Canopy Growth Q2 2027: A $35.8M Charge Masks a Real Revenue Rebound

Canopy Growth reported Q2 2027 revenue of $81.4 million, up 22% year over year, but a $35.8 million non-cash fair value charge on Canopy USA-related assets dominated the headline numbers. That single item drove the GAAP loss per share to negative $0.10, missing expectations of negative $0.03. Without it, the underlying quarter told a meaningfully different story.

The standout result was international cannabis, where net revenue surged 141%, fueled by medical demand in Germany and Poland. CEO Luc Mongeau pointed to the EU GMP certification of the Smiths Falls facility and the expansion of the company's end-to-end certified supply chain as the infrastructure behind that momentum. The company also entered the U.K. medical cannabis market during the quarter, distributing four Spectrum Therapeutics flower strains through GROW Group U.K. Ltd.

Canada was not idle either. Medical cannabis revenue rose 18%, supported by growth in insured customers and the MTL Cannabis acquisition, while adult-use revenue grew 17% on stronger flower sales. The one soft spot was Storz and Bickel, the vaporizer subsidiary, whose revenue slipped 4% on weaker consumer spending in certain regions, though its gross margin climbed to 39% on cost efficiencies and product mix.

Consolidated gross margin narrowed to 29% from 33% a year earlier, with the cannabis segment specifically affected by a cut to the Veterans Affairs Canada reimbursement rate. Total liabilities rose to $407.5 million, while cash and equivalents stood at $247.3 million. Free cash flow came in at negative $15.5 million, an improvement year over year.

CFO Tom Stewart said the company remains within reach of reporting positive adjusted EBITDA during fiscal 2027. Shareholders have also recently authorized a potential share consolidation, which would reshape Canopy's capital structure. Quarterly losses have been narrowing from the depths of negative $1.43 in Q4 2025, with Q1 2027 having briefly touched negative $0.02 before this quarter's charge-driven step back.