Canopy Growth Reports Second Quarter Fiscal 2026 Financial Results; Company Continues to Strengthen Financial Performance with Improving Adjusted EBITDA, Disciplined Cost Management, and a Stronger Balance Sheet

Executive Summary

• Canopy Growth reported Q2 FY2026 consolidated net revenue of C$67 million, a 6% YoY increase, with Canada adult‑use cannabis revenue up 30% and medical cannabis revenue up 17%.
• Operating loss from continuing operations improved to C$17 million (63% YoY improvement); Adjusted EBITDA loss narrowed to C$3 million versus C$6 million a year earlier.
• Cash and cash equivalents rose to C$298 million, exceeding debt by C$70 million, eliminating prior going‑concern doubts.

Key Details

• Revenue Highlights
• Consolidated net revenue: C$67 M (+6% YoY).
• Cannabis net revenue: C$51 M (+12% YoY).
• Canada adult‑use cannabis net revenue: C$24 M (+30% YoY), driven by infused pre‑roll joints and new All‑In‑One vapes (Tweed, 7ACRES).
• Canada medical cannabis net revenue: C$22 M (+17% YoY), supported by more insured patients and larger order sizes.
• International markets cannabis net revenue: C$5 M (‑39% YoY) due to European supply‑chain challenges.

• Storz & Bickel net revenue: C$16 M (‑10% YoY); VEAZY™ launch in Sep 2025 expected to boost Q3.

• Margin & Expense Metrics

• Consolidated gross margin: 33% (‑200 bps YoY, +800 bps sequential).
• Cannabis gross margin: 31% (down from 36%).
• Storz & Bickel gross margin: 38% (+600 bps YoY).

• SG&A expenses down 13% YoY; $21 M of annualized savings captured since Mar 1 2025.

• Profitability

• Operating loss (continuing): C$17 M (‑63% YoY).
• Adjusted EBITDA loss: C$3 M (vs. C$6 M YoY).

• Year‑to‑date free cash flow outflow reduced to C$31 M (from C$112 M YoY).

• Liquidity

• Cash & cash equivalents: C$298 M (up from C$114 M).
• Debt balances: Long‑term debt C$226 M; current portion C$1.8 M.

• Net cash position exceeds debt by ≈C$70 M, removing prior going‑concern uncertainty.

• Balance Sheet Highlights (as of Sep 30 2025)

• Total assets: C$1.07 B; total liabilities: C$334 M; shareholders’ equity: C$736 M.

• Inventory: C$102 M; other short‑term investments: C$0.

• Financing Activity (Six months ended Sep 30 2025)

• Proceeds from issuance of common shares & warrants: C$281.5 M.
• Repayment of long‑term debt: C$71.7 M.

• Net cash provided by financing activities: C$194.5 M.

• Operational Updates

• Kelowna DOJA cultivation facility now serves exclusively Spectrum Therapeutics medical patients.
• European supply‑chain execution being stabilized; expectations of improvement before fiscal year end (Mar 31 2026).

• VEAZY™ sales ramp‑up expected to drive Storz & Bickel Q3 revenue growth, offset partially by U.S. tariff pressures.

• Conference Call

• Hosted on Nov 7 2025 at 10:00 AM ET; webcast link provided.

Notable Quotes

• “We’re building a stronger, more competitive company… confidence in our ability to sustain progress and deliver results for quarters to come.” – Luc Mongeau, CEO
• “Our financial discipline continues to improve our path to profitability…” – Tom Stewart, CFO