Canopy Growth Reports Q3 Fiscal 2026 Financial Results

SMITHS FALLS, ON – Canopy Growth Corp. reported its financial results for the third quarter of fiscal 2026, ended December 31, 2025, showing progress in cost control and Canadian operations despite flat overall revenue.

Consolidated net revenue came in at $75 million, unchanged from the same period a year earlier. Cannabis segment net revenue rose 4% to $52 million, driven by gains in the domestic market. Canada medical Cannabis net revenue increased 15% to $23 million, supported by higher numbers of insured patients and larger order sizes. Adult-use Cannabis net revenue grew 8% to $23 million, fueled by demand for infused pre-roll joints and new all-in-one vape products, though this was partly offset by softer sales in edibles and non-infused pre-rolls.

International Cannabis revenue fell 31% year-over-year due to ongoing supply chain issues in Europe, but it rose 22% from the prior quarter as the company addressed bottlenecks. Storz & Bickel, the company’s vaporizer unit, posted $23 million in net revenue, down 9% year-over-year amid consumer caution but up 45% sequentially with contributions from the VEAZY product line.

The company narrowed its net loss by 49% YoY, while the adjusted EBITDA loss improved 17% to $3 million, marking the third straight quarter of gains in this metric. Management attributed the improvements to tighter expense management, including $29 million in annualized savings from headcount cuts and reduced third-party spending since March 2025. Consolidated gross margin stood at 29%, down slightly from the prior year, with Cannabis gross margin at 25%.

Cash and cash equivalents totaled $371 million at quarter-end, with a net cash position of $146 million following a January 2026 recapitalization that extended debt maturities to 2031 and bolstered liquidity.

Chief Executive Officer Luc Mongeau described the quarter as reflecting “improving fundamentals and a more focused, integrated operating model across the business, led by strength in Canada.” He pointed to the pending acquisition of MTL Cannabis, expected to close in the current quarter, as a step to reinforce the global platform.

Chief Financial Officer Tom Stewart emphasized the impact of cost actions, stating the company remains on track to achieve positive adjusted EBITDA in fiscal 2027 through continued discipline and growth in core areas.

Analyst views on the results were mixed. While revenue aligned closely with or exceeded some forecasts in certain reports, the bottom-line progress from cost reductions stood out against persistent challenges in international segments and broader sector headwinds. Shares showed limited immediate movement post-release, with some accounts noting modest pre-market gains offset by later declines as investors digested the flat top line.

For Canopy Growth, the quarter underscores a deliberate shift toward operational efficiency and domestic market leverage in a still-maturing industry. Sustained execution on cost savings and strategic moves like the MTL deal will likely determine whether the company can convert these incremental improvements into consistent profitability, a benchmark many Cannabis producers continue to pursue.