Canopy Growth narrows annual losses and shifts to net cash position in FY2026

• Canopy Growth Corporation reported its Q4 and full-year fiscal 2026 financial results, highlighted by a 10% increase in Q4 consolidated net revenue to $71.2 million.
• Full-year net losses from continuing operations narrowed by 49% year-over-year, while the company's balance sheet dramatically improved to a net cash position of $131.3 million.
• Growth was driven by a 20% surge in Q4 cannabis revenues and aggressive selling, general, and administrative (SG&A) cost reductions, helping offset weaker performance in its Storz & Bickel vaporizer segment.

Canopy Growth (TSX:WEED) (NASDAQ:CGC) delivered a mixed but structurally stronger fiscal 2026 financial report, showcasing accelerating top-line momentum in its core cannabis business alongside major balance sheet repair.

For the full year ended March 31, 2026, consolidated net revenue rose 6% to $284.6 million, anchored by a strong fourth quarter where revenues climbed 10% to $71.2 million.

The growth engine was the company's core cannabis segment, which brought in $54.5 million in Q4 (up 20%) and $213.9 million for the full year (up 15%).

Domestic medical sales jumped 27% in Q4 due to a higher influx of insured patients, while Canadian adult-use sales ticked up 1% on the back of vape and infused pre-roll joint (PRJ) demand.

However, the bottom-line expansion hit a temporary speed bump.

Consolidated gross margins for Q4 dropped to 12% compared to 16% in the prior year, dragged down by $10.7 million in inventory write-offs following Canopy’s acquisition of MTL Cannabis Corp.

Stripping away these acquisition-related adjustments, the company's adjusted Q4 gross margin actually rose to 27%.

Meanwhile, its Storz & Bickel vaporizer business faced headwinds, with full-year revenue sliding 14% to $70.7 million due to economic uncertainty and U.S. import tariffs, despite the rollout of its new VEAZY product.

Importantly, cost-cutting initiatives bore fruit.

Full-year SG&A expenses dropped 6% as a result of head-count reductions and lower third-party professional fees.

This operational discipline compressed Canopy's full-year adjusted EBITDA loss by 14% to $20.2 million.

Most notably, the company completely reversed its debt position, exiting the fiscal year with a net cash surplus of $131.3 million, compared to a net debt burden of $172.6 million at the end of fiscal 2025.

Following the announcement, Canopy Growth shares traded at $1.41 on the TSX.