Canopy Growth Corporation reported its financial results for the three and six months ended September 30, 2024, revealing a decline in revenue and ongoing challenges in profitability. The company generated net revenue of $62.99 million for the quarter, down 9% from $69.60 million in the same period last year. For the six months, net revenue totaled $129.20 million, an 11% decrease from $145.85 million in the prior year. The decline in revenue was primarily attributed to lower sales volumes in the Canadian adult-use cannabis segment, which fell to $18.39 million from $24.09 million year-over-year.

Despite the revenue drop, Canopy Growth reported a net loss from continuing operations of $131.55 million for the quarter, an improvement from a loss of $148.16 million in the same period last year. The basic and diluted loss per share also improved to $(1.52) from $(2.07). For the six months, the net loss from continuing operations increased to $260.74 million, compared to $158.73 million in the same period of 2023.

The company’s cost of goods sold decreased to $41.15 million from $46.17 million year-over-year, contributing to a gross margin of $21.84 million, or 35% of net revenue, compared to 34% in the previous year. The international markets cannabis segment saw revenue growth, increasing to $10.06 million from $8.98 million, while the Storz & Bickel segment also reported a revenue increase to $15.85 million from $11.99 million.

Strategically, Canopy Growth has taken steps to address its financial challenges, including the establishment of an at-the-market equity program, which raised $138.5 million through the issuance of 16.8 million common shares. The company also made significant progress in reducing its long-term debt, which decreased to $415.93 million from $493.29 million as of March 31, 2024.

Additionally, Canopy Growth has undergone structural changes, including the deconsolidation of Canopy USA, which has resulted in a non-controlling interest in that entity. The company has also been involved in various acquisitions, including Wana Wellness and Jetty, as part of its strategy to expand its market presence.

As of September 30, 2024, Canopy Growth reported cash and cash equivalents of $228.42 million, an increase from $170.30 million at the end of the previous fiscal year. The company continues to face substantial doubt regarding its ability to continue as a going concern, primarily due to material debt obligations and recurring losses, but management has indicated that actions taken have alleviated some of these concerns.