Canopy Growth Stock Under Pressure Into Earnings – What To Expect

Canopy Growth stock (CGC) is trading at $1.08 ahead of this morning's earnings, having fallen 6.9% during Thursday's session, to sit 61.15% lower on a rolling 12 month basis. The pressure is on then into the print.

Analysts anticipate an average loss per share (EPS) of -$0.05 for the current quarter, a sharp improvement on the $1.06 per share loss delivered this time last year. Revenue expectations are pegged at an average of $70.96million, a 5.09% decline.

Over the past 52 weeks, CGC's stock has experienced considerable fluctuation, ranging from a low of $0.77 to a high of $2.90. This represents a decline of approximately 44.97% over the year, underscoring the challenges the company has faced in a competitive and evolving market.

The stock's current price sits below both its 50-day and 200-day simple moving averages (SMAs), which are $1.24 and $1.31, respectively. This technical indicator suggests the stock is experiencing bearish momentum, potentially influencing short-term trading strategies.

Recent strategic initiatives have aimed to strengthen Canopy Growth's financial footing. On January 8, 2026, the company announced recapitalization transactions designed to extend debt maturities to at least January 2031. These moves are projected to provide approximately C$425 million in cash on hand, offering increased financial flexibility for long-term growth initiatives.

The strategic recapitalization aimed to alleviate immediate financial pressures and provide a runway for Canopy Growth to execute its expansion plans. By pushing out debt obligations, the company gains crucial time to improve profitability and capitalize on emerging market opportunities.

Canopy Growth's planned acquisition of MTL Cannabis Corp. for approximately C$125 million in equity and C$179 million in total enterprise value is another key development. MTL Cannabis reported trailing twelve-month revenue of C$84 million and operating cash flow of C$11 million as of September 30, 2025. The acquisition is expected to close before the end of February 2026, pending regulatory approvals.

The MTL Cannabis acquisition is poised to significantly enhance Canopy Growth's market position, particularly in the Canadian medical cannabis sector. By integrating MTL's operations, Canopy aims to create a leading medical cannabis business and expand its capacity to serve international demand.

Reports from January 8, 2026, suggested that the Trump administration was considering reclassifying marijuana, a development that initially boosted cannabis stocks, including Canopy Growth. The potential easing of U.S. restrictions on marijuana generated investor optimism, driving up share prices. However, the current price reflects some dissipation of that initial enthusiasm.

The potential for U.S. marijuana reclassification remains a significant long-term catalyst for Canopy Growth. Access to the U.S. market would represent a substantial growth opportunity, but regulatory uncertainties continue to weigh on investor sentiment.

Heading into the earnings release, investors will be closely scrutinizing Canopy Growth's financial performance, particularly its revenue growth, cost management, and progress toward profitability. Volatility can be expected.