Canopy Growth Approaching Positive EBITDA Amid Revenue Growth
Canadian cannabis company Canopy Growth (CGC) reported a significant improvement in its financial performance during Q1 fiscal 2027, with net revenue rising to $57.4 million — up 13% year over year across all major business segments. The firm's adjusted EBITDA loss narrowed by 59%, from $5.7 million to just $2.3 million, signaling progress toward profitability. Management anticipates further gains in the second half of fiscal 2027 as it integrates MTL Cannabis, a profitable acquisition that is expected to generate annual cost savings and boost high-quality cannabis flower production. Canopy has already achieved over $20.8 million in annualized savings since March 2025 through broader cost reductions. The company's gross margin improved from 25% to 31%, with revenue growth observed across Canadian medical, adult-use, and international markets. Despite these improvements, free cash flow remains a concern as outflows increased significantly year over year. The balance sheet offers some stability, ending the quarter with $241.4 million in cash and extended debt maturities to 2031.
Tickers: $CGC
Topics: acquisition cannabis ebitda improvement revenue growth