Outlet: STRATCANN
Canopy sees growing revenue, declining losses in Q1 2027
August 7, 2026
By: Sarah Clark
Canopy Growth reported net revenue of $81.2 million for the three months ended June 30, 2026 (Q1 FY2027), gross margin of $22.2 million, and a net loss of $14.6 million.
This represented a 13% year-over-year increase compared to Q1 FY2026, and a 68% decrease in losses. Net revenue from cannabis sales was $65.1 million, up 14% YOY, with another $16.1 million from its control of Storz & Bickel, up 6% YOY.
Net revenue from Canadian adult-use cannabis was up 10% YOY to $29.7 million, Canadian medical cannabis was up 22% YOY to $25.8 million, and sales into the international market were up 10% to $9.6 million.
The increase in Canadian adult-use sales was primarily attributable to increased flower sales, driven by the acquisition of MTL in March 2026, partially offset by declines in opportunistic bulk sales.
The year-over-year increase in Canadian medical cannabis sales was primarily attributed to continued growth in the number of insured customers and the acquisition of MTL, partially offset by the Canadian government’s Veterans Affairs Canada reduction in the reimbursement rate paid to producers for medical cannabis from $8.50 a gram to $6 a gram, which became effective on April 1, 2026.
The year-over-year increase in international sales was primarily attributed to strength in Europe, specifically in Poland. The year-over-year increase in Storz & Bickel was attributed to prior-year product portfolio expansion and growth in non-core markets. Cost of Canopy’s goods sold increased 9% while gross margin increased by 23%.
Canopy incurred $16.2 million in excise taxes on its Canadian non-medical sales (35% of gross sales), and $3 million on its Canadian medical cannabis sales (10% of gross sales), for a total of $19.2 million (25% total).
Total net sales in Canada were $54.9 million, a 14% YOY increase, while sales in the German market were another $17.6 million (22% increase YOY), sales into the US market were $6.2 million (a 43% increase YOY), and other markets combined were another $2.4 million (a 32% decline YOY).
“The renewed focus and strong momentum we established over the past year have continued into fiscal 2027,” said Luc Mongeau, Chief Executive Officer. “In the first quarter, we achieved net revenue growth in every business through solid execution across the organization. We have clear strategies to deliver further growth in each of our end markets. 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.”
