Canopy Growth 2026 Q2 Earnings 98.7% Reduction in Net Loss to -$1.64M

Canopy Growth (CGC) reported fiscal 2026 Q2 results that exceeded earnings expectations while resolving “going concern” concerns, with a 98.7% reduction in net losses to -$1.64M and cash reserves exceeding debt by $70M.

Revenue

Canopy Growth’s total revenue rose 5.9% year-over-year to $66.68M, driven by robust performance in its Canadian cannabis segments. The cannabis segment led with $50.85M, reflecting a 30% surge in adult-use sales and 17% growth in medical cannabis. Storz & Bickel contributed $15.83M, though this marked a 10% decline from the prior year, attributed to strong prior-period comparisons and economic headwinds.

Earnings/Net Income

The company narrowed its net loss to $-1.64M, a 98.7% improvement from $-128.29M in 2025 Q2, while EPS losses decreased to -$0.01 from -$1.48, representing a 99.3% improvement. These results underscore significant cost discipline and operational efficiency gains.

Post-Earnings Price Action Review

A backtested analysis of the strategy to buy CGC shares on earnings beats and hold for 30 days revealed a 20.5% return over 36 months, with a 7.5% annualized gain. Despite quarterly volatility ranging from -22.8% to 40.4%, the approach captured short-term momentum, including a 19% gain post-earnings. However, long-term retention showed tempered gains, and the strategy avoided severe declines like the 25.3% drop this quarter, offering a risk-off refuge.

CEO Commentary

CEO Luc Mongeau highlighted 30% growth in Canadian adult-use cannabis, driven by Claybourne pre-rolls and Tweed vapes, alongside 17% medical cannabis growth. He emphasized $21M+ annualized SG&A savings and a $298M cash balance, while addressing international supply chain challenges and plans to elevate cultivation standards.

Guidance

Canopy expects sustained Canadian adult-use growth through product innovation, stable international revenue in Q3, and sequential margin improvements. The CFO noted free cash flow improvements from debt reduction and cost controls, with no major capital expenditures planned.

Additional News

1. Going Concern Resolved: Canopy’s $298M cash position exceeded debt by $70M, resolving prior doubts about its financial viability.

2. Product Launch: The Storz & Bickel VEAZY vaporizer generated early sales momentum, contributing to sequential revenue growth.

3. Cost Savings: The company achieved $21M+ annualized SG&A savings, surpassing its $20M target, and prepaid $50M on its term loan to reduce interest costs.