Canopy Growth Sees Encouraging Results as MTL Cannabis Deal Nears Closure

Shares of the Canadian cannabis producer Canopy Growth rose sharply on Friday after the company disclosed its latest quarterly figures. The stock climbed about 7.3% as investors reacted to progress in revenue and profitability and to the impending acquisition of MTL Cannabis.

Key figures
- Consolidated net revenue: CAD 75 million, flat versus the prior year
- Cannabis revenue: CAD 52 million, +4% year over year
- Net loss: 49% lower than the year-ago quarter
- Adjusted EBITDA loss: CAD -3 million, -17% year over year
- Liquidity: CAD 371 million in cash

Cannabis segment shows solid growth
In the third quarter of fiscal 2026, Canopy Growth lifted cannabis revenue by 4% to CAD 52 million. The medical cannabis segment in Canada led the gains, up 15% to CAD 23 million. The recreational cannabis market also climbed 8%, reaching CAD 23 million.

The company narrowed its net loss by nearly half. The adjusted EBITDA loss declined for the third consecutive quarter. Free cash flow improved from a negative CAD 28 million in the year-ago quarter to negative CAD 19 million.

Balance sheet strengthened, debt maturities extended
At the end of December 2025, Canopy Growth held a net cash position of CAD 146 million. In January 2026, the company extended the maturities of all outstanding liabilities through 2031, a recapitalization that provides greater financial flexibility.

The MTL Cannabis acquisition remains on track to close in the current quarter. The deal is expected to bolster Canopy Growth?s presence in the Quebec market.

Vaporizer unit posts record growth
The Storz & Bickel vaporizer division reported CAD 23 million in revenue, a 45% increase from the prior quarter. The VEAZY device emerged as a top seller. No other product at the company reached 20,000 units sold as quickly. Online Black Friday sales rose 16%.

International operations faced a tougher period. European supply-chain issues reduced revenue by 31%. On the bright side, there was a 22% sequential improvement versus the previous quarter as shipments to Europe resumed.

Costs trimmed, profitability in sight
General and administrative expenses rose 7% initially. When excluding one-off items?such as legal costs tied to earlier divestitures?the expense base declined 12%. Since March 2025, Canopy Growth has achieved annual savings of CAD 29 million through headcount reductions and lower third-party costs.

CEO Luc Mongeau highlighted stronger fundamentals and a more focused business model, while CFO Tom Stewart expressed confidence that the company can deliver positive adjusted EBITDA in fiscal 2027. That outlook appears to have supported investor optimism about the path to sustainable profitability.