Canopy Growth (NASDAQ:CGC) was a stock on fire Tuesday, after the marijuana company published its latest set of quarterly results. 

For its third quarter of fiscal 2021, Canopy Growth booked net revenue of 152.5 million Canadian dollars ($119.5 million), which was 23% higher on a year-over-year basis, and 13% above the second-quarter result. The net loss was CA$829 million ($649.6 million), or CA$2.43 ($1.90) per share. That was deeper than both the CA$110 million ($86 million) shortfall in the year-ago quarter, and the second quarter's CA$97 million ($76 million) deficit.

Marijuana flower on fire.

Image source: Getty Images.

On average, analysts were expecting a narrower loss of CA$0.32 ($0.25), but lower revenue, at CA$149.8 million ($117.4 million).

Canopy is in the midst of a cost rationalization initiative, which it says is already bearing fruit despite the heavy bottom-line loss.

"These cost savings, along with our top-line growth and continued cost discipline, puts Canopy firmly on a path to achieve profitability during Fiscal 2022, with further improvement anticipated beyond," the company quoted CFO Mike Lee as saying.

No forecasts were provided, but Canopy did present several midterm financial goals. Among other targets, it aims to achieve a compound annual growth rate of 40% to 50% from fiscal 2022 to 2024, positive adjusted EBITDA in the second half of 2022, and positive operating cash flow in 2023.

While this is certainly possible -- given the strengthening momentum for decriminalization/legalization of marijuana in the U.S. and improvements with licensing in Canada, among other factors -- the company has yet to prove it can deliver consistent profitability. 

Canopy Growth shares were nearly 12% higher at the close on Tuesday, but investors might be better off tempering their enthusiasm for this still loss-making company.

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