Canopy Growth Narrows Loss as Revenue Growth Accelerates
Fiscal first-quarter net revenue reached C$81.2 million, up 13% from a year earlier.
Canopy Growth Corporation (CGC), the cannabis producer, narrowed its adjusted EBITDA loss 59% to C$3.2 million as revenue growth and cost savings improved results.
Revenue growth accelerated from 10% in the preceding quarter, and sales rose about 14% sequentially from C$71.2 million. Cannabis net revenue increased 14% from a year earlier and 19% from the prior quarter, reaching C$65.1 million.
Canada adult-use cannabis provided the main sequential lift. Revenue rose 10% from a year earlier to C$29.7 million, accelerating from 1% growth in the preceding quarter and climbing about 44% sequentially. Flower sales from the MTL Cannabis business outweighed lower opportunistic bulk sales.
Canada medical-cannabis revenue increased 22% to C$25.8 million, supported by insured-customer growth and MTL Cannabis. That pace slowed from 27% in the prior quarter as a lower Veterans Affairs Canada reimbursement rate weighed on the business. International cannabis revenue grew 10% to C$9.6 million, led by Europe and particularly Poland, after rising 68% in the preceding quarter.
Storz & Bickel returned to year-over-year growth, with revenue up 6% to C$16.1 million following a 14% decline in the prior quarter. Its gross margin expanded to 48% from 29%, reflecting cost reductions and the recovery of certain U.S. tariffs.
Consolidated reported gross margin reached 27%, up from 25% a year earlier and 12% in the preceding quarter. Adjusted gross margin rose to 31% as MTL Cannabis inventory step-up charges declined to C$2.6 million from C$10.7 million in the prior period.
Net loss fell 68% to C$14.6 million, though operating loss improved only modestly to C$22.1 million. Selling, general and administrative expense increased 6% to C$40.2 million as the addition of MTL Cannabis operations exceeded savings from headcount and other reductions.
Canopy expects further financial improvement, particularly in the second half of the fiscal year. The company did not repeat its earlier goal of achieving positive adjusted EBITDA during fiscal 2027. Free-cash outflow more than doubled to C$25.7 million because of working-capital timing, leaving cash conversion as a constraint despite the narrower earnings loss.