Canopy Growth tanks on Q4 results: ‘achieving profitability is critical’

Canopy Growth reports weaker-than-expected results for its fiscal Q4.
The cannabis company expects to turn adjusted EBITDA positive in FY24.
The Nasdaq-listed shares of the Canadian firm are down 20% on Friday.

Shares of Canopy Growth Corp (NASDAQ: CGC) are down nearly 20% on Friday after the cannabis company reported its fourth-quarter results that came in shy of Wall Street expectations.

Notable figures in Canopy Growth Q4 results

Lost C$574.6 million in Q4 versus the year-ago figure of C$700 million.
Per-share loss of C$1.46 was much narrower than last year’s C$1.85.
Revenue tanked 25% to C$126.1 million, as per the earnings press release.
Consensus was for 30 cents of per-share loss on C$129.9 million in revenue.
Reported gross margin climbed sharply from 7.0% to 142% on YoY basis.

Cash and short-term investments were down C$0.9 billion to C$1.40 billion. In the earnings press release, CEO David Klein said:

Canopy Growth is committed to profitability

Canopy Growth expects to turn adjusted EBITDA positive in fiscal 2024, excluding its U.S. THC businesses and investments in BioSteel drinks. As per CFO Judy Hong:

The stock is now down 50% for the year.