Canopy Growth's revenue nearly tripled in the fourth quarter, but Canada's largest licensed cannabis producer still feel short of Bay Street's lofty top line expectations amid the looming legalization of recreational marijuana.

Canopy said on Thursday its fiscal fourth-quarter revenue surged 191 per cent year-over-year to $14.7 million. Analysts, on average, expected $16.4 million. Despite the sales growth, Canopy's quarterly loss widened to 14 cents per share from a five-cent loss a year earlier.

Gross margins tumbled to 10 per cent in the quarter from 53 per cent in the fiscal fourth quarter of 2016 after the company opted to lower prices on its "Sun-Grown" inventory.

"Continued investment and the execution of unique, market driven business strategies have firmly positioned Canopy to address the legal adult recreational market that is set to open in Canada in 2018 and expand into federally-legal markets around the world," CEO Bruce Linton said in a statement.

Shares in the company were trading down nearly five per cent as of 10:05 a.m. ET.