Canopy Growth(CGC) - 2026 Q2 - Quarterly Results

Financial Performance - Consolidated net revenue in Q2 FY2026 was $67MM, a 6% increase compared to Q2 FY2025[3] - Canada adult-use cannabis net revenue in Q2 FY2026 was $24MM, reflecting a 30% increase year-over-year[3] - Canada medical cannabis net revenue in Q2 FY2026 was $22MM, representing a 17% increase compared to Q2 FY2025[3] - International markets cannabis net revenue in Q2 FY2026 was $5MM, a 39% decrease compared to Q2 FY2025 due to supply chain challenges[3] - Total revenue for the three months ended September 30, 2025, was CAD 82,998,000, an increase of 12.5% compared to CAD 73,958,000 in the same period of 2024[30] - Net revenue after excise taxes was CAD 66,683,000, up from CAD 62,991,000, reflecting a growth of 5.4% year-over-year[30] - Total net revenue for the three months ended September 30, 2025, was $66,683, an increase of 6% from $62,991 in 2024[35] - Canadian adult-use cannabis revenue increased by 30% to $23,940 for the three months ended September 30, 2025, compared to $18,388 in 2024[35] Profitability and Loss - Consolidated gross margin in Q2 FY2026 was 33%, a decrease of 200 basis points compared to Q2 FY2025[3] - Operating loss from continuing operations was $17MM in Q2 FY2026, an improvement of 63% compared to Q2 FY2025[6] - Adjusted EBITDA loss was $3MM in Q2 FY2026, compared to a loss of $6MM in Q2 FY2025[6] - Operating loss from continuing operations decreased to CAD 16,894,000 from CAD 45,943,000, indicating improved operational efficiency[30] - The net loss attributable to Canopy Growth Corporation was CAD 1,639,000, a significant reduction from CAD 128,293,000 in the prior year[30] - The gross margin percentage for the cannabis segment decreased to 31% in Q3 2025 from 36% in Q3 2024[38] - Adjusted EBITDA for the three months ended September 30, 2025, was $(3,049), an improvement from $(5,507) in 2024[41] Cash Flow and Liquidity - Year-to-date free cash flow was an outflow of $31MM as of Q2 FY2026, significantly improved from an outflow of $112MM in Q2 FY2025[6] - Cash and cash equivalents increased to CAD 298,058,000 from CAD 113,811,000, showing a strong liquidity position[27] - Cash and cash equivalents at the end of the period increased to $298,058 from $228,416 in the previous year[33] - Net cash provided by financing activities was $194,457 for the six months ended September 30, 2025, compared to $194,717 in 2024[33] - The company reported a net cash used in operating activities of $(28,316) for the six months ended September 30, 2025, down from $(105,632) in 2024[33] - The company experienced a net cash inflow from investing activities of $16,024 for the six months ended September 30, 2025, compared to a net cash outflow of $(31,993) in 2024[33] Balance Sheet and Financial Health - Total assets rose to CAD 1,069,838,000, compared to CAD 917,701,000, reflecting growth in the company's asset base[27] - Total liabilities decreased to CAD 333,825,000 from CAD 430,488,000, indicating improved financial health[27] - Canopy Growth Corporation's total shareholders' equity increased to CAD 736,013,000 from CAD 487,213,000, demonstrating a stronger equity position[27] - The company made prepayments totaling US$50MM against its senior secured term loan in Q2 FY2026[6] - The company reported a basic and diluted loss per share of CAD 0.01 for continuing operations, compared to CAD 1.52 in the same quarter last year[30] - Net loss from continuing operations for the six months ended September 30, 2025, was $43,166, compared to a loss of $260,741 for the same period in 2024, showing a significant improvement[33]