Canopy Growth(US:CGC)2026-02-06 12:05Revenue Performance - Consolidated net revenue in Q3 FY2026 was $75M, flat compared to Q3 FY2025, with cannabis net revenue at $52M, representing a 4% increase year-over-year[3]. - Canada medical cannabis net revenue increased by 15% to $23M, driven by a rise in insured patients and larger order sizes[3]. - Canada adult-use cannabis net revenue rose by 8% to $23M, primarily due to growth in infused pre-roll joints and new All-In-One vapes[3]. - International cannabis net revenue decreased by 31% year-over-year but increased by 22% sequentially compared to Q2 FY2026, attributed to improved supply chain conditions[3]. - Total revenue for the three months ended December 31, 2025, was CAD 90,391,000, an increase from CAD 86,244,000 in the same period of 2024, representing a growth of 2.6%[31]. - Net revenue for the same period was CAD 74,541,000, slightly down from CAD 74,761,000 year-over-year, indicating a decrease of 0.3%[31]. - Canadian adult-use cannabis revenue increased by 8% to $22,927 for the three months ended December 31, 2025, up from $21,153 in 2024[36]. - International markets cannabis revenue decreased by 31% to $6,209 for the three months ended December 31, 2025, down from $8,974 in 2024[36]. - Storz & Bickel segment revenue decreased by 9% to $22,894 for the three months ended December 31, 2025, compared to $25,059 in 2024[39]. Profitability and Loss - Consolidated gross margin in Q3 FY2026 was 29%, a decrease of 300 basis points compared to Q3 FY2025, with cannabis gross margin at 25%[7]. - The operating loss from continuing operations was CAD 26,350,000, worsening from a loss of CAD 23,822,000 in the prior year[31]. - Net loss in Q3 FY2026 narrowed by 49% year-over-year, while adjusted EBITDA loss improved by 17% to $3M[7]. - Net loss attributable to Canopy Growth Corporation was CAD 62,627,000, an improvement from CAD 121,896,000 in the same quarter of 2024, showing a reduction of 48.7%[31]. - Basic and diluted loss per share for the quarter was CAD 0.18, compared to CAD 1.11 in the previous year, indicating a significant improvement[31]. - Adjusted EBITDA for the three months ended December 31, 2025, was $(2,871), an improvement from $(3,469) in 2024[42]. - Free cash flow for continuing operations was $(19,037) for the three months ended December 31, 2025, compared to $(28,181) in 2024[44]. Cash Flow and Financial Position - Free cash outflow improved from $28M in Q3 FY2025 to $19M in Q3 FY2026[7]. - Cash and cash equivalents increased to CAD 371,322,000 as of December 31, 2025, up from CAD 113,811,000 at the end of March 2025[29]. - Total assets reached CAD 1,106,192,000, a significant increase from CAD 917,701,000 in March 2025, representing a growth of 20.6%[29]. - Total liabilities decreased to CAD 348,019,000 from CAD 430,488,000, indicating a reduction of 19.2%[29]. - Net cash provided by financing activities was $285,799 for the nine months ended December 31, 2025, compared to $164,618 in 2024[34]. Strategic Developments - The acquisition of MTL Cannabis is on track to close in the current quarter, expected to strengthen Canopy Growth's global cannabis platform[1]. - The company has captured $29M of annualized savings since March 1, 2025, and continues to seek additional efficiencies[7]. - Strong consumer demand for Claybourne infused pre-roll joints and Gassers AIO vapes supported performance during Q3 FY2026[7]. - The company anticipates future growth in customer numbers and revenue, contingent on regulatory developments and market conditions[25]. Year-over-Year Comparisons - Net loss from continuing operations for the nine months ended December 31, 2025, was $105,793, compared to a loss of $382,637 for the same period in 2024[34]. - Gross margin for the cannabis segment was reported at 25% for the three months ended December 31, 2025, down from 28% in 2024[39].