The broad-based revenue acceleration and margin improvement validate management's turnaround narrative, supporting the path to positive adjusted EBITDA in FY2027. Monitor the next quarter for working capital normalization (free cash flow turned negative) and continued gross margin expansion to confirm this inflection is real and not one-off.
Price Chart
Executive Summary
Canopy Growth reported Q1 FY2027 net revenue of $81.2M (+13% YoY), driven by broad-based growth across all segments (Canada medical +22%, Canada adult-use +10%, international +10%, Storz & Bickel +6%). Adjusted gross margin improved to 31% from 25% a year ago, and the adjusted EBITDA loss narrowed by 59% to $3.2M. The company is progressing toward its FY2027 positive adjusted EBITDA target, though free cash outflow widened to $25.7M on working capital timing.
Key Financial Metrics
Key Facts
- Consolidated net revenue of $81.2M in Q1 FY2027, up 13% year-over-year (vs $72.1M in Q1 FY2026)
- Cannabis net revenue grew 14% to $65.1M, with Canada medical +22%, Canada adult-use +10%, international +10%
- Storz & Bickel net revenue +6% to $16.1M, gross margin improved to 48% from 29% due to cost actions
- Adjusted gross margin improved to 31% from 25%, with cannabis adjusted gross margin up to 26% from 24%
- Adjusted EBITDA loss narrowed 59% to $3.2M (from $7.9M), on track for positive adjusted EBITDA in FY2027
- Net loss narrowed 68% to $14.6M ($0.03/share) from $44.9M ($0.24/share), beating the $-0.03 EPS consensus by 6.5%
- Free cash outflow increased to $25.7M from $11.6M, due to working capital timing; ended quarter with $336.6M cash
- FY2027 outlook: expects net revenue growth, meaningful gross margin improvements, positive adjusted EBITDA by year-end
Financial Impact
Net revenue $81.2M, up 13% YoY; net loss $14.6M ($0.03/share) vs consensus EPS $-0.03 (6.5% beat); adjusted EBITDA loss -$3.2M
Risk Factors
- Free cash flow worsened to -$25.7M on working capital timing; sustained negative FCF could pressure liquidity
- Cannabis gross margin (GAAP) declined to 22% from 24%, though adjusted margin improved
- Veterans Affairs Canada reimbursement reductions continue to partially offset medical cannabis growth
- Storz & Bickel gross margin recovery reliant on tariff relief and cost actions, which may not persist
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-339131 |
| Document: cgc-20260807.htm | 0001193125-26-339131 |
| Document: 0001193125-26-339131-index-headers.html | 0001193125-26-339131 |
| Document: 0001193125-26-339131-index.html | 0001193125-26-339131 |
| Document: 0001193125-26-339131.txt | 0001193125-26-339131 |
| 8-K Data (Synthetic) | 0001193125-26-339131 |
Track record builds as more directional reports settle.
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| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 10d ago | DEFA14A | $0.7160 | awaiting T+20 | — | $0.6867 (+4.09%) |
Oct 16, 2026 10d ago | 8-K | $0.7160 | awaiting T+20 | — | $0.6867 (+4.09%) |
Oct 6, 2026 20d ago | DEFA14A | $0.8765 | awaiting T+20 | — | $0.6867 (−21.65%) |
Sep 25, 2026 4w ago | DEFA14A | $0.9420 $0.6760 | ▼ −28.24% | ▼ −26.76% | $0.6867 (−27.10%) |
Sep 15, 2026 5w ago | DEFA14A | $0.9156 $0.7147 | ▼ −21.94% | ▼ −24.00% | $0.6867 (−25.00%) |
Aug 17, 2026 10w ago | DEFA14A | $0.9900 $0.9285 | ▼ −6.21% | ▼ −5.22% | $0.6867 (−30.64%) |
Aug 7, 2026 11w ago | DEFA14A | $0.9520 $0.9702 | ▲ +1.91% | ▲ +2.83% | $0.6867 (−27.87%) |
Aug 7, 2026 11w ago | 8-K | $0.9700 $0.9727 | ▲ +0.28% | ▲ +0.68% | $0.6867 (−29.21%) |
Jun 15, 2026 19w ago | 8-K | $0.9829 $0.9600 | ▲ +2.33% | ▲ +1.58% | $0.6867 (+30.14%) |
May 15, 2026 23w ago | 8-K | $0.9820 $0.9580 | ▲ +2.44% | ▲ +4.03% | $0.6867 (+30.07%) |
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