Canopy Growth (NYSE: CGC) appears to be making the most from its last couple of weeks of trading on the New York Stock Exchange. The Canadian cannabis producer moves its shares to the Nasdaq on Nov. 16, 2020. In the meantime, the pot stock is on a roll with investors enthusiastic about the U.S. election results.

Investors now have something else to be excited about: Canopy announced its fiscal year 2021 second-quarter results before the market opened on Monday. Here are three ways the company crushed it with its Q2 update.

Shadow of dollar sign on top of a pile of cannabis leaves

1. Record revenue

Canopy reported net revenue in its fiscal second quarter of 135.3 million in Canadian dollars. There were several things to really like about this result.

First, it set a record high quarterly revenue total for Canopy. Second, the result easily beat the average analysts' estimate of CA$117.2 million. Third, Canopy's Q2 revenue reflected a strong 77% year-over-year increase and a 23% jump over its fiscal 2021 Q1 revenue total.

The company delivered strong revenue growth in its home market of Canada. The only negative was in international medical cannabis markets, where net revenue slipped 3% year over year to CA$17.5 million. This decline was due to a packaging supply issue with one of the distributors for Canopy's C3 German subsidiary and slower market growth combined with increased competition in Germany's dried flower market.

2. Gaining ground in the Canadian recreational market

One aspect of Canopy's tremendous revenue growth deserves a special mention. The company continues to gain ground in the Canadian recreational marijuana market -- the most important market of all right now for Canopy.

Canopy reported that its market share in the Canadian rec market increased to 15.5% in its fiscal second quarter. This reflects an increase of 200 basis points compared to the previous quarter. Notably, Canopy's market share jumped by 190 basis points in Ontario, Canada's most heavily populated province.

The fly in the ointment was Alberta, where Canopy's market share fell by 40 basis points quarter over quarter. However, Canopy could be in a position to rebound in the province. It opened nine retail stores in Alberta during Q2 plus another new store in October.

Unsurprisingly, Canopy is dominating the Canadian cannabis-infused beverage market with a 54% dollar share. The company markets five THC cannabis beverages and recently launched CBD beverages.

3. Improving bottom line

Perhaps the best news of all for Canopy Growth was its improving bottom line. The company reported a net loss of CA$96.6 million, a lot better than its CA$128 million net loss in the previous quarter. Canopy posted an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of CA$85.7 million compared to an adjusted EBITDA loss of CA$150.4 million in the prior-year period and CA$92 million in fiscal 2021 Q1.

Canopy Growth CFO Mike Lee said that the company is "accelerating our path to profitability." That's exactly what investors want to hear.

The company's revenue growth is certainly helping Canopy move closer toward profitability. However, the cost-cutting the company has done since CEO David Klein came aboard is also an important factor. More cost reductions could be on the way: Lee said that Canopy's "end-to-end review has identified cost savings opportunities in the range of [CA]$150-$200 million across cost of goods sold, general and administrative expenses, and inventory, and efforts are under way to quickly capture value."

What's next?

It looks like Canopy is on course to continue delivering solid revenue growth along with making progress toward achieving profitability. The biggest potential catalyst for the marijuana stock is out of its control, though. Any hopes for significant changes to federal marijuana laws in the U.S. hinge on which party wins a majority in the U.S. Senate -- and that won't be decided until January 2021, with two Senate runoff elections in Georgia.

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