Canopy Growth (NASDAQ: CGC) Q3 2026 loss shrinks as cash hits $371M
Rhea-AI Filing Summary
Canopy Growth reported Q3 FY2026 results showing stable revenue but much smaller losses and a stronger balance sheet. Net revenue was $74.5M, essentially flat year-over-year, with cannabis net revenue up 4% to $51.6M and Storz & Bickel revenue down 9% to $22.9M.
Consolidated gross margin was 29%, down from 32%, reflecting lower margins in both cannabis and Storz & Bickel. The net loss narrowed by about half to $62.6M, while Adjusted EBITDA loss improved to $(2.9)M. Free cash outflow improved to $(19.0)M from $(28.2)M.
Cash and cash equivalents rose to $371M, giving a net cash position of $146M as of December 31, 2025. Management highlights cost reductions, ongoing annualized savings of $29M, an on-track acquisition of MTL Cannabis, and a January 2026 recapitalization that pushed all debt maturities out to 2031.
Positive
- Significant loss and cash-flow improvement: Q3 FY2026 net loss narrowed to $62.6M from $121.9M, Adjusted EBITDA loss improved to $(2.9)M, and free cash outflow improved to $(19.0)M from $(28.2)M, indicating better cost control and operating efficiency.
- Strengthened balance sheet and liquidity: Cash and cash equivalents increased to $371M with a $146M net cash position as of December 31, 2025, and a January 2026 recapitalization pushed all outstanding debt maturities out to 2031, reducing near-term refinancing risk.
- Growth in core Canadian cannabis segments: Canada adult-use cannabis net revenue grew 8% and Canada medical cannabis net revenue grew 15% year-over-year in Q3 FY2026, reflecting stronger demand and execution in key home-market categories.
Negative
- Margin pressure and weak international cannabis: Consolidated gross margin fell 300 basis points to 29%, cannabis gross margin slipped to 25%, and international cannabis net revenue declined 31% year-over-year, highlighting ongoing challenges in higher-margin and overseas businesses.
Insights
Losses and cash burn improved sharply, but margins softened.
Canopy Growth delivered flat Q3 FY2026 net revenue of $74.5M, but mix was healthier: cannabis net revenue rose 4% to $51.6M while Storz & Bickel declined 9% to $22.9M. Canada medical and adult-use grew double digits and high single digits, partly offset by a 31% drop in international cannabis.
Profitability trends improved meaningfully. The net loss shrank to $62.6M from $121.9M, and Adjusted EBITDA loss improved to $(2.9)M. Free cash outflow improved to $(19.0)M from $(28.2)M, helped by SG&A reductions and tighter cost control, though consolidated gross margin slipped 300 basis points to 29%.
Liquidity and capital structure look stronger. Cash and cash equivalents reached $371M with a net cash position of $146M as of December 31, 2025, and a strategic recapitalization in January 2026 extended all debt maturities to 2031. Management is targeting positive Adjusted EBITDA in fiscal 2027 and expects the pending MTL Cannabis acquisition to enhance its Canadian and global platform.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
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(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 6, 2026, Canopy Growth Corporation (the “Company”) issued a press release announcing its financial results for its fiscal third quarter ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information set forth in Item 2.02 of this Current Report on Form 8-K (“Current Report”), including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information set forth in Item 2.02 of this Current Report, including Exhibit 99.1 attached hereto, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
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Description |
99.1* |
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Press release dated February 6, 2026 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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CANOPY GROWTH CORPORATION |
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Date: February 6, 2026 |
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By: |
/s/ Thomas Stewart |
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Thomas Stewart |
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Chief Financial Officer |
Exhibit 99.1
Canopy Growth Reports Third Quarter Fiscal 2026 Financial Results;
Delivers double digit net revenue growth in Canada Cannabis contributing to a narrowing net loss; financial strength of $371M in cash and cash equivalents with a net cash position of $146M at December 31, 2025
Net loss in Q3 FY2026 narrowed by 49% year-over-year; Adjusted EBITDA1 loss narrowed by 17% year-over-year, resulting from strong sales execution and SG&A cost savings
Acquisition of MTL Cannabis remains on track to close in the current quarter. Transaction is expected to strengthen Canopy Growth's global cannabis platform
Strategic recapitalization completed in January 2026 further strengthened balance sheet, with maturity dates for all outstanding indebtedness in 2031
SMITHS FALLS, ON, February 6, 2026 - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (Nasdaq: CGC) today announced its financial results for the three months ended December 31, 2025 ("Q3 FY2026"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
“The third quarter of fiscal 2026 reflects improving fundamentals and a more focused, integrated operating model across the business, led by strength in Canada. As we continue sharpening execution and move toward closing the acquisition of MTL Cannabis, we see a clear opportunity to further strengthen our platform over time.”
Luc Mongeau, Chief Executive Officer
"The decisive cost reduction actions that we have taken to date in fiscal 2026 have strengthened our current year financial performance and will ensure we are well positioned as we close out the fiscal year. With the right-sizing of our cost structure and the expected growth across our core businesses, we are confident that we can achieve our goal of delivering positive Adjusted EBITDA during fiscal 2027.”
Tom Stewart, Chief Financial Officer
Third Quarter Fiscal 2026 Financial Highlights
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- 1
Business Highlights
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1 Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 6 for a reconciliation of net loss from continuing operations to adjusted EBITDA.
2 Free cash flow is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 7 for a reconciliation of free cash flow - continuing operations.
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with Luc Mongeau, CEO and Tom Stewart, CFO at 10:00 AM Eastern Time on February 6, 2026.
Webcast Information
A live audio webcast will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=45C34153-5530-4D6A-A742-BC34AD2534FA
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on May 7, 2026 at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=45C34153-5530-4D6A-A742-BC34AD2534FA
Non-GAAP Measures
Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA is a useful measure for investors because it provides meaningful and useful financial information, as this measure demonstrates the operating performance of businesses. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring costs; restructuring costs recorded in cost of goods sold; and charges related to the flow-through of inventory step-up on business combinations, and further adjusted to remove acquisition, divestiture, and other costs. Asset impairments related to periodic changes to the Company’s supply chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information as this measure demonstrates the operating performance of businesses. The Adjusted EBITDA reconciliation is presented within this press release and explained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2025 (the “Form 10-Q”) filed with the Securities and Exchange Commission (“SEC”).
Free cash flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that free cash flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand the Company’s business, and that the free cash flow measure provides meaningful information regarding the Company’s liquidity requirements. This measure is calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment. The free cash flow reconciliation is presented within this press release and explained in the Form 10-Q filed with the SEC.
Contact
Alex Thomas
Senior Director, Communications
media@canopygrowth.com
Tyler Burns
Director, Investor Relations
tyler.burns@canopygrowth.com
About Canopy Growth
Canopy Growth is a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives.
Through an unwavering commitment to consumers, Canopy Growth delivers innovative products from owned and licensed brands including Tweed, 7ACRES, DOJA, Deep Space, and Claybourne, as well as category defining vaporization devices by Storz & Bickel. In addition, Canopy Growth serves medical cannabis patients globally with principal operations in Canada, Europe and Australia.
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA, LLC (“Canopy USA”). Canopy USA’s portfolio includes ownership of Acreage Holdings, Inc (“Acreage”), a vertically integrated multi‑state cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana Wellness, LLC, The Cima Group, LLC, and Mountain High Products, LLC (collectively “Wana”), a leading North American edibles brand, and majority ownership of Lemurian, Inc. (“Jetty”), a California-based producer of high-quality cannabis extracts and clean vape technology.
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At Canopy Growth, we’re shaping a future where cannabis is embraced for its potential to enhance well-being and improve lives. With high-quality products, a commitment to responsible use, and a focus on enhancing the communities where we live and work, we’re paving the way for a better understanding of all that cannabis can offer.
For more information visit www.canopygrowth.com.
Notice Regarding Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of applicable securities laws, which involve certain known and unknown risks and uncertainties. To the extent any forward-looking statements in this press release constitutes “financial outlooks” within the meaning of applicable Canadian securities laws, the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and the performance of our investments. These forward-looking statements are generally identified by their use of such terms and phrases as “intend,” “goal,” “strategy,” “estimate,” “expect,” “project,” “projections,” “forecasts,” “plans,” “seeks,” “anticipates,” “potential,” “proposed,” “will,” “should,” “could,” “would,” “may,” “likely,” “designed to,” “foreseeable future,” “believe,” “scheduled” and other similar expressions. Our actual results or outcomes may differ materially from those anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Forward-looking statements include, but are not limited to, statements with respect to:
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Certain of the forward-looking statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The forward-looking statements contained herein are based upon certain material assumptions , including: (i) management’s perceptions of historical trends, current conditions and expected future developments; (ii) our ability to generate cash flow from operations; (iii) general economic, financial
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market, regulatory and political conditions in which we operate; (iv) the production and manufacturing capabilities and output from our facilities, strategic alliances and equity investments; (v) consumer interest in our products; (vi) competition; (vii) anticipated and unanticipated costs; (viii) government regulation of our activities and products including but not limited to the areas of taxation and environmental protection; (ix) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; (x) our ability to obtain qualified staff, equipment and services in a timely and cost-efficient manner; (xi) our ability to conduct operations in a safe, efficient and effective manner; (xii) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our recent acquisitions into our existing operations; and (xiii) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. Financial outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management’s current expectations.
By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, our limited operating history; risks that we may be required to write down intangible assets, including goodwill, due to impairment; the adequacy of our capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute our business plan (either within the expected timeframe or at all); our ability to maintain an effective system of internal control; the diversion of management time on matters related to Canopy USA; the risks that the Trust’s future ownership interest in Canopy USA is not quantifiable, and the Trust may have significant ownership and influence over Canopy USA; the risks in the event that Acreage and Wana cannot satisfy their debt obligations as they become due; volatility in and/or degradation of general economic, market, industry or business conditions; risks relating to the overall macroeconomic environment, which may impact customer spending, our costs and our margins, including tariffs (and related retaliatory measures), the levels of inflation, interest rates and trade policy; risks relating to the evolving regulatory landscape in the United States; risks relating to our current and future operations in emerging markets; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis products in vaping devices; risks and uncertainty regarding future product development; changes in regulatory requirements in relation to our business and products; our reliance on licenses issued by and contractual arrangements with various federal, state and provincial governmental authorities; inherent uncertainty associated with projections; future levels of revenues and the impact of increasing levels of competition; third-party manufacturing risks; third-party transportation risks; our exposure to risks related to an agricultural business, including wholesale price volatility and variable product quality; changes in laws, regulations and guidelines and our compliance with such laws, regulations and guidelines; risks relating to inventory write downs; risks relating to our ability to refinance debt as and when required on terms favorable to us and to comply with covenants contained in our debt facilities and debt instruments; risks associated with jointly owned investments; our ability to manage disruptions in credit markets or changes to our credit ratings; the success or timing of completion of ongoing or anticipated capital or maintenance projects; risks related to the integration of acquired businesses; the timing and manner of the legalization of cannabis in the United States; business strategies, growth opportunities and expected investment; counterparty risks and liquidity risks that may impact our ability to obtain loans and other credit facilities on favorable terms; the potential effects of judicial, regulatory or other proceedings, litigation or threatened litigation or proceedings, or reviews or investigations, on our business, financial condition, results of operations and cash flows; risks associated with divestment and restructuring; the anticipated effects of actions of third parties such as competitors, activist investors or federal, state, provincial, territorial or local regulatory authorities, self-regulatory organizations, plaintiffs in litigation or persons threatening litigation; consumer demand for cannabis products; the implementation and effectiveness of key personnel changes; risks related to stock exchange restrictions; risks related to the protection and enforcement of our intellectual property rights; the risks related to our exchangeable shares (the “Exchangeable Shares”) having different rights from Canopy Shares and there may never be a trading market for the Exchangeable Shares; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; risks related to finalization of the consideration payable by us for the acquisition by Canopy USA of the remaining interests in Jetty; and the factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025 filed with the SEC and the risk factors discussed under the heading “Item 1A. Risk Factors” in the Form 10-Q. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.
Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned that the forward-looking statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking statements, except as required by law. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.
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Schedule 1
CANOPY GROWTH CORPORATION
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars, except number of shares and per share data, unaudited)
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December 31, |
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March 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
371,322 |
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$ |
113,811 |
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Short-term investments |
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- |
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17,656 |
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Restricted short-term investments |
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5,034 |
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6,410 |
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Amounts receivable, net |
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32,536 |
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52,780 |
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Inventory |
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105,555 |
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96,373 |
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Prepaid expenses and other assets |
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10,219 |
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7,544 |
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Total current assets |
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524,666 |
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294,574 |
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Other investments |
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155,150 |
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179,977 |
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Property, plant and equipment |
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285,039 |
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293,523 |
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Intangible assets |
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76,168 |
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87,200 |
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Goodwill |
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47,525 |
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46,042 |
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Other assets |
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17,644 |
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16,385 |
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Total assets |
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$ |
1,106,192 |
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$ |
917,701 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
19,963 |
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$ |
26,099 |
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Other accrued expenses and liabilities |
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43,755 |
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38,613 |
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Current portion of long-term debt |
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- |
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4,258 |
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Other liabilities |
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34,576 |
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25,434 |
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Total current liabilities |
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98,294 |
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94,404 |
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Long-term debt |
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224,989 |
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299,811 |
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Other liabilities |
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24,736 |
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36,273 |
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Total liabilities |
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348,019 |
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430,488 |
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Commitments and contingencies |
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Canopy Growth Corporation shareholders’ equity: |
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Share capital |
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9,169,947 |
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8,796,406 |
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Additional paid-in capital |
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2,615,588 |
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2,618,417 |
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Accumulated other comprehensive income |
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6,576 |
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535 |
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Deficit |
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(11,033,938 |
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(10,928,145 |
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Total shareholders’ equity |
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758,173 |
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487,213 |
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Total liabilities and shareholders’ equity |
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$ |
1,106,192 |
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$ |
917,701 |
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Schedule 2
CANOPY GROWTH CORPORATION |
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Three months ended December 31, |
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2025 |
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2024 |
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Revenue |
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$ |
90,391 |
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$ |
86,244 |
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Excise taxes |
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15,850 |
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11,483 |
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Net revenue |
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74,541 |
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74,761 |
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Cost of goods sold |
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53,075 |
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50,663 |
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Gross margin |
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21,466 |
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24,098 |
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Operating expenses |
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Selling, general and administrative expenses |
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44,437 |
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41,476 |
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Share-based compensation |
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888 |
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5,159 |
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Loss on asset impairment and restructuring |
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2,491 |
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1,285 |
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Total operating expenses |
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47,816 |
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47,920 |
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Operating loss from continuing operations |
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(26,350 |
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(23,822 |
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Other income (expense), net |
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(35,909 |
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(97,758 |
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Loss from continuing operations before income taxes |
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(62,259 |
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(121,580 |
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Income tax expense |
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(368 |
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(316 |
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Net loss attributable to Canopy Growth Corporation |
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$ |
(62,627 |
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$ |
(121,896 |
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Basic and diluted loss per share |
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Basic and diluted loss per share |
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$ |
(0.18 |
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$ |
(1.11 |
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Basic and diluted weighted average common shares outstanding |
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345,534,979 |
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110,306,430 |
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Schedule 3
CANOPY GROWTH CORPORATION |
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Nine months ended December 31, |
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2025 |
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2024 |
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Cash flows from operating activities: |
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Net loss |
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$ |
(105,793 |
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$ |
(377,327 |
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Gain from discontinued operations, net of income tax |
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- |
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5,310 |
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Net loss from continuing operations |
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(105,793 |
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(382,637 |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation of property, plant and equipment |
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14,281 |
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15,570 |
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Amortization of intangible assets |
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13,539 |
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16,081 |
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Share-based compensation |
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2,798 |
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14,531 |
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Loss on asset impairment and restructuring |
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710 |
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18,971 |
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Income tax expense |
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873 |
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6,812 |
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Non-cash fair value adjustments and charges related to |
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19,246 |
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223,591 |
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Change in operating assets and liabilities, net of effects from |
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Amounts receivable |
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19,606 |
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(3,163 |
) |
Inventory |
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(8,751 |
) |
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(12,924 |
) |
Prepaid expenses and other assets |
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(3,158 |
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(641 |
) |
Accounts payable and accrued liabilities |
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(2,178 |
) |
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(17,000 |
) |
Other, including non-cash foreign currency |
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3,275 |
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(11,789 |
) |
Net cash used in operating activities |
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(45,552 |
) |
|
|
(132,598 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of and deposits on property, plant and equipment |
|
|
(4,333 |
) |
|
|
(7,724 |
) |
Purchases of intangible assets |
|
|
(511 |
) |
|
|
(409 |
) |
Proceeds on sale of property, plant and equipment |
|
|
5 |
|
|
|
4,932 |
|
Redemption of short-term investments |
|
|
19,001 |
|
|
|
16,950 |
|
Net cash outflow on sale or deconsolidation of subsidiaries |
|
|
- |
|
|
|
(6,968 |
) |
Net cash inflow on loan receivable |
|
|
153 |
|
|
|
28,353 |
|
Investment in other financial assets |
|
|
- |
|
|
|
(95,335 |
) |
Other investing activities |
|
|
6,981 |
|
|
|
- |
|
Net cash provided by (used in) investing activities - continuing operations |
|
|
21,296 |
|
|
|
(60,201 |
) |
Net cash provided by investing activities - discontinued operations |
|
|
- |
|
|
|
13,414 |
|
Net cash provided by (used in) investing activities |
|
|
21,296 |
|
|
|
(46,787 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from issuance of common shares and warrants |
|
|
374,171 |
|
|
|
255,989 |
|
Proceeds from exercise of stock options |
|
|
- |
|
|
|
112 |
|
Proceeds from exercise of warrants |
|
|
- |
|
|
|
8,454 |
|
Issuance of long-term debt and convertible debentures |
|
|
- |
|
|
|
68,255 |
|
Repayment of long-term debt |
|
|
(71,660 |
) |
|
|
(148,249 |
) |
Other financing activities |
|
|
(16,712 |
) |
|
|
(19,943 |
) |
Net cash provided by financing activities |
|
|
285,799 |
|
|
|
164,618 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(4,032 |
) |
|
|
6,376 |
|
Net increase/(decrease) in cash and cash equivalents |
|
|
257,511 |
|
|
|
(8,391 |
) |
Cash and cash equivalents, beginning of period |
|
|
113,811 |
|
|
|
170,300 |
|
Cash and cash equivalents, end of period |
|
$ |
371,322 |
|
|
$ |
161,909 |
|
|
|
|
Schedule 4
Net Revenue |
|
Three months ended December 31, |
|
|
|
|
|
|
|
|||||||
(in thousands of Canadian dollars) |
|
2025 |
|
|
2024 |
|
|
$ Change |
|
|
% Change |
|
||||
Cannabis |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Canadian adult-use cannabis1 |
|
$ |
22,927 |
|
|
$ |
21,153 |
|
|
$ |
1,774 |
|
|
|
8 |
% |
Canadian medical cannabis2 |
|
|
22,511 |
|
|
|
19,575 |
|
|
|
2,936 |
|
|
|
15 |
% |
International markets cannabis3 |
|
|
6,209 |
|
|
|
8,974 |
|
|
|
(2,765 |
) |
|
|
(31 |
%) |
|
|
$ |
51,647 |
|
|
$ |
49,702 |
|
|
$ |
1,945 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Storz & Bickel |
|
$ |
22,894 |
|
|
$ |
25,059 |
|
|
$ |
(2,165 |
) |
|
|
(9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue |
|
$ |
74,541 |
|
|
$ |
74,761 |
|
|
$ |
(220 |
) |
|
|
(0.3 |
%) |
1 Includes excise taxes of $13,239 and other revenue adjustments, representing our determination of returns and pricing adjustments, of $324 for the three months ended December 31, 2025 (three months ended December 31, 2024 - excise taxes of $9,335 and other revenue adjustments of $924). |
|
|||||||||||||||
2 Includes excise taxes of $2,611 for the three months ended December 31, 2025 (three months ended December 31, 2024 - $2,148). |
|
|||||||||||||||
3 Reflects other revenue adjustments of $933 for the three months ended December 31, 2025 (three months ended December 31, 2024 - $62). |
|
|||||||||||||||
|
|
|
Schedule 5
Segmented Gross Margin |
|
|||||||
|
|
Three months ended December 31, |
|
|||||
(in thousands of Canadian dollars except where indicated; unaudited) |
2025 |
|
|
2024 |
|
|||
Cannabis segment |
|
|
|
|
|
|
||
Net revenue |
|
$ |
51,647 |
|
|
$ |
49,702 |
|
Gross margin, as reported |
|
|
12,976 |
|
|
|
14,106 |
|
Gross margin percentage, as reported |
|
|
25 |
% |
|
|
28 |
% |
|
|
|
|
|
|
|
||
Storz & Bickel segment |
|
|
|
|
|
|
||
Revenue |
|
$ |
22,894 |
|
|
$ |
25,059 |
|
Gross margin, as reported |
|
|
8,490 |
|
|
|
9,992 |
|
Gross margin percentage, as reported |
|
|
37 |
% |
|
|
40 |
% |
|
|
|
Schedule 6
Adjusted EBITDA1 Reconciliation (Non-GAAP Measure) |
|
|
|
|
|
|
||
|
|
Three months ended December 31, |
|
|||||
(in thousands of Canadian dollars, unaudited) |
|
2025 |
|
|
2024 |
|
||
Net loss from continuing operations |
|
$ |
(62,627 |
) |
|
$ |
(121,896 |
) |
Income tax expense |
|
|
368 |
|
|
|
316 |
|
Other (income) expense, net |
|
|
35,909 |
|
|
|
97,758 |
|
Share-based compensation |
|
|
888 |
|
|
|
5,159 |
|
Acquisition, divestiture, and other costs2 |
|
|
11,195 |
|
|
|
3,595 |
|
Depreciation and amortization |
|
|
8,905 |
|
|
|
10,314 |
|
Loss on asset impairment and restructuring |
|
|
2,491 |
|
|
|
1,285 |
|
Adjusted EBITDA1 |
|
$ |
(2,871 |
) |
|
$ |
(3,469 |
) |
1Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures". |
|
|||||||
2Acquisition, divestiture, and other costs include non-recurring transaction and litigation costs. |
|
|||||||
|
|
|
Schedule 7
Free Cash Flow1 Reconciliation (Non-GAAP Measure) |
|
|
|
|
|
|
||
|
|
Three months ended December 31, |
|
|||||
(in thousands of Canadian dollars, unaudited) |
|
2025 |
|
|
2024 |
|
||
Net cash used in operating activities - continuing operations |
|
$ |
(17,236 |
) |
|
$ |
(26,966 |
) |
Purchases of and deposits on property, plant and equipment |
|
|
(1,801 |
) |
|
|
(1,215 |
) |
Free cash flow1 - continuing operations |
|
$ |
(19,037 |
) |
|
$ |
(28,181 |
) |
1Free cash flow is a non-GAAP measure. See "Non-GAAP Measures". |
|
|||||||
|
|
|