Canopy Growth Reports Sharply Narrowed Losses in Q3

Canopy Growth Corporation has demonstrated significant progress toward achieving profitability, according to its third-quarter fiscal 2026 results released on February 6. The Canadian cannabis company managed to nearly halve its net loss while its core domestic business continued to gain momentum.

Key Financial Highlights:

• Net loss was substantially reduced to 62.6 million CAD, down from 121.9 million CAD in the prior-year period.
• Revenue from cannabis products increased by 4% to reach 52 million CAD.
• The company's cash position stood at 371 million CAD.
• The acquisition of MTL Cannabis is nearing its finalization.

The company concluded December 2025 with 371 million CAD in cash and cash equivalents. After accounting for liabilities, this results in a net cash position of 146 million CAD. In a strategic move to enhance financial flexibility, Canopy Growth successfully extended the maturity of all its outstanding debt to 2031 in January 2026.

Furthermore, the pending acquisition of MTL Cannabis is expected to be completed within the current quarter. Management anticipates this deal will bolster the company's international footprint and provide additional production capacity to serve expanding global markets.

Mixed Performance Across Business Segments

While total consolidated revenue remained flat year-over-year at 75 million CAD, the underlying cannabis segment showed positive signs. The Canadian medical cannabis business saw robust growth, with revenue climbing 15% to 23 million CAD. Recreational sales in the domestic market also contributed 23 million CAD, marking an 8% increase.

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Performance was less favorable internationally, where revenue declined by 31%. The company attributed this downturn to supply chain disruptions affecting its European operations.

The Storz & Bickel vaporizer division generated 23 million CAD in revenue. This represents a 9% decrease compared to the same period last year but a notable 45% sequential jump from the previous quarter. This surge was largely driven by the successful launch of the new VEAZY vaporizer, which became the fastest-selling product in the company's history.

Cost-Cutting Measures Yield Results

Operational efficiency efforts are bearing fruit. The adjusted EBITDA loss improved by 17% to negative 3 million CAD, marking the third consecutive quarter of progress on this metric. Since March 2025, initiatives including workforce reductions and lower third-party costs have resulted in annualized savings of 29 million CAD.

The company also reduced its free cash flow outflow, which tightened from 28 million CAD to 19 million CAD. One area of slight pressure was the gross margin, which softened from 32% to 29%.