Canada adult-use revenue up 30% in Q2 FY2026 and 37% year-to-date, reflecting the benefits of our focused commercial strategy and more disciplined execution
Canada medical revenue up 17% in Q2 FY2026 and 15% year-to-date, marking another standout quarter for growth
$298MM cash and cash equivalents, which exceeds debt balances by $70MM at September 30, 2025; as a result, conditions that previously raised substantial doubt concerning the Company's ability to continue as a going concern have been resolved
SMITHS FALLS, Ontario--(BUSINESS WIRE)--November 07, 2025--
Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX:WEED) (Nasdaq: CGC) today announced its financial results for the second quarter ended September 30, 2025 ("Q2 FY2026"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
"We're building a stronger, more competitive company defined by continued momentum in Canada adult-use cannabis, consistent growth in Canada medical cannabis, and a disciplined approach to strengthening our balance sheet. Together, these actions give me confidence in our ability to sustain progress and deliver results for quarters to come."
Luc Mongeau, Chief Executive Officer
"Our financial discipline continues to improve our path to profitability. Through cost reductions, margin expansion, and balance sheet strength, we're building a more resilient company poised for long term success."
Tom Stewart, Chief Financial Officer
Second Quarter Fiscal 2026 Financial Highlights
-- Consolidated net revenue in Q2 FY2026 was $67MM, representing an increase
of 6% compared to the second quarter ended September 30, 2024 ("Q2
FY2025").
-- Cannabis net revenue in Q2 FY2026 was $51MM, representing an
increase of 12% compared to Q2 FY2025.
-- Canada adult-use cannabis net revenue in Q2 FY2026 was
$24MM, representing an increase of 30% compared to Q2
FY2025. The increase was primarily attributable to growth
in infused pre-roll joints ("PRJ") and new All-In-One vapes
from Tweed and 7ACRES which launched in the three months
ended June 30, 2025 ("Q1 FY2026").
-- Canada medical cannabis net revenue in Q2 FY2026 was $22MM,
representing an increase of 17% compared to Q2 FY2025
driven by an increase in the number of insured patients,
increased order sizes, and a larger assortment of cannabis
product choices offered to our patients.
-- International markets cannabis net revenue in Q2 FY2026 was
$5MM, representing a decrease of 39% compared to Q2 FY2025.
The decrease was primarily attributable to supply chain
challenges in Europe.
-- Storz & Bickel net revenue in Q2 FY2026 was $16MM, representing a
decrease of 10% compared to Q2 FY2025. The decrease was primarily
attributable to lapping strong sales in the prior year and
continued consumer economic uncertainty in key markets, offset by
our new product launch of the VEAZY$(TM)$ in September 2025.
-- Consolidated gross margin in Q2 FY2026 was 33%, representing a decrease
of 200 basis points ("bps") compared to Q2 FY2025. Consolidated gross
margin in Q2 FY2026 increased sequentially by 800 bps compared to Q1
FY2026.
-- Cannabis gross margin was 31% in Q2 FY2026 as compared to 36% in
Q2 FY2025. This decrease was primarily attributable to lower sales
of higher margin international markets cannabis and higher
inventory provisions, partially offset by top line growth in
Canada adult-use cannabis and Canada medical cannabis and
efficiency improvements in the production of manufactured cannabis
products.
-- Storz & Bickel gross margin in Q2 FY2026 was 38%, representing an
increase of 600 bps compared to Q2 FY2025. Gross margin in Q2
FY2025 was depressed due to discounts provided to clear out
remaining stock of previously discontinued product.
-- Selling, General and Administrative ("SG&A") expenses decreased 13%
year-over-year in Q2 FY2026 compared to Q2 FY2025. The Company has
captured $21MM of annualized savings since March 1, 2025 and continues to
look for additional efficiencies.
-- Operating loss from continuing operations was $17MM in Q2 FY2026,
representing an improvement of 63% compared to Q2 FY2025. The improvement
was driven primarily by a reduction in operating expenses.
-- Adjusted EBITDA1 loss was $3MM in Q2 FY2026, compared to $6MM in Q2
FY2025, driven primarily by lower SG&A expenses.
-- Year-to-date free cash flow2 was an outflow of $31MM as of Q2 FY2026
compared to an outflow of $112MM as of Q2 FY2025. The year-over-year
decrease in the free cash outflow primarily reflects a reduction in the
cash interest payments due to timing of payments compared to the prior
quarter and a reduction in our debt balances and year-over-year change in
working capital movements.
-- The Company made prepayments totaling US$50MM against its senior secured
term loan in Q2 FY2026.
Business Highlights
-- Robust innovation pipeline of focused product formats and tighter
alignment with cannabis boards and retailers is expected to help drive
Canada adult-use cannabis top line growth in the second half of the
fiscal year ending March 31, 2026.
-- The Company's Kelowna-based DOJA cultivation facility now exclusively
serves Spectrum Therapeutics medical patients, supporting growth and
innovation in the high-value Canada medical cannabis business.
-- The Company has mobilized a dedicated effort to improve supply chain
execution in its European medical cannabis business. The Company expects
operations to stabilize and improve as the Company exits the fiscal year
ended March 31, 2026.
-- A full quarter of VEAZY(TM) sales, including the ramp-up in the
business-to-business channel, along with the typical strong sales around
the holiday season, is expected to support sequential growth in Storz &
Bickel net revenue in the third quarter ended December 31, 2025, though
tariff-related pressures may offset the near-term performance in certain
markets such as the United States.
-- The Company is taking steps to meaningfully lower its cost of goods sold
through streamlining processes, smart investments to deliver improved
yield and quality, as well as tighter supplier management.
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 November 7, 2025.
Webcast Information
A live audio webcast will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=EEDC9A65-53FA-40BD-9644-D3ABDCF91E72
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on February 5, 2026 at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=EEDC9A65-53FA-40BD-9644-D3ABDCF91E72
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; restructuring costs recorded in cost of goods sold; 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 September 30, 2025 (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 filed with the SEC.
About Canopy Growth
Canopy Growth is a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives.
Through an unwavering commitment to consumers, Canopy Growth delivers innovative products from owned and licensed brands including Tweed, 7ACRES, DOJA, Deep Space, and Claybourne, as well as category defining vaporization devices by Storz & Bickel. In addition, Canopy Growth serves medical cannabis patients globally with principal operations in Canada, Europe and Australia.
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA, LLC ("Canopy USA"). Canopy USA's portfolio includes ownership of Acreage Holdings, Inc., a vertically integrated multi--state cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana Wellness, LLC, The Cima Group, LLC, and Mountain High Products, LLC (collectively "Wana"), a leading North American edibles brand, and majority ownership of Lemurian, Inc. ("Jetty"), a California-based producer of high-quality cannabis extracts and clean vape technology.
At Canopy Growth, we're shaping a future where cannabis is embraced for its potential to enhance well-being and improve lives. With high-quality products, a commitment to responsible use, and a focus on enhancing the communities where we live and work, we're paving the way for a better understanding of all that cannabis can offer.
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
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;
-- 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 Jetty pursuant to the exercise of the option 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 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;
-- 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 ability to maintain effective 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 timing, occurrence and outcome of the vote relating to the Government
of Canada's proposed 2025 federal budget released on November 4, 2025,
including the proposed adjustment to the medical cannabis benefit program
as well as the related timing for implementation and the expected impact
thereof;
-- 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;
-- 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, 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); our ability to maintain an effective system of internal control; 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 cannot satisfy its 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 the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025 filed with the SEC and the risk factor discussed under the heading "Item 1A. Risk Factors" in the Form 10-Q. 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
CANOPY GROWTH CORPORATION CONDENSED INTERIM CONSOLIDATED BALANCE
SHEETS (in thousands of Canadian dollars, except number of shares and
per share data, unaudited)
September 30, March 31,
2025 2025
--------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 298,058 $ 113,811
Short-term investments - 17,656
Restricted short-term
investments 5,651 6,410
Amounts receivable, net 26,862 52,780
Inventory 102,373 96,373
Prepaid expenses and other
assets 12,872 7,544
----------- -----------
Total current assets 445,816 294,574
Other investments 189,070 179,977
Property, plant and equipment 288,816 293,523
Intangible assets 81,148 87,200
Goodwill 48,240 46,042
Other assets 16,748 16,385
----------- -----------
Total assets $ 1,069,838 $ 917,701
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 18,136 $ 26,099
Other accrued expenses and
liabilities 39,429 38,613
Current portion of long-term
debt 1,847 4,258
Other liabilities 21,692 25,434
----------- -----------
Total current liabilities 81,104 94,404
Long-term debt 226,333 299,811
Other liabilities 26,388 36,273
----------- -----------
Total liabilities 333,825 430,488
----------- -----------
Commitments and contingencies
Canopy Growth Corporation
shareholders' equity:
Share capital
Common shares - $nil par
value; Authorized -
unlimited; Issued and
outstanding - 332,380,579
shares and 183,865,295
shares, respectively.
Exchangeable shares - $nil
par value; Authorized -
unlimited; Issued and
outstanding - 26,261,474
shares and 26,261,474
shares, respectively. 9,078,337 8,796,406
Additional paid-in capital 2,614,968 2,618,417
Accumulated other comprehensive
income 14,019 535
Deficit (10,971,311) (10,928,145)
----------- -----------
Total shareholders' equity 736,013 487,213
----------- -----------
Total liabilities and
shareholders' equity $ 1,069,838 $ 917,701
=========== ===========
Schedule 2
CANOPY GROWTH CORPORATION CONDENSED INTERIM CONSOLIDATED STATEMENTS
OF OPERATIONS (in thousands of Canadian dollars, except number of
shares and per share data, unaudited)
Three months ended September 30,
------------------------------------
2025 2024
------------------- --------------
Revenue $ 82,998 $ 73,958
Excise taxes 16,315 10,967
--------------- -------------
Net revenue 66,683 62,991
Cost of goods sold 44,778 41,153
--------------- -------------
Gross margin 21,905 21,838
Operating expenses
Selling, general and
administrative expenses 36,296 41,730
Share-based compensation 2,009 5,221
Loss on asset impairment
and restructuring 494 20,830
--------------- -------------
Total operating
expenses 38,799 67,781
--------------- -------------
Operating loss from
continuing operations (16,894) (45,943)
Other income (expense),
net 15,469 (85,305)
--------------- -------------
Loss from continuing
operations before income
taxes (1,425) (131,248)
Income tax expense (214) (302)
--------------- -------------
Net loss from continuing
operations (1,639) (131,550)
Discontinued operations, net
of income tax - 3,257
--------------- -------------
Net loss attributable to
Canopy Growth Corporation $ (1,639) $ (128,293)
=============== =============
Basic and diluted loss per
share
Continuing operations $ (0.01) $ (1.52)
Discontinued operations - 0.04
--------------- -------------
Basic and diluted loss per
share $ (0.01) $ (1.48)
=============== =============
Basic and diluted weighted
average common shares
outstanding 274,025,102 86,827,991
Schedule 3
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars, unaudited)
Six months ended September 30,
------------------------------------
2025 2024
---------------- --------------
Cash flows from operating
activities:
Net loss $ (43,166) $ (255,431)
Gain from discontinued
operations, net of income
tax - 5,310
------------ -------------
Net loss from continuing
operations (43,166) (260,741)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Depreciation of property,
plant and equipment 9,531 10,628
Amortization of
intangible assets 9,384 10,709
Share-based compensation 1,910 9,372
Loss on asset impairment
and restructuring 412 18,768
Income tax expense 505 6,496
Non-cash fair value
adjustments and charges
related to settlement of
long-term debt (12,571) 147,290
Change in operating
assets and liabilities,
net of effects from
purchases of
businesses:
Amounts receivable 25,381 3,892
Inventory (5,154) (11,972)
Prepaid expenses and
other assets (5,538) (5,643)
Accounts payable and
accrued liabilities (8,002) (22,000)
Other, including non-cash
foreign currency (1,008) (12,431)
------------ -------------
Net cash used in operating
activities (28,316) (105,632)
------------ -------------
Cash flows from investing
activities:
Purchases of and deposits on
property, plant and
equipment (2,532) (6,509)
Purchases of intangible
assets (420) (14)
Proceeds on sale of
property, plant and
equipment 4 4,932
Redemption of short-term
investments 18,391 30,184
Net cash outflow on sale or
deconsolidation of
subsidiaries - (6,968)
Net cash inflow on loan
receivable - 28,303
Investment in other
financial assets - (95,335)
Other investing activities 581 -
------------ -------------
Net cash provided by (used in)
investing activities -
continuing operations 16,024 (45,407)
Net cash provided by investing
activities - discontinued
operations - 13,414
------------ -------------
Net cash provided by (used in)
investing activities 16,024 (31,993)
------------ -------------
Cash flows from financing
activities:
Proceeds from issuance of
common shares and warrants 281,516 138,476
Proceeds from exercise of
stock options - 112
Proceeds from exercise of
warrants - 8,454
Issuance of long-term debt
and convertible debentures - 68,255
Repayment of long-term debt (71,660) (13,484)
Other financing activities (15,399) (7,096)
------------ -------------
Net cash provided by financing
activities 194,457 194,717
------------ -------------
Effect of exchange rate changes
on cash and cash equivalents 2,082 1,024
------------ -------------
Net increase in cash and
cash equivalents 184,247 58,116
Cash and cash equivalents,
beginning of period 113,811 170,300
------------ -------------
Cash and cash equivalents, end
of period $ 298,058 $ 228,416
============ =============
Schedule 4
Three months ended
Net Revenue September 30,
-------------------
(in thousands of
Canadian
dollars) 2025 2024 $ Change % Change
------- ---------- -------- --------
Cannabis
Canadian
adult-use
cannabis(1) $23,940 $ 18,388 $ 5,552 30%
Canadian
medical
cannabis(2) 21,821 18,689 3,132 17%
International
markets
cannabis(3) 5,091 8,346 (3,255) (39%)
------ --------- ------- --------
$50,852 $ 45,423 $ 5,429 12%
------ --------- ------- --------
Storz & Bickel $15,831 $ 17,568 $ (1,737) (10%)
------ --------- ------- --------
Net revenue $66,683 $ 62,991 $ 3,692 6%
====== ========= ======= ========
(1) Includes excise taxes of $13,802 and other revenue
adjustments, representing our determination of returns and
pricing adjustments, of -$37 for the three months ended
September 30, 2025 (three months ended September 30, 2024 -
excise taxes of $8,903 and other revenue adjustments of
$1,300).
(2) Includes excise taxes of $2,513 for the three months
ended September 30, 2025 (three months ended September 30,
2024 - $2,064).
(3) Reflects other revenue adjustments of $359 for the three
months ended September 30, 2025 (three months ended
September 30, 2024 - $nil).
Schedule 5
Segmented Gross Margin
Three months ended September 30,
----------------------------------------
(in thousands of Canadian
dollars except where
indicated; unaudited) 2025 2024
---------------- ----------------
Cannabis segment
Net revenue $ 50,852 $ 45,423
============ ============
Gross margin, as reported 15,873 16,151
============ ============
Gross margin percentage, as
reported 31% 36%
============ === ============
Storz & Bickel segment
Revenue $ 15,831 $ 17,568
============ ============
Gross margin, as reported 6,032 5,687
============ ============
Gross margin percentage, as
reported 38% 32%
============ === ============
Schedule 6
Adjusted EBITDA(1)
Reconciliation (Non-GAAP
Measure)
Three months ended September 30,
--------------------------------------
(in thousands of Canadian
dollars, unaudited) 2025 2024
----------------- ---------------
Net loss from continuing
operations $ (1,639) $ (131,550)
Income tax expense 214 302
Other (income) expense, net (15,469) 85,305
Share-based compensation 2,009 5,221
Acquisition, divestiture, and
other costs 2,097 4,078
Depreciation and amortization 9,245 10,307
Loss on asset impairment and
restructuring 494 20,830
------------- --------------
Adjusted EBITDA(1) $ (3,049) $ (5,507)
============= ==============
(1) Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures".
Schedule 7
Free Cash Flow(1)
Reconciliation (Non-GAAP
Measure)
Three months ended September 30,
--------------------------------------
(in thousands of Canadian
dollars, unaudited) 2025 2024
------------------ --------------
Net cash used in operating
activities - continuing
operations $ (17,979) $ (53,852)
Purchases of and deposits on
property, plant and
equipment - continuing
operations (1,226) (2,589)
-------------- -------------
Free cash flow(1) -
continuing operations $ (19,205) $ (56,441)
============== =============
(1) Free cash flow is a non-GAAP measure. See "Non-GAAP Measures".
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Tyler Burns
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tyler.burns@canopygrowth.com
(END) Dow Jones Newswires
November 07, 2025 07:00 ET (12:00 GMT)
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