Canopy Growth Corporation (CGC) struggles with declining revenues and widening losses. The Canadian cannabis producer saw a 28% year-over-year revenue drop in the last reported quarter, primarily due to heightened competition in the domestic adult-use cannabis market and a decrease in its U.S. CBD operations. With investors worried about its prospects, the stock has slumped substantially over the past year, currently trading under $2.
CGC is attempting to reverse its fortunes with cost control efforts, exiting some international markets, shutting down stores, and divesting retail businesses. Moreover, earlier this year, CGC announced it is transitioning its Canadian business to an asset-light model and significantly reducing the overall size of its organization.
