Q2 2026 Canopy Growth Corp Earnings Call Transcript
Key Points
- Net revenue in the Canadian adult-use cannabis business increased by 30% year-over-year, driven by demand for new products like infused pre-rolls and all-in-one vapes.
- The Canadian medical cannabis business saw a 17% year-over-year growth in net revenue, marking consecutive quarters of growth.
- The company achieved over $21 million in annualized SG&A savings, surpassing their $20 million target ahead of schedule.
- Canopy Growth Corp (CGC) has significantly deleveraged its balance sheet, with cash and cash equivalents exceeding debt balances by $70 million.
- The launch of the new Veazy vaporizer by Storz & Bickel generated early sales momentum, contributing to sequential revenue growth.
- International market performance was disappointing, with net revenues declining by $3 million due to supply constraints and internal process challenges.
- European operations faced challenges with lower sales due to not meeting quality standards and internal process gaps.
- Cannabis gross margin in Q2 was 31%, down year-over-year, although it improved sequentially.
- International cannabis sales decreased by 39% from the prior year, driven by supply challenges.
- The Canadian federal government's proposed changes to medical cannabis reimbursement for veterans could impact access and quality of care.
Good morning. My name is Joanna, and I will be your conference operator today. I would like to welcome you to Canopy Growth's second-quarter fiscal 2026 financial results conference call. (Operator Instructions)
I will now turn the call over to Tyler Burns, Director, Investor Relations. Tyler, you may begin the conference call.
Good morning, and thank you for joining us. On our call today, we have Canopy Growth's Chief Executive Officer, Luc Mongeau; and Chief Financial Officer, Tom Stewart.
Before financial markets open today, Canopy Growth issued a news release announcing the financial results for our second quarter fiscal 2026 ended September 30, 2025. The news release and financial statements have been filed on EDGAR and SEDAR and will be available on our website under the Investors tab.
Before we begin, I would like to remind you that our discussion during the call will include forward-looking statements that are based on management's current views and assumptions
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