Canopy Growth Q1 Revenue up 13% to $81.2M
Canopy Growth posted $81.2M in Q1 revenue, driven by a 22% surge in Canadian medical sales and improved Storz & Bickel margins.
Key points
- Canopy Growth net revenue increased 13% to $81.2 million in Q1 fiscal 2027.
- Canadian medical cannabis revenue rose 22%, while Storz & Bickel gross margin reached 48%.
- The company holds $337 million in cash and expects positive adjusted EBITDA for fiscal 2027.
Canopy Growth (TSX: WEED) reported first-quarter fiscal 2027 net revenue of $81.2 million, marking a 13% year-over-year increase. According to Benzinga, the company achieved growth across all business segments for the first time since CEO Luc Mongeau assumed his role in January 2025.
The financial results reflect the company's strategic pivot toward cultivation efficiency and international expansion. Management cited the successful integration of MTL Cannabis as a key driver of the top-line improvement, supporting a broader push for margin expansion throughout the fiscal year.
Canadian Medical Sales Surge
The Canadian medical cannabis segment contributed significantly to the quarterly performance, with net revenue rising 22% year-over-year. This growth was primarily attributed to an expanding patient base and the operational synergies derived from the MTL Cannabis acquisition.
International cannabis operations also posted a 10% increase in net revenue. The company highlighted strong sales performance in Poland and outlined plans to extend its presence into the UK market, leveraging its EU GMP-certified supply chain to meet regulatory standards.
Storz & Bickel Margin Improvement
The vaporization division, Storz & Bickel, recorded a 6% increase in net revenue alongside a substantial improvement in gross margin. The segment’s gross margin rose to 48%, a sharp increase that management linked to the effectiveness of the new leadership team and operational restructuring efforts.
Fiscal 2027 Outlook and Cash
Looking ahead, Canopy Growth expects to maintain positive adjusted EBITDA for the full fiscal year 2027. The company continues to prioritize cost management through MTL integration synergies and supply chain optimization to sustain margin gains.
The balance sheet remains robust, with a cash position of $337 million. This liquidity provides the company with strategic flexibility to fund further cultivation enhancements and international expansion initiatives while managing operational costs.
