Canopy Growth Corporation (TSX:WEED, NYSE:CGC) reported mixed results for the fiscal third quarter, with revenue beating estimates and a narrower loss, though per-share results missed expectations.
The Ontario-based cannabis producer said net revenue totaled C$74.5 million for the quarter ended December 31, roughly unchanged from a year earlier and above the C$70.5 million Wall Street consensus estimate.
However, Canopy reported a loss of C$0.18 per share, an improvement of about 84% from the prior year period, but more than the C$0.08 loss per share expected by analysts.
Net loss narrowed 49% year over year, while adjusted EBITDA loss narrowed 17%, which the company attributed to stronger sales execution and lower SG&A expenses.
Canopy said cannabis net revenue rose 4% to C$52 million. Canadian medical cannabis revenue increased 15% to C$23 million, driven by growth in insured patients and larger order sizes, while Canadian adult-use revenue rose 8% to C$23 million, supported by growth in infused pre-rolls and new all-in-one vape products.
International cannabis revenue declined 31% year over year due to supply chain challenges in Europe, though it increased 22% sequentially as shipments improved later in the quarter.
The company’s Storz & Bickel vaporizer business reported net revenue of C$23 million, up 45% sequentially on seasonal demand and a new product launch, but down 9% from a year earlier.
Consolidated gross margin declined to 29% from 32% a year ago, reflecting lower international cannabis sales and changes in product mix, while selling, general and administrative expenses fell on an adjusted basis due to headcount reductions and lower third-party costs.
Canopy said it has achieved C$29 million in annualized cost savings since March 2025 and continues to pursue additional efficiencies.
The company said its acquisition of MTL Cannabis remains on track to close in the current quarter and is expected to strengthen its global cannabis platform.
“The third quarter of fiscal 2026 reflects improving fundamentals and a more focused, integrated operating model across the business, led by strength in Canada,” Canopy Growth CEO Luc Mongeau said in a statement.
“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.”
Shares of Canopy Growth added 1.9% following the report.