Canopy Growth Narrows Losses Amid Strategic Restructuring

The Canadian cannabis producer Canopy Growth Corporation released its third-quarter financial results for fiscal 2026 this Friday. The report highlighted a significant reduction in net losses alongside steady revenue, signaling that the company's extensive cost-cutting initiatives are beginning to yield tangible results.

For the three-month period ending December 31, 2025, Canopy Growth reported consolidated revenue of 75 million CAD, remaining virtually unchanged year-over-year. A deeper analysis, however, reveals a mixed performance across its business segments.

The core cannabis operations saw a 4% increase, generating 52 million CAD. This growth was primarily fueled by strength in the Canadian market, where medical cannabis revenue advanced by 15% to 23 million CAD. Recreational cannabis sales in Canada also grew by 8%, reaching an identical 23 million CAD figure. In contrast, the company's international cannabis business contracted sharply by 31%, despite showing some sequential quarterly improvement.

Revenue from the Storz & Bickel subsidiary, known for its vaporizer devices, contributed 23 million CAD. This represents a 9% decline compared to the same quarter last year but marks a substantial 45% increase from the preceding quarter.

Should investors sell immediately? Or is it worth buying Canopy Growth?

Sharply Reduced Losses and Improved Cash Flow

A central achievement in the quarterly report was the dramatic reduction in net loss, which was nearly halved—falling by 49% to 62.6 million CAD. The company also moved closer to profitability on an operational basis, with its adjusted EBITDA loss narrowing by 17% to 3 million CAD.

Liquidity and cash management remain key focus areas. As of the quarter-end, Canopy Growth held cash and cash equivalents totaling 371 million CAD, with a net cash position of 146 million CAD. The firm also improved its operational cash outflow, which was reduced to 19 million CAD from 28 million CAD in the prior-year period.

Strategic Moves: Debt Extension and Acquisition

In a significant move during January 2026, the company successfully extended the maturity date of all its outstanding debt obligations to 2031. This restructuring provides Canopy Growth with a longer runway for its turnaround efforts without the immediate pressure of principal repayments.

Management reaffirmed its target of achieving a positive adjusted EBITDA by fiscal year 2027. The planned acquisition of MTL Cannabis is expected to be finalized within the current quarter. Since March 2025, the company has realized annualized cost savings of 29 million CAD. One area of pressure noted was the gross margin, which decreased to 29% from 32% in the previous year.