Canopy Growth Corporation

Canopy reported Q1 fiscal 2027 net revenue of CAD 81.2 million, up 13% year over year. Canadian medical cannabis net revenue rose 22% to CAD 25.8 million; Canadian adult use net revenue increased 10% to CAD 29.7 million; international cannabis net revenue rose 10%; and Storz & Bickel net revenue increased 6% to CAD 16.1 million. Consolidated adjusted gross margin was 31% versus 25% a year ago, cannabis adjusted gross margin was 26%, reported gross margin was 22% due to a CAD 2.6 million non-cash inventory flow-through charge tied to the MTL acquisition, and Storz & Bickel gross margin was 48% versus 29% last year. Adjusted EBITDA loss was CAD 3.2 million, a 59% improvement year over year, and cash was CAD 337 million at June 30, 2026. Management reaffirmed expectations for year-over-year revenue growth throughout fiscal 2027 and said it remains on track for positive adjusted EBITDA during fiscal 2027; Tom Stewart also said near-term adjusted gross margin is targeted to move into the mid-30s, with the higher end possible exiting the year.

Luc Mongeau framed the quarter as validation that the company’s reset is working, saying fiscal 2027 is off to a strong start and that Canopy is seeing year-over-year growth in every business for the first time since he became CEO. His strategic focus was on cultivation, manufacturing, and international supply: improving yields, bringing more flower to market, strengthening European supply, and using MTL Cannabis capabilities to lift quality and margins. His tone was confident but still disciplined, emphasizing that the company is “not satisfied yet” and is only at the beginning of the work to build a global cannabis leader.

Tom Stewart focused on the financial bridge from growth to profitability. He cited CAD 81.2 million of revenue, a 31% adjusted gross margin versus 25% last year, a CAD 3.2 million adjusted EBITDA loss, and CAD 337 million of cash, while noting CAD 25 million of operating cash use in the quarter was above the expected run rate because of working capital and one-time costs. He also said SG&A rose by CAD 2.1 million despite the larger business, that Canopy is actively executing on CAD 8 million of MTL synergies toward a CAD 10 million run-rate target within 18 months, and that margin should continue strengthening as integration and cultivation improvements flow through.

Analysts pressed management on international expansion, cultivation efficiency, margin targets, CapEx, the size of the Veterans Affairs headwind, and the company’s U.S. position. Luc said Canopy now has an end-to-end EU GMP flower supply chain and expects Smiths Falls certification during the fiscal year, which would make it one of the only domestic companies with end-to-end EU GMP capabilities for international markets. On margins, Tom said the near-term target is the mid-30s, with longer-term ambition closer to peers around 50%, while on Canadian medical he said the 15% veteran penetration target was probably too high and confirmed the reimbursement reduction was 29%. On the U.S., Luc said Canopy is monitoring the market but the main focus remains Canada and international markets that can support positive EBITDA.