[Q1 FY2026 Financial & Operational Highlights](index=1&type=section&id=Q1%20FY2026%20Financial%20%26%20Operational%20Highlights) Canopy Growth saw 9% revenue growth to $72.1 million, improved operating loss, and reduced cash outflow, despite lower gross margins [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) Consolidated net revenue rose 9% to $72.1 million, operating loss improved 21%, and free cash flow outflow decreased 79%, but gross margin fell to 25% Consolidated Financial Performance Metrics (thousands of CAD) | Metric (thousands of CAD) | Q1 FY2026 | vs. Q1 FY2025 | | :------------------------ | :-------- | :------------ | | Net Revenue | $72,134 | 9% | | Gross margin percentage | 25% | (1,000) basis points | | Net loss from continuing operations | $(41,527) | 68% | | Adjusted EBITDA | $(7,916) | (50%) | | Free cash flow | $(11,643) | 79% | - Operating loss from continuing operations was **$23 million** in Q1 FY2026, representing an improvement of **21%** compared to Q1 FY2025, driven primarily by a reduction in operating expenses[11](index=11&type=chunk) - Cash and short-term investments increased to **$144 million** at June 30, 2025, from **$131 million** at March 31, 2025[11](index=11&type=chunk) [Segment Performance Overview](index=2&type=section&id=Segment%20Performance%20Overview) Canopy Growth now reports two segments: Cannabis revenue grew 24%, while Storz & Bickel revenue declined 25% - As of the three months ended June 30, 2025, the Company began reporting its financial results for the following two reportable segments: (i) Cannabis - includes the global production, distribution and sale of a diverse range of cannabis and cannabis-related products; and (ii) Storz & Bickel - includes the production, distribution and sale of vaporizers and accessories[4](index=4&type=chunk) Segment Net Revenue (millions of CAD) | Segment (millions of CAD) | Q1 FY2026 | Q1 FY2025 | Vs. Q1 FY2025 | | :------------------------ | :-------- | :-------- | :------------ | | Cannabis | $57.0 | $46.1 | 24% | | Storz & Bickel | $15.1 | $20.1 | (25%) | | Net revenue (Consolidated)| $72.1 | $66.2 | 9% | [Cannabis Segment Performance](index=2&type=section&id=Cannabis%20Highlights) Cannabis revenue increased 24% year-over-year, driven by strong Canadian adult-use sales, though gross margins decreased to 24% Cannabis Sub-segment Revenue (millions of CAD) | Cannabis Sub-segment (millions of CAD) | Q1 FY2026 | Q1 FY2025 | Vs. Q1 FY2025 | | :------------------------------------- | :-------- | :-------- | :------------ | | Canadian adult-use cannabis | $27.0 | $18.9 | 43% | | Canadian medical cannabis | $21.2 | $18.8 | 13% | | International markets cannabis | $8.8 | $8.4 | 5% | - Total Claybourne infused PRJ sales increased **58%** sequentially in Q1 FY2026 compared to Q4 FY2025, maintaining **2** category market share in Alberta, **3** in Ontario, and **3** nationally[11](index=11&type=chunk) - Cannabis gross margins decreased to **24%** in Q1 FY2026 compared to **33%** in Q1 FY2025, primarily due to a shift to higher-cost manufactured products like infused PRJs in Canada and lower sales in the high-margin Poland market[11](index=11&type=chunk) - The Company expects to improve cannabis gross margins in the second half of FY2026 through automation technology, increased PRJ production capacity, and pursuit of margin-accretive bulk cannabis sales in Canada and Europe[11](index=11&type=chunk) [Storz & Bickel Segment Performance](index=2&type=section&id=Storz%20%26%20Bickel%20Highlights) Storz & Bickel net revenue decreased 25% to $15 million, with gross margin falling to 29%, as cost efficiency measures are implemented Storz & Bickel Financial Performance (thousands of CAD) | Metric (thousands of CAD) | Q1 FY2026 | Q1 FY2025 | | :------------------------ | :-------- | :-------- | | Net revenue | $15,152 | $20,119 | | Gross margin percentage | 29% | 39% | - Storz & Bickel delivered net revenue in Q1 FY2026 of **$15 million**, representing a decrease of **25%** compared to Q1 FY2025, primarily attributable to lapping strong sales in the prior year and consumer economic uncertainty[11](index=11&type=chunk) - Storz & Bickel has implemented several cost efficiency measures, including bringing additional manufacturing capabilities in-house and headcount reductions, which are expected to reduce cost of goods sold and SG&A expenses over the coming quarters[11](index=11&type=chunk) - Storz & Bickel is preparing to launch a new vaporizer in the second half of calendar year 2025, which the Company believes will generate strong consumer interest[11](index=11&type=chunk) [Corporate Information & Disclosures](index=3&type=section&id=Corporate%20Information%20%26%20Disclosures) This section covers board appointments, webcast details, non-GAAP definitions, company overview, and forward-looking statements [Board of Directors Appointment](index=3&type=section&id=Appointment%20of%20Shan%20Atkins%20to%20Board%20of%20Directors) Margaret Shan Atkins was appointed to the Board, bringing extensive experience in retail, consumer goods, and finance - Margaret Shan Atkins was appointed to Canopy Growth's Board of Directors, effective August 6, 2025[14](index=14&type=chunk) - Ms. Atkins brings extensive experience in retail strategy and operations, consumer goods, wholesale distribution, cybersecurity oversight, accounting and finance, and private investment in both the U.S. and Canada[14](index=14&type=chunk) - She previously served as a partner in the consumer and retail practice of Bain & Company and a C-suite executive at a Fortune 15 public retailer, and currently serves on the boards of Darden Restaurants and SpartanNash[15](index=15&type=chunk)[16](index=16&type=chunk) [Webcast & Conference Call](index=4&type=section&id=Webcast%20and%20Conference%20Call%20Information) Canopy Growth will host a conference call and webcast on August 8, 2025, to discuss Q1 FY2026 financial results - The Company will host a conference call and audio webcast with Luc Mongeau, CEO and Tom Stewart, Interim CFO at 10:00 AM Eastern Time on August 8, 2025[19](index=19&type=chunk) - A live audio webcast will be available at: https://onlinexperiences.com/Launch/QReg/ShowUUID=8135284A-F8CD-45B7-A384-634DE671498[20](index=20&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Measures) This section defines Adjusted EBITDA and Free Cash Flow, key non-GAAP measures for performance and liquidity - Adjusted EBITDA is a non-GAAP measure used by management to demonstrate the operating performance of businesses, calculated as net income (loss) adjusted to exclude income tax, other income/expense, loss on equity method investments, share-based compensation, depreciation/amortization, asset impairment/restructuring costs, and acquisition/divestiture costs[20](index=20&type=chunk) - Free cash flow is a non-GAAP measure that presents meaningful information regarding the amount of cash flow required to maintain and organically expand the Company's business and its liquidity requirements, calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment[21](index=21&type=chunk) [About Canopy Growth](index=5&type=section&id=About%20Canopy%20Growth) Canopy Growth is a leading cannabis company with global operations and a U.S. THC market strategy via Canopy USA - Canopy Growth is a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives, delivering innovative products from owned and licensed brands including Tweed, 7ACRES, DOJA, Deep Space, and Claybourne, as well as category defining vaporization devices by Storz & Bickel[24](index=24&type=chunk) - Canopy Growth serves medical cannabis patients globally with principal operations in Canada, Europe and Australia[24](index=24&type=chunk) - Canopy Growth has established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA, LLC, which includes ownership of Acreage Holdings, Inc., Wana Wellness, LLC, and Lemurian, Inc. ('Jetty')[25](index=25&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Notice%20Regarding%20Forward%20Looking%20Statements) This disclaimer highlights risks and uncertainties that could cause actual results to differ from forward-looking expectations - This press release contains 'forward-looking statements' within the meaning of applicable securities laws, which involve certain known and unknown risks and uncertainties, and readers are cautioned that actual results or outcomes may differ materially from those anticipated[27](index=27&type=chunk) - Forward-looking statements predict or describe future operations, business plans, business and investment strategies, and the performance of investments, generally identified by terms such as 'intend,' 'goal,' 'expect,' 'project,' 'will,' and 'should'[27](index=27&type=chunk) - A variety of factors, including laws and regulations, impairment losses, debt refinancing ability, impacts of the Canopy USA strategy, competitive conditions, and various operational and market risks, could cause actual results to differ materially[28](index=28&type=chunk)[34](index=34&type=chunk) [Financial Schedules](index=9&type=section&id=Financial%20Schedules) This section presents condensed interim consolidated financial statements and reconciliations for key metrics [Condensed Interim Consolidated Balance Sheets](index=9&type=section&id=Schedule%201) Balance sheets show total assets slightly decreased to $904.7 million, with cash and equivalents increasing to $126.2 million Condensed Interim Consolidated Balance Sheets (thousands of CAD) | ASSETS (thousands of CAD) | June 30, 2025 | March 31, 2025 | | :------------------------ | :------------ | :------------- | | Cash and cash equivalents | $126,202 | $113,811 | | Total current assets | $303,359 | $294,574 | | Total assets | $904,671 | $917,701 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | Total current liabilities | $98,669 | $94,404 | | Total liabilities | $415,695 | $430,488 | | Total shareholders' equity| $488,976 | $487,213 | [Condensed Interim Consolidated Statements of Operations](index=10&type=section&id=Schedule%202) Net loss from continuing operations improved to $(41.5) million, with net revenue up but gross margin down Condensed Interim Consolidated Statements of Operations (thousands of CAD) | Metric (thousands of CAD) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | | Net revenue | $72,134 | $66,212 | | Cost of goods sold | $54,096 | $43,181 | | Gross margin | $18,038 | $23,031 | | Total operating expenses | $40,662 | $52,139 | | Operating loss from continuing operations | $(22,624) | $(29,108) | | Net loss from continuing operations | $(41,527) | $(129,191) | | Basic and diluted loss per share (Continuing operations) | $(0.22) | $(1.63) | [Condensed Interim Consolidated Statements of Cash Flows](index=11&type=section&id=Schedule%203) Net cash outflow from operating activities significantly improved to $(10.3) million in Q1 FY2026 Condensed Interim Consolidated Statements of Cash Flows (thousands of CAD) | Cash Flow Activity (thousands of CAD) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(10,337) | $(51,780) | | Net cash used in investing activities | $(705) | $(33,029) | | Net cash provided by financing activities | $25,460 | $105,775 | | Net increase in cash and cash equivalents | $12,391 | $21,856 | | Cash and cash equivalents, end of period | $126,202 | $192,156 | [Adjusted EBITDA Reconciliation](index=12&type=section&id=Schedule%204) Adjusted EBITDA loss was $(7.9) million in Q1 FY2026, influenced by lower net loss and other income/expense changes Adjusted EBITDA Reconciliation (thousands of CAD) | Metric (thousands of CAD) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | | Net loss from continuing operations | $(41,527) | $(129,191) | | Income tax expense | $291 | $6,194 | | Other (income) expense, net | $18,612 | $93,889 | | Share-based compensation | $(99) | $4,151 | | Acquisition, divestiture, and other costs | $2,484 | $8,627 | | Depreciation and amortization | $9,670 | $11,030 | | Loss on asset impairment and restructuring | $2,653 | $20 | | Adjusted EBITDA | $(7,916) | $(5,280) | [Free Cash Flow Reconciliation](index=13&type=section&id=Schedule%205) Free cash flow outflow significantly improved to $(11.6) million, driven by reduced operating cash use and capital expenditures Free Cash Flow Reconciliation (thousands of CAD) | Metric (thousands of CAD) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities - continuing operations | $(10,337) | $(51,780) | | Purchases of and deposits on property, plant and equipment - continuing operations | $(1,306) | $(3,920) | | Free cash flow - continuing operations | $(11,643) | $(55,700) | [Segmented Gross Margin](index=14&type=section&id=Schedule%206) Cannabis segment gross margin was 24%, down from 33%, while Storz & Bickel's gross margin decreased to 29% Segmented Gross Margin (thousands of CAD) | Segment (thousands of CAD) | Q1 FY2026 Net Revenue | Q1 FY2026 Gross Margin | Q1 FY2026 Gross Margin % | Q1 FY2024 Net Revenue | Q1 FY2024 Gross Margin | Q1 FY2024 Gross Margin % | | :------------------------ | :-------------------- | :--------------------- | :----------------------- | :-------------------- | :--------------------- | :----------------------- | | Cannabis | $56,982 | $13,591 | 24% | $46,093 | $15,271 | 33% | | Storz & Bickel | $15,152 | $4,447 | 29% | $20,119 | $7,760 | 39% |

PART I. FINANCIAL INFORMATION Details the company's unaudited condensed interim consolidated financial statements and related disclosures for Q1 FY2026 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Canopy Growth Corporation's unaudited condensed interim consolidated financial statements for Q1 FY2026, including balance sheets, operations, cash flows, and notes [Condensed Interim Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Balance%20Sheets) Details the company's financial position as of June 30, 2025, with **$904.7 million** total assets, **$415.7 million** total liabilities, and stable equity Consolidated Balance Sheet Summary (in thousands of Canadian dollars) | Balance Sheet Item | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total Current Assets** | $303,359 | $294,574 | | **Total Assets** | **$904,671** | **$917,701** | | **Total Current Liabilities** | $98,669 | $94,404 | | **Total Liabilities** | **$415,695** | **$430,488** | | **Total Shareholders' Equity** | **$488,976** | **$487,213** | [Condensed Interim Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Reports **9% YoY net revenue increase** to **$72.1 million** for Q1 FY2026, with net loss significantly narrowing to **$41.5 million** Statement of Operations Summary (in thousands of Canadian dollars) | Metric | Q1 FY2026 (3 mos ended Jun 30, 2025) | Q1 FY2025 (3 mos ended Jun 30, 2024) | | :--- | :--- | :--- | | Net Revenue | $72,134 | $66,212 | | Gross Margin | $18,038 | $23,031 | | Operating Loss from Continuing Operations | $(22,624) | $(29,108) | | Net Loss from Continuing Operations | $(41,527) | $(129,191) | | Basic and Diluted Loss Per Share | $(0.22) | $(1.63) | [Condensed Interim Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shows a slight increase in total shareholders' equity to **$489.0 million**, driven by **$38.3 million** from share issuances offsetting net loss - During the quarter, the company issued common shares for gross proceeds of **$38.3 million** through its At-The-Market (ATM) program[15](index=15&type=chunk) [Condensed Interim Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) Highlights a significant reduction in net cash used in operating activities to **$10.3 million**, with a net increase in cash of **$12.4 million** Cash Flow Summary (in thousands of Canadian dollars) | Cash Flow Activity | Q1 FY2026 (3 mos ended Jun 30, 2025) | Q1 FY2025 (3 mos ended Jun 30, 2024) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(10,337) | $(51,780) | | Net Cash Used in Investing Activities | $(705) | $(33,029) | | Net Cash Provided by Financing Activities | $25,460 | $105,775 | | **Net Increase in Cash** | **$12,391** | **$21,856** | | **Cash and Cash Equivalents, End of Period** | **$126,202** | **$192,156** | [Notes to the Condensed Interim Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) Provides critical details on accounting policies and significant events, including going concern alleviation, Canopy USA deconsolidation, and debt management - Management concludes that the **substantial doubt about the Company's ability to continue as a going concern has been alleviated** due to actions taken, including the sale of common shares under the February 2025 ATM Program and other potential financing and cost-saving strategies[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - As of April 30, 2024, Canopy Growth deconsolidated the financial results of Canopy USA following structural amendments to comply with Nasdaq listing requirements and after discussions with the SEC. Canopy USA holds the company's U.S. cannabis investments, including Wana, Jetty, and Acreage[52](index=52&type=chunk)[56](index=56&type=chunk)[73](index=73&type=chunk) - During the quarter, the company sold **21,006,528 common shares** for gross proceeds of **$38.3 million** under its February 2025 ATM Program. Subsequent to quarter-end, it sold an additional **34.6 million shares** for **$54.3 million**[132](index=132&type=chunk)[170](index=170&type=chunk) - The company has changed its reportable segments to two: (1) **Cannabis**, which includes global cannabis operations, and (2) **Storz & Bickel**, which includes vaporizers and accessories[165](index=165&type=chunk)[166](index=166&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2026 financial performance, highlighting **9% revenue growth**, gross margin decline, narrowed net loss, liquidity, and going concern alleviation [Business Overview](index=46&type=section&id=Business%20Overview) Outlines Canopy Growth's global cannabis business, focusing on Canopy USA's strategic creation and deconsolidation for U.S. market entry and Nasdaq compliance - The company's core business is the production, distribution, and sale of cannabis and related products for adult-use and medical purposes globally[183](index=183&type=chunk) - The company has restructured its reporting into two segments: **Cannabis** and **Storz & Bickel**[186](index=186&type=chunk)[189](index=189&type=chunk) - Canopy USA was created to hold U.S. cannabis investments (Wana, Jetty, Acreage, TerrAscend). Canopy Growth has since **deconsolidated Canopy USA** to comply with Nasdaq listing rules, holding a non-voting, non-controlling interest until U.S. federal permissibility[187](index=187&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Details Q1 FY2026 operational results, including **9% net revenue growth**, **25% gross margin**, reduced operating expenses, and a narrowed net loss Net Revenue by Segment (in thousands of Canadian dollars) | Segment | Q1 FY2026 | Q1 FY2025 | % Change | | :--- | :--- | :--- | :--- | | Cannabis | $56,982 | $46,093 | 24% | | Storz & Bickel | $15,152 | $20,119 | (25%) | | **Total Net Revenue** | **$72,134** | **$66,212** | **9%** | Gross Margin by Segment | Segment | Q1 FY2026 Margin % | Q1 FY2025 Margin % | Basis Point Change | | :--- | :--- | :--- | :--- | | Cannabis | 24% | 33% | (900) bps | | Storz & Bickel | 29% | 39% | (1,000) bps | | **Total Company** | **25%** | **35%** | **(1,000) bps** | - Total operating expenses decreased **22% YoY** to **$40.7 million**, driven by a **21% reduction in SG&A expenses** and a reversal in share-based compensation[237](index=237&type=chunk) - Adjusted EBITDA loss increased to **$7.9 million** from **$5.3 million** year-over-year, primarily due to lower gross margins, which was partially offset by SG&A cost savings[256](index=256&type=chunk) [Financial Liquidity and Capital Resources](index=63&type=section&id=Financial%20Liquidity%20and%20Capital%20Resources) Discusses financial liquidity, confirming going concern alleviation, with **$126.2 million** cash, improved free cash flow, and **$295.3 million** total debt - The company has **alleviated substantial doubt about its going concern status** by completing balance sheet actions, including raising **$38.3 million** from its ATM program during the quarter[259](index=259&type=chunk)[262](index=262&type=chunk) Free Cash Flow (Non-GAAP, in thousands of Canadian dollars) | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Net cash used in operating activities | $(10,337) | $(51,780) | | Purchases of property, plant and equipment | $(1,306) | $(3,920) | | **Free Cash Flow** | **$(11,643)** | **$(55,700)** | - Total debt outstanding was **$295.3 million** as of June 30, 2025, down from **$304.1 million** at March 31, 2025, due to paydowns and foreign currency translation[280](index=280&type=chunk) - Subsequent to the quarter, the company agreed to make three additional prepayments on its Credit Facility totaling **US$50 million**, with the first **US$25 million** payment made on July 31, 2025[294](index=294&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details exposure to market risks, including foreign currency fluctuations, interest rate changes on variable debt, and equity price volatility - The company is exposed to foreign currency risk from its U.S. and European subsidiaries. A hypothetical **10% change in the euro against the Canadian dollar** would affect net assets by approximately **$19.3 million**[312](index=312&type=chunk)[313](index=313&type=chunk) - The company is exposed to interest rate risk on its floating-rate debt, which had an aggregate notional value of **$205.0 million** as of June 30, 2025[317](index=317&type=chunk)[318](index=318&type=chunk) - The company holds financial assets and liabilities, such as investments in shares, warrants, and convertible debentures, which are subject to equity price risk[319](index=319&type=chunk) [Item 4. Controls and Procedures](index=75&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The Chief Executive Officer and Interim Chief Financial Officer concluded that as of June 30, 2025, the company's **disclosure controls and procedures were effective**[323](index=323&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[324](index=324&type=chunk) PART II. OTHER INFORMATION Provides additional information not covered in financial statements, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=76&type=section&id=Item%201.%20Legal%20Proceedings) Details ongoing legal proceedings, including shareholder class action lawsuits and an SEC investigation related to BioSteel financial reporting - The company is a defendant in putative class action lawsuits in Ontario, British Columbia, and New York, all alleging misrepresentations in financial disclosures[328](index=328&type=chunk)[329](index=329&type=chunk)[332](index=332&type=chunk) - The company is the subject of an ongoing **SEC investigation** as a result of self-reporting its internal review of financial reporting matters related to the BioSteel business unit[330](index=330&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to the risk factors disclosed in the Annual Report have occurred[336](index=336&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered sales of equity securities during the period - None[337](index=337&type=chunk) [Item 3. Defaults Upon Senior Securities](index=78&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Reports no defaults upon senior securities during the period - None[338](index=338&type=chunk) [Item 4. Mine Safety Disclosures](index=78&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[339](index=339&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) Reports no director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[340](index=340&type=chunk) [Item 6. Exhibits](index=78&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including articles of incorporation, material contracts, and officer certifications - Exhibits filed include certifications by the Principal Executive Officer and Principal Financial Officer, and various agreements such as the Third Amended and Restated Credit Agreement[341](index=341&type=chunk)

Industry Overview - The U.S. cannabis industry is projected to be valued at over $34 billion in 2024 and could reach $57 billion by 2030, indicating significant growth potential [1] - Despite short-term volatility, marijuana penny stocks are attracting risk-tolerant investors, particularly in emerging markets and high-demand states [1] Legislative Developments - A major Senate committee has advanced a bill to expand cannabis banking access, which has renewed optimism and momentum in the sector [1] Company Strategies - Canadian cannabis producers are strategically positioning themselves for U.S. market penetration despite uncertain federal legalization [3] - Three notable Canadian cannabis stocks for U.S. expansion in August 2025 are Tilray Brands Inc. (TLRY), Canopy Growth Corporation (CGC), and Village Farms International Inc. (VFF) [5][3] Tilray Brands Inc. (TLRY) - Tilray operates a diversified cannabis and consumer packaged goods business, focusing on beverage and wellness markets, with products distributed in over 1,000 U.S. stores [4][6] - The company reported quarterly net revenue of $211 million, a 9% year-over-year increase, with gross profit climbing 29% to $61 million [7] - Cannabis revenue remained steady at $66 million, and the adjusted net loss narrowed to $2 million, indicating a balanced strategy supporting solid financial performance [8] Canopy Growth Corporation (CGC) - Canopy Growth focuses on branding and distribution through its Canopy USA platform, avoiding direct ownership of dispensaries to mitigate regulatory risks [9][11] - The company reported a 9% year-over-year decline in revenue, but core revenue grew by 3% when adjusted for divestitures, with a consolidated gross margin of 35% [12] - Canopy is in a transition phase, focusing on cost optimization and preparing for sustainable growth as U.S. legalization progresses [13] Village Farms International Inc. (VFF) - Village Farms operates as a greenhouse grower, supplying cannabis products to retailers and processors in the U.S. without owning dispensaries [14][16] - The company reported quarterly revenue of $77.07 million, with a trailing twelve-month revenue growth of over 12% year-over-year [17] - Despite operating at a net loss, Village Farms is focused on improving its financial position and operational efficiency, with Q2 2025 results anticipated for updates on margin improvements [18] Conclusion - Canadian cannabis companies are adapting to market conditions, with Tilray leading in diversified consumer brands, Canopy focusing on branding and cost efficiency, and Village Farms supporting the market through cultivation and wholesale supply [19][20]

Company Performance - Canopy Growth Corporation (CGC) stock increased by 1.94% to $1.05, outperforming the S&P 500 which fell by 1.6% [1] - Over the past month, CGC shares have decreased by 19.53%, while the Medical sector declined by 3.44% and the S&P 500 rose by 2.25% [1] Upcoming Financial Results - Canopy Growth Corporation is set to announce its earnings on August 8, 2025, with projected earnings of -$0.15 per share, reflecting a year-over-year growth of 59.46% [2] - The consensus estimate anticipates revenue of $47.91 million, indicating a 0.99% decrease from the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of -$0.46 per share and revenue of $198.45 million, representing changes of +84.56% and +2.66% respectively from the previous year [3] Analyst Estimates and Market Sentiment - Recent changes to analyst estimates for Canopy Growth Corporation indicate a shifting business landscape, with positive revisions suggesting analyst optimism about profitability [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Canopy Growth Corporation as 5 (Strong Sell), reflecting a 5.38% decrease in the consensus EPS estimate over the last 30 days [6] Industry Context - The Medical - Products industry, which includes Canopy Growth Corporation, has a Zacks Industry Rank of 183, placing it in the bottom 26% of over 250 industries [7]

Company Performance - Canopy Growth Corporation (CGC) closed at $1.14, reflecting a +2.7% increase from the previous day, outperforming the S&P 500's gain of 0.4% [1] - The stock has decreased by 10.48% over the past month, underperforming the Medical sector's gain of 1.19% and the S&P 500's gain of 4.61% [1] Earnings Expectations - Analysts anticipate Canopy Growth Corporation to report earnings of -$0.11 per share, indicating a year-over-year growth of 70.27% [2] - The consensus estimate for quarterly revenue is $48.08 million, which represents a decline of 0.64% compared to the same period last year [2] Full Year Projections - For the full year, analysts expect earnings of -$0.43 per share and revenue of $199.33 million, reflecting changes of +85.57% and +3.12% respectively from the previous year [3] Analyst Estimate Revisions - Recent modifications to analyst estimates for Canopy Growth Corporation are crucial as they indicate changing business trends, with positive revisions suggesting increased confidence in performance [4] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings based on stock performance [5] Zacks Rank and Industry Position - Canopy Growth Corporation currently holds a Zacks Rank of 3 (Hold), with a recent downward shift of 5.69% in the consensus EPS estimate [6] - The Medical - Products industry, part of the Medical sector, has a Zacks Industry Rank of 175, placing it in the bottom 30% of over 250 industries [7]

Industry Overview - The Canadian cannabis market is gaining investor attention as the U.S. cannabis industry continues to grow rapidly, with legal cannabis sales projected to reach nearly $39 billion in 2024 and potentially exceed $44 billion in 2025 [1] - Despite the growth, federal legalization in the U.S. remains stalled, but several states are advancing their own reform efforts, which is attracting interest in Canadian companies with U.S. exposure [1] Company Highlights - **Tilray Brands Inc. (TLRY)**: - Tilray has expanded significantly in the U.S., owning over 150 dispensaries in key markets like California and Michigan, and has diversified into the wellness and THC-infused beverage sectors [4][7] - The company reported a 13% increase in net revenue to $200 million, with its cannabis segment generating $61 million at a 40% gross margin, and a 132% year-over-year growth in the beverage segment [7] - Although Tilray posted a net loss, it narrowed that loss and achieved an adjusted EBITDA of $9 million, indicating improving fundamentals [7] - **Canopy Growth Corporation (CGC)**: - Canopy operates approximately 120 dispensaries in the U.S. and owns the vaporizer company Storz & Bickel, focusing on both recreational and medical markets [8][10] - The latest quarterly report showed net revenue of around C$66 million, a slight decrease from the previous year, but gross profit rose over 65% to achieve a 35% gross margin [10] - Canopy has cut its total debt by nearly 50% over the fiscal year, reflecting a strong focus on long-term sustainability and operational efficiency [10] - **Cronos Group Inc. (CRON)**: - Cronos has a growing presence in the U.S. with distribution deals supplying products to around 80 dispensaries, focusing on cannabinoid innovation [11][13] - The company reported net revenue of over $32 million, reflecting year-over-year growth, and gross profit rose to $13.7 million due to better cost management [13] - Cronos is investing in research and development to position itself for long-term success in the competitive U.S. market [13] Strategic Insights - The three Canadian cannabis companies—Tilray, Canopy Growth, and Cronos—are strategically expanding their U.S. footprint and improving financial health, making them key players to watch as U.S. legalization discussions continue [14]

Company Performance - Canopy Growth Corporation (CGC) closed at $1.09, reflecting a -1.8% change from the previous day, underperforming the S&P 500's loss of 0.01% [1] - Prior to the latest trading session, the company's shares had decreased by 13.95%, contrasting with the Medical sector's loss of 1.59% and the S&P 500's gain of 5.37% [1] Upcoming Earnings - The company is expected to report an EPS of -$0.11, which represents a 70.27% improvement from the same quarter last year [2] - Revenue is anticipated to be $48.08 million, indicating a 0.64% decline compared to the same quarter last year [2] Full Year Estimates - For the full year, the Zacks Consensus Estimates project an EPS of -$0.43 and revenue of $199.33 million, showing changes of +85.57% and +3.12% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Canopy Growth Corporation reflect short-term business trends, with upward revisions indicating analysts' positive outlook on the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system for stocks [5] Zacks Rank - Canopy Growth Corporation currently holds a Zacks Rank of 3 (Hold), with a 5.69% downward shift in the consensus EPS estimate over the past month [6] Industry Context - The Medical - Products industry, which includes Canopy Growth Corporation, has a Zacks Industry Rank of 169, placing it in the bottom 32% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Core Viewpoint - Canadian Gold Corp. has initiated two independent field exploration programs at the Tartan West Property and the Hammond Reef South Property, aiming to expand its high-grade gold resources and leverage potential future infrastructure investments [1][12]. Hammond Reef South - The 2025 field exploration program aims to follow up on high-grade gold samples discovered in the previous year, with funding from a recently closed private placement of $385,000 [2]. - Last year's exploration identified a new high-grade gold zone with assays returning 35.4 gpt, 11.6 gpt, 7.1 gpt, and 2.9 gpt gold, located only 2 km from Agnico Eagle's Hammond Reef Deposit, which has over 5 million ounces of gold [3][4]. - The current program will include surface work to evaluate the lateral extent and continuity of the gold system, building on last year's strong results [4]. - A geophysical program is also planned to target areas with higher sulphide content, which correlate strongly with gold mineralization [5]. Tartan West Property - Field crews have commenced a ground reconnaissance program along the Tartan Shear Zone, focusing on detailed mapping, prospecting, and sampling to verify historic high-grade surface showings [6]. - Historic high-grade gold surface samples include results of 118 gpt and 53.5 gpt gold, with previous drilling yielding extremely high-grade results such as 595.2 gpt over 0.2 metres [7][8]. - The Tartan West program is seen as a crucial step towards leveraging future infrastructure investments over an expanded resource base, enhancing economies of scale [9][15].

Group 1: Canopy Growth - Canopy Growth has been a disappointing investment over the past five years, with a significant decline in net revenue and increased losses per share [3][4] - The cannabis industry faces challenges such as legal and regulatory issues, competition from illicit markets, and oversupply, particularly in Canada [5][6] - Despite cost-cutting efforts and a focus on in-demand products, the long-term outlook for Canopy Growth remains bleak, with expectations of further stock decline [6][7] Group 2: Novavax - Novavax reported substantial revenue growth in the first quarter, with revenue of $666.7 million and a net income of $518.6 million, a significant improvement from the previous year [8] - The company has positive results from phase 3 studies for its influenza and combination COVID-19 vaccines, along with partnerships with major pharmaceutical companies [8][9] - However, the long-term sustainability of Novavax's performance is questionable due to market unpredictability, competition from leaders like Moderna and Pfizer, and reliance on external funding for future trials [10][12][13]

Core Viewpoint - Canadian Gold Corp. has successfully closed an over-subscribed private placement, raising gross proceeds of $385,000 through the issuance of 1,203,125 flow-through common shares at a price of $0.32 per share [1][2]. Group 1: Financial Details - The gross proceeds from the private placement will be allocated to follow-up exploration work at the 100%-owned Hammond Reef South property and other Canadian projects [2]. - The company incurred a cash finder's fee of $19,250 in connection with the offering [4]. - All securities issued are subject to a hold period of four months and one day, pending final approval from the TSX Venture Exchange [4]. Group 2: Company Background - Canadian Gold Corp. is focused on mineral exploration and development, particularly aiming to expand the high-grade gold resource at the historic Tartan Mine in Flin Flon, Manitoba, which has an indicated mineral resource estimate of 240,000 oz gold [7][8]. - The company also holds a 100% interest in exploration properties in Ontario and Quebec, adjacent to major gold mines and development projects [8].