Canopy Growth Corporation

Canopy reported Q1 fiscal 2027 net revenue of CAD 81.2 million, up 13% year over year. Canada medical cannabis net revenue increased 22% to CAD 25.8 million; Canadian adult-use net revenue rose 10% to CAD 29.7 million; Storz & Bickel net revenue increased 6% to CAD 16.1 million; and international cannabis revenue rose 10% year over year. Consolidated adjusted gross margin was 31%, up from 25% a year ago, while reported gross margin was 22% due to a CAD 2.6 million non-cash inventory flow-through charge tied to the MTL acquisition. Adjusted EBITDA loss was CAD 3.2 million, a 59% improvement from the prior year. Cash was CAD 337 million at June 30, 2026, and cash used in operating activities was CAD 25 million in the quarter. Management reiterated guidance for year-over-year revenue growth throughout fiscal 2027, continued operational improvement through the year, mid-30s adjusted gross margin in the near term, and positive adjusted EBITDA during fiscal 2027.

Luc Mongeau framed the quarter as evidence that Canopy’s turnaround strategy is gaining traction, saying fiscal 2027 is off to a strong start and that the company is seeing its first quarter of year-over-year growth in every business since he became CEO. He emphasized three priorities: improving cultivation yields, strengthening supply-chain efficiency, and expanding international supply, especially in Europe. His tone was confident but measured, repeatedly noting that the company is “not satisfied yet” and that more work remains on margins and execution.

Tom Stewart highlighted the financial progress: revenue of CAD 81.2 million, adjusted gross margin of 31% versus 25% last year, and adjusted EBITDA loss of CAD 3.2 million versus a much larger loss a year ago, which he said reflected a 59% improvement. He pointed to SG&A up only CAD 2.1 million despite the MTL acquisition, and said the company is actively executing toward CAD 8 million of synergies now, with a stated target of CAD 10 million within 18 months of the MTL close. He also said cash was CAD 337 million, operating cash use of CAD 25 million should normalize as working capital unwinds, and the balance sheet remains strong after fiscal 2026 recapitalization.

Analysts focused on Europe, margin expansion, cultivation efficiency, capital spending, Canadian medical reimbursement pressure, and the company’s U.S. exposure. Management said Europe is being supported by an end-to-end EU GMP supply chain, with Smiths Falls certification expected during the fiscal year, and that this should help Canopy win in a tighter compliance environment. On margins, Tom said near-term adjusted gross margin targets are the mid-30s, with longer-term potential closer to the 50% level, while Luc said cultivation gains should begin showing through around the end of Q2 or beginning of Q3. On the U.S., Luc said the company is still monitoring the market but that the core focus remains Canada and international growth toward positive EBITDA.