Canada's Canopy Growth Q1 revenue slightly misses estimates

Canopy Growth

07/08/2026 12:14

Overview
Canada cannabis producer's fiscal Q1 net revenue rose 13% yr/yr, slightly missed analyst expectations
Adjusted EBITDA loss for fiscal Q1 narrowed by 59% yr/yr, driven by revenue growth and cost savings
Adjusted gross margin improved to 31% from 25% yr/yr

Outlook
Company anticipates further financial improvements, especially in H2 FY2027, as MTL Cannabis integration completes
Canopy Growth expects growth in each end market driven by clear strategies and increased high-quality flower supply
Company sees expanded revenue opportunities and meaningful synergies from MTL Cannabis acquisition

Result Drivers
MTL CANNABIS ACQUISITION - Co said acquisition led to increased supply of high-quality flower and expanded revenue opportunities, supporting growth in Canada medical and adult-use cannabis
SEGMENT SALES GROWTH - Co reported net revenue growth in Canada medical cannabis (22%), Canada adult-use cannabis (10%), international markets cannabis (10%), and Storz & Bickel (6%)
COST RATIONALIZATION - Storz & Bickel gross margin rose due to cost rationalization and recovery of certain U.S. tariffs

Company press release: ID:nBw8cfx25a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Revenue
Slight Miss*
C$81.20 mln
C$81.63 mln (5 Analysts)
Q1 Adjusted EBITDA
 
-C$3.20 mln
 
Q1 Gross Margin
 
27.00%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Canopy Growth Corporation is C$1.60, about 20.3% above its August 6 closing price of C$1.33

Reuters Recommended Reads
Aug 5 - Aurora Cannabis Q1 revenue falls 9% on Canadian reimbursement cuts
Aug 6 - Canada's Cronos Group Q2 revenue beats estimates on higher cannabis flower sales 
Aug 6 - Canada's TerrAscend Q2 revenue beats estimates on retail strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)