This move would reduce oversight to a level comparable to that of regular prescription painkillers. Additionally, a recast could remove the tax burden from Section 280E, which prevents cannabis companies from deducting ordinary business expenses.
Canopy Growth and its peers will also have access to traditional banking in the US, which will reduce financing costs and increase profit margins.
With a market cap of $787 million, the Canadian-based marijuana giant will have lost 50% of its value by 2025. Despite the recent rebound, Canopy Growth shares are down 99% from their all-time highs.
Is Canopy Growth stock a good buy right now?
In the second fiscal quarter (Q2) of 2026 (ended in September), Canopy Growth narrowed its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss to $3 million, compared to $6 million in the year-ago period. The cannabis producer managed to remove the continuity warnings that had previously clouded its future.
The Canadian marijuana grower reported revenues of $51 million in the second quarter, up 12% year over year. Sales growth was driven by a 30% increase in the adult-use segment, where Claybourne injected pre-rolls and new Tweed All-In-One vapes gained popularity among consumers.
Storz & Bickel contributed 5% sequential sales growth to $16 million as its newly launched VEAZY vaporizer generated early momentum ahead of the critical holiday sales season.
The medical cannabis sector continued its steady climb with revenue growth of 17%, while insured patient registrations increased 20% year over year.
Canopy’s international business segment disappointed investors as revenue fell $3 million compared to last year. The cannabis company highlighted that its European operations faced supply constraints and quality issues with Portuguese flowers that did not meet standards.
Canopy Growth transformed its facility in BC Georgia into an exclusive location for medical cultivation. This facility will produce craft cannabis for Spectrum patients, with all products now hand-trimmed to ensure consistency of quality.
Management exceeded cost savings targets as the company reduced operating costs by $21 million year-over-year, above the $20 million target, indicating a focus on efficiency.
Canopy Growth ended the second quarter with nearly $300 million in cash and $226 million in long-term debt. However, there are no significant debt maturities until September 2027.
The company prepaid $50 million on a senior secured term loan in the second quarter, reducing interest expense by $6.5 million annually. Free cash outflow also fell from $56 million to $19 million over the last twelve months.
What is Canopy Growth’s stock price target?
CEO Luc Mongeau implemented daily management oversight to stabilize operations. The company also expects international performance to stabilize at second quarter levels through the end of the fiscal year, before returning to growth.
Analysts who follow WEED stock predict that revenue will rise from $281.6 million in fiscal 2026 to $377 million in fiscal 2030. The company is also forecast to end 2030 with free cash flow of $17 million, compared to outflows of $50 million this year.
Canopy Growth shares will continue to rise if cannabis is decriminalized in the United States. However, the country will still need to improve its profit margins and compete with incumbents to gain market share south of the border.
Given consensus price targets, WEED stock is trading at a 46% discount in December 2025.
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