Canopy Growth (WEED) AI Stock Analysis

• Market Cap: C$532.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.75
• Revenue Growth: -0.67%
• EPS Growth: 58.98%
• Country: CA
• Employees: 1,029
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.18
• Shares Outstanding: 338,411,300
• 10 Day Avg. Volume: 1,759,457
• 30 Day Avg. Volume: 1,770,044
• PEG Ratio: <0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -0.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.41
• Price Target Upside: 75.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.37
• Revenue Forecast (FY): C$284.72M

• Rating: 46 Neutral
• Price Target: C$1.50 ▼(-23.08% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is held down primarily by weak financial performance (shrinking revenue, deep losses, and negative cash flow) and bearish technicals (below key moving averages with negative MACD). These are partially offset by an improving earnings-call picture, including strong Canadian segment growth, cost reductions, and a strengthened cash position relative to debt.

Positive Factors

Canadian market growth

Sustained +30% YoY adult-use growth in Canada strengthens Canopy's core revenue base and brand positions. Durable domestic demand supports retail and wholesale channels, helps utilize scale, and reduces reliance on weaker international markets while underpinning medium-term recovery.

SG&A cost reductions

Exceeding $21M in annualized SG&A savings demonstrates management's ability to structurally reduce operating expense. Those savings narrowed adjusted EBITDA loss and improve operating leverage, increasing the odds management can reach sustainable profitability without relying solely on revenue surprises.

Improved liquidity and deleveraging

A cash balance (~$298M) that exceeds debt by ~$70M materially reduces short-term refinancing risk and gives time to execute operational fixes. Prepaying $50M of term loan to save interest further lowers financing costs, improving balance-sheet resilience while losses are being reduced.

Negative Factors

Negative cash generation

Persistent negative operating and free cash flow means the core business still consumes liquidity. Although cash burn has improved, continued negative FCF forces reliance on financing or asset actions, leaving execution and external funding as key medium-term risks to business continuity.

Revenue decline and unprofitable operations

A nearly 8% TTM revenue decline combined with deeply negative operating and net margins indicates scale has not translated into sustainable profits. Structural top-line pressure and margin deficits limit reinvestment capacity and prolong the path to positive returns on invested capital.

International supply and regulatory risks

A 39% YoY drop in international revenue tied to supply chain and execution failures undermines geographic diversification. Fixing cross-border supply and regulatory compliance takes months and hampers revenue stability, leaving the company exposed if Canadian gains can't offset global weakness.

Canopy Growth Business Overview & Revenue Model

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.

How the Company Makes Money

Canopy Growth generates revenue primarily through the sale of cannabis products, including dried flower, oils, and edibles. The company operates in both the medical and recreational cannabis markets, allowing it to tap into various consumer segments. A significant portion of its earnings comes from its direct retail operations, which include physical dispensaries and online sales. Additionally, Canopy Growth has established several strategic partnerships and joint ventures, such as its collaboration with Constellation Brands, which enhances its product offerings and market reach. The company also invests in research and development to create new products and expand its market presence, further contributing to its revenue streams.

Canopy Growth Financial Statement Overview

Summary

Financials show improvement versus prior years, but remain weak: TTM revenue declined (~7.9%), operating/net margins are still deeply negative, and operating/free cash flow are negative. The balance sheet is more stabilized with reduced leverage and positive equity, but ongoing losses and cash burn remain the central risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined about 7.9% versus the prior period and profitability remains weak, with gross margin around 24% but deeply negative operating and net margins. The positive takeaway is the scale of losses has improved materially versus earlier years (2023/2024 showed far more severe margin pressure), suggesting restructuring progress; however, the business is still not generating operating profits and net losses remain very large relative to revenue.

Balance Sheet

Leverage has improved meaningfully: total debt fell versus prior years and debt relative to equity is moderate in TTM (roughly 0.36x) compared with elevated levels in 2023–2024. Total equity is still positive, which provides some balance-sheet support, but returns to shareholders remain sharply negative given ongoing losses, and continued cash burn could pressure the capital structure if profitability does not improve.

Cash Flow

Cash generation remains a key weakness: TTM operating cash flow and free cash flow are both negative, indicating the core business is still consuming cash. Cash burn has improved substantially compared with prior fiscal years, but free cash flow deteriorated versus the prior annual period (negative growth), and the company is still reliant on liquidity actions or financing until it reaches sustainable positive cash flow.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	278.39M	269.00M	297.15M	333.25M	510.32M	546.65M
Gross Profit	67.17M	79.51M	80.88M	-98.38M	-143.60M	66.96M
EBITDA	-245.54M	-479.31M	-312.83M	-2.88B	-52.98M	-1.55B
Net Income	-326.58M	-598.12M	-657.27M	-3.28B	-310.04M	-1.74B
Balance Sheet
Total Assets	1.11B	917.70M	1.30B	2.44B	5.62B	6.82B
Cash, Cash Equivalents and Short-Term Investments	376.36M	131.47M	203.46M	782.60M	1.37B	2.30B
Total Debt	272.40M	348.40M	668.00M	1.31B	1.50B	1.58B
Total Liabilities	348.02M	430.49M	799.82M	1.68B	1.98B	3.20B
Stockholders Equity	758.17M	487.21M	500.37M	758.43M	3.59B	3.48B
Cash Flow
Free Cash Flow	-86.60M	-177.03M	-285.95M	-568.10M	-593.92M	-639.87M
Operating Cash Flow	-78.70M	-165.75M	-281.95M	-557.55M	-545.81M	-465.73M
Investing Cash Flow	20.30M	-47.79M	241.59M	433.38M	230.82M	-884.11M
Financing Cash Flow	269.84M	148.66M	-465.06M	-19.69M	-45.53M	1.26B

Canopy Growth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WEED, the sentiment is Negative. The current price of 1.95 is above the 20-day moving average (MA) of 1.54, above the 50-day MA of 1.61, and above the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 16.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WEED.

Canopy Growth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XLY	67 Neutral	C$164.04M	2.37	31.46%	―	27.38%	―
CRON	60 Neutral	C$1.35B	-104.58	-0.88%	―	22.20%	―
TSND	53 Neutral	C$321.01M	-2.48	-43.99%	―	-11.16%	-29.56%
ACB	52 Neutral	$282.98M	44.94	-16.05%	―	23.87%	-19.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OGI	47 Neutral	C$252.70M	3.90	4.77%	―	62.15%	60.50%
WEED	46 Neutral	C$532.42M	-2.15	-47.80%	―	-0.67%	58.98%

Canopy Growth Corporate Events

Canopy Growth Narrows Losses and Bolsters Balance Sheet as Canadian Cannabis Sales Rise

Canopy Growth reported third-quarter fiscal 2026 results showing a 49% year-over-year narrowing of net loss and a 17% improvement in adjusted EBITDA loss, supported by double-digit growth in Canadian medical and adult-use cannabis net revenue and disciplined cost-cutting. Consolidated net revenue held at $75 million, with cannabis sales up 4% and strong sequential growth at Storz & Bickel driven by seasonal demand and the new VEAZY vaporizer, partially offset by weaker European cannabis sales and lower gross margins; the company closed a strategic recapitalization extending all debt maturities to 2031, maintained a solid cash position of $371 million with net cash of $146 million, and reiterated that cost structure “right-sizing” and expected growth position it to achieve positive adjusted EBITDA in fiscal 2027 as it moves to close the MTL Cannabis acquisition and bolster its global platform.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

Canopy Growth Sets Date for Q3 Fiscal 2026 Results and Investor Webcast

Canopy Growth has announced it will report financial results for its third quarter of fiscal 2026, covering the period ended December 31, 2025, before markets open on February 6, 2026. Management, including CEO Luc Mongeau and CFO Tom Stewart, will discuss the results on a same-day audio webcast with a replay available through early May, providing investors and other stakeholders an opportunity to assess the company’s performance and strategic progress in the evolving global cannabis market.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

Canopy Growth Recapitalizes Debt, Extends Maturities to 2031 to Support Growth Strategy

Canopy Growth announced a series of strategic recapitalization transactions designed to strengthen its balance sheet, extend all debt maturities to at least January 2031, and bolster liquidity to support its long-term growth strategy. The company has arranged a new US$150 million term loan maturing in 2031, which will refinance approximately US$101 million of senior secured debt due in 2027, lower its cash interest rate, and provide additional funds for working capital and potential acquisitions. Concurrently, Canopy Growth reached an agreement with an institutional investor to exchange about C$96.4 million of convertible debentures due 2029 for a package including C$55 million of new convertible debentures due 2031, cash, common shares, and share purchase warrants, thereby pushing out its debt obligations while optimizing its capital structure. Management framed the recapitalization as creating a financial runway through 2031, reinforcing the company’s leadership ambitions, particularly in European medical cannabis, and supporting its path toward sustained profitability following its recently announced acquisition of MTL Cannabis Corp.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

Canopy Growth Restructures Debt and Boosts Liquidity in 2031 Recapitalization Plan

Canopy Growth has announced a set of strategic recapitalization transactions designed to materially strengthen its balance sheet, extend all existing debt maturities to at least January 2031, and improve liquidity, leaving the company with an expected cash balance of about C$425 million. The package includes a new US$150 million term loan maturing in 2031 at a lower cash interest rate than its existing senior secured debt, which will be used to refinance roughly US$101 million of 2027 borrowings and support working capital and potential acquisitions, as well as an exchange of about C$96.4 million in 2029 convertible debentures with a single institutional investor for a mix of new 2031 convertible debentures, cash, common shares, and warrants. Management says the recapitalization creates a financial runway through 2031 to back its growth strategy, support rising demand in the European medical cannabis market, and advance its path toward sustained adjusted EBITDA profitability following its acquisition of MTL Cannabis.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

Canopy Growth Acquires MTL Cannabis to Strengthen Market Leadership

Canopy Growth has announced the acquisition of MTL Cannabis, a move expected to create Canada’s leading medical cannabis business and enhance the company’s capacity to meet growing international demand. This strategic acquisition, valued at approximately $125 million, is anticipated to generate significant synergies and improve Canopy Growth’s product quality and operational performance. The transaction will strengthen Canopy Growth’s presence in Québec and expand the national distribution of MTL’s high-quality cannabis products, leveraging MTL’s expertise in cultivation and strong brand recognition.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

Canopy Growth Expands into Canadian Vape Market with Claybourne Gassers Launch

Canopy Growth has launched the Claybourne Gassers, a new line of All-in-One vapes featuring liquid diamonds, in Canada. This launch marks Claybourne’s entry into the Canadian vape market, enhancing its presence in the high-growth vape segment. The new products, which include high-THC vapes and infused pre-rolls, are designed to meet the rising consumer demand for potent and flavorful cannabis products. This expansion is expected to strengthen Canopy Growth’s market position and cater to the accelerating demand in the adult-use cannabis market.

The most recent analyst rating on (TSE:WEED) stock is a Sell with a C$1.50 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

Canopy Growth Expands Medical Cannabis Offerings in Australia

Canopy Growth has expanded its Spectrum Therapeutics portfolio in Australia by introducing new softgel capsules, enhancing its medical cannabis offerings in the region. This expansion strengthens Canopy Growth’s presence in the maturing Australian market, providing patients with more choices and supporting the company’s global medical strategy.

The most recent analyst rating on (TSE:WEED) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.