Canopy Growth Corp (CGC) · Nov 6, 2026 · Earnings
In line — Revenue growth 22% vs ~20.6% consensus growth
Canopy Growth earnings show strong international cannabis growth and higher revenue, but weaker margins and continued losses keep profitability unproven.
Canopy Growth is trying to turn international medical cannabis—especially Europe—into its growth engine while integrating MTL Cannabis and reaching positive adjusted EBITDA in fiscal 2027. The quarter supports the growth strategy, but not yet the profitability part of the story. Prior company guidance expected positive adjusted EBITDA during FY2027, with the strongest year-over-year improvement projected for the second half.
Revenue was modestly ahead of the market’s growth bar, but the upside was concentrated in international cannabis. Consolidated net revenue rose 22%, roughly ahead of the published consensus expectation for about 20.6% growth. Cannabis revenue grew 30%, led by international markets revenue up 141% to C$12.3 million, with Germany and Poland identified as the main drivers.
| Metric | Q2 FY2027 | Q2 FY2026 | Consensus |
|---|---|---|---|
| Net revenue (Financial Highlights) | C$81.4M (+22%) | C$66.7M | ~20.6% growth |
| Cannabis revenue (Segment Net Revenue) | C$66.2M (+30%) | C$50.9M | |
| International cannabis revenue (Segment Net Revenue) | C$12.3M (+141%) | C$5.1M | |
| Adjusted gross margin (Schedule 5) | 31% | 33% | |
| Adjusted EBITDA (Schedule 7) | (C$2.9M) | (C$3.0M) | |
| Free cash flow (Schedule 8) | (C$15.5M) | (C$19.2M) |
The growth is not yet converting cleanly into earnings. Adjusted EBITDA improved only C$0.2 million to a C$2.9 million loss, while adjusted gross margin fell to 31% from 33%; cannabis segment adjusted margin declined to 29% from 31%, partly because of the lower Veterans Affairs Canada reimbursement rate.
The international platform is becoming more credible, but it remains an execution story rather than a finished profit engine. Canopy added U.K. distribution, expanded its Australian portfolio, appointed a Germany country manager, and received EU GMP certification at Smiths Falls. Those moves improve its ability to supply regulated markets, but the filing provides no evidence yet that the expansion has produced durable operating leverage. 〔0〕
The headline net loss is substantially worse, although the main deterioration was non-operating. Net loss increased to C$40.7 million from C$5.0 million because of C$35.8 million in fair-value charges tied to Canopy USA assets, so it is less representative of core-quarter execution than the margin and adjusted EBITDA figures. Cash burn did improve, but the company still used C$15.5 million of free cash flow in the quarter.
Bottom line: Canopy’s international growth strategy is gaining traction and revenue is roughly ahead of the market’s growth expectation, but margin compression and continuing adjusted EBITDA losses keep the quarter from validating the path to profitability. The business is advancing, but the core turnaround remains incomplete.
Q3 FY2027 results, expected February 2027
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