Canopy Growth reported its second‑quarter fiscal 2026 results on November 7, 2025, showing consolidated net revenue of $67 million, which fell short of the $70.88 million consensus estimate. The shortfall was driven by a 39% decline in international cannabis revenue, which dropped to $5 million, and a 10% year‑over‑year drop in Storz & Bickel revenue. In contrast, Canada adult‑use cannabis sales grew 30% to $24 million and Canada medical cannabis sales rose 17% to $22 million, underscoring the company’s continued momentum in its core domestic markets.
The company’s cash and cash equivalents stood at $298 million, exceeding its debt balances by $70 million. This cash cushion resolved prior going‑concern doubts and provides a buffer for future capital needs or strategic opportunities. The balance‑sheet strength is a key driver of the positive market reaction, as investors view the company’s liquidity position as a sign of financial resilience.
Adjusted EBITDA narrowed to a loss of $3 million from $6 million in the prior year, reflecting improved cost discipline and operational efficiencies. Gross margin fell to 33% from 35% year‑over‑year, a 200‑basis‑point compression largely attributable to the lower‑margin international segment and higher inventory provisions. Despite the margin decline, the company’s core Canadian operations continue to generate healthy profitability, supporting the narrowed loss.
Earnings per share estimates were $-0.11, and the company reported a net loss that narrowed relative to the prior year, though the exact EPS was not disclosed. Revenue missed analyst expectations by $3.88 million, a 5.5% shortfall, highlighting the impact of international headwinds and the need for continued focus on core markets to drive top‑line growth.
CEO Luc Mongeau emphasized that the company is building a stronger, more competitive business by focusing on Canadian adult‑use and medical cannabis, while CFO Tom Stewart highlighted disciplined financial management and balance‑sheet strength as key to achieving profitability. Their comments reinforce the company’s strategy of prioritizing core markets and cost control to navigate a challenging international environment.
Shares advanced following the announcement, with the primary driver being the resolution of going‑concern doubts through a robust cash position that exceeds debt by $70 million. The market reaction reflects investor confidence in the company’s ability to sustain progress and improve financial health.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.