Canopy Growth demonstrated improving fundamentals in Q3 FY2026, with a significant narrowing of net loss by 49% and adjusted EBITDA loss by 17% year-over-year. The company attributes this to strong sales execution and effective SG&A cost savings, particularly in Canada. The strategic recapitalization completed in January 2026 further strengthened the balance sheet, extending debt maturities to 2031, and the acquisition of MTL Cannabis is on track to close, expected to bolster its global cannabis platform.

Canopy Growth posted a Q2 2026 net loss of $1.6M, significantly improved from the prior year. Revenue rose to $66.7M driven by strong growth in Canadian adult-use and medical cannabis. Gross margin remained steady, and operating losses shrank due to disciplined cost controls and lower SG&A expenses.

The company delivered strong cannabis revenue growth, led by a 43% increase in Canada adult-use sales, while Storz & Bickel revenues fell 25%. Gross margin declined to 25% due to product mix and lower high-margin market sales. Operating loss improved on reduced expenses. Adjusted EBITDA loss widened, but free cash flow outflow was significantly reduced.

Canopy Growth faced an 11% revenue decline in Q4 2025 compared to the same period last year, primarily due to weaker international and Storz & Bickel sales. Despite this, the company made progress in reducing operating losses and continues executing on cost-saving strategies.