Canopy Growth Corporation (CGC) reported first-quarter fiscal 2026 results showing a 24% year-over-year increase in cannabis revenue, driven largely by a 43% surge in Canadian adult-use sales. The growth was fueled by expanded distribution and strong demand for new offerings such as Claybourne infused pre-roll joints.
Total net revenue for the quarter ended June 30, 2025, was $72.1 million, up 9% from the prior year. Gross margin declined to 25% from 35%, reflecting lower Storz & Bickel sales, reduced high-margin sales in Poland, and a shift toward higher-cost manufactured cannabis products in Canada.
Canopy reported a net loss of $41.5 million and an adjusted EBITDA loss of $7.9 million. SG&A expenses were down 21% year-over-year, with $17 million of a planned $20 million in annualized savings already achieved since March 1. Free cash outflow was $11.6 million, down 79% from the prior year. Cash and short-term investments stood at $144 million at quarter-end.
International cannabis revenue rose 4% to $9 million, and the company expects supply chain improvements to boost European margins in the second half of the year. Medical cannabis sales in Canada climbed 13% year-over-year, supported by more insured customers and larger order sizes. Storz & Bickel revenue fell 25% to $15.1 million, with a new vaporizer launch planned for later this calendar year.
Canopy also appointed Margaret Shan Atkins to its board, adding retail and consumer goods expertise to support its strategic and operational priorities.
The post Canopy Growth Climbs 10% Following Strong Cannabis Sales Growth in Q1 FY2026, Cuts Costs as Profitability Push Continues appeared first on PRISM MarketView.
