Canopy Growth Reports First Quarter Fiscal Year 2027 Financial Results; Delivers 13% Net Revenue Growth with Contributions from All Businesses
SMITHS FALLS, Ontario--( BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced its financial results for the three months ended June 30, 2026 ("Q1 FY2027"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
“The renewed focus and strong momentum we established over the past year have continued into fiscal 2027. In the first quarter, we achieved net revenue growth in every business through solid execution across the organization. We have clear strategies to deliver further growth in each of our end markets. At the heart of our cannabis strategy is our company-wide push to elevate cultivation and produce a consistent and increasing supply of high-quality flower that will support growing demand both in Canada and internationally.”
Luc Mongeau, Chief Executive Officer
“The combination of top-line growth and disciplined cost management is enabling us to make steady progress on key profitability measures including gross margin and adjusted EBITDA. As expected, the integration of MTL Cannabis is leading to increased supply of high-quality flower, expanded revenue opportunities and the realization of meaningful synergies. We anticipate further improvements in our financial results, especially in the second half of fiscal 2027, as the integration is completed.”
Tom Stewart, Chief Financial Officer
First Quarter FY2027 Financial Highlights
Business Highlights
Canopy Growth Unveils Refreshed Corporate Identity
Canopy Growth unveiled a refreshed corporate identity designed to reflect our evolution into a modern cannabis company.
The new brand is built on our belief that cannabis has the power to better lives – for patients seeking relief and balance, and for adult-use cannabis consumers looking for trusted, consistent experiences.
The new identity supports a clearer expression of our long-term strategy: building a focused, consumer-centric cannabis company grounded in quality, innovation, and disciplined execution. At the heart of the refreshed identity is the new brandmark featuring a canopy arch and cannabis plant, representing our presence across medical, wellness, and adult-use cannabis markets, and the cultivation at the root of everything we build.
The refreshed brand is live today across Canopy Growth’s website and social channels. To see more, visit www.canopygrowth.com.
____________________
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures" and Schedules 5 and 6 for a reconciliation of adjusted gross margin on a consolidated basis and by segment.
2 Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 7 for a reconciliation of net loss from continuing operations to adjusted EBITDA.
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with Luc Mongeau, CEO and Tom Stewart, CFO at 10:00 AM Eastern Time on August 7, 2026.
Webcast Information
A live audio webcast will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=567345EB-EB0A-41BF-ABD6-785F173BBEFE
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on November 5, 2026 at the same URL.
Non-GAAP Measures
Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA is a useful measure for investors because it provides meaningful and useful financial information, as this measure demonstrates the operating performance of businesses. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring costs; acquisition-related restructuring and other inventory write-downs; and charges related to the flow-through of inventory step-up on business combinations, and further adjusted to remove acquisition, divestiture, and other costs. Asset impairments related to periodic changes to the Company’s supply chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information as this measure demonstrates the operating performance of businesses. The Adjusted EBITDA reconciliation is presented within this press release and explained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 (the “Form 10-Q”) filed with the Securities and Exchange Commission (“SEC”).
Free cash flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that free cash flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand the Company’s business, and that the free cash flow measure provides meaningful information regarding the Company’s liquidity requirements. This measure is calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment. The free cash flow reconciliation is presented within this press release and explained in the Form 10-Q.
Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that adjusted gross margin and adjusted gross margin percentage present meaningful and useful financial information as these measures provide insights into the gross margin performance of the business. Adjusted gross margin is calculated as gross margin excluding acquisition related restructuring and other inventory write-downs, and charges related to the flow-through of inventory step-up on business combinations. Adjusted gross margin percentage is calculated as adjusted gross margin divided by net revenue. The adjusted gross margin and adjusted gross margin percentage reconciliation is presented within this news release.
About Canopy Growth
Canopy Growth is a leading global company committed to bettering lives through cannabis. With a focus on cultivation excellence, quality, trust, innovation and disciplined execution, Canopy Growth is a consumer-centric company serving patients, consumers and partners alike.
The Company’s portfolio of owned and licensed brands, including Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL and R’belle, as well as category-defining Storz & Bickel, delivers innovative cannabis products to consumers across Canada and beyond. It is also Canada’s leading provider of medical cannabis services through Spectrum Therapeutics, Abba Medix, Apollo and Canada House Clinics.
The Company also holds an unconsolidated, non-controlling interest in Canopy USA, LLC, which provides exposure to the U.S. THC market.
Guided by its commitment to leadership, excellence, trust and innovation, Canopy Growth is working to shape a future where the plant is trusted for its ability to better lives.
For more information visit www.canopygrowth.com.
Notice Regarding Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of applicable securities laws, which involve certain known and unknown risks and uncertainties. To the extent any forward-looking statements in this press release constitutes “financial outlooks” within the meaning of applicable Canadian securities laws, the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and the performance of our investments. These forward-looking statements are generally identified by their use of such terms and phrases as “intend,” “goal,” “strategy,” “estimate,” “expect,” “project,” “projections,” “forecasts,” “plans,” “seeks,” “anticipates,” “potential,” “proposed,” “will,” “should,” “could,” “would,” “may,” “likely,” “designed to,” “foreseeable future,” “believe,” “scheduled” and other similar expressions. Our actual results or outcomes may differ materially from those anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Forward-looking statements include, but are not limited to, statements with respect to:
Certain of the forward-looking statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The forward-looking statements contained herein are based upon certain material assumptions , including: (i) management’s perceptions of historical trends, current conditions and expected future developments; (ii) our ability to generate cash flow from operations; (iii) general economic, financial market, regulatory and political conditions in which we operate; (iv) the production and manufacturing capabilities and output from our facilities, strategic alliances and equity investments; (v) consumer interest in our products; (vi) competition; (vii) anticipated and unanticipated costs; (viii) government regulation of our activities and products including but not limited to the areas of taxation and environmental protection; (ix) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; (x) our ability to obtain qualified staff, equipment and services in a timely and cost-efficient manner; (xi) our ability to conduct operations in a safe, efficient and effective manner; (xii) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our recent acquisitions into our existing operations; and (xiii) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. Financial outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management’s current expectations.
By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, risks related to our ability to remediate the material weakness identified in our internal control over financial reporting, or inability to otherwise maintain an effective system of internal control; the risk that our recent restatement could negatively affect investor confidence and raise reputation risks; our limited operating history; risks that we may be required to write down intangible assets, including goodwill, due to impairment; the adequacy of our capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute our business plan (either within the expected timeframe or at all); the diversion of management time on matters related to Canopy USA; the risks that the Trust’s future ownership interest in Canopy USA is not quantifiable, and the Trust may have significant ownership and influence over Canopy USA; the risks in the event that Acreage Holdings, Inc. and Wana cannot satisfy their debt obligations as they become due; volatility in and/or degradation of general economic, market, industry or business conditions; risks relating to the overall macroeconomic environment, which may impact customer spending, our costs and our margins, including tariffs (and related retaliatory measures), the levels of inflation, interest rates and trade policy; risks relating to the evolving regulatory landscape in the United States; risks relating to our current and future operations in emerging markets; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis products in vaping devices; risks and uncertainty regarding future product development; changes in regulatory requirements in relation to our business and products; our reliance on licenses issued by and contractual arrangements with various federal, state and provincial governmental authorities; inherent uncertainty associated with projections; future levels of revenues and the impact of increasing levels of competition; third-party manufacturing risks; third-party transportation risks; our exposure to risks related to an agricultural business, including wholesale price volatility and variable product quality; changes in laws, regulations and guidelines and our compliance with such laws, regulations and guidelines; risks relating to inventory write downs; risks relating to our ability to refinance debt as and when required on terms favorable to us and to comply with covenants contained in our debt facilities and debt instruments; risks associated with jointly owned investments; our ability to manage disruptions in credit markets or changes to our credit ratings; the success or timing of completion of ongoing or anticipated capital or maintenance projects; risks related to the integration of acquired businesses; the timing and manner of the legalization of cannabis in the United States; business strategies, growth opportunities and expected investment; counterparty risks and liquidity risks that may impact our ability to obtain loans and other credit facilities on favorable terms; the potential effects of judicial, regulatory or other proceedings, litigation or threatened litigation or proceedings, or reviews or investigations, on our business, financial condition, results of operations and cash flows; risks associated with divestment and restructuring; the anticipated effects of actions of third parties such as competitors, activist investors or federal, state, provincial, territorial or local regulatory authorities, self-regulatory organizations, plaintiffs in litigation or persons threatening litigation; consumer demand for cannabis products; the implementation and effectiveness of key personnel changes; risks related to stock exchange restrictions; risks related to the protection and enforcement of our intellectual property rights; the risks related to our exchangeable shares (the “Exchangeable Shares”) having different rights from Canopy Shares and there may never be a trading market for the Exchangeable Shares; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; risks related to finalization of the consideration payable by us for the acquisition by Canopy USA of the remaining interests in Jetty; and the factors discussed under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.
Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned that the forward-looking statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking statements, except as required by law. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.
Schedule 1
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars, except number of shares and per share data, unaudited)
June 30,
2026
March 31,
2026
ASSETS
Current assets:
Cash and cash equivalents
$
336,625
$
364,683
Restricted short-term investments
5,058
5,046
Amounts receivable, net
42,588
36,289
Inventory
107,456
110,513
Prepaid expenses and other assets
14,634
12,935
Total current assets
506,361
529,466
Other investments
125,468
108,010
Property, plant and equipment
311,203
316,494
Intangible assets
88,476
92,411
Goodwill
55,685
55,685
Other assets
16,725
16,666
Total assets
$
1,103,918
$
1,118,732
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
28,606
$
34,817
Other accrued expenses and liabilities
47,119
42,999
Current portion of long-term debt
28,824
16,237
Warrant derivative liability
26,863
27,522
Other liabilities
35,341
36,868
Total current liabilities
166,753
158,443
Long-term debt
211,379
217,123
Deferred income tax liabilities
7,915
8,199
Other liabilities
29,238
37,373
Total liabilities
415,285
421,138
Commitments and contingencies
Canopy Growth Corporation shareholders' equity:
Share capital
Common shares - $nil par value; Authorized - unlimited; Issued and outstanding - 423,021,942 shares and 422,068,225 shares, respectively.
Exchangeable shares - $nil par value; Authorized - unlimited; Issued and outstanding - 26,261,474 shares and 26,261,474 shares, respectively.
9,235,469
9,233,577
Additional paid-in capital
2,590,610
2,591,714
Accumulated other comprehensive income
15,360
10,530
Deficit
(11,152,806
)
(11,138,227
)
Total shareholders' equity
688,633
697,594
Total liabilities and shareholders' equity
$
1,103,918
$
1,118,732
Schedule 2
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of Canadian dollars, except number of shares and per share data, unaudited)
Three months ended June 30,
2026
2025
Revenue
$
100,364
$
88,748
Excise taxes
19,199
16,614
Net revenue
81,165
72,134
Cost of goods sold
58,927
54,096
Gross margin
22,238
18,038
Operating expenses
Selling, general and administrative expenses
40,223
38,108
Share-based compensation
1,359
(99
)
Loss on asset impairment and restructuring
2,766
2,653
Total operating expenses
44,348
40,662
Operating loss
(22,110
)
(22,624
)
Other income (expense), net
7,402
(21,946
)
Loss before income taxes
(14,708
)
(44,570
)
Income tax recovery (expense)
129
(291
)
Net loss
$
(14,579
)
$
(44,861
)
Basic and diluted loss per share
Basic and diluted loss per share
$
(0.03
)
$
(0.24
)
Basic and diluted weighted average common shares outstanding
422,264,025
188,321,555
Schedule 3
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars, unaudited)
Three months ended June 30,
2026
2025
Cash flows from operating activities:
Net loss
$
(14,579
)
$
(44,861
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property, plant and equipment
5,351
4,753
Amortization of intangible assets
4,683
4,917
Share-based compensation
1,359
(99
)
Loss on asset impairment and restructuring
167
109
Income tax (recovery) expense
(129
)
291
Non-cash fair value adjustments and charges related to settlement of long-term debt
(16,867
)
13,383
Change in operating assets and liabilities, net of effects from purchases of businesses:
Amounts receivable
(6,130
)
2,915
Inventory
3,454
2,838
Prepaid expenses and other assets
(1,541
)
(2,668
)
Accounts payable and accrued liabilities
(2,417
)
5,184
Other, including non-cash foreign currency
1,638
2,901
Net cash used in operating activities
(25,011
)
(10,337
)
Cash flows from investing activities:
Purchases of and deposits on property, plant and equipment
(737
)
(1,306
)
Purchases of intangible assets
-
(183
)
Proceeds on sale of property, plant and equipment
-
5
Redemption of short-term investments
-
779
Net cash used in investing activities
(737
)
(705
)
Cash flows from financing activities:
Proceeds from issuance of common shares and warrants
-
38,261
Payment of debt issue costs
(647
)
-
Repayment of long-term debt
-
(916
)
Other financing activities
(6,821
)
(11,885
)
Net cash (used) provided by financing activities
(7,468
)
25,460
Effect of exchange rate changes on cash and cash equivalents
5,158
(2,027
)
Net (decrease) increase in cash and cash equivalents
(28,058
)
12,391
Cash and cash equivalents, beginning of period
364,683
113,811
Cash and cash equivalents, end of period
$
336,625
$
126,202
Schedule 4 - Segment Net Revenue
Net Revenue
Three months ended June 30,
(in thousands of Canadian dollars)
2026
2025
$ Change
% Change
Cannabis
Canadian adult-use cannabis 1
$
29,702
$
27,021
$
2,681
10
%
Canadian medical cannabis 2
25,786
21,206
4,580
22
%
International markets cannabis 3
9,597
8,755
842
10
%
$
65,085
$
56,982
$
8,103
14
%
Storz & Bickel
$
16,080
$
15,152
$
928
6
%
Net revenue
$
81,165
$
72,134
$
9,031
13
%
1 Includes excise taxes of $16,203 and other revenue adjustments, representing our determination of returns and pricing adjustments, of $1,000 for the three months ended June 30, 2026 (Three months ended June 30, 2025 - excise taxes of $14,199 and other revenue adjustments of $923).
2 Includes excise taxes of $2,996 and other revenue adjustments, representing our determination of returns and pricing adjustments, of $971 for the three months ended June 30, 2026 (Three months ended June 30, 2025 - excise taxes of $2,415 and other revenue adjustments of $nil).
3 Reflects other revenue adjustments of $48 for the three months ended June 30, 2026 (Three months ended June 30, 2025 - $nil).
Schedule 5 - Consolidated Gross Margin and Adjusted Gross Margin
Three months ended June 30,
(in thousands of Canadian dollars except where indicated; unaudited)
2026
2025
Net revenue
$
81,165
$
72,134
Gross margin, as reported
22,238
18,038
Gross margin percentage, as reported
27
%
25
%
Adjustments to gross margin:
Acquisition related restructuring and other inventory write-downs
39
-
Charges related to the flow-through of inventory step-up on business combinations
2,586
-
Adjusted gross margin 1
$
24,863
$
18,038
Adjusted gross margin percentage 1
31
%
25
%
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures".
Schedule 6 - Gross Margin and Adjusted Gross Margin by Segment
Three months ended June 30,
(in thousands of Canadian dollars except where indicated; unaudited)
2026
2025
Cannabis segment
Net revenue
$
65,085
$
56,982
Gross margin, as reported
14,457
13,591
Gross margin percentage, as reported
22
%
24
%
Adjustments to gross margin:
Acquisition related restructuring and other inventory write-downs
39
-
Charges related to the flow-through of inventory step-up on business combinations
2,586
-
Adjusted gross margin 1
$
17,082
$
13,591
Adjusted gross margin percentage 1
26
%
24
%
Storz & Bickel segment
Revenue
$
16,080
$
15,152
Gross margin, as reported
7,781
4,447
Gross margin percentage, as reported
48
%
29
%
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures".
Schedule 7 - Adjusted EBITDA
Three months ended June 30,
(in thousands of Canadian dollars, unaudited)
2026
2025
Net loss
$
(14,579
)
$
(44,861
)
Income tax (recovery) expense
(129
)
291
Other (income) expense, net
(7,402
)
21,946
Share-based compensation
1,359
(99
)
Acquisition, divestiture, and other costs 1
2,082
2,484
Depreciation and amortization
10,034
9,670
Loss on asset impairment and restructuring
2,766
2,653
Acquisition related restructuring and other inventory write-downs
39
-
Charges related to the flow-through of inventory step-up on business combinations
2,586
-
Adjusted EBITDA 2
$
(3,244
)
$
(7,916
)
1 Acquisition, divestiture, and other costs include discrete transaction and litigation costs.
2 Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures".
Schedule 8 - Free Cash Flow
Free Cash Flow 1 Reconciliation (Non-GAAP Measure)
Three months ended June 30,
(in thousands of Canadian dollars, unaudited)
2026
2025
Net cash used in operating activities
$
(25,011
)
$
(10,337
)
Purchases of and deposits on property, plant and equipment
(737
)
(1,306
)
Free cash flow 1
$
(25,748
)
$
(11,643
)
1 Free cash flow is a non-GAAP measure. See "Non-GAAP Measures".