Shares of Canopy Growth (CGC) added ~19% in the premarket on Friday after the Canadian cannabis player announced Q2 results for fiscal 2026, resolving investor concerns over its ability to function as a going concern.
For the quarter ending Sept. 30, the Ontario-based Canadian LP reported C$298.1M in cash and cash equivalents, which topped its debt balances by C$70M. “As a result, conditions that previously raised substantial doubt concerning the company’s ability to continue as a going concern have been resolved,” the company said.
Canopy (CGC) also posted a C$1.6M net loss for the period, beating Street forecasts by C$0.17 per share on C$66.7M of revenue, which, however, trailed the consensus by C$5.1M despite ~6% YoY growth powered by its Canadian sales.
Revenue from the company’s cannabis segment grew ~12% YoY to C$50.8M, driven by its Canadian adult-use cannabis sales, which added C$23.9M to the topline with ~30% YoY growth, offsetting a ~39% YoY contraction in international markets.
Meanwhile, CGC’s Storz & Bickel accessories segment brought in C$15.8M in net revenue, indicating a ~10% YoY decline, which the company attributed to strong sales performance in the prior-year period and consumer economic uncertainty.
While the company’s gross margin slipped 200 bps to 33% amid lower Cannabis gross margins, its SG&A expenses decreased ~13% YoY, driven by operational efficiencies, cutting the operating loss by ~63% YoY to C$16.8M.
“We’re building a stronger, more competitive company defined by continued momentum in Canada adult-use cannabis, consistent growth in Canada medical cannabis, and a disciplined approach to strengthening our balance sheet,” CEO Luc Mongeau remarked.