Comparing Two Cannabis Giants: Canopy Growth vs. Green Thumb Industries
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy CGC?
Source: Fool
- Market Performance Comparison: Canopy Growth's market cap has plummeted from $15 billion in 2019 to under $400 million today, with its stock price falling over 40% in the past year, indicating vulnerability in a competitive cannabis market.
- Financial Condition Analysis: In Q3 of fiscal 2026, Canopy reported revenue of $90.4 million, a 5% year-over-year increase, but with a net loss of $0.18 per share and a 25% reduction in long-term debt to $225 million, reflecting efforts to improve finances while risking shareholder dilution.
- Profitability Differences: Green Thumb Industries achieved $292 million in revenue in Q3, up 1.6% year-over-year, with earnings per share of $0.10, demonstrating its sustained profitability, and its stock price is supported by a $50 million stock buyback plan.
- Industry Outlook: Should cannabis be reclassified as a Schedule III substance, Green Thumb stands to benefit from tax relief, potentially enhancing profitability, while Canopy, not operating in the U.S. market, misses out on this advantage.
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Analyst Views on CGC
Wall Street analysts forecast CGC stock price to rise
4 Analyst Rating
1 Buy
2 Hold
1 Sell
Hold
Current: 1.030
Low
1.03
Averages
2.52
High
5.90
Current: 1.030
Low
1.03
Averages
2.52
High
5.90
About CGC
Canopy Growth Corporation is a Canada-based cannabis company. The principal activities of the Company are the production, distribution and sale of a diverse range of cannabis and cannabinoid-based products for both adult-use and medical purposes under a portfolio of distinct brands in Canada. The Company delivers 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. Its segments include Canada cannabis, and Storz & Bickel. Its Canada cannabis segment includes the production, distribution, and sale of a range of cannabis, hemp, and cannabis related products in Canada. Its Storz & Bickel segment includes the production, distribution, and sale of vaporizers. In addition, it serves medical cannabis patients globally with principal operations in Canada, Europe and Australia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparing Two Cannabis Giants: Canopy Growth vs. Green Thumb Industries
- Market Performance Comparison: Canopy Growth's market cap has plummeted from $15 billion in 2019 to under $400 million today, with its stock price falling over 40% in the past year, indicating vulnerability in a competitive cannabis market.
- Financial Condition Analysis: In Q3 of fiscal 2026, Canopy reported revenue of $90.4 million, a 5% year-over-year increase, but with a net loss of $0.18 per share and a 25% reduction in long-term debt to $225 million, reflecting efforts to improve finances while risking shareholder dilution.
- Profitability Differences: Green Thumb Industries achieved $292 million in revenue in Q3, up 1.6% year-over-year, with earnings per share of $0.10, demonstrating its sustained profitability, and its stock price is supported by a $50 million stock buyback plan.
- Industry Outlook: Should cannabis be reclassified as a Schedule III substance, Green Thumb stands to benefit from tax relief, potentially enhancing profitability, while Canopy, not operating in the U.S. market, misses out on this advantage.
See More
Cannabis Sector Update: Aurora's Strategic Shift Amid Record Medical Sales
- Aurora Financial Performance: Aurora Cannabis reported net revenue of $94.2 million for Q3 2026, a 7% year-over-year increase, with global medical cannabis sales reaching $76.2 million, accounting for over 80% of total sales, indicating strong growth potential in the high-margin medical market.
- Strategic Transformation Plan: Aurora announced plans to gradually exit select Canadian consumer cannabis markets to reduce sales and marketing costs, which is expected to significantly improve overall profit margins in the coming quarters.
- Canopy Growth Results: Canopy Growth reported net revenue of $90.4 million for Q3 2026, with a nearly 50% reduction in net loss despite weak international performance, reflecting positive progress in cost control and market integration.
- Cronos Brand Expansion: Cronos Group launched its premium Lord Jones brand in Israel, marking a significant step in its global expansion strategy aimed at meeting local market demands with high-quality products while enhancing brand recognition in international markets.
See More
Current State of the Market a Decade After Canada's Cannabis Legalization
- Expansion Missteps: Canopy Growth's aggressive expansion into the U.S. and Europe, along with diversification into cannabis-related products, has backfired as the company misjudged the market, failing to address the pressure from illicit sales that undermined legal pricing.
- Escalating Financial Troubles: The company's stock count has surged over 3,700% due to continuous stock and debt issuance, resulting in a market cap of only $372 million, a stark contrast to its peak of nearly $18 billion, highlighting severe profitability issues.
- Flawed Acquisition Strategy: Recently, Canopy Growth announced the acquisition of MTL Cannabis for $125 million, despite the latter generating $84 million in revenue, indicating the company's inability to resist unaffordable acquisitions that exacerbate its financial strain.
- Investor Confidence Erosion: With the stock plummeting 99.8% from its all-time high, shareholders are facing significant losses, and the market's pessimism regarding Canopy Growth's future viability suggests that not all rapidly growing industries present viable investment opportunities.
See More
Canopy Growth Reports Strong Q3 2026 Earnings and Strategic Outlook
- Financial Improvement: Canopy Growth reported a net cash position of $146 million and cash equivalents of $371 million in Q3, with a subsequent $150 million recapitalization extending all debt maturities to 2031, thereby enhancing the company's flexibility in near-term financing and enabling more informed long-term decisions.
- Acquisition Strategy: CEO Mongeau emphasized the significance of acquiring MTL Cannabis, stating it will bolster Canopy's leadership in the Canadian medical cannabis market and drive growth both domestically and internationally, with expectations to enhance net revenue and adjusted EBITDA, further solidifying market position.
- Revenue Growth: The company achieved cannabis net revenue of $52 million in Q3, a 4% year-over-year increase, with Canadian medical cannabis revenue rising 15% to $23 million and adult-use cannabis revenue increasing 8% to $23 million, indicating sustained growth potential in core markets.
- Cost Control Success: CFO Stewart reported that aggressive cost-saving measures have identified and captured $29 million in annualized savings, with expectations of achieving positive adjusted EBITDA during fiscal 2027, reflecting significant progress in cost management and operational efficiency.
See More
Canopy Growth Reports Q3 Results: Significant Reduction in Net Loss
- Significant Loss Reduction: Canopy Growth reported a 49% year-over-year reduction in net loss for Q3 FY2026, reflecting the effectiveness of its cost-cutting measures, which is likely to boost investor confidence.
- Revenue Exceeds Expectations: The company recorded C$74.5 million in net revenue for the quarter, roughly flat compared to the prior year, surpassing analysts' expectations of C$70.5 million, indicating stable market performance.
- International Market Challenges: While the Canadian medical and adult-use cannabis segments grew by 15% and 8% respectively, international net revenue fell 31% year-over-year to C$6.2 million, primarily due to supply chain constraints in Europe, highlighting global market uncertainties.
- Effective Cost Control: Since March 1, the company has achieved C$29 million in annualized savings, and it expects to record positive adjusted EBITDA in FY2027, demonstrating that its ongoing cost control strategies will lay a solid foundation for future growth.
See More
Canopy Growth Makes Strategic Moves in Cannabis Business
- Market Strategy Shift: Canopy Growth is actively adjusting its cannabis business strategy to adapt to market changes and enhance competitiveness, which is expected to positively impact future revenue growth.
- Financial Performance Analysis: Historical earnings data indicates that Canopy Growth has experienced volatility, yet it still holds potential for a profitable turnaround despite facing challenges.
- Investor Confidence Recovery: With increasing market expectations for cannabis legalization, Canopy Growth's stock price may experience positive effects, attracting more investor attention.
- Industry Outlook: Regulatory changes in the cannabis industry could present new opportunities for Canopy Growth, particularly in product diversification and market expansion, further solidifying its market position.
See More
Comparing Two Cannabis Giants: Canopy Growth vs. Green Thumb Industries
- Market Performance Comparison: Canopy Growth's market cap has plummeted from $15 billion in 2019 to under $400 million today, with its stock price falling over 40% in the past year, indicating vulnerability in a competitive cannabis market.
- Financial Condition Analysis: In Q3 of fiscal 2026, Canopy reported revenue of $90.4 million, a 5% year-over-year increase, but with a net loss of $0.18 per share and a 25% reduction in long-term debt to $225 million, reflecting efforts to improve finances while risking shareholder dilution.
- Profitability Differences: Green Thumb Industries achieved $292 million in revenue in Q3, up 1.6% year-over-year, with earnings per share of $0.10, demonstrating its sustained profitability, and its stock price is supported by a $50 million stock buyback plan.
- Industry Outlook: Should cannabis be reclassified as a Schedule III substance, Green Thumb stands to benefit from tax relief, potentially enhancing profitability, while Canopy, not operating in the U.S. market, misses out on this advantage.
See More
Cannabis Sector Update: Aurora's Strategic Shift Amid Record Medical Sales
- Aurora Financial Performance: Aurora Cannabis reported net revenue of $94.2 million for Q3 2026, a 7% year-over-year increase, with global medical cannabis sales reaching $76.2 million, accounting for over 80% of total sales, indicating strong growth potential in the high-margin medical market.
- Strategic Transformation Plan: Aurora announced plans to gradually exit select Canadian consumer cannabis markets to reduce sales and marketing costs, which is expected to significantly improve overall profit margins in the coming quarters.
- Canopy Growth Results: Canopy Growth reported net revenue of $90.4 million for Q3 2026, with a nearly 50% reduction in net loss despite weak international performance, reflecting positive progress in cost control and market integration.
- Cronos Brand Expansion: Cronos Group launched its premium Lord Jones brand in Israel, marking a significant step in its global expansion strategy aimed at meeting local market demands with high-quality products while enhancing brand recognition in international markets.
See More
Current State of the Market a Decade After Canada's Cannabis Legalization
- Expansion Missteps: Canopy Growth's aggressive expansion into the U.S. and Europe, along with diversification into cannabis-related products, has backfired as the company misjudged the market, failing to address the pressure from illicit sales that undermined legal pricing.
- Escalating Financial Troubles: The company's stock count has surged over 3,700% due to continuous stock and debt issuance, resulting in a market cap of only $372 million, a stark contrast to its peak of nearly $18 billion, highlighting severe profitability issues.
- Flawed Acquisition Strategy: Recently, Canopy Growth announced the acquisition of MTL Cannabis for $125 million, despite the latter generating $84 million in revenue, indicating the company's inability to resist unaffordable acquisitions that exacerbate its financial strain.
- Investor Confidence Erosion: With the stock plummeting 99.8% from its all-time high, shareholders are facing significant losses, and the market's pessimism regarding Canopy Growth's future viability suggests that not all rapidly growing industries present viable investment opportunities.
See More
Canopy Growth Reports Strong Q3 2026 Earnings and Strategic Outlook
- Financial Improvement: Canopy Growth reported a net cash position of $146 million and cash equivalents of $371 million in Q3, with a subsequent $150 million recapitalization extending all debt maturities to 2031, thereby enhancing the company's flexibility in near-term financing and enabling more informed long-term decisions.
- Acquisition Strategy: CEO Mongeau emphasized the significance of acquiring MTL Cannabis, stating it will bolster Canopy's leadership in the Canadian medical cannabis market and drive growth both domestically and internationally, with expectations to enhance net revenue and adjusted EBITDA, further solidifying market position.
- Revenue Growth: The company achieved cannabis net revenue of $52 million in Q3, a 4% year-over-year increase, with Canadian medical cannabis revenue rising 15% to $23 million and adult-use cannabis revenue increasing 8% to $23 million, indicating sustained growth potential in core markets.
- Cost Control Success: CFO Stewart reported that aggressive cost-saving measures have identified and captured $29 million in annualized savings, with expectations of achieving positive adjusted EBITDA during fiscal 2027, reflecting significant progress in cost management and operational efficiency.
See More
Canopy Growth Reports Q3 Results: Significant Reduction in Net Loss
- Significant Loss Reduction: Canopy Growth reported a 49% year-over-year reduction in net loss for Q3 FY2026, reflecting the effectiveness of its cost-cutting measures, which is likely to boost investor confidence.
- Revenue Exceeds Expectations: The company recorded C$74.5 million in net revenue for the quarter, roughly flat compared to the prior year, surpassing analysts' expectations of C$70.5 million, indicating stable market performance.
- International Market Challenges: While the Canadian medical and adult-use cannabis segments grew by 15% and 8% respectively, international net revenue fell 31% year-over-year to C$6.2 million, primarily due to supply chain constraints in Europe, highlighting global market uncertainties.
- Effective Cost Control: Since March 1, the company has achieved C$29 million in annualized savings, and it expects to record positive adjusted EBITDA in FY2027, demonstrating that its ongoing cost control strategies will lay a solid foundation for future growth.
See More
Canopy Growth Makes Strategic Moves in Cannabis Business
- Market Strategy Shift: Canopy Growth is actively adjusting its cannabis business strategy to adapt to market changes and enhance competitiveness, which is expected to positively impact future revenue growth.
- Financial Performance Analysis: Historical earnings data indicates that Canopy Growth has experienced volatility, yet it still holds potential for a profitable turnaround despite facing challenges.
- Investor Confidence Recovery: With increasing market expectations for cannabis legalization, Canopy Growth's stock price may experience positive effects, attracting more investor attention.
- Industry Outlook: Regulatory changes in the cannabis industry could present new opportunities for Canopy Growth, particularly in product diversification and market expansion, further solidifying its market position.
See More
