Canopy Growth 2026 Q2 Earnings 99.3% EPS Improvement and 5.9% Revenue Growth

Canopy Growth (CGC) reported fiscal 2026 Q2 earnings on November 7, 2025, with a 99.3% improvement in EPS and 5.9% revenue growth. The results exceeded expectations on the top line and bottom line, with premarket trading reflecting a 19% share price surge. Management highlighted liquidity improvements, including C$298.1 million in cash exceeding debt by C$70 million, resolving prior concerns about the company’s going-concern status.

Revenue

Canopy Growth’s total revenue rose 5.9% year-over-year to $66.68 million in Q2 2026, driven by 30% growth in Canadian adult-use cannabis and 17% expansion in medical cannabis. International markets faced a 39% decline due to European supply chain challenges, while Storz & Bickel revenue dipped 10% to $15.8 million. The Canadian cannabis segment, including adult-use and medical, contributed $50.8 million in revenue, underscoring the company’s strategic focus on domestic growth.

Earnings/Net Income

The company narrowed its net loss to $-1.64 million in Q2 2026, a 98.7% reduction from $-128.29 million in the prior-year period. Earnings per share improved to a loss of $0.01 from $1.48, reflecting operational efficiencies and cost-cutting measures. The 63% year-over-year reduction in operating loss to $16.8 million and 13% decline in SG&A expenses further signaled progress. The substantial improvement in EPS and net loss demonstrates Canopy Growth’s ability to stabilize its financial position.

Post-Earnings Price Action Review

Despite the positive earnings report, Canopy Growth’s stock faced downward pressure in the short term, with a 5.65% drop in the latest trading day, a 5.65% decline over the past week, and a steep 23.53% month-to-date decline. The mixed post-earnings reaction reflects investor caution amid ongoing international challenges and uncertainty about Canadian medical reimbursement policies. However, the premarket surge of 19% indicated optimism about the company’s liquidity and operational progress.

CEO Commentary

CEO Luc Mongeau emphasized 30% year-over-year growth in Canadian adult-use cannabis, driven by Claybourne-infused pre-rolls and Tweed vapes, alongside 17% medical cannabis growth due to Spectrum’s patient expansion. He acknowledged international supply chain issues but outlined a “clear action plan to stabilize operations.” Strategic priorities include innovation in flower genetics and vapes, cultivation standardization, and $21 million+ in annualized cost savings. Mongeau expressed confidence in Canadian market momentum and Storz & Bickel’s VZ Vaporizer, while cautioning about international risks and potential regulatory changes.

Guidance

Leadership projected improved Canadian adult-use growth through innovation and retailer alignment, stabilized international revenue by fiscal year-end, and sequential margin expansion. CFO Tom Stewart highlighted “positive adjusted EBITDA” as a key target, with free cash flow improvements from debt reduction and working capital management. Storz & Bickel’s Q3 growth is expected to benefit from the VZ launch and holiday demand, though U.S. economic pressures remain a risk. International markets outside Europe will see growth from Australia’s product launches, with disciplined execution and cost control central to long-term stability.

Additional News

Canopy Growth’s shares surged 19% in premarket trading after Q2 results alleviated concerns about financial viability. The company reported C$298.1 million in cash, surpassing debt by C$70 million, and a C$1.6 million net loss, beating estimates by C$0.17 per share. CEO Luc Mongeau emphasized Canadian market momentum and operational efficiencies. Separately, U.S. political support for CBD use in senior healthcare boosted broader cannabis sector sentiment. The company also announced $50 million in prepayments against its senior secured term loan, reflecting a disciplined approach to debt management.