Canopy Growth (WEED) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 was transformative, with streamlined operations, cost base reset, and resource reallocation to high-return areas.

• Net revenue grew 6% to CAD 285 million, with Q4 consolidated net revenue up 10% year-over-year to CAD 71.2 million.

• Canada adult-use cannabis net revenue rose 20% for the year, while Canada medical cannabis grew 18% for the year and 27% in Q4.

• Acquisition of MTL Cannabis established leadership in Canadian medical cannabis and accelerated integration and synergy realization.

• Recapitalization strengthened the balance sheet, stabilized cash, and extended debt maturities to 2031, ending FY2026 with CAD 131 million net cash.

Financial highlights

• Q4 cannabis net revenue reached CAD 54.5 million, up 20% year-over-year; full-year cannabis net revenue was CAD 213.9 million, up 15%.

• International cannabis net revenue in Q4 was CAD 8.6 million, up 68% year-over-year, mainly from Poland and Germany.

• Adjusted gross margin for cannabis in Q4 was 26%, up from 12% in Q4 2025; consolidated Q4 adjusted gross margin was 27%.

• Adjusted EBITDA loss for Q4 was CAD 6 million, a CAD 3 million improvement year-over-year; full-year adjusted EBITDA loss was CAD 20.2 million, improved by 14%.

• Free cash outflow improved to CAD 69.1 million in FY2026 from CAD 176.6 million in FY2025.

Outlook and guidance

• Expectation to achieve positive Adjusted EBITDA during fiscal 2027, with improvements more pronounced in the second half as MTL Cannabis integration progresses.

• Anticipate slower growth in the first half of fiscal 2027 due to integration and product portfolio adjustments.

• Strengthened cultivation practices and ongoing cost discipline projected to enhance gross margin and reduce operating expenses.

• Early fiscal 2027 trends show continued market share momentum and top-three positions in key Canadian categories.

• International and recreational segments expected to drive overall growth, with Canadian medical facing headwinds but aiming for flat EBITDA.