(Corrects headline, overview and key details table to say Q1 revenue beat expectations; corrects revenue figure in key details)

Overview

* Canopy Growth ( CGC ) fiscal Q1 revenue rises 9% yr/yr, beating analyst expectations

* Gross margin declines to 25% from 35% due to product mix shift

* SG&A expenses down 21% yr/yr, achieving C$17 mln in cost savings

Outlook

* Supply chain improvements to boost cannabis supply in Europe H2 FY2026

* Company to launch new Storz & Bickel vaporizer H2 2025

* Canopy Growth ( CGC ) aims to improve cannabis gross margins H2 FY2026

* Company focuses on expanding retail distribution in FY2026

Result Drivers

* CANADA ADULT-USE - Revenue increased 43% yr/yr driven by distribution expansion and demand for new products

* COST SAVINGS - Achieved C$17 mln of planned C$20 mln annualized savings target, reducing SG&A expenses by 21% yr/yr

* PRODUCT MIX SHIFT - Gross margin decreased due to shift towards higher-cost manufactured products and lower sales in Poland

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat C$72.1 C$64.50

Revenue mln mln (4

Analysts

)

Q1 -C$8 mln

Adjusted

EBITDA

Q1 Gross 25.0%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the pharmaceuticals peer group is "buy."

* Wall Street's median 12-month price target for Canopy Growth Corp ( CGC ) is C$2.15, about 32.6% above its August 7 closing price of C$1.45

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)