Canopy Growth Reports Third Quarter Fiscal 2026 Financial Results

Executive Summary

• Canopy Growth reported Q3 FY2026 net revenue of C$75 M (flat YoY) with cannabis net revenue up 4% and a 49% reduction in net loss year‑over‑year.
• Adjusted EBITDA loss narrowed to C$2.9 M (17% improvement YoY); free cash outflow improved to C$19 M from C$28 M.
• Cash and cash equivalents increased to C$371 M, giving a net cash position of C$146 M; strategic recapitalization completed and MTL Cannabis acquisition expected to close this quarter.

Key Details

• Financial Highlights
• Consolidated net revenue: C$75 M (flat YoY).
• Cannabis net revenue: C$52 M (+4% YoY).
• Canada medical cannabis net revenue: C$23 M (+15% YoY).
• Canada adult‑use cannabis net revenue: C$23 M (+8% YoY).
• International markets cannabis net revenue: C$6.2 M (‑31% YoY), but +22% sequentially from Q2 FY2026.

• Storz & Bickel net revenue: C$23 M (+45% sequentially).

• Margin & Expense Metrics

• Consolidated gross margin: 29% (‑300 bps YoY).
• Cannabis gross margin: 25% (down from 28%).
• Storz & Bickel gross margin: 37% (down from 40%).

• SG&A expenses up 7% YoY; excluding acquisition/divestiture costs, SG&A down 12% YoY.

• Profitability

• Net loss: C$62.6 M (‑49% YoY).
• Adjusted EBITDA loss: C$2.9 M (‑17% YoY).

• Free cash flow (non‑GAAP): –C$19 M (improved from –C$28 M YoY).

• Liquidity

• Cash & cash equivalents: C$371 M (up from C$113.8 M at end‑2025).

• Net cash position: C$146 M.

• Strategic Updates

• MTL Cannabis acquisition on track to close in the current quarter; expected to strengthen global platform.

• Strategic recapitalization completed Jan 2026, extending all debt maturities to 2031.

• Operational Highlights

• Canada adult‑use growth driven by infused pre‑roll joints and new All‑In‑One vapes (Tweed, 7ACRES, Claybourne).
• International supply chain improvements boosted shipments into Europe in H2 Q3 FY2026.

• Storz & Bickel’s VEAZY vaporizer became best‑selling device with rapid ramp to 20 k units sold.

• Conference Call

• Hosted on Feb 6, 2026 at 10:00 AM ET; webcast available via provided URLs (live and replay until May 7, 2026).

Notable Quotes

“The third quarter of fiscal 2026 reflects improving fundamentals and a more focused, integrated operating model across the business, led by strength in Canada.” – Luc Mongeau, CEO

“Decisive cost‑reduction actions have strengthened our current year financial performance and will ensure we are well positioned as we close out the fiscal year.” – Tom Stewart, CFO