Canopy Growth (WEED) Q1 2027 earnings summary

Executive summary

• Achieved consolidated net revenue of $81.2M (CAD 81.2 million) in Q1 FY2027, up 13% year-over-year, with growth across all business segments and the strategic acquisition of MTL Cannabis driving synergies and supply expansion.

• Net loss narrowed by 68% year-over-year to $14.6M, reflecting improved profitability measures and higher revenues.

• Adjusted EBITDA loss improved by 59% year-over-year to $3.2M, driven by revenue growth and cost savings.

• The company unveiled a refreshed corporate visual identity to reflect its ambition and growth.

Financial highlights

• Cannabis segment net revenue rose 14% year-over-year to $65.1M, with Canadian medical cannabis up 22% to $25.8M and Canadian adult-use up 10% to $29.7M.

• Storz & Bickel segment revenue increased 6% to $16.1M, with gross margin rising to 48% from 29% year-over-year due to cost rationalization and tariff recovery.

• Consolidated gross margin improved to 27% from 25% year-over-year; adjusted gross margin rose to 31% from 25%.

• Adjusted EBITDA loss was $3.2M, a 59% improvement year-over-year.

• Cash and cash equivalents at quarter-end were $336.6M.

Outlook and guidance

• Management expects year-over-year revenue growth throughout FY2027, with further financial improvements anticipated as MTL Cannabis integration completes.

• Near-term gross margin target is mid-30s percent, with further improvements expected from cultivation and integration initiatives.

• Positive adjusted EBITDA is targeted for FY2027.

• International revenue, especially from Europe, is expected to grow as GMP certifications are finalized and new markets like the U.K. are entered.

• Strategies focus on driving growth in all end markets, emphasizing cultivation and high-quality flower supply.