Canopy Growth (CGC) 8 Nov 24 2025 Q2 Earnings call transcript
2min read In Canopy Growth's latest earnings call for the second quarter of fiscal year 2025, the company showcased a strong focus on the exceptional performance of its Storz & Bickel device business and medical cannabis segments. This strategic emphasis aligns with the company's drive for sustainable profitability and long-term success across North America and key global markets.
The Storz & Bickel device business, with its premium vaporizers like the Volcano and Venty, has demonstrated exceptional growth, with net revenue increasing by 32% year-over-year. This success is attributed to the brand's reputation among consumers, extensive in-market activities, and increased demand following regulatory reforms. Storz & Bickel's performance underscores the importance of premium positioning and product innovation in driving growth in high-margin device sales.
The medical cannabis segment, particularly in Canada and Europe, has also produced impressive results. The Canadian Medical business, which accounts for over half of revenue in Canada, reported an outstanding second quarter with revenues up 16% year-over-year. This growth is attributed to the company's focus on expanding product selection and ensuring constant availability, capturing a larger share of the high-margin Canadian medical cannabis market. Internationally, demand remains robust, with European markets demonstrating substantial year-over-year revenue growth. In Germany, medical cannabis revenue surged by 47% from the first to second quarter, reflecting the rapidly rising demand in the market and Canopy's positioning as a long-term player.
Canopy's Canadian adult-use business is also making strides, with a focus on profitably growing the top line. The company is executing targeted initiatives to revitalize its core flower offerings, such as Tweed and 7ACRES, and launch new and innovative products. The production of Wana edibles has resumed, and new premium and Better for You Wana gummies are expected to hit the market early in the new year. These efforts demonstrate Canopy's commitment to investing in product quality, increasing distribution, and bringing new and innovative products to consumers.
Looking ahead, Canopy USA is expected to capture significant growth in the U.S. cannabis and hemp-derived markets. The acquisition of Wana and Jetty brands is on track, and the ecosystem approach will enable Canopy USA to leverage synergies across these brands and capitalize on immediate growth opportunities. The company's focus on expanding in the U.S. market, independent of federal legalization, underscores its strategic positioning and confidence in its business model.
In conclusion, Canopy Growth's second quarter fiscal 2025 earnings call highlighted the company's strategic focus on its Storz & Bickel device business and medical cannabis segments. These initiatives, coupled with a strong focus on profitability and strategic expansion, position Canopy for sustainable growth and long-term success. Investors and analysts will be closely watching Canopy's continued progress and strategic moves as it navigates the complex and evolving cannabis market.