Canopy Growth Q2 revenue up 22% to C$81.4 million, slightly below estimates

what happened

Canadian cannabis producer Canopy Growth posted net revenue of C$81.4 million for the second quarter of fiscal 2027, a 22% increase from a year earlier. According to Reuters, analysts had expected C$82.09 million, so the result came in just short of consensus.

The net loss widened to C$40.7 million from C$5.0 million a year earlier, driven partly by C$35.8 million in fair value charges tied to Canopy USA assets. Gross margin fell to 29% from 33%, while the adjusted EBITDA loss narrowed to C$2.9 million. Free cash outflow was C$15.5 million, compared with C$19.2 million, according to TradingView. International cannabis revenue surged 141%, led by Germany and Poland, per Reuters. The company also entered the U.K. market through its partner GROW Group U.K. and expects to reach positive adjusted EBITDA during fiscal 2027.

why it matters

For markets, the key takeaway is that revenue growth is not yet translating into profit: the loss widened and margins slipped, partly because Veterans Affairs Canada cut its reimbursement rate for medical cannabis. Analysts' average rating on the shares is 'hold', and the median 12-month price target cited by Reuters is C$1.60, versus a November 5 close of C$0.95.

market impact

Canopy Growth shares: revenue slightly below consensus and a wider loss weigh on the stock

• ▼Canopy Growth shares pressure down — revenue slightly below consensus and a wider net loss

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