The Canadian cannabis producer Canopy Growth is making measurable progress in its journey toward profitability. Recent quarterly results reveal a company halving its net loss while navigating a challenging international landscape. All eyes are now on an impending acquisition that could solidify its recovery path.
Financial Discipline Yields Substantial Results
For its third fiscal quarter of 2026, ended February 6, Canopy Growth reported a dramatic 49% year-over-year reduction in its net loss. This improvement underscores the impact of a stringent cost-cutting program. The company has realized annualized savings of approximately 29 million Canadian dollars (CAD), exceeding its own targets.
Furthermore, the adjusted EBITDA loss contracted by 17% to just 3 million CAD, bringing the firm tantalizingly close to breakeven on this metric. The consolidated gross margin remained robust at 29% for the period, indicating healthier underlying operations.
Divergent Performance Across Markets
Total revenue held steady at 75 million CAD, mirroring the prior year’s figure, but this headline number masks sharply contrasting regional stories.
* Canadian Operations: The domestic business served as the engine of growth. Medical cannabis sales expanded by 15% to 23 million CAD, while recreational revenue saw an 8% increase.
* International Challenges: Overseas revenue faced significant headwinds, declining 31% due to persistent supply chain disruptions in Europe.
A standout performance came from the Storz & Bickel subsidiary. Following the successful launch of the new “VEAZY” vaporizer, segment revenue surged 45% compared to the preceding quarter.
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Pending Acquisition Nears Finish Line
Beyond internal restructuring, Canopy Growth is actively pursuing growth through acquisition. Its planned 125 million CAD takeover of MTL Cannabis is proceeding on schedule, with completion expected within the current quarter. MTL recently reminded its shareholders of the crucial vote scheduled for February 17, 2026.
The transaction has garnered support from influential proxy advisory firms ISS and Glass Lewis, who have recommended shareholders vote in favor. Canopy anticipates the deal will bolster its leadership in the medical cannabis segment and provide a lift to both revenue and margins.
Stable Foundation for Future Goals
Management has reaffirmed its objective of achieving positive adjusted EBITDA in fiscal year 2027. The company’s balance sheet provides a stable platform for this goal, featuring a substantial cash position of 371 million CAD and credit facilities that were extended through to 2031 in January.
Investor attention is now firmly fixed on the upcoming shareholder vote. The decision on February 17 will set the final course for the integration of MTL Cannabis and potentially mark a definitive step in Canopy Growth’s operational turnaround.
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