Canopy Growth (WEED) investor relations material

Market opportunity and strategic positioning

• Targeting a $70B+ CAD global cannabis market by 2028, driven by adult-use and medical demand in the U.S., Canada, Germany, and other international markets.

• Focused business structure with dedicated units for global medical, Canadian adult-use, and vaporization, each accountable for performance.

• Asset-right model leverages owned core assets and leading CMO partnerships to improve adaptability and supply chain efficiency.

• Leadership team is described as dynamic and engaged, united by a passion for cannabis.

Financial performance and discipline

• Q3 FY2026 consolidated net revenue was $75M, flat year-over-year, with cannabis net revenue up 4% and Storz & Bickel down 9%.

• Gross margin declined to 29% from 32% in Q3 FY2025, mainly due to lower international cannabis sales and changes in sales mix.

• Adjusted EBITDA loss improved 17% year-over-year to $(3)M, driven by lower SG&A expenses.

• Free cash flow outflow reduced to $(19)M from $(28)M, reflecting lower cash interest payments and improved working capital.

• Debt reduced to $217M in Q3 FY2026, with $371M in cash and a net cash position of $146M.

Business unit highlights

• Canada adult-use cannabis net revenue grew 8% to $23M, led by infused pre-rolls and new vape products.

• Canada medical cannabis net revenue rose 15% to $23M, driven by more insured patients and larger order sizes.

• International cannabis revenue fell 31% year-over-year due to European supply chain challenges but increased 22% sequentially.

• Storz & Bickel net revenue was $23M, up 45% sequentially due to seasonal sales and the new VEAZY device, but down 9% year-over-year.