Canopy Growth (CGC) Gross Margin
Canopy Growth (CGC) currently has a gross margin of 25.2%. Margins are contracting over recent quarters. The company is a licensed cannabis producer (LP) trading on the NASDAQ.
Current Gross Margin
25.2%
Margin Trend
Contracting
Latest Quarter Margin
27.4%
Quarterly Gross Margin
| Period | Revenue | COGS | Gross Profit | Gross Margin |
|---|---|---|---|---|
| FY2026 Q2 | $57.7M | $41.9M | $15.8M | 27.4% |
| FY2026 Q1 | $50.7M | $44.8M | $5.9M | 11.6% |
| FY2025 Q4 | $53.0M | $37.8M | $15.3M | 28.8% |
| FY2025 Q3 | $47.4M | $31.9M | $15.6M | 32.8% |
| FY2025 Q2 | $51.3M | $38.5M | $12.8M | 25.0% |
| FY2025 Q1 | $46.3M | $38.8M | $7.5M | 16.2% |
| FY2024 Q4 | $53.2M | $36.0M | $17.1M | 32.2% |
| FY2024 Q3 | $44.8M | $29.3M | $15.5M | 34.7% |
| FY2024 Q2 | $47.1M | $30.7M | $16.4M | 34.8% |
| FY2024 Q1 | $51.8M | $40.8M | $11.0M | 21.3% |
| FY2023 Q4 | $55.9M | $35.8M | $20.1M | 36.0% |
| FY2023 Q3 | $49.5M | $32.8M | $16.7M | 33.7% |
Frequently Asked Questions
What is CGC's current gross margin?+
Gross margin for Canopy Growth is calculated as (revenue minus cost of revenue) divided by revenue, expressed as a percentage. It measures how efficiently the company converts sales into gross profit before operating expenses. Higher margins indicate better pricing power or lower production costs.
What is a good gross margin for cannabis companies?+
Cannabis gross margins vary widely by sub-sector. Retailers typically see 40-55%, vertically integrated MSOs 45-60%, and LPs 20-45%. Canopy Growth's margin should be compared to peers in the same sub-sector for meaningful context. Margins above 50% generally indicate strong pricing power.
Why do CGC's margins change quarter to quarter?+
Gross margin fluctuations for Canopy Growth can result from changes in product mix, pricing pressure from competition, input cost changes (e.g., energy, labor), inventory write-downs, or scaling into new markets where initial costs are higher. Seasonal harvest patterns can also affect margins for cultivators.