Canopy Growth 2026 Q2 Earnings 98.7% Reduced Net Loss Drives Optimism

Canopy Growth (CGC) reported Q2 2026 earnings on November 7, 2025, significantly narrowing its net loss and exceeding revenue expectations. The results alleviated concerns over its financial viability, with cash reserves exceeding debt by $70 million. While international markets remain challenging, Canadian cannabis segments showed robust growth, and the company emphasized disciplined cost management.

Revenue

. , driven by Claybourne-infused pre-rolls and Tweed vapes, . , though Storz & .

Earnings/Net Income

, . , . , reflecting operational efficiencies and cost savings.

Price Action

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Post-Earnings Price Action Review

The strategy of buying Canopy Growth (CGC) shares on the date of its revenue raise announcement and holding for 30 days yielded moderate returns, with a 25.6% average outperformance of SPY over the three years ending November 7, 2025. This suggests the strategy captured some of the upside potential from CGC's earnings beats and positive market reactions, although it also endured volatility and periods of underperformance, especially in the immediate post-earnings days.

CEO Commentary

, CEO, highlighted Q2 momentum as “one of our strongest to date,” driven by disciplined execution. , while medical cannabis rose 17%. International markets faced challenges, , but Mongeau emphasized supply chain improvements and cost savings exceeding $21 million CAD.

Guidance

Canopy expects Canadian adult-use and medical cannabis to drive revenue growth, with international operations stabilizing by year-end. Storz & Bickel anticipates stronger performance from the VZ Vaporizer during the holiday season. Gross margins and free cash flow are projected to improve sequentially, supported by production efficiencies and debt reduction.

Additional News

Canopy’s shares surged 19% premarket after Q2 results, with cash reserves of $298.1 million surpassing debt by $70 million. Despite improved financials, . , . CEO Luc Mongeau reiterated focus on Canadian market growth and supply chain stabilization.