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Jun 30
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Canopy Growth Q1 2026 Earnings Report
Canopy Growth reported Q1 FY2026 results with revenue up 9% to $72.1M, cannabis sales growing 24% YoY, but net loss narrowing to $41.5M from $129.2M a year ago.
Key Takeaways
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.
Consolidated net revenue rose 9% YoY to $72.1M, driven by cannabis segment growth.
Canada adult-use cannabis sales surged 43% YoY to $27.0M.
Gross margin contracted to 25% from 35% due to mix shifts and lower high-margin sales.
Free cash flow outflow decreased 79% YoY to $11.6M.
Canopy Growth
Canopy Growth
Canopy Growth Revenue by Segment
Canopy Growth Revenue by Geographic Location
Revenue by Segment
Canadian adult-use cannabis Revenue
CapyFin.comCanadian medical cannabis Revenue
CapyFin.comInternational markets cannabis Revenue
CapyFin.comStorz & Bickel Revenue
CapyFin.comRevenue by Geographic Location
Canada Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Management expects continued cannabis sales momentum in Canada and improved supply in European markets in H2 FY2026, with gross margin improvement initiatives underway. Storz & Bickel to launch a new vaporizer in H2 calendar 2025.
Positive Outlook
- Canada adult-use cannabis demand growth expected to continue.
- International supply chain improvements to enhance European margins.
- Margin-accretive bulk cannabis sales planned in Canada and Europe.
- SG&A reductions expected to continue improving operating loss.
- Launch of new Storz & Bickel vaporizer anticipated to boost segment.
Challenges Ahead
- Gross margin pressure from product mix shift toward higher-cost products.
- Lower sales in high-margin Poland market.
- Storz & Bickel facing economic uncertainty impacting sales.
- Continued Adjusted EBITDA losses expected in near term.
- Competitive market dynamics may limit pricing power.
Revenue & Expenses
Visualization of income flow from segment revenue to net income