CGC

Canopy Growth (NASDAQ:CGC) primarily generates revenue by selling medical and recreational cannabis products to consumers across several international regions. It recently secured renewed European Union manufacturing certifications for multiple Canadian facilities to support its supply chain, and it expanded its international medical cannabis operations by launching new product formats in Australia, supplying four Canadian-grown flower strains to the United Kingdom, and appointing a dedicated country manager for its growing business in Germany. Tilray Brands (NASDAQ:TLRY) earns most of its revenue by selling cannabis, alcoholic beverages, and various wellness products globally. It recently expanded its total annual cannabis production capacity to approximately 275 metric tonnes across its cultivation facilities in Canada and Portugal, and its beverage division secured new regional distribution agreements for its craft spirits while finalizing multiple professional sports partnerships for its brands across the United States and the United Kingdom. Revenue here refers to the data provider's standardized income-statement revenue line item, and it provides a baseline measurement of customer demand before business expenses are deducted. Canopy Growth vs. Tilray Brands Revenue over the last 8 quarters. Figures: Canopy Growth shown in U.S. dollars, converted from Canadian dollars. Calendar quarter | Canopy Growth Revenue | Tilray Brands Revenue Q4 2024 | $53.5 million (quarter ended Dec. 31, 2024) | $210.9 million (quarter ended Nov. 30, 2024) Q1 2025 | $45.3 million (quarter ended March 31, 2025) | $185.8 million (quarter ended Feb. 28, 2025) Q2 2025 | $52.1 million (quarter ended June 30, 2025) | $224.5 million (quarter ended May 31, 2025) Q3 2025 | $48.4 million (quarter ended Sept. 30, 2025) | $209.5 million (quarter ended Aug. 31, 2025) Q4 2025 | $73.3 million (quarter ended Dec. 31, 2025) | $217.5 million (quarter ended Nov. 30, 2025) Q1 2026 | $51.9 million (quarter ended March 31, 2026) | $206.7 million (quarter ended Feb. 28, 2026) Q2 2026 | $58.6 million (quarter ended June 30, 2026) | $281.7 million (quarter ended May 31, 2026) Q3 2026 | Not yet reported | $257.1 million (quarter ended Aug. 31, 2026) Normally, the first thing to note when examining a company's revenue trend is seasonality: some times of the year have stronger buying patterns than others. For most stocks, compare revenue year over year, by quarter. Even as a relatively new business sector, there is seasonality in cannabis, with sales seeing periodic strength during the summer months and especially April 20, given the calendar date is a well-known marijuana pop culture reference. When viewing the chart for both Tilray and Canopy Growth from left to right, it may seem revenue is volatile, but in fact, viewed quarterly against the prior year's comparable quarter, there is steady growth for both. Revenue is probably the simplest metric investors have to judge a business by. It is also one of the most important ones. As the chart shows, look for rising revenue over similar periods of each year, and take comparable-quarter stagnation, or worse, declines, as a red flag. Data source: Financial Modeling Prep. Canopy Growth's figures are converted from Canadian dollars to U.S. dollars. Data as of Oct. 22, 2026. Before you buy stock in Canopy Growth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Canopy Growth wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $334,631!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,312,844!* Now, it's worth noting Stock Advisor's total average return is 893% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 30, 2026. Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy. Canopy Growth vs. Tilray Brands: Quarterly Revenue Scale and Consistency in Cannabis was originally published by The Motley Fool

Altria (NYSE:MO) is scheduled to report its earnings on Thursday, October 29, 2026. The company has a market value of about $122.7 billion. Over the last twelve months, it generated $20.4 billion in revenue and $12.3 billion in operating profit, with net income of $8.0 billion. The reaction will turn on how the results and guidance land against expectations. Before the release, it helps to know how the stock has behaved after previous reports, and whether an early move has tended to carry on. See the earnings reaction history of all stocks How Often Has Altria Stock Risen After Earnings? Some observations on one-day (1D) post-earnings returns, measured from the last close before each release: - There are 19 earnings releases in the last five years, with 10 positive and 9 negative one-day (1D) returns. Positive 1D returns were seen 53% of the time. - Over the last three years that share rises to 55%, across 11 releases. - The median of the 10 positive 1D returns is 2.7%, and the median of the 9 negative ones is -3.0%. - The largest one-day reactions were 7.8% and -9.3%. The table below shows the 1D, 5-day (5D) and 21-day (21D) returns after each release, followed by summary statistics. Earnings Date | 1D | 5D | 21D 7/30/2026 | -9.3% | -8.6% | -9.7% 4/30/2026 | 6.5% | 2.9% | 2.0% 1/29/2026 | -5.3% | 3.2% | 9.4% 10/30/2025 | -7.8% | -7.8% | -4.8% 7/30/2025 | 3.6% | 5.3% | 11.9% 4/29/2025 | 1.0% | 2.9% | 2.2% 1/30/2025 | -2.1% | -0.2% | 6.1% 10/31/2024 | 7.8% | 7.5% | 14.3% 7/31/2024 | -3.0% | -2.1% | 5.3% 4/25/2024 | 1.4% | 2.1% | 6.3% 2/1/2024 | 4.0% | 0.3% | 1.8% 10/26/2023 | -8.3% | -6.8% | -3.2% 8/1/2023 | -0.5% | -2.9% | -2.6% 4/27/2023 | 1.1% | -0.3% | -4.3% 2/1/2023 | 5.6% | 3.4% | 3.2% 10/27/2022 | -1.9% | -3.2% | -3.4% 7/28/2022 | -0.2% | 0.4% | 5.3% 4/28/2022 | 0.5% | 2.7% | -0.8% 1/27/2022 | 1.8% | 2.1% | 4.1% Statistic | 1D | 5D | 21D # Positive | 10 | 11 | 12 # Negative | 9 | 8 | 7 Median Positive | 2.7% | 2.9% | 5.3% Median Negative | -3.0% | -3.0% | -3.4% Max Positive | 7.8% | 7.5% | 14.3% Max Negative | -9.3% | -8.6% | -9.7% Does The First Move Carry On? Another approach is to wait for the initial reaction and ask whether it tends to continue. The table below shows the correlation between the 1D return and the return over the following 5 and 21 trading days, and between the 5D return and the following 21 trading days. A value near 1 means the first move has tended to continue; near -1, to reverse; near 0, no consistent pattern. The strongest relationship over five years is between the 1D and the following 5 days, at -0.52 across 19 releases: the early move has tended to partly reverse. That is a tendency, not a rule, and it can break on any given report. History | 1D vs next 5D | 1D vs next 21D | 5D vs next 21D 5 Years | -0.52 | -0.39 | -0.02 3 Years | -0.48 | -0.37 | 0.18 Do Peers That Report First Offer A Clue? Philip Morris International (PM) and Constellation Brands (STZ) usually report about 8 to 22 days before Altria, and have already reported this season: PM shares fell 1.2% on its October 21 report, and STZ shares rose 2.4% the day after its October 6 report. The table compares each peer's one-day reaction to its own earnings with Altria's one-day reaction to the report that followed. The correlations are PM (0.38), STZ (0.08); the closer to 1, the more the peer's reaction has foreshadowed Altria's. MO Earnings Date | MO 1D | PM 1D | STZ 1D 7/30/2026 | -9.3% | 3.3% | n/a 4/30/2026 | 6.5% | 7.0% | 8.5% 1/29/2026 | -5.3% | n/a | 5.3% 10/30/2025 | -7.8% | -3.8% | 1.0% 7/30/2025 | 3.6% | -8.4% | 4.5% 4/29/2025 | 1.0% | 2.4% | 0.7% 1/30/2025 | -2.1% | n/a | -17.1% 10/31/2024 | 7.8% | 10.5% | -4.7% 7/31/2024 | -3.0% | 2.2% | -3.3% 4/25/2024 | 1.4% | 3.8% | 1.3% 2/1/2024 | 4.0% | n/a | 2.1% 10/26/2023 | -8.3% | -2.7% | -3.2% 8/1/2023 | -0.5% | -0.6% | n/a 4/27/2023 | 1.1% | -4.7% | 1.4% 2/1/2023 | 5.6% | n/a | -9.7% 10/27/2022 | -1.9% | -1.7% | -1.5% 7/28/2022 | -0.2% | 4.2% | -4.3% 4/28/2022 | 0.5% | 2.0% | 4.6% 1/27/2022 | 1.8% | n/a | -3.4% Correlation | - | 0.38 | 0.08 Trading around earnings is a bet on a single event. If you want upside with a smoother ride than an individual stock such as MO can offer, consider the Trefis High Quality (HQ) Portfolio: about 30 stocks selected for consistent cash generation, strong margins and resilient balance sheets, with a track record of outperforming a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000.

SMITHS FALLS, Ontario, October 26, 2026--(BUSINESS WIRE)--Canopy Growth Corporation ("Canopy Growth", "our", "we" or the "Company") (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced the voting results from its annual general and special meeting of shareholders convened on September 25, 2026, and adjourned to and reconvened on October 23, 2026 (the "Meeting"). A total of 154,837,897 common shares of the Company (the "Shares"), representing 36.60% of the issued and outstanding Shares, were voted in connection with the Meeting by the Company's shareholders (the "Shareholders"). All of the matters put forward before the Shareholders for consideration and approval, as set out in the Company's definitive proxy statement dated August 7, 2026 (the "Proxy Statement"), were approved by the requisite number of votes cast at the Meeting, as further detailed below. Election of Directors Each of the directors of the Company's board of directors (the "Board") listed as a nominee in the Proxy Statement were elected at the Meeting to serve as a director of the Company until the Company's next annual shareholders meeting or until his or her successor is duly elected or appointed. The detailed results of the vote for the election of directors held at the Meeting are set out below: Name Of Nominee | Votes cast FOR | % Votes cast FOR | Votes AGAINST | % Votes AGAINST David Lazzarato | 78,059,502 | 87.16 % | 11,499,873 | 12.84 % Theresa Yanofsky | 76,020,874 | 84.88 % | 13,538,500 | 15.12 % Luc Mongeau | 79,871,589 | 89.18 % | 9,687,785 | 10.82 % Shan Atkins | 79,773,303 | 89.07 % | 9,786,072 | 10.93 % Joseph Bayern | 79,713,027 | 89.01 % | 9,846,347 | 10.99 % Appointment of Auditors Shareholders also approved the appointment of MNP LLP ("MNP") as the Company's auditor and independent registered public accounting firm for the fiscal year ending March 31, 2027, and authorized the Board or any responsible committee thereof to fix MNP's remuneration. Share Consolidation Shareholders adopted a special resolution authorizing an amendment to the articles of the Company to, among other things, consolidate the Company's issued and outstanding Shares and exchangeable shares of the Company on the basis of a ratio to be determined by the board of directors of the Company (the "Board"), in its sole discretion, within a range of one post-consolidation share for every five to fifteen outstanding pre-consolidation shares, as more particularly described in the Proxy Statement. The share consolidation will only be implemented, if at all, upon a determination by the Board that it is in the best interest of the Company and its Shareholders. If the Board does not implement the share consolidation within 12 months of the date of the Meeting, the authority granted to the Board will lapse and be of no further force or effect. Advance Notice By-Law Shareholders adopted an ordinary resolution ratifying and approving the adoption of the By-Law No. 2 of the Company, which establishes advance notice and certain other requirements for Shareholders proposing director nominations for Shareholder meetings of the Company, as more particularly described in the Proxy Statement. Renewal of Omnibus Incentive Plan Shareholders adopted an ordinary resolution authorizing and approving all unallocated entitlements under the Company's Omnibus Incentive Plan, as more particularly described in the Proxy Statement. Advisory Vote on the Compensation of the Company's Named Executive Officers Shareholders also adopted an advisory (non-binding) resolution approving the compensation of the Company's named executive officers (the "NEOs"), as more particularly described in the Proxy Statement. Advisory Vote on the Frequency of Future Votes on the Compensation of the NEOs In the advisory (non-binding) vote on the frequency of future advisory (non-binding) votes on the compensation of the Company's NEOs, the option to hold a vote every one year received the greatest number of votes from the Shareholders. For complete results on all matters voted on at the Meeting, please consult the Company's Report of Voting Results which was filed on the Company's SEDAR+ profile at www.sedarplus.ca, and the Company's Form 8-K which was filed on EDGAR at www.sec.gov/edgar on October 23, 2026. About Canopy Growth Canopy Growth is a leading global company committed to bettering lives through cannabis. With a focus on cultivation excellence, quality, trust, innovation and disciplined execution, Canopy Growth is a consumer-centric company serving patients, consumers and partners alike. The Company's portfolio of owned and licensed brands, including Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL and R'belle, as well as category-defining Storz & Bickel, delivers innovative cannabis products to consumers across Canada and beyond. It is also Canada's leading provider of medical cannabis services through Spectrum Therapeutics, Abba Medix, Apollo, and Canada House Clinics. The Company also holds an unconsolidated, non-controlling interest in Canopy USA, LLC, which provides exposure to the U.S. THC market. Guided by its commitment to leadership, excellence, trust and innovation, Canopy Growth is working to shape a future where the plant is trusted for its ability to better lives. For more information visit www.canopygrowth.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20261026936399/en/ Contacts Media Contact: [email protected] Investor Contact: [email protected]

Canopy Growth (NASDAQ: CGC) grew its revenue by 13% year over year to $58.9 million in its fiscal 2027 first quarter, but the stock barely reacted because investors have seen plenty of nascent Canopy turnarounds that never quite materialized. To be sure, the company's improvements weren't limited to the top line. Its adjusted gross margin increased from 25% in the prior-year period to 31%, while its adjusted EBITDA loss narrowed by 59% to $2.3 million. Canadian medical cannabis revenue increased 22%, adult-use cannabis sales grew 10%, and international cannabis sales rose 10%. But Canopy Growth still isn't profitable. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The company lost $10.6 million during the quarter (which ended June 30), while its free cash outflow increased to $18.6 million, up from $8.4 million a year earlier. That's a problem for a company that has spent years burning cash, restructuring operations, and issuing more shares of stock to raise funds. There's another wrinkle, too. Some of Canopy's growth this year came from its acquisition of MTL Cannabis. The company specifically attributed portions of its Canadian medical and adult-use growth to the acquisition. So that 13% top-line increase doesn't mean Canopy's existing businesses suddenly returned to double-digit organic growth. That may help explain the market's muted response to the quarterly report. The market clearly wasn't looking for another quarter where Canopy simply lost less money. It was hoping for evidence that the business will eventually be able to support itself without continually consuming cash. The latest results suggest that Canopy is moving in that direction. But after years of disappointment, investors aren't giving management much credit for promises. If revenue continues growing, margins improve, and cash burn starts falling, the stock could become more interesting. Until then, 13% revenue growth is encouraging, but it's not enough to prove Canopy's turnaround has finally arrived. Before you buy stock in Canopy Growth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Canopy Growth wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of September 7, 2026. Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Canopy Growth's Revenue Grew 13% Last Quarter. Investors Barely Reacted. Here's Why. was originally published by The Motley Fool

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 10 a.m. ET Investor Relations - John Vincic Chief Executive Officer - Luc Mongeau Chief Financial Officer - Tom Stewart Operator: Good morning. My name is Joanna and I will be your conference operator today. I would like to welcome you to Canopy Growth's first quarter fiscal 2027 financial results conference call. Currently, all participants are in a listen-only mode. I will now turn the call over to John Vincic, Investor Relations. John, you may begin the conference call. John Vincic: Thank you operator, and good morning, and thank you to everyone for joining us. On our call today, we have Canopy Growth's Chief Executive Officer, Luc Mongeau, and Chief Financial Officer, Tom Stewart. Prior to the opening of financial markets today, Canopy Growth issued a news release announcing the financial results for its first quarter ended June 30, 2026. The news release and financial statements have been filed on EDGAR and SEDAR and will be available on the website under the Investors tab. Before we begin, I would like to remind you that our discussion during the call will include forward-looking statements that are based on management's current views and assumptions, and that this discussion is qualified in its entirety by the cautionary note regarding forward-looking statements included at the end of the news release issued today. Please review today's earnings release and Canopy's reports filed with the SEC and SEDAR for various factors that could cause actual results to differ materially from projections. In addition, reconciliations between any non-GAAP measures to their closest reported GAAP measures are included in our earnings release. Please note that all financial information is provided in Canadian dollars unless otherwise stated. Following the remarks by Luc and Tom, we will conduct a question-and-answer session where we will take questions from analysts. With that, I would like to turn the call over to Luc. Luc Mongeau: Thank you. Good morning, everyone, and thank you for joining us today. Fiscal 2027 is off to a strong start, and it's built on real momentum from fiscal 2026. I'm confident to say that our first quarter results have us well-positioned to build on that momentum all year long. Fiscal 2026 was all about sharpening our focus, tightening execution, and positioning us for growth, including the strategic acquisition of MTL Cannabis. That work is truly paying off. Since I joined as Canopy CEO in January of 2025, this is the first quarter we've reported year-over-year growth in every single business. Fiscal 2027 is about growth and moving our focus to cultivation to improve yields and accelerate growth, especially in Europe. It's as well about increasing our manufacturing efforts to improve margin and accelerate our journey to positive adjusted EBITDA. In the quarter, net revenue was CAD 81.2 million, an increase of 13% from Q1 of last year, with our cannabis segment growing at 14% and Storz & Bickel growing at 6%. Importantly, adjusted gross margin was up 600 basis points over last year, reflecting the effort we've made across our supply chain to reduce our cost structure and improve execution. This gives us confidence our strategy is working. Our cannabis growth was led by our Canadian medical business, which reported net revenue of CAD 25.8 million, up 22% from Q1 2026. Strong year-over-year growth in medical was driven by a steady increase in patient count over the past year. Our medical business was recently strengthened by the addition of MTL Cannabis with its Canada House clinics and Abba Medix online distribution platform. As a combined company, we continued to add patients and increase the number of orders we filled during the first quarter, helping to cement our position as the number one Canadian medical cannabis provider. Our Apollo Cannabis Clinics were recently voted Best Medical Cannabis Clinic in the Toronto Star Readers' Choice Awards. This recognition reflects our commitment to positive patient outcomes and to making medical cannabis care accessible. We are trusted by patients and will strive to continue to earn that trust. Even with these successes, given our significant focus on veteran care, we have felt the impact of the reduced reimbursement rates for our products from Veterans Affairs Canada. We have done our utmost mitigating the impacts of these changes on our patients and veterans, and continue to work to broaden our patient base to build on our leadership position. Despite this headwind, we remain strongly committed to our medical patients in Canada. We continue to offer the best product assortment, consistent availability, and a best-in-class service experience for veterans and all patients alike. We strongly believe staying true to our core values will enable us to continue to add new patients and ensure the ongoing expansion of the business. Our Canadian adult use net revenue of CAD 29.7 million was up 10% from Q1 of last year, building on the impressive 20% growth rate we delivered in fiscal 2026. Our recreational business has benefited from ongoing strengthening of our product portfolio, including the addition of the popular MTL Cannabis brand. We plan to leverage Canopy's distribution capabilities to further expand the reach of the MTL brands across the country. The most recent market share data shows that Canopy is now ranked at number six overall, up from number eight. We also moved into the top two position in premium flower and infused pre-rolls, and number one in softgels. We are confident this growth will continue given the progress we are making in cultivation and the additional flower we plan to bring to market, as well as planned innovation around the Claybourne and Tweed brands. In international cannabis, net revenue rose 10% year-over-year as we reset our operations and continue to lay out the end-to-end supply chain to grow in the European market. Europe remains a major catalyst for our growth, driven by particularly robust sales performance in Poland during Q1, where we are now a top-three supplier. This was our third consecutive quarter of sequential growth in international, driven by solid execution, in particular, our ability to consistently supply high-quality flower. We also plan to begin shipments of flower to the U.K. imminently, with revenue contributions expected to start in the second half of the fiscal year. We're energized by the tremendous opportunities in Europe and by our strengthening ability to supply the market with quality products that meet the growing needs of European cannabis patients. Storz & Bickel returned to year-over-year growth in Q1, reporting a 6% net revenue increase to CAD 16.1 million, as well as a very strong gross margin of 48% compared to 29% in Q1 of 2026. Q1 was Storz & Bickel's first full quarter under the new leadership team, which has been implementing a focused go-to-market strategy. We're pleased to see increased sales in markets outside the traditional strongholds of the U.S. and Germany, clearly demonstrating that Storz & Bickel is diversifying its revenue stream and building on its position as the number one global provider of medical vaporizers. While these results are encouraging, our strategy remains anchored on building upon our capabilities in three key areas: world-class cultivation, optimizing our supply chain network, and fueling international supply. Elevating our cultivation capabilities is now a company-wide priority. It has contributed to our recent success and, more importantly, establishes a foundation for accelerated long-term growth. The addition of the MTL Cannabis team kicked off a sharing of best practices and expertise across the organization. We're implementing a wide range of improvements, ranging from growing techniques to lighting upgrades and environmental controls. The early results are positive, with promising improvements to yield, THC levels, and cost per gram. We have begun growing popular MTL strains at Kincardine under the leadership of the MTL master growers, as well as cultivating new strains to enhance our genetic portfolio. These initiatives promise to increase our supply of high-quality flower. Our business has already benefited from more consistent supply, and I'm excited to say there is significant room for further gains. As throughput increases throughout the year, we expect to see a direct positive impact on revenue. Post quarter end, we kicked off a comprehensive end-to-end supply chain initiative to streamline our processes, rightsize our distribution footprint, and optimize labor. As we grow revenue, we're targeting significant improvements in gross margin beyond what we have already seen. Turning to international supply, Canopy has a complete EU GMP flower supply chain, starting with our EU GMP-certified Kincardine facility and extending to our distribution facility in Germany. We have also already completed our EU GMP inspection for finished products and Cannabis 2.0 products manufacturing in our Smiths Falls facility, for which we expect to receive certification during this fiscal year. That certification will make Canopy one of the only domestic companies with end-to-end EU GMP cultivation, manufacturing, and finished product processing and packaging of products intended for the international market. This capability will be a core differentiator for Canopy, and we see it as a competitive edge that can spur growth. As yields and manufacturing capacity increase throughout the year, we expect to see improved gross margin, and we will be better positioned to compete and win in the competitive Canadian medical and recreational space, as well as winning in global markets. This is what truly excites me most about the future of our company. I will now ask Tom to provide more details on our first quarter financial results. Tom Stewart: Thank you, Luc, and good morning, everyone. Canopy reported a solid first quarter, showing good progress on both the top line and key profitability measures. We reported CAD 81.2 million of net revenue in Q1 fiscal 2027, up 13% from the same period last year. Net revenue increased in our cannabis segment, with growth across all channels as well as in the Storz & Bickel segment. Despite the Veterans Affairs reimbursement changes, Canada medical cannabis reported strong growth, with net revenue increasing 22% year-over-year to CAD 25.8 million. We are also taking steps to further mitigate the impact of the Veterans Affairs changes on margins and EBITDA. These include saving costs by integrating functions like customer care with the MTL organization, renegotiating pricing with third-party suppliers and partners to share the impact, and adding more large product formats, which deliver greater value to patients by allowing them to buy more product upfront while reducing costs for the company. We have consistently demonstrated our ability to grow patients and gain traction in Canada Medical despite broader market pressures. As we navigate the impact of the Veterans Affairs reimbursement changes, we remain focused on executing the same proven strategy that has driven our success to date: growing our patient base, increasing engagement with our patients, and operating the business to deliver a best-in-class customer service experience. Overall, our Q1 results are on track with the commentary we provided on our most recent investor call in June. At that time, we said we expect to report year-over-year revenue growth throughout fiscal 2027. We also described a transition period in the first half of the year as we integrate the MTL Cannabis operations and focus on our key priorities. On that basis, we continue to expect to report consistent improvement in our operations throughout the fiscal year. Consolidated gross margin was 31% in Q1 2027 on an adjusted basis, up from 25% a year ago and outpacing our full-year adjusted gross margin performance in fiscal 2026. We delivered an adjusted gross margin of 26% in the cannabis segment in Q1 2027, demonstrating meaningful year-over-year margin expansion and continued progress against our profitability objectives. Reported gross margin was 22%, reflecting a CAD 2.6 million non-cash inventory flow-through charge associated with the MTL acquisition. We expect cannabis margins to continue strengthening as we capture the benefits of the MTL integration and execute on our key priorities. Increased production from our existing cultivation facilities, combined with ongoing efficiency gains, should further reduce our cost per unit and support meaningful margin expansion over time. Storz & Bickel delivered an exceptional gross margin of 48% in Q1, up from 29% a year ago, demonstrating the significant progress the business has made in improving profitability. The improvement was driven primarily by operational and cost efficiency initiatives executed over the past year, with an additional benefit from tariff refunds recognized during the quarter. Even excluding the tariff impact, margins were substantially ahead of the prior year. This performance demonstrates the success of the new Storz & Bickel leadership team in optimizing their business. We would expect to see continued improvements across the remainder of fiscal 2027. Turning to operating expenses. SG&A increased by CAD 2.1 million as compared to Q1 fiscal 2026, despite operating a significantly larger business following the MTL acquisition. Absorbing those operations while keeping costs tightly controlled is a direct result of our ongoing cost reduction efforts and the immediate synergies we are capturing from the MTL integration. As a reminder, our stated target is to reach a run rate of CAD 10 million of synergies within 18 months of the March closing of the MTL transaction. We are now actively executing against CAD 8 million of those synergies, up from the CAD 6 million we reported last quarter. On that basis, we believe there is upside potential to our initial target, both in terms of timing as well as in the total dollar amount. Improved margins and discipline on OpEx led to an adjusted EBITDA loss of CAD 3.2 million in Q1 2027, representing a 59% improvement from the prior year. With the additional revenue growth opportunities Luc described and further integration efficiencies still to be realized, we remain on track to report positive adjusted EBITDA during fiscal 2027. Turning to our financial position. We had CAD 337 million of cash at June 30th, 2026. I will note that the CAD 25 million of cash used in operating activities in the first quarter is higher than the run rate we expect to see over the course of fiscal 2027, as an increase in working capital is expected to balance out during the remainder of the year, and we would expect one-time transaction and restructuring costs to decline throughout the year. We remain confident in the strength of our balance sheet following the recapitalization completed during fiscal 2026. Our strong cash position underpins our financial capacity to support strategic growth opportunities that may arise. Before handing the call back to Luc, I will remind shareholders we are holding our annual general and special meeting on September 25th. We are filing proxy materials today with information on how to vote. We urge all shareholders to cast a vote. I will now turn the call back to Luc for closing remarks. Luc Mongeau: Thank you very much, Tom. Starting fiscal 2027 with broad-based growth across all our business lines, improved margins sets a strong tone for the year. We're confident, we're energized, and everyone is pulling in the same direction with pace and with common purpose to build a global cannabis company. Don't get me wrong, while first quarter results are definitely a step in the right direction, we're not satisfied yet. We're taking tangible action towards increasing yield and cultivation, accelerating supply chain efficiencies, and strengthening our global supply chain to drive growth and improve margins for quarters to come. We're becoming focused and disciplined operators, relentless in execution, strategic prioritization, and financial performance. Today, we unveiled a new corporate visual identity to match our growing ambition and reinvigorated organization. This identity reflects who we are and what we're building, a company that believes in the power of cannabis as a catalyst for elevating human potential. We believe cannabis is a global economic force, one that will rival the largest consumer categories in the world, and we intend to be among the companies that lead it. Building a global, consumer-centric company with a clear and uncompromising ambition to lead the world in bettering lives through cannabis. That's the company behind the results we've just shared with you, and it's the company you'll see reflected in our new identity. None of the progress outlined on today's call happens without our people. Thank you to our entire team for their relentless hard work and passion. We're just getting started. Operator, we will now take questions. Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. We do ask that you limit yourself to one question. If you have additional questions, you may hit star one again. First question comes from Aaron Grey with Alliance Global Partners. Please go ahead. Aaron Grey: Hi. Thank you very much for the questions here. I want to talk a bit about international and some of your initiatives, with added GMP certifications. Can you talk about the broader landscape of international? We're hearing about countries getting tighter in terms of companies needing to adhere to GMP compliance. How does this potentially set up for you to be in a more advanced position that you referred to in your prepared remarks? Do you feel like you'll now have enough cultivation as well as processing through the GMP supply chain to ramp up those international sales through the rest of fiscal year 2027 and beyond? Thank you. Luc Mongeau: Thank you for your question. Good morning. Listen, we're taking all the right actions and to really set up an extremely robust end-to-end supply chain to win for quarters to come in Europe. You know what I mean? One thing I can say about Canopy is that we take cannabis extremely seriously. We've got the internal capabilities to really build integrity, reliability, and trust in the supply chain. We've been working for quarters in really building the supply chain that meets and qualifies for EU GMP. As I said in my remark, we're now end to end when it comes to flower, growing and importing and distributing in Germany and across Europe. We take an additional step to make sure that our Smiths Falls facility qualifies as well, and we should receive qualification approval during this fiscal year, which will allow us to have a complete range of product end to end to meet the market. We're really building something that meets all the demands, and if there was even more stringent, for lack of a better word, enforcement of the EU GMP, we're extremely well positioned to meet this. That's what gives us confidence that we will continue to grow this business for quarters to come. Aaron Grey: Thank you very much. I'll jump back in the queue. Operator: Ken Tyghe with Canaccord Genuity, please go ahead. Ken Tyghe: Thank you. Good morning. Tom, one of the key themes throughout the prepared remarks was the discussion around margin and margin expansion. I think specifically material expected margin expansion on some of the initiatives. Could you speak to what is the baseline you're working from? Obviously, we saw some 230 basis points year-over-year in this quarter. When you speak to, I'm thinking about your margin profile going forward, are we talking something bracketing that 30%-30%+ level? Anything you could provide there to help us sort of try and get it would be appreciated. Tom Stewart: Yeah. Good morning, Ken. Obviously long term, we're trying to get that margin up closer to some of our competitive set, like closer to the 50% margin. We know that's going to be a long way in the future. I would say for baseline, we're looking at this quarter on an adjusted basis, we were 31%. I would say in the near term, we're targeting to get up to the mid-30s, hopefully on the higher end as we're exiting this year. As Luc laid out, a lot of the initiatives we're talking about, improving the amount of output that we have from a yield standpoint, improving quality, all of that will fuel our margin improvement as well as the integration activities with MTL as we really become one organization with one set of assets that we're leveraging for the full vertical there. Definitely, I would say in the near term, we're targeting mid-30s. Hopefully exiting at a bit higher rate as we go into this year. Luc, anything? Luc Mongeau: Yeah, for me, listen, those are not pie in the sky dreams. As you can imagine, we spent a lot of time last year really working on fixing the foundations of the business. We took an approach where we want to measure twice and cut once. We spent a lot of time last year really ensuring that what we were aiming for, we have the plans for. As I said in my remarks, post quarter end, we press a button, the work has started. As I said, the teams are working in one direction with pace, which gives us really a high level of confidence that we will see that margin continue to inch upwards for quarters to come. Ken Tyghe: Great. Thank you. I'll get back in queue. Operator: Frederico Gomes with ATB Capital Markets, please go ahead. Frederico Gomes: Thank you. Good morning. I want to ask about cultivation. It seems like cultivation efficiency is a big part of your plan to expand margins and with the MTL integration as well. How far along are you in that journey of getting cultivation where it needs to be? I imagine that's going to take some time to trickle through financials, but how much of that margin expansion just comes from cultivation efficiency, and how far along are you in that? Thank you. Luc Mongeau: Yes, thank you for your question. Listen, we're passionate about flower, and we have intentions to be a trusted global leader. For us, it starts with flower. It started with the acquisition of MTL. We've been very vocal about that. We brought in the expertise, the passion, the know-how to grow great flower, to achieve great level of THC yield and decent costs per gram. As you can imagine, that was one of the priorities as soon as we started integrating the business. As I said earlier, we've been measuring twice and hoping to cut once. The last few quarters have really been spent working with the master growers of MTL to ensure that we understand our strain, we understand the capabilities of our facilities. We've been working on defining the CapEx program, making sure the new processes are really well-defined. As you can understand with cultivation, it takes an amount of time while you put seeds in the ground, and you can harvest. We should really start seeing impact at the end of Q2, beginning of Q3, when we start gradually realizing the benefits of improved yield and improved quality. Frederico Gomes: Thank you very much. Operator: Bill Kirk with ROTH Capital, please go ahead. Bill Kirk: Hey, good morning, everyone. My question is on capital spending. Your capital spending amounts are below some of your peers, and so are those areas where you're trying to make some progress on gross margin and international growth. I guess my question is, do you need to increase capital spending in any meaningful way to improve those yields that'll unlock gross margin, or need to increase capital spend to develop those international assets to unlock more growth there? Tom Stewart: Great question. I think from our standpoint, there will be some modest CapEx. Right now we do think the operational assets we have in place are sufficient, so we're not talking greenfield-type facility builds. In terms of investing in the facilities, that is something we will be doing. I would preface it with just a modest amount of capital. We are probably underspending historically on the CapEx side, and this is an area where we see the investment and the near-term return there as we get improved cultivation and really helping with the yield. Overall, I think we have the right assets in place. Now it's using those assets to their full potential. That might include a little bit of CapEx to get it going. Bill Kirk: Okay. If I could sneak a housekeeping in. On the Canadian medical, I didn't see it in the queue, but maybe I missed it. What was the MTL contribution to that segment in the quarter? I'm basically asking to try to get a sense for how large the reimbursement change headwind was in the period. Tom Stewart: We don't disclose MTL medical separate, Bill, because we manage it all as one business, both across the cannabis segment, and then within our revenue channel. That's not disclosed separately, but obviously the headline reimbursement reduction was 29% that we had, and I would say we weathered that storm better than probably some of our competitors in the quarter. Bill Kirk: Okay, thank you. Luc Mongeau: If I can just add color. Building on what Tom said, I think we weathered the storm with this change, and we now have a new basis upon which we really mean to grow. Even though these changes happen, in our remarks, we were able to continue to improve patient count and number of orders, which is really are the main drivers of your revenues. We were able, as well, as Tom mentioned, to take the right action to mitigate the impact on our margins. For us, it is a business that we strongly believe in. We believe in providing the right care for patients and veterans, and we will continue to deploy efforts to expand this business going forward. Bill Kirk: Thank you, Luc. Thank you, Tom. Operator: Ladies and gentlemen, as a reminder, if you have any questions, please press star one. Pablo Zuanic at Zuanic & Associates, please go ahead. Pablo Zuanic: Thank you, good morning, everyone. Just following up on the domestic medical question. Luc, the industry has done a great job in terms of increasing penetration with veterans. I think it was 4% back in 2021, 8% now. Where do you see that going? Is a 15% penetration level three, four years down the road reasonable? How do you think about that? Related to that, any further commentary you can make about how these patients, the reimbursed patients, any changes in consumer behavior, if we can use that term here, or it's all been pretty much absorbed by the companies in terms of the pricing. Thank you. Tom Stewart: Yeah. I'll start, Pablo, good morning. In terms of penetration, I think 15% is probably fairly high. We do see continued growth in the Canadian cannabis market with veterans. We've demonstrated that we can grow in a declining market in the medical space as well over the past few years. In terms of buying patterns, I would say we are adding new patients. Obviously, order values are going down as a result of the reimbursement, but our focus is really new patient acquisition, new veteran acquisitions. It's still one of the most profitable markets in the globe. Canadian medical clearly is continuing to be a point of focus for us. I think 15% is probably a bit high from a market penetration standpoint. For us, it's really Q1, as Luc said, was a bit of a reset in terms of our baseline, and I would expect that we continue to have steady growth over the past, as we've demonstrated in prior years on the medical side. I don't know, Luc, if you want to- Pablo Zuanic: Thank you. Luc, can I ask just a follow-up, obviously, congratulations on all the progress the company's making on domestic rec, domestic medical, international, the MTL deal. If maybe it's not fair for us analysts to ask you about the U.S., right? There's so much focus on the U.S. from the investor side, given all the changes that are taking place there. Historically, we thought of Canopy Growth as having the best beachhead, if I can use that term, with Acreage, Wana, and Jetty there. How should we think about that now going forward? Obviously, it doesn't seem as big a priority as it was in the past for Canopy Growth. Any color would help. Thank you. Luc Mongeau: Yes. Thank you for the question. Listen, we continue to monitor the position, the situation of the market in the U.S. very closely. You heard me, we've been consistent about fixing the foundation. It's ensuring that we build a core Canopy Growth organization, Canadian and internationally, that provides positive EBITDA. That's where we continue to focus the bulk of our efforts, and it is paying off. As I said, we continue to monitor our position in the U.S. We're happy with the performance of Jetty in the U.S. We have a position with TerrAscend. You saw they released their results earlier this morning or yesterday. They're doing really well. The focus remains on really accelerating our growth internationally and domestically in Canada. Pablo Zuanic: Thank you. Operator: Thank you. This concludes Canopy Growth's first quarter 2027 financial results conference call. A replay of this conference call will be available until November 5th, 2026, and can be accessed following the instructions provided in the company's press release issued earlier today. Canopy Growth's investor relations team will be available to answer additional questions. Thank you for attending today's call. Before you buy stock in Canopy Growth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Canopy Growth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Canopy Growth (CGC) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Net Revenue: $81.2 million, up 13% year-over-year. Cannabis Segment Revenue: Grew 14% year-over-year. Storz & Bickel Revenue: $16.1 million, up 6% year-over-year. Canadian Medical Cannabis Revenue: $25.8 million, up 22% year-over-year. Canadian Adult-Use Revenue: $29.7 million, up 10% year-over-year. International Cannabis Revenue: Rose 10% year-over-year. Adjusted Gross Margin: 31%, up 600 basis points from 25% in the prior year. Cannabis Segment Adjusted Gross Margin: 26%, showing meaningful year-over-year expansion. Storz & Bickel Gross Margin: 48%, up from 29% in Q1 2026. Reported Gross Margin: 22%, reflecting a $2.6 million non-cash inventory flow-through charge. Adjusted EBITDA Loss: $3.2 million, a 59% improvement from the prior year. Cash Position: $337 million at June 30, 2026. Cash Used in Operating Activities: $25 million in Q1 2027. SG&A: Increased by $2.1 million year-over-year despite the MTL acquisition. Warning! GuruFocus has detected 4 Warning Signs with CGC. Is CGC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Canopy Growth Corp (NASDAQ:CGC) reported broad-based growth in Q1 fiscal 2027, with net revenue up 13% year-over-year to $81.2 million, including growth across all business segments. Adjusted gross margin improved significantly, up 600 basis points year-over-year to 31%, driven by supply chain efficiencies and cost reduction efforts. The Canadian medical cannabis business grew 22% year-over-year, with continued patient count increases, solidifying its position as the number 1 Canadian medical-cannabis provider. International cannabis revenue rose 10% year-over-year, with strong performance in Poland (top 3 supplier) and plans to begin shipments to the UK imminently, supporting future growth. Storz & Bickel returned to growth with a 6% revenue increase and a substantial gross margin improvement to 48% (from 29% a year ago), reflecting successful operational and cost-efficiency initiatives. Canopy Growth Corp (NASDAQ:CGC) continues to face headwinds from reduced Veterans Affairs Canada reimbursement rates, impacting margins and EBITDA, despite mitigation efforts. The company reported an adjusted EBITDA loss of $3.2 million in Q1, though improved 59% year-over-year, indicating ongoing profitability challenges. Cash used in operating activities was $25 million in Q1, higher than expected run rate, with working capital increases and one-time costs expected to balance out later in the year. The company noted that cultivation improvements will take time to impact financials, with benefits expected only from the end of Q2 or beginning of Q3, delaying margin expansion. Despite progress, Canopy Growth Corp (NASDAQ:CGC) remains focused on Canada and international markets, with no immediate plans to prioritize the US market, potentially limiting growth opportunities in a key market. Q: Can you provide more details on the margin expansion targets and the baseline you're working from, given the 600 basis point improvement in adjusted gross margin this quarter? A: Thomas Stewart (CFO): We're targeting to get adjusted gross margins up to the mid-30% range in the near term, with hopes of exiting the year at a higher rate. This quarter's adjusted gross margin was 31%, up from 25% a year ago. The improvement will be fueled by increased cultivation yields, improved quality, and the full integration of MTL Cannabis as we leverage one set of assets across the portfolio. Q: How far along are you in the cultivation efficiency journey, and how much of the margin expansion will come from these improvements? A: Luc Mongeau (CEO): We're passionate about flower and becoming a trusted global leader. The journey started with the MTL acquisition, bringing in master growers to improve yields, THC levels, and cost per gram. We've spent the last few quarters understanding our strains and facility capabilities. Since cultivation takes time, we expect to start seeing the impact of improved yields and quality at the end of Q2 and beginning of Q3. Q: Given the tighter GMP compliance landscape in Europe, how does your EU GMP certification position you for international growth, and do you have enough capacity to ramp up sales? A: Luc Mongeau (CEO): We've built an extremely robust end-to-end supply chain to win in Europe. We now have a complete EU GMP flower supply chain, from cultivation at Kincardine to distribution in Germany. We expect to receive EU GMP certification for finished products and Cannabis 2.0 manufacturing at our Smiths Falls facility this fiscal year, making us one of the only domestic companies with end-to-end EU GMP capabilities. This positions us extremely well to meet stringent market demands and continue growing the international business. Q: Do you need to increase capital spending to improve yields and develop international assets, given your CapEx is below peers? A: Thomas Stewart (CFO): We believe our operational assets are sufficient, so we're not talking about greenfield facility builds. However, we will be making modest investments in existing facilities to improve cultivation and yield. We've been historically underspending on CapEx, and this is an area where we see near-term returns, but overall, we have the right assets in place to use to their full potential. Q: What was the MTL contribution to the Canadian medical segment, and how large was the Veterans Affairs reimbursement headwind in the quarter? A: Thomas Stewart (CFO): We don't disclose MTL medical separately as we manage it as one business. The headline reimbursement reduction was 29%, and we weathered that storm better than some competitors. Luc Mongeau (CEO): We were able to continue improving patient count and order numbers despite the changes, and we took actions to mitigate the margin impact, including integrating functions, renegotiating supplier pricing, and adding larger product formats. Q: Regarding veteran care penetration, is a 15% penetration level reasonable in the next few years, and how have patient buying behaviors changed post-reimbursement? A: Thomas Stewart (CFO): 15% is probably fairly high for market penetration. We do see continued growth in the Canadian cannabis market with veterans and have demonstrated we can grow in a declining medical market. Order values are going down due to reimbursement, but our focus is on new patient and veteran acquisition. Canadian medical remains one of the most profitable markets globally and a point of focus for us. Q: How should we think about Canopy's US position with Acreage, Wana, and Jetty, given the changes in the US market? A: Luc Mongeau (CEO): We continue to monitor the US market closely, but our focus remains on fixing the foundation and building a core Canopy Growth organization in Canada and internationally that provides positive EBITDA. We're happy with Jetty's performance and TerrAscend is doing well, but our primary focus is accelerating growth internationally and domestically in Canada. Q: Can you provide more color on the international business performance and the potential for UK shipments? A: Luc Mongeau (CEO): International cannabis net revenue rose 10% year-over-year, driven by robust sales in Poland where we're now a top 3 supplier. This was our third consecutive quarter of sequential growth. We plan to begin shipments of flower to the UK imminently, with revenue contributions expected in the second half of the fiscal year. We're energized by the opportunities in Europe and our strengthening ability to supply quality products. Q: What drove the significant improvement in Storz & Bickel's gross margin, and is this sustainable? A: Thomas Stewart (CFO): Storz & Bickel delivered an exceptional gross margin of 48% in Q1, up from 29% a year ago. The improvement was driven primarily by operational and cost-efficiency initiatives, with an additional benefit from tariff refunds. Even excluding the tariff impact, margins were substantially ahead of the prior year. We expect continued improvements across the remainder of fiscal 2027. Q: Can you elaborate on the synergy targets from the MTL acquisition and the progress on integration? A: Thomas Stewart (CFO): Our stated target is to reach a run rate of $10 million of synergies within 18 months of the March closing. We're now actively executing against $8 million of those synergies, up from $6 million last quarter. We believe there is upside potential to our initial target, both in terms of timing and total dollar amount, as we integrate operations and become one organization. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Download the Complete Report Here Key Takeaways: International medical cannabis growth continued to strengthen ACB’s global medical-first platform and reinforce the durability of its growth strategy. ACB reported 1Q FY27 (q/e June 30, 2026) net revenue of C$67.6 million, down 9% from C$74.1 million in the prior-year period and down 20% sequentially from C$84.8 million in 4Q FY26. The decline was principally attributable to the April 1 reduction in Canadian federal medical reimbursement rates and the planned wind-down of the consumer cannabis business rather than weakening international demand. Medical cannabis revenue was broadly stable at C$64.0 million versus C$64.8 million y/y, as a C$6.2 million increase in International medical revenue offset C$7.0 million of Canadian medical pressure. Medical cannabis represented approximately 95% of consolidated net revenue, up from 87% in the prior-year quarter and 91% in 4Q FY26, demonstrating that the Bevo divestiture and consumer wind-down have substantially advanced ACB’s transition into a focused global medical cannabis company. Strong operating discipline kept adjusted EBITDA positive despite the full initial impact of the Canadian reimbursement reset. Adjusted EBITDA was C$3.4 million, down 68% from C$10.8 million y/y and 63% from C$9.2 million in 4Q FY26, with the adjusted EBITDA margin declining to 5.1% from 14.6% a year ago and 10.8% sequentially. The C$7.4 million y/y decline primarily reflected an C$8.3 million reduction in adjusted gross profit, partly offset by C$1.0 million of adjusted SG&A savings. Adjusted SG&A declined 3% to C$35.1 million from C$36.1 million, as lower general and administrative spending more than offset an 8% increase in sales and marketing to C$15.6 million. The higher selling investment was directed toward international growth markets, while the broader cost base remained controlled through the transition. Liquidity remains a meaningful competitive advantage, with C$149.1 million of cash, restricted cash, and short-term investments and no loans or borrowings. Cash and cash equivalents were C$69.3 million, restricted cash was C$49.1 million, and short-term investments were C$30.7 million at June 30. Approximately C$46.4 million of restricted cash is expected to become unrestricted following the wind-up of the company’s segregated self-insurance cell by 3Q FY27, materially increasing immediately deployable liquidity without requiring external financing. On a pro forma basis, unrestricted cash and short-term investments would rise from approximately C$100.0 million to C$146.4 million, subject to movements before completion. This liquidity gives ACB the ability to complete Safari and Leuna investments, absorb the Canadian reset, and pursue additional medical-cannabis acquisitions without adding financial debt. Safari contributed positively to adjusted EBITDA in its first quarter and is transitioning from strategic capacity to an operating contributor. ACB completed the acquisition in April for C$15.0 million of cash and 2.4 million shares valued at C$11.6 million, with C$2.0 million of the cash consideration tied to EU-GMP certification conditions and a provisional C$0.7 million working-capital adjustment receivable. Safari’s 59,000-square-foot Ontario facility received a three-year EU-GMP certification on July 23, advancing integration by enabling supply to Germany, Poland, Australia, and the U.K. while expanding ACB’s internal capacity and reducing reliance on third-party production. Safari contributed positively to adjusted EBITDA in its first quarter of ownership, while the planned C$3.5 million investment over three years is intended to improve operating efficiency, increase cultivation output, and lower manufacturing costs. Best-in-class global medical operations continue to diversify ACB’s growth profile beyond Canada. Leadership positions in Germany, Poland, Australia, and New Zealand, together with a focused U.K. strategy and longer-term U.S. optionality, reinforce the scalability of ACB’s international medical platform and reduce reliance on any single market. Street estimates continue to frame FY27 as a transition year before growth reaccelerates in FY28. Based on Street estimates sourced from TIKR, revenue is projected to decline from C$320.6 million in FY26 to C$293.3 million in FY27E, reflecting the impact of lower Canadian medical reimbursement rates and the company’s exit from lower-margin businesses. Adjusted EBITDA is expected to decline to C$24.5 million from C$53.8 million in FY26, with margins compressing to 8.3% as the reimbursement changes flow through results. The first quarter contributed C$67.6 million of revenue and C$3.4 million of adjusted EBITDA, representing 23% and 14% of the respective full-year estimates. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. We believe ACB’s current valuation underappreciates the quality and long-term earnings potential of its international medical cannabis platform despite the near-term Canadian reimbursement reset. Overall, current valuation levels appear to inadequately reflect ACB’s competitive positioning and the improving quality of its international earnings base. Key differentiators include: 1) leadership positions in Germany, Poland, and Australia, with international markets contributing 64% of 1Q revenue; 2) a GMP-led operating model supported by proprietary genetics, integrated production, and regulatory expertise; 3) no loans or borrowings and approximately C$149 million of liquidity; and 4) expanding internal EU-GMP capacity through Leuna and Safari. While FY27 remains a transition year, continued international growth, manufacturing efficiencies, and a more favorable revenue mix should support margin recovery and create scope for valuation multiples to move toward historical and peer levels over time. Read Exec Edge’s Initiation on ACB Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Why Aurora Cannabis Looks Cheaper Than Its International Growth Suggests – Quarterly Update Report appeared first on ExecEdge.

Net revenue growth of 22% in Canada medical cannabis, 10% in Canada adult-use cannabis, 10% in international markets cannabis and 6% in Storz & Bickel Adjusted gross margin1 improves to 31% in Q1 FY2027 from 25% in Q1 FY2026 Adjusted EBITDA2 loss narrows by 59% year-over-year SMITHS FALLS, Ontario, August 07, 2026--(BUSINESS WIRE)--Canopy Growth Corporation ("Canopy Growth", "our", "we" or the "Company") (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced its financial results for the three months ended June 30, 2026 ("Q1 FY2027"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. "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 "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." Tom Stewart, Chief Financial Officer First Quarter FY2027 Financial Highlights Consolidated net revenue of $81.2M in Q1 FY2027 increased by 13% compared to the three months ended June 30, 2025 ("Q1 FY2026"). Consolidated gross margin was 27% in Q1 FY2027, compared to 25% in Q1 FY2026. Selling, general and administrative expenses in Q1 FY2027 were 6% higher than in Q1 FY2026. The increase was driven by the addition of the MTL Cannabis operations, offset by lower costs resulting from continued reductions in headcount and other cost reduction initiatives. Net loss in Q1 FY2027 was 68% lower compared to Q1 FY2026. Adjusted EBITDA2 loss for Q1 FY2027 was $3.2M, an improvement of $4.7M or 59% compared to Q1 FY2026, primarily attributable to revenue growth across both segments and continued cost savings, partially offset by the reduction in the VAC reimbursement rate available for medical cannabis. Free cash outflow3 increased from $11.6M in Q1 FY2026 to $25.7M in Q1 FY2027, reflecting increased cash used in operating activities, primarily due to the timing of changes in working capital items. Business Highlights Canopy Growth’s Apollo Cannabis Clinics were named Best Medical Cannabis Clinic in the 2025 Toronto Star Readers’ Choice Awards, an indicator of the Company’s commitment to positive patient outcomes. Spectrum Therapeutics introduced new 30 and 90-pack formats for its softgels with enhanced dosing options, offering greater value to medical cannabis customers while reducing packaging and shipping costs. The Company relaunched the Tweed brand in the German medical cannabis market, taking advantage of MTL Cannabis’ premium genetics and flower production capacity to strengthen its international position. Canopy Growth improved its adult-use market ranking to #6 overall in Canada4, with top 2 positions in premium flower, infused pre-rolls, and oils & softgels. The Company expanded Claybourne’s Frosted Flyers infused pre-roll lineup in Canada, with three new 8-pack variety formats and the brand’s first bundle pack. Canopy Growth Unveils Refreshed Corporate Identity Canopy Growth unveiled a refreshed corporate identity designed to reflect our evolution into a modern cannabis company. The new brand is built on our belief that cannabis has the power to better lives – for patients seeking relief and balance, and for adult-use cannabis consumers looking for trusted, consistent experiences. The new identity supports a clearer expression of our long-term strategy: building a focused, consumer-centric cannabis company grounded in quality, innovation, and disciplined execution. At the heart of the refreshed identity is the new brandmark featuring a canopy arch and cannabis plant, representing our presence across medical, wellness, and adult-use cannabis markets, and the cultivation at the root of everything we build. The refreshed brand is live today across Canopy Growth’s website and social channels. To see more, visit www.canopygrowth.com. Webcast and Conference Call Information The Company will host a conference call and audio webcast with Luc Mongeau, CEO and Tom Stewart, CFO at 10:00 AM Eastern Time on August 7, 2026. Webcast InformationA live audio webcast will be available at:https://onlinexperiences.com/Launch/QReg/ShowUUID=567345EB-EB0A-41BF-ABD6-785F173BBEFE Replay InformationA replay will be accessible by webcast until 11:59 PM ET on November 5, 2026 at the same URL. Non-GAAP Measures Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA is a useful measure for investors because it provides meaningful and useful financial information, as this measure demonstrates the operating performance of businesses. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring costs; acquisition-related restructuring and other inventory write-downs; and charges related to the flow-through of inventory step-up on business combinations, and further adjusted to remove acquisition, divestiture, and other costs. Asset impairments related to periodic changes to the Company’s supply chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information as this measure demonstrates the operating performance of businesses. The Adjusted EBITDA reconciliation is presented within this press release and explained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 (the "Form 10-Q") filed with the Securities and Exchange Commission ("SEC"). Free cash flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that free cash flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand the Company’s business, and that the free cash flow measure provides meaningful information regarding the Company’s liquidity requirements. This measure is calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment. The free cash flow reconciliation is presented within this press release and explained in the Form 10-Q. Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that adjusted gross margin and adjusted gross margin percentage present meaningful and useful financial information as these measures provide insights into the gross margin performance of the business. Adjusted gross margin is calculated as gross margin excluding acquisition related restructuring and other inventory write-downs, and charges related to the flow-through of inventory step-up on business combinations. Adjusted gross margin percentage is calculated as adjusted gross margin divided by net revenue. The adjusted gross margin and adjusted gross margin percentage reconciliation is presented within this news release. About Canopy Growth Canopy Growth is a leading global company committed to bettering lives through cannabis. With a focus on cultivation excellence, quality, trust, innovation and disciplined execution, Canopy Growth is a consumer-centric company serving patients, consumers and partners alike. The Company’s portfolio of owned and licensed brands, including Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL and R’belle, as well as category-defining Storz & Bickel, delivers innovative cannabis products to consumers across Canada and beyond. It is also Canada’s leading provider of medical cannabis services through Spectrum Therapeutics, Abba Medix, Apollo and Canada House Clinics. The Company also holds an unconsolidated, non-controlling interest in Canopy USA, LLC, which provides exposure to the U.S. THC market. Guided by its commitment to leadership, excellence, trust and innovation, Canopy Growth is working to shape a future where the plant is trusted for its ability to better lives. For more information visit www.canopygrowth.com. Notice Regarding Forward Looking Statements This press release contains "forward-looking statements" within the meaning of applicable securities laws, which involve certain known and unknown risks and uncertainties. To the extent any forward-looking statements in this press release constitutes "financial outlooks" within the meaning of applicable Canadian securities laws, the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and the performance of our investments. These forward-looking statements are generally identified by their use of such terms and phrases as "intend," "goal," "strategy," "estimate," "expect," "project," "projections," "forecasts," "plans," "seeks," "anticipates," "potential," "proposed," "will," "should," "could," "would," "may," "likely," "designed to," "foreseeable future," "believe," "scheduled" and other similar expressions. Our actual results or outcomes may differ materially from those anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Forward-looking statements include, but are not limited to, statements with respect to: laws and regulations and any amendments thereto applicable to our business and the impact thereof, including uncertainty regarding the application of U.S. state and federal law to cannabis and hemp (including hemp derived cannabidiol ("CBD")) products and the scope of any regulations by the U.S. Food and Drug Administration, the U.S. Drug Enforcement Administration, the U.S. Federal Trade Commission, the U.S. Patent and Trademark Office, the U.S. Department of Agriculture and any state equivalent regulatory agencies over cannabis and hemp (including CBD) products; expectations regarding the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill; our ability to refinance debt as and when required on terms favorable to us and comply with covenants contained in our debt facilities and debt instruments; the impacts of the Company’s strategy to accelerate entry into the U.S. cannabis market through the creation of Canopy USA, LLC ("Canopy USA"); expectations for Canopy USA to capitalize on the opportunity for growth in the United States cannabis sector and the anticipated benefits of such strategy; the timing and occurrence of the final tranche closing in connection with the acquisition of Lemurian, Inc. ("Jetty") by Canopy USA pursuant to the exercise of the options to acquire Jetty; the issuance of additional common shares of the Company (each whole share, a "Canopy Share" or a "Share") to satisfy any deferred and/or option exercise payments to the shareholders of Wana Wellness, LLC, The Cima Group, LLC, and Mountain High Products, LLC (collectively, "Wana") and Jetty and the issuance of additional non-voting and non-participating shares in the capital of Canopy USA issuable to Canopy Growth from Canopy USA in consideration thereof; the acquisition of additional Class A shares of Canopy USA in connection with the investment in Canopy USA by the Huneeus 2017 Irrevocable Trust (the "Trust") in the aggregate amount of up to US$20 million, including any warrants of Canopy USA issued to the Trust in accordance with the share purchase agreement entered into by the Trust and Canopy USA; expectations regarding the potential success of, and the costs and benefits associated with, our acquisitions, equity investments and dispositions, including our acquisition of MTL Cannabis; the grant, renewal and impact of any license or supplemental license to conduct activities with cannabis or any amendments thereof; our international activities, including required regulatory approvals and licensing, anticipated costs and timing, and expected impact; our ability to successfully create and launch brands and further create, launch and scale products in jurisdictions where such products are legal and that we currently operate in; the benefits, viability, safety, efficacy, dosing and social acceptance of cannabis, including CBD and other cannabinoids; our remediation plan and our ability to remediate the material weakness in our internal control over financial reporting; expectations regarding the use of proceeds of equity financings; the legalization of the use of cannabis for medical or adult-use in jurisdictions outside of Canada, the related timing and impact thereof and our intentions to participate in such markets, if and when such use is legalized; the impact of the implementation of the rescheduling of medical cannabis from a Schedule I controlled substance under the United States Controlled Substances Act (21 U.S.C. § 811) to a Schedule III controlled substance; our ability to execute on our strategy and the anticipated benefits of such strategy; the ongoing impact of the legalization of additional cannabis product types and forms for adult-use in Canada, including federal, provincial, territorial and municipal regulations pertaining thereto, the related timing and impact thereof and our intentions to participate in such markets; the ongoing impact of developing provincial, state, territorial and municipal regulations pertaining to the sale and distribution of cannabis, the related timing and impact thereof, as well as the restrictions on federally regulated cannabis producers participating in certain retail markets and our intentions to participate in such markets to the extent permissible; the timing and nature of legislative changes in the U.S. regarding the regulation of cannabis including tetrahydrocannabinol; the future performance of our business and operations; our competitive advantages and business strategies; the competitive conditions of the industry; the expected growth in the number of customers using our products; expectations regarding revenues, expenses and anticipated cash needs; expectations regarding cash flow, liquidity and sources of funding; expectations regarding capital expenditures; the expansion of our production and manufacturing, the costs and timing associated therewith and the receipt of applicable production and sale licenses; expectations with respect to our growing, production and supply chain capacities; expectations regarding the resolution of litigation and other legal and regulatory proceedings, reviews and investigations; expectations with respect to future production costs; the effects of tariffs and related retaliatory measures, the levels of inflation, interest rates and trade policy and risks relating to the evolving regulatory landscape in the United States, on our costs and our margins; the effects of the conflict in the Middle East and its impact on global commerce and shipping supply chains and potential shipping delays; expectations with respect to future sales and distribution channels and networks; the expected methods to be used to distribute and sell our products; our future product offerings; the anticipated future gross margins of our operations; accounting standards and estimates; expectations regarding our distribution network; expectations regarding the costs and benefits associated with our contracts and agreements with third parties, including under our third-party supply and manufacturing agreements; our ability to comply with the listing requirements of the Nasdaq Stock Market LLC and the Toronto Stock Exchange; and expectations on price changes for products in cannabis markets. Certain of the forward-looking statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below. The forward-looking statements contained herein are based upon certain material assumptions , including: (i) management’s perceptions of historical trends, current conditions and expected future developments; (ii) our ability to generate cash flow from operations; (iii) general economic, financial market, regulatory and political conditions in which we operate; (iv) the production and manufacturing capabilities and output from our facilities, strategic alliances and equity investments; (v) consumer interest in our products; (vi) competition; (vii) anticipated and unanticipated costs; (viii) government regulation of our activities and products including but not limited to the areas of taxation and environmental protection; (ix) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; (x) our ability to obtain qualified staff, equipment and services in a timely and cost-efficient manner; (xi) our ability to conduct operations in a safe, efficient and effective manner; (xii) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our recent acquisitions into our existing operations; and (xiii) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. Financial outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management’s current expectations. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, risks related to our ability to remediate the material weakness identified in our internal control over financial reporting, or inability to otherwise maintain an effective system of internal control; the risk that our recent restatement could negatively affect investor confidence and raise reputation risks; our limited operating history; risks that we may be required to write down intangible assets, including goodwill, due to impairment; the adequacy of our capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute our business plan (either within the expected timeframe or at all); the diversion of management time on matters related to Canopy USA; the risks that the Trust’s future ownership interest in Canopy USA is not quantifiable, and the Trust may have significant ownership and influence over Canopy USA; the risks in the event that Acreage Holdings, Inc. and Wana cannot satisfy their debt obligations as they become due; volatility in and/or degradation of general economic, market, industry or business conditions; risks relating to the overall macroeconomic environment, which may impact customer spending, our costs and our margins, including tariffs (and related retaliatory measures), the levels of inflation, interest rates and trade policy; risks relating to the evolving regulatory landscape in the United States; risks relating to our current and future operations in emerging markets; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis products in vaping devices; risks and uncertainty regarding future product development; changes in regulatory requirements in relation to our business and products; our reliance on licenses issued by and contractual arrangements with various federal, state and provincial governmental authorities; inherent uncertainty associated with projections; future levels of revenues and the impact of increasing levels of competition; third-party manufacturing risks; third-party transportation risks; our exposure to risks related to an agricultural business, including wholesale price volatility and variable product quality; changes in laws, regulations and guidelines and our compliance with such laws, regulations and guidelines; risks relating to inventory write downs; risks relating to our ability to refinance debt as and when required on terms favorable to us and to comply with covenants contained in our debt facilities and debt instruments; risks associated with jointly owned investments; our ability to manage disruptions in credit markets or changes to our credit ratings; the success or timing of completion of ongoing or anticipated capital or maintenance projects; risks related to the integration of acquired businesses; the timing and manner of the legalization of cannabis in the United States; business strategies, growth opportunities and expected investment; counterparty risks and liquidity risks that may impact our ability to obtain loans and other credit facilities on favorable terms; the potential effects of judicial, regulatory or other proceedings, litigation or threatened litigation or proceedings, or reviews or investigations, on our business, financial condition, results of operations and cash flows; risks associated with divestment and restructuring; the anticipated effects of actions of third parties such as competitors, activist investors or federal, state, provincial, territorial or local regulatory authorities, self-regulatory organizations, plaintiffs in litigation or persons threatening litigation; consumer demand for cannabis products; the implementation and effectiveness of key personnel changes; risks related to stock exchange restrictions; risks related to the protection and enforcement of our intellectual property rights; the risks related to our exchangeable shares (the "Exchangeable Shares") having different rights from Canopy Shares and there may never be a trading market for the Exchangeable Shares; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; risks related to finalization of the consideration payable by us for the acquisition by Canopy USA of the remaining interests in Jetty; and the factors discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned that the forward-looking statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking statements, except as required by law. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements. Schedule 1 Schedule 2 Schedule 3 Schedule 4 - Segment Net Revenue Schedule 5 - Consolidated Gross Margin and Adjusted Gross Margin Schedule 6 - Gross Margin and Adjusted Gross Margin by Segment Schedule 7 - Adjusted EBITDA Schedule 8 - Free Cash Flow View source version on businesswire.com: https://www.businesswire.com/news/home/20260807115364/en/ Contacts Media Contact: [email protected] Investor Contact: [email protected]

Interested in Canopy Growth Corporation? Here are five stocks we like better. Canopy Growth’s fiscal Q1 2027 revenue rose 13% to C$81.2 million, with year-over-year growth across its cannabis and Storz & Bickel businesses. Adjusted EBITDA loss narrowed 59% to C$3.2 million, and management reiterated its target of achieving positive adjusted EBITDA during fiscal 2027. Cannabis revenue increased 14%, led by 22% growth in Canadian medical cannabis and 10% growth in both adult-use and international markets. The company expects U.K. flower shipments to begin soon, with revenue contributions anticipated in the second half of fiscal 2027. Management is prioritizing cultivation improvements, supply-chain efficiencies and MTL Cannabis synergies to expand margins. Adjusted consolidated gross margin improved to 31%, while Canopy is targeting mid-30% margins in the near term and is executing against C$8 million of annualized MTL synergies. The 2026 Cannabis Wildcard: How Tax Reform Could Reset Stock Valuations Canopy Growth (NASDAQ:CGC) reported first-quarter fiscal 2027 net revenue of C$81.2 million, up 13% from the prior-year period, as the company recorded year-over-year growth across its cannabis and Storz & Bickel businesses. Chief Executive Officer Luc Mongeau said the quarter marked the first time since he joined the company in January 2025 that Canopy reported year-over-year growth in each of its business lines. He attributed the progress to efforts undertaken during fiscal 2026 to sharpen operations, reduce costs and integrate MTL Cannabis, which Canopy acquired in March. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Constellation Brands: A Fallen Star or a Hidden Value Play? “Fiscal 2027 is about growth and moving our focus to cultivation to improve yields and accelerate growth, especially in Europe,” Mongeau said. He added that the company is also increasing manufacturing efforts to improve margins and advance toward positive adjusted EBITDA. Canopy’s cannabis segment grew 14% year over year during the quarter. Canadian medical cannabis revenue rose 22% to C$25.8 million, driven by an increase in patient counts over the past year. The business has been expanded through MTL Cannabis’ Canada House clinics and Abba Medix online distribution platform. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Profit from the Green Wave: Top Cannabis Stocks to Watch Mongeau said Canopy continued to add patients and increase the number of orders filled during the quarter, supporting its position as the largest Canadian medical cannabis provider. He noted, however, that the company has been affected by reduced reimbursement rates from Veterans Affairs Canada, given its focus on veteran care. Chief Financial Officer Tom Stewart said the company is working to offset those reimbursement changes through measures including integrating customer-care functions with MTL, renegotiating supplier and partner pricing, and offering more large-format products that can provide greater value to patients while reducing company costs. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Canadian adult-use cannabis revenue increased 10% to C$29.7 million. Mongeau said the business benefited from a strengthened portfolio, including the MTL Cannabis brand, which Canopy intends to distribute more broadly across Canada. According to the company’s cited market-share data, Canopy moved to sixth overall from eighth previously, while reaching a top-two position in premium flower and infused pre-rolls and the top position in softgels. International cannabis revenue rose 10% year over year, marking Canopy’s third consecutive quarter of sequential international growth. The company cited particularly strong first-quarter performance in Poland, where it said it is now a top-three supplier. Canopy expects to begin shipping flower to the United Kingdom imminently, with revenue contributions expected in the second half of fiscal 2027. Adjusted consolidated gross margin reached 31%, compared with 25% a year earlier, a 600-basis-point improvement. The cannabis segment reported adjusted gross margin of 26%, while reported consolidated gross margin was 22%, reflecting a C$2.6 million non-cash inventory flow-through charge related to the MTL acquisition. Storz & Bickel revenue rose 6% to C$16.1 million. Its gross margin increased to 48% from 29% in the prior-year quarter, supported by operational and cost-efficiency initiatives as well as tariff refunds recognized during the period. Stewart said margins would have been substantially above the prior year even without the tariff-related benefit. SG&A expenses increased C$2.1 million from the prior-year quarter, despite the addition of MTL’s operations. Stewart said the company was actively executing against C$8 million in annualized MTL-related synergies, up from C$6 million reported in the prior quarter. Canopy’s stated target is C$10 million in synergies within 18 months of the March transaction closing, and Stewart said there could be upside to that target in both timing and dollar amount. Adjusted EBITDA loss narrowed 59% from the prior year to C$3.2 million. Management reiterated that it expects to achieve positive adjusted EBITDA during fiscal 2027. Management identified cultivation efficiency as a central component of future revenue growth and margin expansion. Mongeau said Canopy is implementing improvements to growing techniques, lighting and environmental controls, aided by MTL’s cultivation expertise. Early results have included improvements in yields, THC levels and cost per gram, according to the company. Canopy has begun cultivating MTL strains at its Kincardine facility under MTL master growers and is introducing new strains to expand its genetic portfolio. Mongeau told analysts that the financial impact from cultivation improvements should begin to emerge toward the end of the second quarter and the beginning of the third quarter, as production cycles are completed. The company also launched an end-to-end supply-chain initiative after the quarter ended to streamline processes, resize its distribution footprint and optimize labor. For international markets, Canopy said it has an EU GMP-compliant flower supply chain spanning cultivation at Kincardine through distribution in Germany. It has completed an EU GMP inspection for finished-product and Cannabis 2.0 manufacturing at its Smiths Falls facility and expects certification during fiscal 2027. Mongeau said the approval would support an end-to-end supply chain for products intended for international markets. Stewart said Canopy is targeting adjusted gross margin in the mid-30% range in the near term, potentially at a higher rate by the end of the fiscal year. Longer term, he said the company aims to approach margins closer to 50%, though he described that objective as further in the future. Canopy ended June 30 with C$337 million in cash. Cash used in operating activities totaled C$25 million in the first quarter, though Stewart said that level was above the expected fiscal-year run rate because of working-capital increases and one-time transaction and restructuring costs that are expected to decline over the year. Management said it expects modest capital expenditures to support cultivation investments, while maintaining that its existing operational assets are sufficient and that it does not anticipate greenfield facility construction. Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets. The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Canopy Growth Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.