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
SMITHS FALLS, Ontario--( BUSINESS WIRE)--Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX:WEED) (Nasdaq: CGC) today announced its financial results for the second quarter ended September 30, 2025 ("Q2 FY2026"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
“We’re building a stronger, more competitive company defined by continued momentum in Canada adult-use cannabis, consistent growth in Canada medical cannabis, and a disciplined approach to strengthening our balance sheet. Together, these actions give me confidence in our ability to sustain progress and deliver results for quarters to come.”
Luc Mongeau, Chief Executive Officer
“Our financial discipline continues to improve our path to profitability. Through cost reductions, margin expansion, and balance sheet strength, we’re building a more resilient company poised for long term success.”
Tom Stewart, Chief Financial Officer
Second Quarter Fiscal 2026 Financial Highlights
Business Highlights
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 November 7, 2025.
Webcast Information
A live audio webcast will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=EEDC9A65-53FA-40BD-9644-D3ABDCF91E72
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on February 5, 2026 at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=EEDC9A65-53FA-40BD-9644-D3ABDCF91E72
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; restructuring costs recorded in cost of goods sold; 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 September 30, 2025 (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 filed with the SEC.
About Canopy Growth
Canopy Growth is a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives.
Through an unwavering commitment to consumers, Canopy Growth delivers innovative products from owned and licensed brands including Tweed, 7ACRES, DOJA, Deep Space, and Claybourne, as well as category defining vaporization devices by Storz & Bickel. In addition, Canopy Growth serves medical cannabis patients globally with principal operations in Canada, Europe and Australia.
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA, LLC (“Canopy USA”). Canopy USA’s portfolio includes ownership of Acreage Holdings, Inc., a vertically integrated multi‑state cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana Wellness, LLC, The Cima Group, LLC, and Mountain High Products, LLC (collectively “Wana”), a leading North American edibles brand, and majority ownership of Lemurian, Inc. (“Jetty”), a California-based producer of high-quality cannabis extracts and clean vape technology.
At Canopy Growth, we’re shaping a future where cannabis is embraced for its potential to enhance well-being and improve lives. With high-quality products, a commitment to responsible use, and a focus on enhancing the communities where we live and work, we’re paving the way for a better understanding of all that cannabis can offer.
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, 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); our ability to maintain an effective system of internal control; 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 cannot satisfy its 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 the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025 filed with the SEC and the risk factor discussed under the heading “Item 1A. Risk Factors” in the Form 10-Q. 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)
September 30,
2025
March 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
298,058
$
113,811
Short-term investments
-
17,656
Restricted short-term investments
5,651
6,410
Amounts receivable, net
26,862
52,780
Inventory
102,373
96,373
Prepaid expenses and other assets
12,872
7,544
Total current assets
445,816
294,574
Other investments
189,070
179,977
Property, plant and equipment
288,816
293,523
Intangible assets
81,148
87,200
Goodwill
48,240
46,042
Other assets
16,748
16,385
Total assets
$
1,069,838
$
917,701
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
18,136
$
26,099
Other accrued expenses and liabilities
39,429
38,613
Current portion of long-term debt
1,847
4,258
Other liabilities
21,692
25,434
Total current liabilities
81,104
94,404
Long-term debt
226,333
299,811
Other liabilities
26,388
36,273
Total liabilities
333,825
430,488
Commitments and contingencies
Canopy Growth Corporation shareholders' equity:
Share capital
Common shares - $nil par value; Authorized - unlimited; Issued and outstanding - 332,380,579 shares and 183,865,295 shares, respectively.
Exchangeable shares - $nil par value; Authorized - unlimited; Issued and outstanding - 26,261,474 shares and 26,261,474 shares, respectively.
9,078,337
8,796,406
Additional paid-in capital
2,614,968
2,618,417
Accumulated other comprehensive income
14,019
535
Deficit
(10,971,311
)
(10,928,145
)
Total shareholders' equity
736,013
487,213
Total liabilities and shareholders' equity
$
1,069,838
$
917,701
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 September 30,
2025
2024
Revenue
$
82,998
$
73,958
Excise taxes
16,315
10,967
Net revenue
66,683
62,991
Cost of goods sold
44,778
41,153
Gross margin
21,905
21,838
Operating expenses
Selling, general and administrative expenses
36,296
41,730
Share-based compensation
2,009
5,221
Loss on asset impairment and restructuring
494
20,830
Total operating expenses
38,799
67,781
Operating loss from continuing operations
(16,894
)
(45,943
)
Other income (expense), net
15,469
(85,305
)
Loss from continuing operations before income taxes
(1,425
)
(131,248
)
Income tax expense
(214
)
(302
)
Net loss from continuing operations
(1,639
)
(131,550
)
Discontinued operations, net of income tax
-
3,257
Net loss attributable to Canopy Growth Corporation
$
(1,639
)
$
(128,293
)
Basic and diluted loss per share
Continuing operations
$
(0.01
)
$
(1.52
)
Discontinued operations
-
0.04
Basic and diluted loss per share
$
(0.01
)
$
(1.48
)
Basic and diluted weighted average common shares outstanding
274,025,102
86,827,991
Schedule 3
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars, unaudited)
Six months ended September 30,
2025
2024
Cash flows from operating activities:
Net loss
$
(43,166
)
$
(255,431
)
Gain from discontinued operations, net of income tax
-
5,310
Net loss from continuing operations
(43,166
)
(260,741
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property, plant and equipment
9,531
10,628
Amortization of intangible assets
9,384
10,709
Share-based compensation
1,910
9,372
Loss on asset impairment and restructuring
412
18,768
Income tax expense
505
6,496
Non-cash fair value adjustments and charges related to
settlement of long-term debt
(12,571
)
147,290
Change in operating assets and liabilities, net of effects from
purchases of businesses:
Amounts receivable
25,381
3,892
Inventory
(5,154
)
(11,972
)
Prepaid expenses and other assets
(5,538
)
(5,643
)
Accounts payable and accrued liabilities
(8,002
)
(22,000
)
Other, including non-cash foreign currency
(1,008
)
(12,431
)
Net cash used in operating activities
(28,316
)
(105,632
)
Cash flows from investing activities:
Purchases of and deposits on property, plant and equipment
(2,532
)
(6,509
)
Purchases of intangible assets
(420
)
(14
)
Proceeds on sale of property, plant and equipment
4
4,932
Redemption of short-term investments
18,391
30,184
Net cash outflow on sale or deconsolidation of subsidiaries
-
(6,968
)
Net cash inflow on loan receivable
-
28,303
Investment in other financial assets
-
(95,335
)
Other investing activities
581
-
Net cash provided by (used in) investing activities - continuing operations
16,024
(45,407
)
Net cash provided by investing activities - discontinued operations
-
13,414
Net cash provided by (used in) investing activities
16,024
(31,993
)
Cash flows from financing activities:
Proceeds from issuance of common shares and warrants
281,516
138,476
Proceeds from exercise of stock options
-
112
Proceeds from exercise of warrants
-
8,454
Issuance of long-term debt and convertible debentures
-
68,255
Repayment of long-term debt
(71,660
)
(13,484
)
Other financing activities
(15,399
)
(7,096
)
Net cash provided by financing activities
194,457
194,717
Effect of exchange rate changes on cash and cash equivalents
2,082
1,024
Net increase in cash and cash equivalents
184,247
58,116
Cash and cash equivalents, beginning of period
113,811
170,300
Cash and cash equivalents, end of period
$
298,058
$
228,416
Schedule 4
Net Revenue
Three months ended September 30,
(in thousands of Canadian dollars)
2025
2024
$ Change
% Change
Cannabis
Canadian adult-use cannabis 1
$
23,940
$
18,388
$
5,552
30
%
Canadian medical cannabis 2
21,821
18,689
3,132
17
%
International markets cannabis 3
5,091
8,346
(3,255
)
(39
%)
$
50,852
$
45,423
$
5,429
12
%
Storz & Bickel
$
15,831
$
17,568
$
(1,737
)
(10
%)
Net revenue
$
66,683
$
62,991
$
3,692
6
%
1 Includes excise taxes of $13,802 and other revenue adjustments, representing our determination of returns and pricing adjustments, of -$37 for the three months ended September 30, 2025 (three months ended September 30, 2024 - excise taxes of $8,903 and other revenue adjustments of $1,300).
2 Includes excise taxes of $2,513 for the three months ended September 30, 2025 (three months ended September 30, 2024 - $2,064).
3 Reflects other revenue adjustments of $359 for the three months ended September 30, 2025 (three months ended September 30, 2024 - $nil).
Schedule 5
Segmented Gross Margin
Three months ended September 30,
(in thousands of Canadian dollars except where indicated; unaudited)
2025
2024
Cannabis segment
Net revenue
$
50,852
$
45,423
Gross margin, as reported
15,873
16,151
Gross margin percentage, as reported
31
%
36
%
Storz & Bickel segment
Revenue
$
15,831
$
17,568
Gross margin, as reported
6,032
5,687
Gross margin percentage, as reported
38
%
32
%
Schedule 6
Adjusted EBITDA 1 Reconciliation (Non-GAAP Measure)
Three months ended September 30,
(in thousands of Canadian dollars, unaudited)
2025
2024
Net loss from continuing operations
$
(1,639
)
$
(131,550
)
Income tax expense
214
302
Other (income) expense, net
(15,469
)
85,305
Share-based compensation
2,009
5,221
Acquisition, divestiture, and other costs
2,097
4,078
Depreciation and amortization
9,245
10,307
Loss on asset impairment and restructuring
494
20,830
Adjusted EBITDA 1
$
(3,049
)
$
(5,507
)
1Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures".
Schedule 7
Free Cash Flow 1 Reconciliation (Non-GAAP Measure)
Three months ended September 30,
(in thousands of Canadian dollars, unaudited)
2025
2024
Net cash used in operating activities - continuing operations
$
(17,979
)
$
(53,852
)
Purchases of and deposits on property, plant and equipment
- continuing operations
(1,226
)
(2,589
)
Free cash flow 1 - continuing operations
$
(19,205
)
$
(56,441
)
1Free cash flow is a non-GAAP measure. See "Non-GAAP Measures".