. Canopy Growth's investment has enabled Storz & Bickel to enhance its product offerings, improve manufacturing efficiency, and strengthen its global distribution network, further solidifying its market leadership position.

Rest-of-world Cannabis

Expected Growth: 6%

The 6% growth of Rest-of-world Cannabis from Canopy Growth Corporation is driven by increasing legalization, rising demand for recreational and medicinal cannabis, and strategic expansion into new markets. Additionally, growing awareness of cannabis' therapeutic benefits, increasing online sales, and partnerships with major retailers are contributing to this growth.

This Works

Expected Growth: 2%

Canopy Growth Corporation's 2% growth is driven by increasing demand for cannabis products, particularly in the Canadian recreational market. Strong brand recognition, strategic partnerships, and expanding distribution channels also contribute to growth. Additionally, the company's focus on innovation, R&D, and cost savings initiatives support its growth momentum.

Other

Expected Growth: 1%

Canopy Growth Corporation's 'Other' segment growth is driven by increasing demand for cannabis-infused beverages, expansion into new markets, and strategic partnerships. Additionally, the company's focus on product innovation, particularly in the edibles and vapes categories, contributes to its growth. Furthermore, the acquisition of Mettrum Health Corp. and the launch of new retail stores also support the segment's growth.

7. Detailed Products

Dried Flowers

High-quality, lab-tested cannabis flowers for recreational and medical use

Oils and Softgels

Cannabis-infused oils and softgels for precise dosing and easy consumption

Vapes and Concentrates

Portable and discreet cannabis vapes and concentrates for on-the-go use

Edibles and Beverages

Cannabis-infused food and drink products for a unique consumption experience

Topicals and Creams

Cannabis-infused topical creams and balms for localized pain relief and skin care

CBD Products

Non-psychoactive CBD products for wellness and self-care

Medical Cannabis

Prescription cannabis products for medical patients

8. Canopy Growth Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Canopy Growth Corporation is medium due to the presence of alternative products and services in the cannabis industry. While the company has a strong brand presence, customers may switch to alternative products or services if they are not satisfied with Canopy's offerings.

Bargaining Power Of Customers

The bargaining power of customers for Canopy Growth Corporation is low due to the company's strong brand presence and limited switching costs. Customers are likely to remain loyal to the company's products and services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Canopy Growth Corporation is medium due to the presence of multiple suppliers in the cannabis industry. While the company has some bargaining power, suppliers may still have some leverage in negotiations.

Threat Of New Entrants

The threat of new entrants for Canopy Growth Corporation is high due to the growing demand for cannabis products and the relatively low barriers to entry in the industry. New entrants may pose a significant threat to the company's market share.

Intensity Of Rivalry

The intensity of rivalry for Canopy Growth Corporation is high due to the presence of multiple competitors in the cannabis industry. The company faces intense competition from other established players, which may lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.28%
Debt Cost 9.67%
Equity Weight 36.72%
Equity Cost 13.13%
WACC 10.94%
Leverage 172.31%

11. Quality Control: Canopy Growth Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Supernus Pharmaceuticals

A-Score: 5.3/10

Value: 2.6

Growth: 6.0

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 6.7

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Amphastar Pharmaceuticals

A-Score: 4.8/10

Value: 7.1

Growth: 8.8

Quality: 8.0

Yield: 0.0

Momentum: 0.0

Volatility: 4.7

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Sundial

A-Score: 4.6/10

Value: 8.1

Growth: 6.8

Quality: 3.7

Yield: 0.0

Momentum: 7.0

Volatility: 2.3

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PetIQ

A-Score: 3.5/10

Value: 3.6

Growth: 7.8

Quality: 3.1

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

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Aytu BioPharma

A-Score: 3.4/10

Value: 9.6

Growth: 4.8

Quality: 4.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

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Canopy Growth

A-Score: 2.9/10

Value: 8.8

Growth: 4.1

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.6$

Current Price

1.6$

Potential

-0.00%

Expected Cash-Flows