Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced its financial results for the three months ended June 30, 2026 (“Q1 FY2027”). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

“The renewed focus and strong momentum we established over the past year have continued into fiscal 2027. In the first quarter, we achieved net revenue growth in every business through solid execution across the organization. We have clear strategies to deliver further growth in each of our end markets. At the heart of our cannabis strategy is our company-wide push to elevate cultivation and produce a consistent and increasing supply of high-quality flower that will support growing demand both in Canada and internationally.”

Luc Mongeau, Chief Executive Officer

“The combination of top-line growth and disciplined cost management is enabling us to make steady progress on key profitability measures including gross margin and adjusted EBITDA. As expected, the integration of MTL Cannabis is leading to increased supply of high-quality flower, expanded revenue opportunities and the realization of meaningful synergies. We anticipate further improvements in our financial results, especially in the second half of fiscal 2027, as the integration is completed.”

Tom Stewart, Chief Financial Officer

First Quarter FY2027 Financial Highlights

• Consolidated net revenue of $81.2M in Q1 FY2027 increased by 13% compared to the three months ended June 30, 2025 (“Q1 FY2026″).
  • Cannabis net revenue was $65.1M in Q1 FY2027, an increase of 14% versus the prior-year period.
    • Canada medical cannabis net revenue in Q1 FY2027 was $25.8M, an increase of 22% versus Q1 FY2026, driven by growth in the number of insured customers and the acquisition of MTL Cannabis Corp. (“MTL Cannabis”), partially offset by the Canadian government’s reduction in the Veterans Affairs Canada (“VAC”) reimbursement rate for medical cannabis.
    • Canada adult-use cannabis net revenue in Q1 FY2027 was $29.7M, an increase of 10% compared to Q1 FY2026, primarily attributable to increased flower sales driven by the acquisition of MTL Cannabis, partially offset by declines in opportunistic bulk sales.
    • International markets cannabis net revenue of $9.6M in Q1 FY2027 increased 10% over Q1 FY2026, primarily due to strength in Europe, specifically in Poland.
  • Storz & Bickel net revenue was $16.1M in Q1 FY2027, a 6% increase compared to Q1 FY2026. The growth is attributable to prior-year product portfolio expansion and increasing sales across non-core markets.
• Consolidated gross margin was 27% in Q1 FY2027, compared to 25% in Q1 FY2026.
  • Adjusted gross margin¹ increased to 31% in Q1 FY2027, as compared to 25% in Q1 FY2026. The current year period excludes the impact of inventory step-up charges ($2.6 million) related to the acquisition of MTL Cannabis, which were not present in the prior-year period.
  • Cannabis gross margin was 22% in Q1 FY2027 compared to 24% in Q1 FY2026, while adjusted gross margin¹ for the segment was 26% in Q1 FY2027 compared to 24% in Q1 FY2026. The increase in the adjusted gross margin percentage¹ is primarily attributable to higher sales across the cannabis segment, partially offset by the reduction in the VAC reimbursement rate available for medical cannabis.
  • Storz & Bickel gross margin was 48% in Q1 FY2027 compared to 29% in Q1 FY2026. The increase in gross margin is due to a cost rationalization exercise implemented at the end of fiscal 2026, as well as a recovery of certain U.S. tariffs in the period.
• Selling, general and administrative expenses in Q1 FY2027 were 6% higher than in Q1 FY2026. The increase was driven by the addition of the MTL Cannabis operations, offset by lower costs resulting from continued reductions in headcount and other cost reduction initiatives.
• Net loss in Q1 FY2027 was 68% lower compared to Q1 FY2026.
• Adjusted EBITDA² loss for Q1 FY2027 was $3.2M, an improvement of $4.7M or 59% compared to Q1 FY2026, primarily attributable to revenue growth across both segments and continued cost savings, partially offset by the reduction in the VAC reimbursement rate available for medical cannabis.
• Free cash outflow³ increased from $11.6M in Q1 FY2026 to $25.7M in Q1 FY2027, reflecting increased cash used in operating activities, primarily due to the timing of changes in working capital items.

Business Highlights

• Canopy Growth’s Apollo Cannabis Clinics were named Best Medical Cannabis Clinic in the 2025 Toronto Star Readers’ Choice Awards, an indicator of the Company’s commitment to positive patient outcomes.
• Spectrum Therapeutics introduced new 30 and 90-pack formats for its softgels with enhanced dosing options, offering greater value to medical cannabis customers while reducing packaging and shipping costs.
• The Company relaunched the Tweed brand in the German medical cannabis market, taking advantage of MTL Cannabis’ premium genetics and flower production capacity to strengthen its international position.
• Canopy Growth improved its adult-use market ranking to #6 overall in Canada⁴, with top 2 positions in premium flower, infused pre-rolls, and oils & softgels.
• The Company expanded Claybourne’s Frosted Flyers infused pre-roll lineup in Canada, with three new 8-pack variety formats and the brand’s first bundle pack.

Canopy Growth Unveils Refreshed Corporate Identity

Canopy Growth unveiled a refreshed corporate identity designed to reflect our evolution into a modern cannabis company.

The new brand is built on our belief that cannabis has the power to better lives – for patients seeking relief and balance, and for adult-use cannabis consumers looking for trusted, consistent experiences.

The new identity supports a clearer expression of our long-term strategy: building a focused, consumer-centric cannabis company grounded in quality, innovation, and disciplined execution. At the heart of the refreshed identity is the new brandmark featuring a canopy arch and cannabis plant, representing our presence across medical, wellness, and adult-use cannabis markets, and the cultivation at the root of everything we build.

The refreshed brand is live today across Canopy Growth’s website and social channels. To see more, visit www.canopygrowth.com.

Webcast and Conference Call Information

The Company will host a conference call and audio webcast with Luc Mongeau, CEO and Tom Stewart, CFO at 10:00 AM Eastern Time on August 7, 2026.

Webcast Information
A live audio webcast will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=567345EB-EB0A-41BF-ABD6-785F173BBEFE

Replay Information
A replay will be accessible by webcast until 11:59 PM ET on November 5, 2026 at the same URL.

Non-GAAP Measures

Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA is a useful measure for investors because it provides meaningful and useful financial information, as this measure demonstrates the operating performance of businesses. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring costs; acquisition-related restructuring and other inventory write-downs; and charges related to the flow-through of inventory step-up on business combinations, and further adjusted to remove acquisition, divestiture, and other costs. Asset impairments related to periodic changes to the Company’s supply chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information as this measure demonstrates the operating performance of businesses. The Adjusted EBITDA reconciliation is presented within this press release and explained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 (the “Form 10-Q”) filed with the Securities and Exchange Commission (“SEC”).

Free cash flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that free cash flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand the Company’s business, and that the free cash flow measure provides meaningful information regarding the Company’s liquidity requirements. This measure is calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment. The free cash flow reconciliation is presented within this press release and explained in the Form 10-Q.

Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that adjusted gross margin and adjusted gross margin percentage present meaningful and useful financial information as these measures provide insights into the gross margin performance of the business. Adjusted gross margin is calculated as gross margin excluding acquisition related restructuring and other inventory write-downs, and charges related to the flow-through of inventory step-up on business combinations. Adjusted gross margin percentage is calculated as adjusted gross margin divided by net revenue. The adjusted gross margin and adjusted gross margin percentage reconciliation is presented within this news release.