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Canopy Growth (NASDAQ:CGC) traded higher in the premarket on Friday after the Canadian marijuana player reported better-than-expected Q1 financials for fiscal 2026, thanks to over a 20% YoY increase in cannabis sales.
The Ontario-based firm reported C$72.1M in net revenue for the quarter, with ~9% YoY growth, exceeding the C$64.5M projected by analysts according to FactSet data, as its Cannabis sales climbed ~24% YoY to C$57.0M.
CGC’s Canada adult-use cannabis sales jumped ~43% YoY to C$27.0M, and Canada medical cannabis net revenue rose ~13% YoY to C$21.2M. However, its international cannabis sales dragged the topline growth, expanding only ~5% YoY to C$8.8M amid a decline in its Australian medical cannabis business.
“We delivered strong top-line growth in the first quarter of fiscal 2026, led by momentum in our Canada adult-use cannabis business, where we’re gaining share in high-demand categories, and steady performance across our global medical cannabis business,” CEO Luc Mongeau said.
Amid lower sales in its high-margin Poland market and unfavorable changes in its Canadian product mix, CGC’s gross margin slipped to 25% from 35% in the prior year period, while its operating loss from continuing operations narrowed ~21% YoY to C$23M, thanks to a decline in operating costs.
However, Canopy’s (NASDAQ:CGC) net loss per share contracted ~86% YoY to C$0.22, falling short of the consensus figure of (C$0.23), as the company said it has realized C$17M of projected annualized savings of C$20M since Mar. 1.