Canopy Growth 2026 Q1 Earnings Significant Loss Reduction

Canopy Growth (CGC) reported its fiscal 2026 Q1 earnings on Aug 08th, 2025. The company delivered a strong performance, significantly narrowing losses and showing robust growth in several key markets. The earnings highlighted Canopy’s progress in margin improvement, cost discipline, and international expansion.

Canopy Growth (CGC) reported its fiscal 2026 Q1 earnings on Aug 08th, 2025. The company significantly reduced its net loss compared to the previous year, demonstrating progress in cost control and operational efficiency. The results were in line with the company's guidance, with no major deviations from expectations. Canopy Growth also provided an upbeat outlook for the remainder of the year, signaling confidence in its strategic initiatives.

Revenue
Canopy Growth’s total revenue increased by 8.9% year-over-year to $72.13 million in 2026 Q1, reflecting a positive momentum in its business. The growth was driven by strong performances in Canada Medical, Canada Adult-Use, and international markets, particularly Germany, where the company saw triple-digit growth.

Earnings/Net Income
Canopy Growth narrowed its losses to $0.22 per share in 2026 Q1, compared to a loss of $1.60 per share in 2025 Q1 — an 86.3% improvement. On a net basis, the company reduced its net loss to -$41.53 million, a 67.3% decrease from the previous year’s $-127.14 million. This marked a significant step toward profitability, though losses still remain.

The earnings-per-share improvement of 86.3% indicates a positive trend in the company’s financial health.

Price Action
The stock price of Canopy Growth has gained traction in recent trading periods, jumping 13.64% during the latest trading day and surging 19.05% over the most recent full trading week. However, the stock has edged down 0.79% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Canopy Growth (CGC) shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days performed poorly over the past three years, yielding a return of -98.10%. This underperformed the benchmark by 148.28%. The Sharpe ratio of -0.58 highlights the substantial risk associated with the strategy, while the maximum drawdown of 0.00% suggests the strategy had no room for further declines.

CEO Commentary
Luc Mongeau, CEO & Director, highlighted the company's strong Q1 performance, noting 24% year-over-year cannabis revenue growth. This was driven by Canada Medical’s 13% increase, Canada Adult-Use’s 43% surge, and triple-digit growth in Germany. Mongeau emphasized improved supply planning, product focus, and retail execution as key drivers. He also highlighted cost discipline, achieving $17 million in savings against a $20 million target, and underscored gross margin improvement as a company-wide priority. Regarding Storz & Bickel, Mongeau acknowledged soft Q1 results but expressed confidence in a new device launch to boost performance. For the U.S., Mongeau noted Acreage’s cost reductions and strategic focus on vertically integrated markets, while expressing optimism about long-term opportunities as rescheduling momentum builds.

Guidance
Luc Mongeau and Thomas Carlton Stewart outlined expectations for continued cannabis revenue growth in Canada Medical and international markets, particularly in Germany and Poland, with new product registrations expected to enhance supply in H2. Canopy anticipates improved gross margins through automation, pricing adjustments, and production efficiency gains, with a target of low to mid-30s margins by year-end. Cost reduction initiatives are expected to yield $20 million in annualized savings. For Storz & Bickel, the company expects a new product launch to drive top-line growth in the second half of the year. Financially, Canopy aims to reduce debt and improve free cash flow, supported by lower interest expenses from prepayments and tighter working capital management.

Additional News
On August 8, 2025, Nigerian media outlet *Punch* reported on a range of developments. In politics, tensions flared at Gbagi Market in Oyo as the state government replaced low-cost stalls with more expensive modern shops. Meanwhile, desperation among butchers led to unethical practices such as inflating meat with air to defraud customers. In business, Nigeria’s foreign direct investment (FDI) declined by 70% in three months, signaling broader economic concerns. In technology and business, 9mobile rebranded as T2, signaling a shift in Nigeria’s telecommunications landscape. Additionally, Sterling HoldCo directors invested N341.6 million in company shares, reflecting internal confidence in the firm’s future.