Canopy Growth Corporation

Good morning. My name is Joanna, and I will be your conference operator today. I would like to welcome you to Canopy Growth's third quarter fiscal 2025 financial results conference call. Currently, all participants are in a listen-only mode. I will now turn the call over to Tyler Burns, Director, Investor Relations. Tyler, you may begin the conference call.

Good morning, and thank you for joining us. On our call today, we have Canopy Growth's Chief Executive Officer, Luc Mongeau, and Chief Financial Officer Judy Hong. Before financial markets opened today, Canopy Growth issued a news release announcing the financial results for our third quarter fiscal year 2025 ended December 31st, 2024. The news release and financial statements have been filed on EDGAR and CDAR and will be available on our website under the Investors tab. Before we begin, I would like to remind you that our discussion during this call will include forward-looking statements that are based on management's current views and assumptions, and that this discussion is qualified in its entirety by the cautionary note regarding forward-looking statements included at the end of the news release issued today. Please review today's earnings release and Canopy's reports filed with the SEC and on CDAR for various factors that could cause actual results to differ materially from projections. In addition, reconciliations between any non-GAAP measures to their closest reported GAAP measures are included in our earnings release. Please note that all financial information is provided in Canadian dollars unless otherwise stated. Following remarks from Luke and Judy, We will conduct a question and answer session where we will take questions from analysts. With that, I will turn the call over to Luc.

Thank you, Tyler. Good morning, everyone, and thank you for joining our Q3 fiscal year 2025 earnings conference call. My name is Luc Mongeau, and I'm proud to join you for my first earnings call as CEO of Canopy Growth. I'm truly excited to lead the company forward as we start a new year and embark on a fresh chapter for Canopy. I would like to start by expressing my gratitude for the support that the Canopy Board of Directors and our entire team have given me as I begin this new role. I would also like to thank David Klein for his leadership and support through the transition. For me, joining Canopy and stepping into the role of CEO to lead this Canadian and global organization is an honor and a privilege. And before we get into the results from Q3, which Judy will cover in greater depth, I'd like to share some details about my prior experience, why I've joined as CEO, and speak at a high level about my view on the company, the sector, and our path ahead. Over the last 25 years, I've had the privilege of leading and working within organizations across the consumer packaged goods industry. Companies like Western Foods, Marsh Pet Care, and Procter & Gamble. In all my roles, I've dedicated myself to identifying the most promising value creation opportunities. working to understand the needs and wants of consumers and customers, while building greater organizations that meet and exceed demand with high-quality, innovative products. I've led product innovation in R&D, revamped complex supply chains, executed global marketing campaigns, and developed fresh stakes on commercial strategies how to power growth and profitability. This brings me to Canopy. When I first got involved with Canopy two years ago, through my engagement with the board, I saw something unique. Cannabis, in my view, represents one of the most exciting consumer trends today. The sector is evolving rapidly, and we're still at the beginning of transforming how people view and experience cannabis products. Whether it's delivering new experiences or redefining approaches to wellness, cannabis has the capacity to shape and influence the future of the consumer goods sector while broadening cultural and lifestyle trends around the world. However, my optimism is balanced with our reality today. As we all know, the cannabis sector has faced real challenges. Regulations have not evolved as fast as expected. Some consumer trends like beverages have taken longer to develop. The illicit market still endures. And finally, the path to full legalization in the U.S. remains uncertain. But for me, this is the exciting part. The opportunities ahead are just beginning to unfold. We continue to see more people move away from alcohol and instead choose cannabis to enhance their social life and support their wellness. The shifts in behaviors is not just a passing trend. It's a sign of deep lasting change that will only continue to grow. As I move forward, my focus is clear. to drive Canopy rapidly towards sustained profitability and positive cash generation. Right now, I'm working with the team to identify key areas of improvement to enhance Canopy in every way possible for the benefit of our consumers, our people, our business partners, and our shareholders. I'll have much more to say on this when we're together for Canopy's Q4 conference call in May. For now, I would like to highlight some of the areas of our business that are showing promise and strong performance. First, our medical cannabis business. Whether in Canada or across our international markets, Canopy is a recognized leader in medical cannabis. In Canada, our Spectrum Therapeutics team has built a powerful reputation for outstanding service and for meeting the diverse needs of medical cannabis patients through an ever-expanding product portfolio. Internationally, we have established a solid position across the markets with the highest potential – Germany, Poland and Australia. Across Europe, regulatory changes are helping power existing momentum. In Germany, we're bringing new and high THC strain to market from our Canadian platform. In addition, collaboration with Europe-based flower suppliers is helping us deliver the variety of products that patients are seeking. Overall, I believe we can really build upon Canopy's medical cannabis business and continue to drive growth in the quarters and years ahead. Next, in our adult use business, I'd like to highlight the recent launch of the award-winning Claiborne brand in Canada. In less than six weeks, Claiborne has risen to become the number three infused pre-roll in British Columbia and Ontario. This showcases our ability to successfully introduce innovative products that resonate with consumers and can quickly make an impact in the market. Overall, I believe our Canadian adult-use business has the key ingredients necessary to grow our share of the market. Another example of Canopy's strengths is our Storz & Bickel brand. With its offering of premium vaporizers, including the iconic Volcano and the new high-performance Venti, Storz & Bickel is a non-parallel leader in the premium vaporizer space. We are working to drive new innovation for stores in Bicol and keep up the momentum for what is already a leading portfolio. I'm really excited about where this brand is today as well as where it's going. Next, I would like to speak to Canopy USA. Canopy USA is an exciting differentiated platform that we feel is well positioned to capitalize on its ecosystem of brands and operations. With the acquisitions of Juana, Jetty, and Acreage finalized, CanopyUSA is already well advanced on the process of integration. It is also now realizing cost synergies as well as marketing and joint sales advantages across key markets and categories. As a final element of bringing CanopyUSA to life as a single, cohesive organization, Brooks Jorgensen was appointed as the organization's first president in early January. Brooks brings a wealth of experience and a robust track record in building cannabis businesses, having recently led Kiva, the largest cannabis distributor in the U.S. Together with the broader CUSA team, Brooks is focused on driving strategic execution and growth of the Canopy USA platform. We see real potential in Canopy USA and expect to see even more growth as they continue to build and refine their presence. As I wrap up today, I want to reiterate that I believe we have the right ingredients for success and I'm focused on positioning Canopy to grow profitably and sustainably. I look forward to sharing more detail about the company's plans and updated strategy in greater detail when we release our full year financials at the end of May this year. Thank you. Judy will now speak to the results from the quarter.