Canopy Growth Reports 13% YoY Revenue Growth In Q1

Cannabis giant Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced on Friday that each of its major business segments posted growth in the first quarter of fiscal 2027.

The cannabis business segment grew 14% year-over-year, medical cannabis Canada 22%, adult-use Canada 10%, international cannabis 10%, and Storz & Bickel vaporizers 6%, over the same period. That said, total revenue increased 13% year-over-year to CA$81.2 million ($58.2 million).

“The renewed focus and strong momentum we established over the past year have continued into fiscal 2027. In the first quarter, we achieved net revenue growth in every business through solid execution across the organization,” Luc Mongeau, the company’s CEO, said in a press release.

The management also emphasized better cultivation quality and increased premium flower production.

“We have clear strategies to deliver further growth in each of our end markets,” Mongeau continued. “At the heart of our cannabis strategy is our company-wide push to elevate cultivation and produce a consistent and increasing supply of high-quality flower that will support growing demand both in Canada and internationally.”

In March, Canopy completed its approximately $179 million acquisition of MTL Cannabis Corp. The combined business is expected to become Canada’s leading medical cannabis company by revenue, pairing MTL’s premium indoor cultivation with Canopy’s global platform.

“As expected, the integration of MTL Cannabis is leading to increased supply of high-quality flower, expanded revenue opportunities and the realization of meaningful synergies,” Mongeau said.

Q1 2027 Financial Highlights

• Gross margin increased from 25% to 27%.
• Adjusted gross margin improved to 31%, compared to 25% last year.
• Adjusted EBITDA loss narrowed to CA$3.2 million, improving 59% year-over-year.
• Net loss declined 68% year-over-year.
• Free cash outflow increased from CA$11.6 million to C$25.7 million.
• Selling, general and administrative expenses rose 6%, largely because of the MTL acquisition.

CGC Price Action

Canopy Growth’s shares traded 5.12% higher at $0.9799 per share during the pre-market session on Friday.