- Canopy Growth (TSX:WEED)(NASDAQ:CGC) delivered incremental financial improvements in Q1 FY2027, ending June 30, 2026, growing revenue and adjusted gross margins, while significantly reducing adjusted EBITDA and net losses.
- Canopy Growth is the global cannabis company behind the brands Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL, R’belle and Storz & Bickel.
- The cannabis stock last traded at C$1.33, giving back 8.28 per cent year-over-year.
Canopy Growth (TSX:WEED)(NASDAQ:CGC) delivered incremental financial improvements in Q1 FY2027, ending June 30, 2026, growing revenue and adjusted gross margins, while significantly reducing adjusted EBITDA and net losses.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Here are the company’s financial highlights:
- Consolidated net revenue of C$81.2 million, up by 13 per cent year-over-year (YoY).
- Cannabis net revenue of C$65.1 million, up by 14 per cent YoY.
- Canada medical cannabis net revenue of C$25.8 million, up by 22 per cent YoY, thanks to increases in insured customers and the acquisition of MTL Cannabis, partially offset by the Canadian government’s reduction in the Veterans Affairs Canada reimbursement rate for medical cannabis.
- Canada adult-use cannabis net revenue of C$29.7 million, up by 10 per cent YoY, driven by increased flower sales.
- International markets cannabis net revenue of C$9.6 million, up by 10 per cent YoY thanks to strong demand in Europe, particularly in Poland.
- Storz & Bickel net revenue of C$16.1 million, up by 6 per cent YoY, driven by prior-year product portfolio expansion and higher sales across non-core markets.
- Adjusted gross margin reached 31 per cent, up from 25 per cent YoY, excluding C$2.6 million in inventory step-up charges tied to the MTL Cannabis acquisition.
- Adjusted EBITDA loss of C$3.2 million, down by C$4.7 million or 59 per cent YoY, thanks to cross-company revenue growth and continued cost savings.
- Net loss down by 68 per cent YoY.
Now let’s take a look at Canopy’s business highlights for the quarter:
- The company’s Apollo Cannabis Clinics were named Best Medical Cannabis Clinic in the 2025 Toronto Star Readers’ Choice Awards.
- Spectrum Therapeutics introduced new 30 and 90-pack formats for its softgels, enhancing customer choice while reducing packaging and shipping costs.
- Tweed stepped into the German medical cannabis market, strengthening its international position.
- Claybourne’s Frosted Flyers infused pre-roll lineup in Canada added three new 8-pack variety formats and the brand’s first bundle pack.
- According to Friday’s news release, Canopy’s adult-use market ranking improved to #6 overall in Canada, with top-2 positions in premium flower, infused pre-rolls, as well as oils and softgels.
Canopy is keen to carry momentum into Q2 and beyond with a new brand identity designed to capture its diversified evolution, highlighted by a new logo with a canopy arch and cannabis plant that represent the company’s presence in the medical, wellness and adult-use cannabis markets. The changes are now live on the company’s official website and social media channels.
Leadership commentary
“The renewed focus and strong momentum we established over the past year have continued into fiscal 2027. In the first quarter, we achieved net revenue growth in every business through solid execution across the organization. We have clear strategies to deliver further growth in each of our end markets. At the heart of our cannabis strategy is our company-wide push to elevate cultivation and produce a consistent and increasing supply of high-quality flower that will support growing demand both in Canada and internationally,” Luc Mongeau, Chief Executive Officer of Canopy Growth, said in a statement.
“The combination of top-line growth and disciplined cost management is enabling us to make steady progress on key profitability measures, including gross margin and adjusted EBITDA. As expected, the integration of MTL Cannabis is leading to increased supply of high-quality flower, expanded revenue opportunities and the realization of meaningful synergies. We anticipate further improvements in our financial results, especially in the second half of fiscal 2027, as the integration is completed,” added Tom Stewart, Chief Financial Officer.
About Canopy Growth
Canopy Growth is the global cannabis company behind the brands Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL, R’belle and Storz & Bickel. Canopy is Canada’s top medical cannabis services provider through Spectrum Therapeutics, Abba Medix, Apollo and Canada House Clinics, and also holds strategic interests in the US cannabis market.
Canopy Growth stock (TSX:WEED)(NASDAQ:CGC) last traded at C$1.33, giving back 8.28 per cent year-over-year.
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