Canopy Growth Corporation has released its financial results for the third quarter of fiscal 2026, marking a notable shift in its performance trajectory. The company showcased substantial improvement by cutting its net loss nearly in half, achieving robust growth in its core Canadian cannabis operations, and significantly strengthening its balance sheet.
Key Financial Highlights for Q3 FY2026:
- Net Revenue: Remained steady at $75 million.
- Cannabis Revenue: Increased to $52 million, a 4% rise.
- Net Loss: Reduced dramatically by 49% compared to the same period last year.
- Cash Position: Ended the quarter with $371 million in cash reserves.
A Stronger Financial Foundation
Beyond the headline loss reduction, Canopy Growth made critical strides in its financial health. The company concluded the period ending December 31, 2025, with a robust cash balance of $371 million. Shortly after the quarter closed, it successfully secured a $150 million refinancing deal, extending its debt maturities to 2031. This move provides enhanced financial flexibility.
Operational efficiency is also improving. The company’s free cash outflow was reduced to $19 million, down from $28 million in the prior-year quarter. Furthermore, its adjusted EBITDA showed a 17% improvement to negative $3 million, representing the third consecutive quarter of progress. Management has realized annualized cost savings of $29 million since March 2025.
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Canadian Operations Fuel Performance
While total corporate revenue was stable, the core cannabis business in Canada was a clear growth driver, expanding by 4%. Both segments of the Canadian market contributed to this strength.
The Canadian medical cannabis division saw revenue jump 15% to $23 million. This growth was attributed to an expanding base of insured patients and larger average order sizes. Simultaneously, the Canadian recreational market posted an 8% revenue increase, also reaching $23 million, fueled by strong demand for new vaporizer and pre-rolled product offerings.
Strategic Roadmap: Profitability and Expansion
Looking ahead, Canopy Growth has set a clear target to achieve positive adjusted EBITDA in fiscal year 2027. Its strategic initiatives are focused on two key fronts.
To bolster its position in the domestic medical market, the company has announced its planned acquisition of MTL Cannabis. In parallel, Canopy Growth is preparing for an accelerated entry into the United States market, which industry forecasts predict could reach a value of $47 billion by 2026.
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