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Canopy Growth Reports Second Quarter Fiscal Year 2027 <a href="https://bitcomme.com/fennec-pharmaceuticals-to-report-third-quarter-2026-financial-results-on-november-12-2026/” title=”Fennec Pharmaceuticals to Report Third Quarter 2026 Financial Results on November 12, 2026″>Financial Results; Net Revenue Growth of 22% Led by a 141% Increase in International Markets Cannabis
- CGC
- CGC
Net revenue growth of 30% in Cannabis segment
18% growth in Canada medical cannabis revenue and 17% growth in Canada adult-use cannabis revenue
Company strengthens end-to-end EU GMP supply chain to facilitate further international growth
SMITHS FALLS, Ontario, November 06, 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 September 30, 2026 (“Q2 FY2027”). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
“We have made tremendous progress on our international strategy. Our international business delivered 141% net revenue growth in the second quarter of fiscal year 2027 driven by strong medical cannabis sales in Germany and Poland. We entered the U.K. market, added to our German leadership team, broadened our product portfolio in Australia and expanded our end-to-end EU GMP-certified supply chain through the certification of our Smiths Falls facility. We expect the ongoing elevation of our cultivation capabilities to drive our momentum further across the entire business.”
Luc Mongeau, Chief Executive Officer
“We reported another quarter of strong net revenue growth, including a 17% year-over-year increase in Canada adult-use cannabis, an 18% increase in Canada medical cannabis and 30% growth in the Cannabis segment overall. We are progressing steadily to profitability, quarter after quarter. Our disciplined approach continues to show improvements in adjusted EBITDA1 compared to Q2 FY2026, placing us within reach of reporting positive adjusted EBITDA during fiscal 2027.”
Tom Stewart, Chief Financial Officer
Second Quarter FY2027 Financial Highlights
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Consolidated net revenue of $81.4M in Q2 FY2027 increased by 22% compared to the three months ended September 30, 2025 (“Q2 FY2026”).
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Cannabis net revenue was $66.2M in Q2 FY2027, an increase of 30% versus the prior-year period.
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Canada medical cannabis net revenue in Q2 FY2027 was $25.8M, an increase of 18% versus Q2 FY2026, driven by growth in the number of insured customers and the acquisition of MTL Cannabis Corp. (“MTL Cannabis”), partially offset by the Canadian government’s reduction in the Veterans Affairs Canada (“VAC”) reimbursement rate for medical cannabis.
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Canada adult-use cannabis net revenue in Q2 FY2027 was $28.1M, an increase of 17% compared to Q2 FY2026, primarily attributable to increased flower sales driven by the acquisition of MTL Cannabis, partially offset by declines in opportunistic bulk sales.
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International markets cannabis net revenue of $12.3M in Q2 FY2027 increased 141% as compared to $5.1 million in Q2 FY2026, primarily due to strong sales in Europe, specifically in Germany and Poland.
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Storz & Bickel net revenue was $15.1M in Q2 FY2027, a 4% decrease compared to Q2 FY2026. The decrease is primarily attributable to decreased customer spending on Storz & Bickel products in certain geographic regions.
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Consolidated gross margin was 29% in Q2 FY2027, compared to 33% in Q2 FY2026.
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Adjusted gross margin2 decreased to 31% in Q2 FY2027, as compared to 33% in Q2 FY2026. The current-year period excludes the impact of inventory step-up charges of $2.1 million related to the acquisition of MTL Cannabis, which were not present in the prior-year period.
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Cannabis gross margin was 26% in Q2 FY2027 compared to 31% in Q2 FY2026, while adjusted gross margin for the segment was 29% in Q2 FY2027 compared to 31% in Q2 FY2026. The decrease in the adjusted gross margin percentage2 is primarily attributable to the reduction in the VAC reimbursement rate available for medical cannabis.
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Storz & Bickel gross margin was 39% in Q2 FY2027 compared to 38% in Q2 FY2026. The year-over-year consistency in gross margin despite a decline in revenues is driven by our continued focus on cost efficiencies and product mix.
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Selling, general and administrative expenses in Q2 FY2027 were 9% higher than in Q2 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.
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Net loss in Q2 FY2027 increased by $35.7 million compared to Q2 FY2026 due to $35.8 million of fair value charges on our Canopy USA, LLC (“Canopy USA”) related assets.
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Adjusted EBITDA loss for Q2 FY2027 was $2.9M, an improvement of $0.2M or 6% compared to Q2 FY2026, primarily attributable to revenue growth across the Cannabis segment and continued cost savings, partially offset by the reduction in the VAC reimbursement rate available for medical cannabis.
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Free cash outflow3 decreased from $19.2M in Q2 FY2026 to $15.5M in Q2 FY2027, reflecting a decrease in cash used in operating activities, offset by capital expenditures at certain production facilities to drive improvements in cultivation consistency and output.
