Full-year 2026 growth driven by net revenue increases of 20% in Canada adult-use cannabis and 18% in Canada medical
Completed acquisition of MTL Cannabis, positioning Canopy Growth as Canada's leading medical cannabis company by revenue
Ended the fiscal year with $131.3M of net cash following strategic recapitalization completed in January 2026
Strategic decisions and financial discipline in FY2026 establish a foundation for acceleration and growth
SMITHS FALLS, Ontario--(BUSINESS WIRE)--June 15, 2026--
Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (Nasdaq: CGC) today announced its financial results for the three months ended March 31, 2026 ("Q4 FY2026") and the fiscal year ended March 31, 2026 ("FY2026"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
"In fiscal 2026, we reset the business, laid a disciplined foundation, and made deliberate investments, including acquiring MTL Cannabis, that will drive the next phase of growth. We modernized our approach to innovation, and our business structure was optimized around a clear strategy. Looking ahead, the opportunity in front of us is significant. As the leading medical cannabis business in Canada by revenue, we are well positioned to extend that leadership into Europe -- a market we believe represents enormous long-term opportunity and one where our brands, products and relentless execution give us a real competitive edge. We enter fiscal 2027 with momentum, clarity, and a team that has proven it can execute."
Luc Mongeau, Chief Executive Officer
"The significant strengthening of our balance sheet during fiscal 2026 reduces risk while expanding our strategic flexibility. We took meaningful steps to reduce costs and focus resources where they can drive the best returns, and these efforts are starting to be reflected in our financial results. We are confident we have the right strategy and financial model in place to achieve our goal of delivering positive Adjusted EBITDA during fiscal 2027."
Tom Stewart, Chief Financial Officer
Fourth Quarter FY2026 and FY2026 Financial Highlights
-- Consolidated net revenue of $71.2M in Q4 FY2026 increased 10% over the
same period in the prior year. Consolidated net revenue in FY2026 was
$284.6M, an increase of 6% compared to the fiscal year ended March 31,
2025 ("FY2025").
-- Cannabis net revenue was $54.5M in Q4 FY2026 and $213.9M for the
full year, an increase of 20% and 15% respectively, versus the
prior-year periods.
-- Canada medical cannabis net revenue in Q4 FY2026 was
$25.3M, an increase of 27% versus the three months ended
March 31, 2025 ("Q4 FY2025"), driven by growth in the
number of insured patients and a larger assortment of
cannabis product choices offered to our customers, while
full-year Canada medical cannabis net revenue increased 18%
over FY2025.
-- Canada adult-use cannabis net revenue in Q4 FY2026 was
$20.6M, an increase of 1% compared to Q4 FY2025 due to
strong performance in vapes and infused pre-roll joints
("PRJ"). In FY2026, Canada adult-use cannabis net revenue
increased 20% over FY2025 driven by growth in infused PRJ
offerings and new All-In-One vaporizers launched early in
the fiscal year.
-- International markets cannabis net revenue of $8.6M in Q4
FY2026 represented 68% growth compared to Q4 FY2025, as the
Company addressed supply chain challenges in Europe
experienced earlier in the fiscal year. Overall in FY2026,
international markets cannabis net revenue decreased 7%
compared to FY2025.
-- Storz & Bickel net revenue in Q4 FY2026 was $16.8M, a 14%
decrease compared to Q4 FY2025. In FY2026, Storz & Bickel net
revenue was $70.7M, 14% below FY2025. The decreases in both
periods are primarily attributable to lapping strong sales in the
prior year and continued consumer economic uncertainty, offset by
the new VEAZY product, which launched in September 2025.
-- Consolidated gross margin in Q4 FY2026 was 12%, compared to 16% in Q4
FY2025. Consolidated gross margin in FY2026 was 24%, compared to 30% in
FY2025.
-- The Company incurred $10.7 million of inventory charges in Q4
FY2026, primarily resulting from a review of the overall Cannabis
segment inventory levels following the acquisition of MTL Cannabis
Corp. ("MTL Cannabis"). Excluding the impact of the inventory
write-offs and the flow-through of inventory step-up relating to
the acquisition of MTL Cannabis, adjusted gross margin1 was 27% in
Q4 FY2026, as compared to adjusted gross margin of 19% in Q4
FY2025 (which excludes restructuring costs recorded in cost of
goods sold).
-- Cannabis gross margin in Q4 FY2026 was 7% compared to 8% in Q4
FY2025, while adjusted gross margin1 for the segment was 26% in Q4
FY2026 compared to 12% in Q4 FY2025. Cannabis gross margin was 22%
in FY2026, compared to 26% in FY2025. The decreases in the gross
margin percentage were primarily attributable to lower sales
relating to international markets, higher inventory provisions,
costs related to new product launches and a shift in both product
and geographical mix.
-- Storz & Bickel gross margin of 27% in Q4 FY2026 compared to 36%
in Q4 FY2025. Gross margin in FY2026 was 33%, compared to 37% in
FY2025. The decreases in gross margin are due to lower sales,
increased tariffs on imports into the United States and shifts in
geographic mix.
-- Selling, General and Administrative expenses ("SG&A") in Q4 FY2026 were
7% higher than in Q4 FY2025. SG&A in FY2026 decreased 6% compared to
FY2025. The year-over-year reduction was driven by continued reductions
in headcount and third-party costs including insurance, professional fees
and IT costs.
-- The Company recorded $67.1M of asset impairment and restructuring costs
in FY2026, primarily related to the impairment of goodwill and brands
associated with Storz & Bickel and employee restructuring costs.
-- Net loss from continuing operations in Q4 FY2026 was 21% lower compared
to Q4 FY2025. Net loss from continuing operations in FY2026 narrowed by
49% year-over-year.
-- Adjusted EBITDA2 loss for Q4 FY2026 was $6.3M, an improvement of $2.9M
or 32% compared to Q4 FY2025. Adjusted EBITDA loss of $20.2M in FY2026
narrowed by $3.3M or 14% compared to FY2025, primarily attributable to
SG&A cost savings.
-- Free cash outflow3 improved year-over-year, from $176.6M in FY2025 to
$69.1M in FY2026.
-- Net cash position of $131.3M at the end of FY2026 represented an
improvement of $303.9M compared to net debt of $172.6M at the end of
FY2025.
Fiscal 2026 Highlights
-- Completed the acquisition of MTL Cannabis, strengthening the Company's
global cannabis platform.
-- Established Canopy Growth as the leading medical cannabis provider in
Canada by revenue.
-- Launched Spectrum Reserve, a new premium medical cannabis brand
featuring flower selected for size, potency, and terpene levels through
rigorous in-house standards during cultivation and post-harvest
processing.
-- Implemented a combination of pricing actions, refinements to the
Company's product mix, and patient retention efforts to help minimize the
impact of the recent reduction to the medical cannabis reimbursement
offered by Veterans Affairs Canada.
-- Strengthened supply chain execution in the Company's European medical
cannabis business in response to supply constraints that affected
international markets cannabis revenue.
-- Expanded medical cannabis offering in Australia with two high-THC (as
defined below) sativa 7ACRES strains, Ultra Jack and Jack Frost, and
Spectrum Therapeutics softgel capsules in cannabidiol ("CBD"), THC, and
balanced formats.
-- Canada adult-use cannabis growth was driven by a series of product
innovations targeting Canada's fastest-growing adult-use categories,
including vapes, high-THC flower, PRJs, and edibles.
-- Introduced DeeLish, a new cannabis brand featuring 27%--33% THC flower
and 26%--32% THC PRJs across rotating genetics.
-- Storz & Bickel launched the new VEAZY$(TM)$ vaporizer, expanding the
brand's portable vaporizer portfolio while reinforcing its strategy
around affordability and portability.
FY2027 Outlook
The Company expects successful execution of its strategic priorities to drive net revenue growth across the business in the fiscal year ended March 31, 2027 ("FY2027"). Implementation of strengthened cultivation practices is projected to contribute to meaningful improvements in gross margin. Ongoing cost discipline, as well as a full year of the efficiencies implemented during FY2026, are expected to lead to reduced operating expense.
As a result, the Company expects to reach positive adjusted EBITDA(2) during FY2027. With MTL Cannabis integration activities ongoing in the first half of 2027, the year-over-year improvements are expected to be more pronounced in the second half of the fiscal year.
(1) Adjusted gross margin is a non-GAAP measure. See "Non-GAAP Measures" and Schedules 5 and 6 for a reconciliation of adjusted gross margin on a consolidated basis and by segment. (2) Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 7 for a reconciliation of net loss from continuing operations to adjusted EBITDA. (3) Free cash flow is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 8 for a reconciliation of free cash flow - continuing operations.
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 June 15, 2026.
Webcast Information
A live audio webcast will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=A7EE0D0C-0666-4DFD-8731-2283EDBF8C3B
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on September 13, 2026 at the same URL.
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; acquisition-related restructuring and other inventory write-downs; 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2026 (the "Form 10-K") to be 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-K.
Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that adjusted gross margin and adjusted gross margin percentage present meaningful and useful financial information as these measures provide insights into the gross margin performance of the business. Adjusted gross margin is calculated as gross margin excluding acquisition related restructuring and other inventory write-downs, and charges related to the flow-through of inventory step-up on business combinations. Adjusted gross margin percentage is calculated as adjusted gross margin divided by net revenue. The adjusted gross margin and adjusted gross margin percentage reconciliation is presented within this news release.
About Canopy Growth
Canopy Growth is a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives. Its portfolio of owned and licensed brands including Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL and R'belle, as well as category defining Storz & Bickel, delivers innovative products to consumers across Canada and beyond.
Canopy Growth is Canada's leading provider of medical cannabis services through Canada House Clinics and serves patients online via Abba Medix. The Company also holds unconsolidated, non-controlling interest in Canopy USA, LLC ("Canopy USA"), which provides exposure to the U.S. THC market.
Committed to quality, responsible use, and community, Canopy Growth is shaping a future where cannabis is embraced for its potential to enhance well-being.
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 Lemurian, Inc. ("Jetty") by Canopy USA 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 Wellness, LLC, The
Cima Group, LLC, and Mountain High Products, LLC (collectively, "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, including our acquisition of MTL Cannabis;
-- 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 remediation plan and our ability to remediate the material weakness
in our 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 impact of the implementation of the rescheduling of medical
cannabis from a Schedule I controlled substance under the United States
Controlled Substances Act to a Schedule III controlled substance;
-- 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 ("THC");
-- 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;
-- the effects of tariffs and related regulatory measures, the levels of
inflation, interest rates and trade policy and risks relating to the
evolving regulatory landscape in the United States, on our costs and our
margins;
-- the effects of the conflict in the Middle East and its impact on global
commerce and shipping supply chains and potential shipping delays;
-- 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, risks related to our ability to remediate the material weakness identified in our internal control over financial reporting as of March 31, 2026, or inability to otherwise maintain an effective system of internal control; the risk that the restatement of certain of our prior financial statements could negatively affect investor confidence and raise reputation risks; 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); 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 Holdings, Inc. and Wana cannot satisfy their 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 Form 10-K. 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 CONSOLIDATED BALANCE SHEETS (in thousands
of Canadian dollars, except number of shares and per share data,
unaudited)
March 31, March 31,
2026 2025
------------ ---------------
(As Restated)
ASSETS
Current assets:
Cash and cash equivalents $ 364,683 $ 113,811
Short-term investments - 17,656
Restricted short-term
investments 5,046 6,410
Amounts receivable, net 36,289 52,780
Inventory 110,513 96,373
Prepaid expenses and other
assets 12,935 7,544
----------- -----------
Total current assets 529,466 294,574
Other investments 108,010 179,977
Property, plant and equipment 316,494 293,523
Intangible assets 92,411 87,200
Goodwill 55,685 46,042
Other assets 16,666 16,385
----------- -----------
Total assets $ 1,118,732 $ 917,701
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 34,817 $ 26,099
Other accrued expenses and
liabilities 42,999 38,613
Current portion of long-term
debt 16,237 4,258
Warrant derivative liability 27,522 8,647
Other liabilities 36,868 25,434
----------- -----------
Total current liabilities 158,443 103,051
Long-term debt 217,123 299,811
Deferred income tax liabilities 8,199 -
Other liabilities 37,373 36,273
----------- -----------
Total liabilities 421,138 439,135
----------- -----------
Commitments and contingencies
Canopy Growth Corporation
shareholders' equity:
Share capital
Common shares - $nil par
value; Authorized -
unlimited; Issued and
outstanding - 422,068,225
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. 9,233,577 8,782,405
Additional paid-in capital 2,591,714 2,570,945
Accumulated other comprehensive
income 10,530 535
Deficit (11,138,227) (10,875,319)
----------- -----------
Total shareholders' equity 697,594 478,566
----------- -----------
Total liabilities and
shareholders' equity $ 1,118,732 $ 917,701
=========== ===========
Schedule 2
CANOPY GROWTH CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands of
Canadian dollars, except number of shares and per share data, unaudited)
Three months ended March 31, Years ended March 31,
------------------------------ ------------------------------
2026 2025 2026 2025
------------ --------------- ------------ ---------------
(As Restated) (As Restated)
Revenue $ 84,690 $ 77,984 $ 346,827 $ 313,969
Excise taxes 13,445 12,953 62,224 44,974
----------- ----------- ----------- -----------
Net revenue 71,245 65,031 284,603 268,995
Cost of goods sold 62,984 54,487 214,933 189,484
----------- ----------- ----------- -----------
Gross margin 8,261 10,544 69,670 79,511
Operating expenses
Selling, general
and
administrative
expenses 41,143 38,452 159,984 169,626
Share-based
compensation 1,468 (18,736) 4,266 (4,205)
Loss on asset
impairment and
restructuring 61,441 9,098 67,079 31,233
----------- ----------- ----------- -----------
Total
operating
expenses 104,052 28,814 231,329 196,654
----------- ----------- ----------- -----------
Operating loss from
continuing
operations (95,791) (18,270) (161,659) (117,143)
Other income
(expense), net (59,783) (178,071) (101,226) (390,617)
----------- ----------- ----------- -----------
Loss from
continuing
operations before
income taxes (155,574) (196,341) (262,885) (507,760)
Income tax
(recovery)
expense 850 (329) (23) (7,141)
----------- ----------- ----------- -----------
Net loss from
continuing
operations (154,724) (196,670) (262,908) (514,901)
Discontinued
operations, net of
income tax - 713 - 6,023
----------- ----------- ----------- -----------
Net loss
attributable to
Canopy Growth
Corporation $ (154,724) $ (195,957) $ (262,908) $ (508,878)
=========== =========== =========== ===========
Basic and diluted
loss per share
Continuing
operations $ (0.40) $ (1.27) $ (0.88) $ (4.79)
Discontinued
operations - - - 0.06
----------- ----------- ----------- -----------
Basic and diluted
loss per share $ (0.40) $ (1.27) $ (0.88) $ (4.73)
=========== =========== =========== ===========
Basic and diluted
weighted average
common shares
outstanding 384,988,024 154,551,440 298,043,044 107,553,729
Schedule 3
CANOPY GROWTH CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars, unaudited)
Years ended March 31,
-------------------------------
2026 2025
------------- ---------------
(As Restated)
Cash flows from operating
activities:
Net loss $ (262,908) $ (508,878)
Gain (loss) from discontinued
operations, net of income tax - 6,023
--------- -----------
Net loss from continuing
operations (262,908) (514,901)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation of property,
plant and equipment 19,026 21,522
Amortization of intangible
assets 17,447 21,596
Share-based compensation 4,266 (4,205)
Loss on asset impairment and
restructuring 58,055 20,285
Income tax expense 23 7,141
Non-cash fair value
adjustments and charges
related to settlement of
long-term debt 72,907 324,175
Change in operating assets
and liabilities, net of
effects from purchases of
businesses:
Amounts receivable 25,685 (4,485)
Inventory 3,710 (17,715)
Prepaid expenses and other
assets (4,367) 5,719
Accounts payable and
accrued liabilities (4,353) (15,484)
Other, including non-cash
foreign currency 6,703 (9,398)
--------- -----------
Net cash used in operating
activities (63,806) (165,750)
--------- -----------
Cash flows from investing
activities:
Purchases of and deposits on
property, plant and equipment (5,333) (10,813)
Purchases of intangible assets (620) (467)
Proceeds on sale of property,
plant and equipment 5 4,932
Redemption of short-term
investments 19,001 16,428
Net cash outflow on sale or
deconsolidation of subsidiaries - (6,968)
Net cash outflow on acquisition
of subsidiaries (41,536) -
Net cash inflow on loan
receivable 153 30,308
Investment in other financial
assets - (95,335)
Other investing activities 6,981 -
--------- -----------
Net cash provided by (used in)
investing activities - continuing
operations (21,349) (61,915)
Net cash provided by investing
activities - discontinued
operations - 14,127
--------- -----------
Net cash provided by (used in)
investing activities (21,349) (47,788)
--------- -----------
Cash flows from financing
activities:
Proceeds from issuance of common
shares and warrants 374,171 385,391
Proceeds from exercise of stock
options - 112
Proceeds from exercise of
warrants - 8,454
Issuance of long-term debt and
convertible debentures 207,990 68,255
Repayment of long-term debt (221,508) (289,031)
Debt issuance and extinguishment
costs (11,039) (791)
Other financing activities (17,205) (23,730)
--------- -----------
Net cash provided by (used in)
financing activities 332,409 148,660
--------- -----------
Effect of exchange rate changes on
cash and cash equivalents 3,618 8,389
--------- -----------
Net increase/(decrease) in cash
and cash equivalents 250,872 (56,489)
Cash and cash equivalents,
beginning of period 113,811 170,300
--------- -----------
Cash and cash equivalents, end of
period $ 364,683 $ 113,811
========= ===========
Schedule 4 -
Segment Net
Revenue
Three months
Net Revenue ended March 31,
----------------
(in thousands of
Canadian
dollars) 2026 2025 $ Change % Change
------- ------- --------- --------
Cannabis
Canadian
adult-use
cannabis(1) $20,584 $20,404 $ 180 1%
Canadian
medical
cannabis(2) 25,280 19,973 5,307 27%
International
markets
cannabis(3) 8,599 5,131 3,468 68%
------ ------ -------- --------
$54,463 $45,508 $ 8,955 20%
------ ------ -------- --------
Storz & Bickel $16,782 $19,523 $ (2,741) (14%)
------ ------ -------- --------
Net revenue $71,245 $65,031 $ 6,214 10%
====== ====== ======== ========
(1) Includes excise taxes of $10,616 and other revenue
adjustments, representing our determination of returns
and pricing adjustments, of $2,675 for the three months
ended March 31, 2026 (three months ended March 31, 2025
- excise taxes of $10,687 and other revenue adjustments
of $742).
(2) Includes excise taxes of $2,829 for the three months
ended March 31, 2026 (three months ended March 31, 2025
- $2,266).
(3) Reflects other revenue adjustments of -$70 for the
three months ended March 31, 2026 (three months ended
March 31, 2025 - $50).
Year ended March
Net Revenue 31,
------------------
(in thousands of
Canadian
dollars) 2026 2025 $ Change % Change
-------- -------- --------- --------
Cannabis
Canadian
adult-use
cannabis(1) $ 94,472 $ 78,828 $ 15,644 20%
Canadian
medical
cannabis(2) 90,818 77,032 13,786 18%
International
markets
cannabis(3) 28,654 30,866 (2,212) (7%)
------- ------- -------- --------
$213,944 $186,726 $ 27,218 15%
------- ------- -------- --------
Storz & Bickel $ 70,659 $ 82,269 $ (11,610) (14%)
------- ------- -------- --------
Net revenue $284,603 $268,995 $ 15,608 6%
======= ======= ======== ========
(1) Reflects excise taxes of $51,856 and other revenue
adjustments, representing our determination of returns and
pricing adjustments, of $3,885 for the year ended March
31, 2026 (year ended March 31, 2025 - excise taxes of
$36,442 and other revenue adjustments of $4,166).
(2) Reflects excise taxes of $10,368 for the year ended
March 31, 2026 (year ended March 31, 2025 - $8,532).
(3) Reflects other revenue adjustments of $1,222 for the
year ended March 31, 2026 (year ended March 31, 2025 -
$100).
Schedule 5 - Consolidated Gross
Margin and Adjusted Gross
Margin
Three months ended March 31,
----------------------------------
(in thousands of Canadian
dollars except where indicated;
unaudited) 2026 2025
--------------- -----------
Net revenue $ 71,245 $ 65,031
=========== ==========
Gross margin, as reported 8,261 10,544
=========== ==========
Gross margin percentage, as
reported 12% 16%
=========== === ==========
Adjustments to gross margin:
Acquisition related
restructuring and other
inventory write-downs 9,878 1,991
Charges related to the
flow-through of inventory
step-up on business
combinations 849 -
----------- ----------
Adjusted gross margin(1) $ 18,988 $ 12,535
=========== ==========
Adjusted gross margin
percentage(1) 27% 19%
=========== === ==========
(1) Adjusted gross margin and adjusted gross margin percentage are
non-GAAP measures. See "Non-GAAP Measures".
Years ended March 31,
---------------------------
(in thousands of Canadian dollars
except where indicated; unaudited) 2026 2025
------------ ---------
Net revenue $ 284,603 $ 268,995
======== ========
Gross margin, as reported 69,670 79,511
======== ========
Gross margin percentage, as reported 24% 30%
======== ========
Adjustments to gross margin:
Acquisition related restructuring and
other inventory write-downs 9,878 1,991
Charges related to the flow-through
of inventory step-up on business
combinations 849 -
-------- --------
Adjusted gross margin(1) $ 80,397 $ 81,502
======== ========
Adjusted gross margin percentage(1) 28% 30%
======== ========
(1) Adjusted gross margin and adjusted gross margin percentage are
non-GAAP measures. See "Non-GAAP Measures".
Schedule 6 - Gross Margin and
Adjusted Gross Margin by
Segment
Three months ended March 31,
----------------------------------
(in thousands of Canadian
dollars except where indicated;
unaudited) 2026 2025
--------------- -----------
Cannabis segment
Net revenue $ 54,463 $ 45,508
=========== ==========
Gross margin, as reported 3,652 3,467
=========== ==========
Gross margin percentage, as
reported 7% 8%
=========== === ==========
Adjustments to gross margin:
Acquisition related
restructuring and other
inventory write-downs 9,878 1,991
Charges related to the
flow-through of inventory
step-up on business
combinations 849 -
----------- ----------
Adjusted gross margin(1) $ 14,379 $ 5,458
=========== ==========
Adjusted gross margin
percentage(1) 26% 12%
=========== === ==========
Storz & Bickel segment
Revenue $ 16,782 $ 19,523
=========== ==========
Gross margin, as reported 4,609 7,077
=========== ==========
Gross margin percentage, as
reported 27% 36%
=========== === ==========
(1) Adjusted gross margin and adjusted gross margin percentage are
non-GAAP measures. See "Non-GAAP Measures".
Year ended March 31,
--------------------------
(in thousands of Canadian dollars except
where indicated; unaudited) 2026 2025
------------ --------
Cannabis segment
Net revenue $ 213,944 $186,726
======== =======
Gross margin, as reported 46,092 48,995
======== =======
Gross margin percentage, as reported 22% 26%
======== =======
Adjustments to gross margin:
Acquisition related restructuring and
other inventory write-downs 9,878 1,991
Charges related to the flow-through of
inventory step-up on business
combinations 849 -
-------- -------
Adjusted gross margin(1) $ 56,819 $ 50,986
======== =======
Adjusted gross margin percentage(1) 27% 27%
======== =======
Storz & Bickel segment
Revenue $ 70,659 $ 82,269
======== =======
Gross margin, as reported 23,578 30,516
======== =======
Gross margin percentage, as reported 33% 37%
======== =======
(1) Adjusted gross margin and adjusted gross margin percentage are
non-GAAP measures. See "Non-GAAP Measures".
Schedule 7 - Adjusted EBITDA
Three months ended March 31,
-------------------------------------
(in thousands of Canadian
dollars, unaudited) 2026 2025
---------------- ---------------
(As Restated)
Net loss from continuing
operations $ (154,724) $ (196,670)
Income tax expense (850) 329
Other (income) expense, net 59,783 178,071
Share-based compensation 1,468 (18,736)
Acquisition, divestiture, and
other costs(1) 7,168 5,202
Depreciation and amortization 8,653 11,467
Loss on asset impairment and
restructuring 61,441 9,098
Acquisition related
restructuring and other
inventory write-downs 9,878 1,991
Charges related to the
flow-through of inventory
step-up on business
combinations 849 -
------------ -----------
Adjusted EBITDA(2) $ (6,334) $ (9,248)
============ ===========
(1) Acquisition, divestiture, and other costs include discrete
transaction and litigation costs.
(2) Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures".
Years ended March 31,
-------------------------------
(in thousands of Canadian dollars,
unaudited) 2026 2025
------------- ---------------
(As Restated)
Net loss from continuing operations $ (262,908) $ (514,901)
Income tax expense 23 7,141
Other (income) expense, net 101,226 390,617
Share-based compensation 4,266 (4,205)
Acquisition, divestiture, and
other costs(1) 22,944 21,502
Depreciation and amortization 36,473 43,118
Loss on asset impairment and
restructuring 67,079 31,233
Acquisition related restructuring
and other inventory write-downs 9,878 1,991
Charges related to the
flow-through of inventory step-up
on business combinations 849 -
--------- -----------
Adjusted EBITDA(2) $ (20,170) $ (23,504)
========= ===========
(1) Acquisition, divestiture, and other costs include discrete
transaction and litigation costs.
(2) Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures".
Schedule 8 - Free Cash Flow
Free Cash Flow(1) Reconciliation
(Non-GAAP Measure)
Three months ended March 31,
----------------------------------
(in thousands of Canadian
dollars, unaudited) 2026 2025
---------------- ------------
Net cash used in operating
activities - continuing
operations $ (18,254) $ (33,152)
Purchases of and deposits on
property, plant and equipment -
continuing operations (1,000) (3,089)
------------ -----------
Free cash flow(1) - continuing
operations $ (19,254) $ (36,241)
============ ===========
(1) Free cash flow is a non-GAAP measure. See "Non-GAAP Measures".
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