Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) has reported its financial results for the fourth quarter and full fiscal year ended March 31, 2026, highlighting significant progress in revenue growth, operational restructuring, balance sheet improvement, and strategic investments designed to support long-term expansion in the global cannabis market.
The company closed fiscal 2026 with improved financial performance across key cannabis segments, particularly in Canada’s medical cannabis market and international operations. Management emphasized that the past year was focused on strengthening the company’s foundation, streamlining operations, and positioning the business for sustainable profitability.
Building a Stronger Foundation for Growth
Chief Executive Officer Luc Mongeau described fiscal 2026 as a transformational year for Canopy Growth. According to Mongeau, the company undertook substantial restructuring initiatives, optimized its operating model, and made targeted investments to support future expansion.
One of the most notable developments during the year was the acquisition of MTL Cannabis, a move that strengthened Canopy Growth’s cannabis platform and enhanced its ability to compete in both domestic and international markets.
The company also modernized its innovation strategy, introduced new products across multiple cannabis categories, and refined its organizational structure to align with long-term growth priorities.
Mongeau highlighted Canopy Growth’s position as Canada’s leading medical cannabis provider by revenue, noting that this leadership creates opportunities to expand further into European markets, which the company views as a major long-term growth opportunity.
Revenue Growth Continues Across Core Cannabis Operations
Canopy Growth reported consolidated net revenue of $71.2 million during the fourth quarter of fiscal 2026, representing a 10% increase compared to the same period a year earlier.
For the full fiscal year, consolidated net revenue reached $284.6 million, up 6% from fiscal 2025.
The company’s cannabis segment remained the primary growth driver. Cannabis net revenue totaled $54.5 million during the fourth quarter and $213.9 million for the full year, increasing 20% and 15%, respectively, compared with the prior-year periods.
Medical Cannabis Leads Growth
Canada’s medical cannabis business delivered particularly strong results.
Fourth-quarter medical cannabis revenue reached $25.3 million, representing a 27% year-over-year increase. Growth was supported by an expanding insured patient base and a broader selection of cannabis products available to customers.
For the full fiscal year, Canadian medical cannabis revenue increased 18% compared with fiscal 2025, reinforcing Canopy Growth’s position as a market leader in this segment.
The company also introduced Spectrum Reserve, a premium medical cannabis brand featuring carefully selected flower products based on potency, terpene profiles, and cultivation quality standards.
In addition, Canopy implemented pricing adjustments, product mix refinements, and patient retention initiatives to mitigate the impact of changes to reimbursement levels provided by Veterans Affairs Canada.
Adult-Use Cannabis Shows Steady Momentum
The company’s Canadian adult-use cannabis business also delivered growth during fiscal 2026.
Fourth-quarter adult-use cannabis revenue increased 1% year-over-year to $20.6 million, supported by strong demand for vape products and infused pre-roll joints.
For the full year, adult-use cannabis revenue climbed 20%, driven by product innovation and successful launches in several fast-growing categories.
Growth was fueled by the expansion of infused pre-roll offerings, the introduction of new All-In-One vaporizer products, and the launch of DeeLish, a new cannabis brand offering high-THC flower and pre-roll products across rotating genetic strains.
The company focused its innovation strategy on categories experiencing the strongest consumer demand, including high-THC flower products, vaporizers, edibles, and infused pre-rolls.
International Markets Rebound in the Fourth Quarter
Canopy Growth’s international cannabis business showed a strong recovery during the fourth quarter.
International cannabis revenue reached $8.6 million, representing a substantial 68% increase compared with the fourth quarter of fiscal 2025.
The improvement reflected stronger supply chain execution and the resolution of supply constraints that had impacted European operations earlier in the year.
Despite the strong fourth-quarter performance, full-year international cannabis revenue declined 7% compared with fiscal 2025 due to challenges experienced earlier in the fiscal year.
To strengthen its international position, Canopy expanded its medical cannabis portfolio in Australia by introducing two high-THC 7ACRES sativa strains—Ultra Jack and Jack Frost—along with new Spectrum Therapeutics softgel products containing cannabidiol (CBD), tetrahydrocannabinol (THC), and balanced formulations.
Storz & Bickel Faces Market Challenges
Canopy Growth’s vaporizer subsidiary, Storz & Bickel, encountered a more challenging operating environment during fiscal 2026.
Fourth-quarter revenue declined 14% to $16.8 million, while full-year revenue fell 14% to $70.7 million.
Management attributed the decline primarily to exceptionally strong prior-year sales comparisons and continued consumer spending pressures.
Despite these challenges, Storz & Bickel continued to invest in product innovation. In September 2025, the company launched the VEAZY™ vaporizer, expanding its portable vaporizer lineup and reinforcing its focus on affordability and convenience.
Margin Pressures and Inventory Adjustments
Canopy Growth reported a consolidated gross margin of 12% during the fourth quarter, compared with 16% during the same period last year.
For the full fiscal year, gross margin was 24%, down from 30% in fiscal 2025.
A major factor impacting profitability was approximately $10.7 million in inventory-related charges recorded during the fourth quarter. These charges stemmed largely from a review of cannabis inventory levels following the acquisition of MTL Cannabis.
Excluding inventory write-downs and acquisition-related accounting adjustments, adjusted gross margin improved significantly to 27% during the fourth quarter, compared with 19% in the prior-year quarter.
The cannabis segment generated an adjusted gross margin of 26%, more than double the 12% reported a year earlier, demonstrating improving underlying operating performance.
Cost Controls Improve Financial Performance
Canopy Growth continued implementing cost-reduction initiatives throughout fiscal 2026.
Selling, general, and administrative expenses increased modestly during the fourth quarter but declined 6% for the full year. Savings were generated through workforce reductions and lower spending on insurance, professional services, and information technology.
The company also recorded $67.1 million in impairment and restructuring charges during fiscal 2026, primarily related to goodwill and brand impairments associated with Storz & Bickel, along with employee restructuring costs.
Despite these charges, Canopy achieved significant progress in reducing losses.
Net loss from continuing operations during the fourth quarter declined 21% year over year, while full-year net loss narrowed by 49% compared with fiscal 2025.
Adjusted EBITDA loss improved to $6.3 million in the fourth quarter, representing a 32% improvement from the previous year. For fiscal 2026, adjusted EBITDA loss narrowed to $20.2 million, reflecting ongoing operational efficiencies and cost savings.
Balance Sheet Strengthened Dramatically
Chief Financial Officer Tom Stewart emphasized that one of the company’s most significant achievements during fiscal 2026 was the strengthening of its financial position.
Free cash outflow improved substantially, falling from $176.6 million in fiscal 2025 to $69.1 million in fiscal 2026.
Meanwhile, Canopy Growth ended the fiscal year with a net cash position of $131.3 million, representing a dramatic improvement from the net debt position of $172.6 million reported at the end of fiscal 2025.
According to Stewart, the strengthened balance sheet reduces financial risk while providing greater strategic flexibility as the company pursues future growth opportunities.
Looking ahead, management remains focused on achieving positive Adjusted EBITDA during fiscal 2027, supported by continued revenue growth, disciplined cost management, expanding medical cannabis operations, and increasing contributions from international markets. With a stronger financial foundation and growing leadership in medical cannabis, Canopy Growth enters fiscal 2027 positioned to accelerate its next phase of development in the global cannabis industry.
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