Canopy Growth reported a 6% increase in net revenue to $285 million for the fiscal year ended March 31, 2026, driven by an 18% rise in Canadian medical cannabis and a 20% increase in Canadian adult-use cannabis. The company strengthened its balance sheet during the year, moving from a net debt position of $173 million to a net cash position of $131 million. Management expressed confidence in achieving positive adjusted EBITDA during fiscal 2027, supported by continued revenue growth and decreasing costs.

Financial Performance

For the fourth quarter of fiscal 2026, net revenue was $71.2 million, a 10% increase compared to the same period in the previous year. Cannabis net revenue reached $54.5 million, up 20% year-over-year, led by a 27% increase in Canada Medical Cannabis revenue to $25.3 million. International Cannabis net revenue grew 68% to $8.6 million, driven by growth in Poland and Germany.

The company reported an adjusted EBITDA loss of $6 million in Q4 fiscal 2026, representing a $3 million year-over-year improvement. General and administrative operating expenses decreased by approximately $9.5 million, or 15%, in fiscal 2026, driven by the rationalization of approximately 130 positions.

Strategic Acquisition and Synergies

The acquisition of MTL Cannabis positioned Canopy Growth as a leader in the Canadian medical cannabis market. Integration efforts have advanced rapidly, with $6 million of targeted annualized cost synergies already achieved. The company targets $10 million in run-rate savings within 18 months of the transaction closing. Synergy initiatives include the elimination of MTL's public company costs, headcount reductions, and the rationalization of redundant facilities, including the closure of a cultivation facility in Kelowna, BC.

Operational Outlook

Management anticipates slower growth in the first half of fiscal 2027 due to the integration of MTL operations and adjustments to product offerings. However, gross margin improvements are expected within the cannabis segment as the integration progresses. The company remains focused on expanding markets in Europe and leveraging its strengthened platform and product portfolio to drive long-term shareholder value.

Canopy Growth Corporation reported fiscal 2026 net revenue of $285 million, a 6% increase from the prior year, while narrowing its net loss by 49% to $262.9 million. The company ended the fiscal year with a net cash position of $131 million, a significant improvement from a net debt position of $173 million at the end of fiscal 2025. Management expressed confidence in achieving positive adjusted EBITDA during fiscal 2027, driven by revenue growth and cost management initiatives.

For the fourth quarter ended March 31, 2026, the company reported net revenue of $71.2 million, up 10% compared to the same period last year. Cannabis net revenue grew 20% to $54.5 million, led by a 27% increase in Canada medical cannabis revenue to $25.3 million and a 68% surge in international markets. Canada adult-use cannabis revenue was flat at $20.6 million for the quarter. The net loss from continuing operations for the fourth quarter was $154.7 million.

The company completed the acquisition of MTL Cannabis during the year, establishing Canopy Growth as the leading medical cannabis business in Canada by revenue. The integration is progressing, with $6 million of annualized cost synergies already executed out of a targeted $10 million. These synergies include the elimination of public company costs, headcount reductions, and facility rationalization, including the closure of a cultivation facility in Kelowna, B.C.

"We reset the business, laid a disciplined foundation, and made deliberate investments, including acquiring MTL Cannabis, that will drive the next phase of growth," said Luc Mongeau, Chief Executive Officer. "As the leading medical cannabis business in Canada by revenue, we are well positioned to extend that leadership into Europe."

The company's balance sheet was strengthened through a strategic recapitalization, extending debt maturities to 2031. Canopy Growth ended the year with $365 million of cash and total debt of $234 million. The improved financial position provides flexibility for future growth opportunities, including expansion into the UK and further investment in European markets such as Germany and Poland.