Canopy Growth (WEED) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 saw significant progress with double-digit Canadian cannabis growth, narrowing net loss by 49% year-over-year, and a strong cash position of $371M with net cash of $146M as of December 31, 2025.

• Net revenue for Q3 FY2026 was $74.5M, nearly flat year-over-year, with net loss from continuing operations of $62.6M, a significant improvement from $121.9M loss in Q3 FY2025.

• Adjusted EBITDA loss improved to $2.9M in Q3 FY2026 from $3.5M in Q3 FY2025, reflecting cost discipline and improved execution.

• Completed a $150M recapitalization in January 2026, extending debt maturities to 2031 and improving liquidity.

• Announced proposed acquisition of MTL Cannabis, expected to be accretive and strengthen leadership in Canadian medical and Quebec adult use markets.

Financial highlights

• Q3 FY2026 consolidated net revenue was $75M, flat year-over-year; cannabis net revenue rose 4% to $52M.

• Canadian medical cannabis net revenue grew 15% year-over-year to $23M; adult-use cannabis revenue increased 8% to $23M.

• International cannabis net revenue fell 31% year-over-year but rose 22% sequentially due to improved European supply chain.

• Storz & Bickel net revenue was $23M, up 45% sequentially but down 9% year-over-year.

• Gross margin for Q3 was 29% (down from 32% year-over-year); cannabis segment margin at 25%, Storz & Bickel at 37%.

• SG&A expense decreased 12% year-over-year, reflecting ongoing cost savings, though total SG&A rose 7% due to acquisition/divestiture/litigation costs.

• Adjusted EBITDA loss narrowed to $2.9M.

• Free cash outflow improved to $19M in Q3 FY2026 from $28M last year.

Outlook and guidance

• Targeting positive Adjusted EBITDA during fiscal 2027, supported by cost structure optimization and expected core business growth.

• Expect continued strength in Canadian adult use and medical channels, with innovation and distribution expansion.

• International cannabis expected to see sequential improvements in Q4 and fiscal 2027, especially in Europe.

• Anticipate improvements in cannabis gross margins in Q4 and fiscal 2027.

• MTL acquisition expected to be accretive to net revenue, gross margin, and Adjusted EBITDA.