Canopy Growth Corporation Reports $284.6 Million Revenue and $262.9 Million Net Loss for Fiscal Year 2026

Canopy Growth Corporation reported a net revenue of $284.6 million for the fiscal year ended March 31, 2026, an increase of 6% from $269.0 million in the prior fiscal year. Despite the revenue growth, the company experienced a gross margin of 24% in fiscal year 2026, a decrease from 30% in fiscal year 2025. This decline in gross margin was primarily driven by a 22% increase in the cost of goods sold, attributed to inventory charges related to the acquisition of MTL and a shift in product and geographical mix within the Cannabis segment. The Storz & Bickel segment also saw a decrease in gross margin percentage from 37% to 33%, impacted by lower sales and increased tariffs on imports to the United States.

The company's strategic focus for fiscal year 2026 included continued efforts to strengthen its position as Canada's leading medical cannabis provider and to drive profitable scale in the adult-use cannabis market through its brand portfolio. Canopy Growth also completed the acquisition of MTL Cannabis Corp. on March 16, 2026, integrating its operations to enhance cultivation practices and product offerings. Operationally, the company reported a total of 1,128 employees as of March 31, 2026, an increase from 960 employees in the prior year, with a primary focus on production, distribution, sales enablement, and commercial execution.

Canopy Growth experienced a net loss from continuing operations of $262.9 million for the fiscal year ended March 31, 2026, an improvement from a net loss of $514.9 million in the prior fiscal year. This reduction in net loss was largely due to a significant decrease in "other expense, net," which fell from $390.6 million in fiscal year 2025 to $101.2 million in fiscal year 2026. This decrease was primarily driven by lower fair value losses on Canopy USA-related and other financial assets. However, the company's operating expenses increased by 18% to $231.3 million, largely due to a $35.8 million increase in asset impairment and restructuring costs, which included a $47.5 million impairment of goodwill associated with the Storz & Bickel business.

Looking ahead, Canopy Growth's strategy remains anchored in building consumer brands within an "asset-right" operating model, focusing on efficiency and return on investment. The company anticipates continued growth in international medical cannabis markets and aims to leverage its disciplined model for world-class cultivation. A key element of its strategy involves unparalleled exposure to the expanding U.S. cannabis market through its investment in Canopy USA, which is expected to capitalize on growth opportunities in the sector. The company also highlighted its ongoing efforts to remediate a material weakness in its internal control over financial reporting, identified in connection with the restatement of prior financial statements.