Canopy Growth Reports Q2 Fiscal 2027 Financial Results

SMITHS FALLS – Canopy Growth Corp. reported consolidated net revenue of CA$81.4 million for its fiscal second-quarter financial results ended September 30, 2026, up 22% from a year earlier.

International Cannabis led the gain. Sales there rose 141% to CA$12.3 million, driven by medical Cannabis in Germany and Poland, after the company reworked its European flower supply chain following problems last year. Canadian medical revenue rose 18% to CA$25.8 million and adult-use revenue rose 17% to CA$28.1 million, with the MTL Cannabis acquisition contributing to both. Storz & Bickel, the vaporizer unit, fell 4% to CA$15.1 million.

Margins weakened. Gross margin was 29%, down from 33%, and 31% after excluding acquisition-related inventory charges. Canopy blamed a lower Veterans Affairs Canada reimbursement rate for medical cannabis. Selling, general and administrative costs rose 9%, mainly from adding MTL’s operations, partly offset by a smaller headcount.

Net loss was CA$40.7 million versus CA$5 million a year earlier. Canopy said CA$35.8 million of the increase came from fair value charges on assets linked to Canopy USA, its non-controlling stake in a U.S. THC platform. The adjusted EBITDA loss narrowed to CA$2.9 million from CA$3 million, and free cash outflow fell to CA$15.5 million from CA$19.2 million.

Cash and equivalents ended September at CA$247.3 million, down from CA$364.7 million in March, based on the company’s balance sheet. Another CA$72.5 million sits in short-term investments. Debt due within a year rose to CA$43.1 million from CA$16.2 million.

On operations, the Smiths Falls, Ontario, facility earned EU-GMP certification, and the Kincardine, Ontario, site renewed its own. Canopy also began supplying four flower strains to the U.K. through GROW Group U.K., hired a German country manager and added products in Australia.

Chief Financial Officer Tom Stewart said positive adjusted EBITDA is “within reach” during fiscal 2027. On the earnings call, management pointed to the second half of the fiscal year, cautioned that cultivation upgrades are unlikely to lift the income statement materially before the year ends, and said Canopy has not sold shares through its at-the-market program since December 2025.

Canopy is changing its revenue mix. European medical sales are growing fastest, Canada supplies the base, and the vaporizer business is slightly lower. The adjusted EBITDA loss is small against revenue, yet it improved by only CA$0.2 million in a year, so margin recovery will carry more weight than added sales. The Veterans Affairs rate cut shows reimbursement policy can reshape results quickly, and the Canopy USA charges show U.S. exposure can cost the balance sheet before it adds revenue. With debt due within a year rising, the December quarter, which management expects to be seasonally strong for Storz & Bickel, becomes the next checkpoint for the break-even target.