Canopy Growth Q3 2026 Canopy Growth Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q3 2026 Canopy Growth Corp Earnings Call
Speaker #1: Exponential results conference call. Currently, all participants are in a listen-only mode. I will now turn the call over to Tyler Burns, Director Investor Relations.
Operator: 26th Financial Results Conference Call. Currently, all participants are in a listen-only mode. I will now turn the call over to Tyler Burns, Director of Investor Relations. Tyler, you begin the conference call.
Operator: 26th Financial Results Conference Call. Currently, all participants are in a listen-only mode. I will now turn the call over to Tyler Burns, Director of Investor Relations. Tyler, you begin the conference call.
Speaker #1: Tyler, you may begin the conference
Speaker #1: call. Good
Speaker #2: morning, and thank you for joining us. On our call today, we have Canopy Growth Chief Executive Officer Luke Mongeau, and Chief Financial Officer Tom Stewart.
Tyler Burns: Good morning, and thank you for joining us. On our call today we have Canopy Growth 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 third quarter fiscal 2026 ended December 31, 2025. The news release and financial statements have been filed on EDGAR and SEDAR+ and will be available on the 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, and that this discussion is qualified in its entirety by the cautionary note regarding forward-looking statements included at the end of the news release issued today.
Tyler Burns: Good morning, and thank you for joining us. On our call today we have Canopy Growth 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 third quarter fiscal 2026 ended December 31, 2025. The news release and financial statements have been filed on EDGAR and SEDAR+ and will be available on the website under the Investors tab.
Speaker #2: Before financial markets open today, Canopy Growth issued a news release announcing the financial results for our third quarter fiscal 2026 ended December 31st, 2025.
Speaker #2: The news release and financial statements have be available on the website under the investor's 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, and that this discussion is qualified in its entirety by the cautionary note regarding forward-looking statements included at the end of the news release issued today.
Tyler Burns: 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, and that this discussion is qualified in its entirety by the cautionary note regarding forward-looking statements included at the end of the news release issued today.
Speaker #2: Please review today's earnings release, and Canopy's reports filed with the SEC and Cedar for various factors that could cause actual results to projections. In addition, differ materially from reconciliations between any non-GAAP measures to their closest reported GAAP measures are included in our earnings release.
Tyler Burns: Please review today's earnings release and Canopy's reports filed with the SEC and SEDAR+ for various factors that could cause actual results to differ materially from projections. In addition, reconciliations between any non-GAAP measures to their closest reported GAAP measures are included in our earnings release. Please note that all financial information is provided in Canadian dollars unless otherwise stated. Following remarks by Luc and Tom, we will conduct a question-and-answer session where we will take questions from analysts. With that, I will turn the call over to Luc.
Tyler Burns: Please review today's earnings release and Canopy's reports filed with the SEC and SEDAR+ for various factors that could cause actual results to differ materially from projections. In addition, reconciliations between any non-GAAP measures to their closest reported GAAP measures are included in our earnings release. Please note that all financial information is provided in Canadian dollars unless otherwise stated. Following remarks by Luc and Tom, we will conduct a question-and-answer session where we will take questions from analysts. With that, I will turn the call over to Luc.
Speaker #2: Please note that all financial information is provided in Canadian dollars unless otherwise stated. Following remarks by Luke and Tom, we will conduct a question-and-answer session where we will take questions from analysts.
Speaker #2: With that, I will turn the call over to Luke.
Speaker #3: Thank you, Tyler. Good morning, everyone. And thank you for joining us today. Q3 was a quarter where Canopy Growth delivered significant progress on multiple levels, and it reinforced my confidence that we're building stronger business.
Luc Mongeau: Thank you, Tyler. Good morning, everyone, and thank you for joining us today. Q3 was a quarter where Canopy Growth delivered significant progress on multiple levels, and it reinforced my confidence that we're building stronger business. For me, the fundamentals of the business are both about how the business is performing and our financial strength, which allows us to execute with discipline. Across the organization, our teams are focused on the right things, and that focus is starting to pay dividends. We're building a company that can consistently deliver superior experiences for consumers and patients, grow and manufacture high-quality products, and create consistent value over time. On the balance sheet, we ended the quarter with CAD 371 million in cash and cash equivalents, and a net cash position of CAD 146 million, putting us on solid footing as we move into the next phase of execution.
Luc Mongeau: Thank you, Tyler. Good morning, everyone, and thank you for joining us today. Q3 was a quarter where Canopy Growth delivered significant progress on multiple levels, and it reinforced my confidence that we're building stronger business. For me, the fundamentals of the business are both about how the business is performing and our financial strength, which allows us to execute with discipline. Across the organization, our teams are focused on the right things, and that focus is starting to pay dividends.
Speaker #3: For me, the fundamentals of the business are both about how the business is performing and how our financial strength, which allows us to execute with discipline.
Speaker #3: Across focused on the right things, and the organization, our teams are that focus is starting to pay dividends. We're building a company that can consistently deliver superior experiences for consumers and patients, grow in manufacturer high-quality products, and create consistent value over time.
Luc Mongeau: We're building a company that can consistently deliver superior experiences for consumers and patients, grow and manufacture high-quality products, and create consistent value over time. On the balance sheet, we ended the quarter with CAD 371 million in cash and cash equivalents, and a net cash position of CAD 146 million, putting us on solid footing as we move into the next phase of execution.
Speaker #3: On the balance sheet, we entered the quarter with $371 million in cash and cash equivalents, and $146 million, putting us on solid footing as we move into the next phase of execution.
Speaker #3: Post-quarter end, we completed a a net cash position of $150 million US recapitalization that improved our liquidity and extended all debt maturities to 2031.
Luc Mongeau: Post-quarter end, we completed a $150 million recapitalization that improved our liquidity and extended all debt maturities to 2031. This gives us more flexibility around near-term financing, including how and when we use tools like the ATM, and more room to make the right long-term decisions. This financial strength matters because it allows us to act intentionally. A good example is the proposed acquisition of MTL Cannabis, which we announced during Q3. MTL brings a creative profile, a strong entrepreneurial leadership team, and high-quality cultivation capabilities to our platform. They've built a profitable, cash-generating business that we expect to be accretive to the combined organization. High-quality flower, cost efficiency, and operational discipline are the foundation of any scale cannabis company, and MTL strengthened our ability to achieve all three.
Luc Mongeau: Post-quarter end, we completed a $150 million recapitalization that improved our liquidity and extended all debt maturities to 2031. This gives us more flexibility around near-term financing, including how and when we use tools like the ATM, and more room to make the right long-term decisions. This financial strength matters because it allows us to act intentionally. A good example is the proposed acquisition of MTL Cannabis, which we announced during Q3. MTL brings a creative profile, a strong entrepreneurial leadership team, and high-quality cultivation capabilities to our platform. They've built a profitable, cash-generating business that we expect to be accretive to the combined organization. High-quality flower, cost efficiency, and operational discipline are the foundation of any scale cannabis company, and MTL strengthened our ability to achieve all three.
Speaker #3: This gives us more financing, including how and when we use tools like the ATM, and more room to make the right long-term decisions. This financial strength matters.
Speaker #3: Because it allows us to act intentionally. A good example is a proposed acquisition of MTL Cannabis which we announced during Q3. MTL brings an accretive profile.
Speaker #3: A strong and entrepreneurial leadership team capabilities to our platform. They've built a profitable, cash-generating business that we expect to and high-quality cultivation be accretive to the combined organization.
Speaker #3: High-quality flour, cost-efficiency, and operational discipline are the foundation of any scale cannabis company. And MTL strengthened our ability to achieve all three. Following closing, MTL was strengthened our leadership position in Canadian medical cannabis and hence our present in Quebec Adult Use and importantly, provide high-quality flower supply that we can leverage to drive growth domestically and in international markets.
Luc Mongeau: Following closing, MTL will strengthen our leadership position in Canadian medical cannabis, enhance our presence in Quebec adult use, and importantly, provide high-quality flower supply that we can leverage to drive growth domestically and in international markets. Turning to our Q3 business results, the focus on fundamentals is really paying off. In Q3, we delivered our slimmest Adjusted EBITDA loss to date, driven by continued cost discipline and improving execution across our Canadian medical and adult use channels. In Canada Medical, net revenue grew 15% year-over-year with six consecutive quarters of growth, supported by a high-quality, best-in-class patient experience, strong service levels, and increasing engagement with insured patients. We've also taken deliberate actions to preemptively mitigate the financial impact of the proposed changes to the Veterans Reimbursement Program while continuing to support veterans with best-in-class care and innovative, high-quality products.
Luc Mongeau: Following closing, MTL will strengthen our leadership position in Canadian medical cannabis, enhance our presence in Quebec adult use, and importantly, provide high-quality flower supply that we can leverage to drive growth domestically and in international markets. Turning to our Q3 business results, the focus on fundamentals is really paying off. In Q3, we delivered our slimmest Adjusted EBITDA loss to date, driven by continued cost discipline and improving execution across our Canadian medical and adult use channels. In Canada Medical, net revenue grew 15% year-over-year with six consecutive quarters of growth, supported by a high-quality, best-in-class patient experience, strong service levels, and increasing engagement with insured patients. We've also taken deliberate actions to preemptively mitigate the financial impact of the proposed changes to the Veterans Reimbursement Program while continuing to support veterans with best-in-class care and innovative, high-quality products.
Speaker #3: Turning to our Q3 business results, the focus on fundamentals is really paying off. In Q3, we delivered our slimmest adjusted EBITDA loss to date driven by continued cost discipline and improving execution across our Canadian medical and adult use channels.
Speaker #3: In Canada Medical, net revenue grew 15% year over year, our sixth consecutive quarter of growth, supported by a high-quality best-in-class patient experience, strong service levels, and increasing engagement with insured patients.
Speaker #3: also taken deliberate We've mitigate the financial impact of the proposed changes to actions to preemptively the Veterans Reimbursement Program. While continuing to support veterans with best-in-class care and innovative high-quality products.
Speaker #3: We expect to continue strengthening this platform, maintain our leadership position in Canadian medical cannabis, and use our scale to elevate service, and drive margin improvement over time.
Luc Mongeau: We expect to continue strengthening this platform, maintain our leadership position in Canadian medical cannabis, and use our scale to elevate service and drive margin improvement over time. In Canadian adult use, we're seeing continued momentum as well, with net revenue up 8% year-over-year. Growth this quarter was driven by strength in pre-rolls and vapes, supported by focused innovation and improved execution at retail. What really gives me confidence here is not just the growth we're seeing today, but where we're directing our attention. We're shifting our focus toward elevating the quality of our brands, strengthening product innovation, and improving the quality, potency, and cost of our flower to delight consumers and patients alike. Looking ahead, our focus now turns to unlocking the next phase of growth, particularly in Europe where we are spending significant time and attention.
Luc Mongeau: We expect to continue strengthening this platform, maintain our leadership position in Canadian medical cannabis, and use our scale to elevate service and drive margin improvement over time. In Canadian adult use, we're seeing continued momentum as well, with net revenue up 8% year-over-year. Growth this quarter was driven by strength in pre-rolls and vapes, supported by focused innovation and improved execution at retail. What really gives me confidence here is not just the growth we're seeing today, but where we're directing our attention. We're shifting our focus toward elevating the quality of our brands, strengthening product innovation, and improving the quality, potency, and cost of our flower to delight consumers and patients alike. Looking ahead, our focus now turns to unlocking the next phase of growth, particularly in Europe where we are spending significant time and attention.
Speaker #3: In Canadian adult use, we're seeing continued momentum as well. With net revenue up 8% year over year, growth this quarter was driven by strength in pre-rolls and vapes, supported by focused innovation and improved execution at retail.
Speaker #3: But really gives me confidence here is not just the growth we're seeing today, but attention. We're shifting our where we're directing our focus toward elevating the quality of our brands, straightening product innovation, and improving the quality potency and cost of our flour to delight consumers and patients ahead, our focus now turns to unlocking the next phase of growth.
Luc Mongeau: problem, while continuing to support veterans with best-in-class care and innovative, high-quality products. We expect to continue strengthening this platform, maintain our leadership position in Canadian medical cannabis, and use our scale to elevate service and drive margin improvement over time. In Canadian adult use, we're seeing continued momentum as well, with net revenue up 8% year-over-year. Growth this quarter was driven by strength in pre-rolls and vapes, supported by focused innovation and improved execution at retail. What really gives me confidence here is not just the growth we're seeing today, but where we're directing our attention. We're shifting our focus toward elevating the quality of our brands, strengthening product innovation, and improving the quality, potency, and cost our flower to delight consumers and patients alike.
Speaker #3: Particularly in significant time and attention. In Q3, we started business, improving execution, and laying the groundwork for growth with net revenue up 22% sequentially.
Luc Mongeau: In Q3, we started stabilizing the international business, improving execution, and laying the groundwork for growth with net revenue up 22% sequentially. Progress on EU GMP certification at our Smiths Falls facility, combined with our continued focus on elevating flower quality across our sites, is expected to position us to better serve international medical markets as demand continues to develop and regulation continues to evolve. Additionally, access to MTL's high-quality supply will fuel our strategy. There's more work to do, but I see a meaningful opportunity ahead. At Storz & Bickel, net revenue grew 45% sequentially, with the new VEAZY vaporizer reinforcing our strategy around affordability and portability. Our focus remains on accelerating product development and straightening sales and market execution, especially in North America, where we believe cannabis consumers should experience the joy and fullness of flavor that an SMB device offers.
Luc Mongeau: In Q3, we started stabilizing the international business, improving execution, and laying the groundwork for growth with net revenue up 22% sequentially. Progress on EU GMP certification at our Smiths Falls facility, combined with our continued focus on elevating flower quality across our sites, is expected to position us to better serve international medical markets as demand continues to develop and regulation continues to evolve. Additionally, access to MTL's high-quality supply will fuel our strategy. There's more work to do, but I see a meaningful opportunity ahead. At Storz & Bickel, net revenue grew 45% sequentially, with the new VEAZY vaporizer reinforcing our strategy around affordability and portability. Our focus remains on accelerating product development and straightening sales and market execution, especially in North America, where we believe cannabis consumers should experience the joy and fullness of flavor that an SMB device offers.
With net revenue up 8% year-over-year.
Growth. This quarter was driven by strength in pre-rolls and Vapes supported by Focus Innovation and improved execution at retail.
Speaker #3: Progress on EU GMP certification at our Smith's Falls facility combined with our continued focus on elevating flower quality across our sites is expected to position us to better serve international medical markets as demand continues to develop and regulation continue to evolve.
What really gives me confidence here is not just the growth we're seeing today, but where we're directing our attention.
We're shifting our focus toward elevating the quality of our brands.
Speaker #3: Additionally, access to MTL's high-quality supply will fuel our strategy. There's more work to do, but I see a meaningful opportunity ahead. At Stores & Bickle, net revenue grew 45% sequentially with the new VZ vaporizer reinforcing our strategy around affordability and portability.
Strengthening product innovation and improving the quality, potency, and cost of our flower to the light consumers and patients alike.
Luc Mongeau: Looking ahead, our focus now turns to unlocking the next phase of growth, particularly in Europe, where we are spending significant time and attention. In Q3, we started substantially stabilizing the international business, improving execution, and laying the groundwork, the groundwork for growth, with net revenue up 22% sequentially. Progress on EU GMP certification at our Smiths Falls facility, combined with our continued focus on elevating flower quality across our sites, is expected to position us to better serve international medical markets as demand continues to develop and regulations continue to evolve. Additionally, access to MTL's high-quality supply will fuel our strategy. There's more work to do, but I see a meaningful opportunity ahead. At Storz & Bickel, net revenue grew 45% sequentially, with the new VEAZY vaporizer reinforcing our strategy around affordability and portability.
Looking ahead.
Our focus now turns to unlocking the next phase of growth.
Particularly in Europe where we are spending significant time and attention.
In Q3, we started to sub-stabilize the international business.
Improving execution.
Speaker #3: Our focus remains on accelerating product development and strengthening sales and market execution especially in North America where we believe cannabis consumers should experience the joy and fullness of flavor that an SMB device offers.
And laying the groundwork—the groundwork for growth—with net revenue up 22% sequentially.
Progress on eug certification and our Smith's balls facility.
Combined with our continued focus on elevating flour, quality across our site.
Speaker #3: In the US, through Canopy USA, we remain an indirectly invested in one of the world's largest THC markets, providing us with long-term strategic optionality as the regulatory environment continues to evolve.
Luc Mongeau: In the US, through Canopy USA, we remain indirectly invested in one of the world's largest THC markets, providing us with long-term strategic optionality as the regulatory environment continues to evolve. So overall, this was a quarter of real progress. Our balance sheet is stronger, Canadian cannabis sales are growing, and the confidence of our team continues to build. Looking ahead, the business is well positioned to unlock additional value through elevated cultivation, innovative brands, and disciplined execution. I'll now turn it over to Tom to walk through the financial results in more details.
Luc Mongeau: In the US, through Canopy USA, we remain indirectly invested in one of the world's largest THC markets, providing us with long-term strategic optionality as the regulatory environment continues to evolve. So overall, this was a quarter of real progress. Our balance sheet is stronger, Canadian cannabis sales are growing, and the confidence of our team continues to build. Looking ahead, the business is well positioned to unlock additional value through elevated cultivation, innovative brands, and disciplined execution. I'll now turn it over to Tom to walk through the financial results in more details.
Is expected to position us to better serve international medical markets, as demand continues to develop and regulations continue to evolve.
Additionally, access to MTL's high-quality supply will fuel our strategy.
Speaker #3: So overall, this was a quarter of real progress. Our balance sheet is stronger, Canadian cannabis sales are growing, and the confidence of additional value to elevated is well positioned to unlock brands and disciplined our team continues to execution.
There's more work to do, but I see a meaningful opportunity ahead.
At stores and nickel.
Net revenue grew, 45% sequentially.
Speaker #3: build. Looking ahead, the business financial results in more details.
with the new VZ vaporizer reinforcing our strategy around affordability, and portability
Luc Mongeau: Our focus remains on accelerating product development and strengthening sales and market execution, especially in North America, where we believe cannabis consumers should experience the joy and fullness of flavor that an S&B device offers. In the US, through Canopy USA, we remain indirectly invested in one of the world's largest THC markets, providing us with long-term strategic optionality as the regulatory environment continues to evolve. Overall, this was a quarter of real progress. Our balance sheet is stronger, Canadian cannabis sales are growing, and the confidence of our team continues to build. Looking ahead, the business is well positioned to unlock additional value through elevated cultivation, innovative brands, and disciplined execution. I'll now turn it over to Tom to walk through the financial results in more detail.
Speaker #4: Thanks, Luke. Accurate sentiments and cultivation innovative remain confident in the direction our business is heading. The third quarter reflects our continued focus on disciplined execution across savings and significantly improving our balance the business while sustaining cost sheet.
Tom Stewart: Thanks, Luc. I echo your sentiments and remain confident in the direction our business is heading. Q3 reflects our continued focus on disciplined execution across the business while sustaining cost savings and significantly improving our balance sheet. With our aggressive cost-saving actions taken to date, we have been able to identify and capture CAD 29 million of annualized savings, far exceeding our initial expectations. This, coupled with the growth we are witnessing in the Canadian business, gives us the confidence that we can achieve our goal of positive Adjusted EBITDA during fiscal 2027. Turning quickly to the balance sheet, we ended the quarter with our strongest net cash position since fiscal 2022, with CAD 371 million of cash and short-term investments and a net cash position of CAD 146 million.
Tom Stewart: Thanks, Luc. I echo your sentiments and remain confident in the direction our business is heading. Q3 reflects our continued focus on disciplined execution across the business while sustaining cost savings and significantly improving our balance sheet. With our aggressive cost-saving actions taken to date, we have been able to identify and capture CAD 29 million of annualized savings, far exceeding our initial expectations. This, coupled with the growth we are witnessing in the Canadian business, gives us the confidence that we can achieve our
Our focus remains on accelerating product development and strengthening sales and market execution, especially in North America, where we believe cannabis consumers should experience the joy and fullness of flavor an investment B device offers.
in the US.
Through kanopy USA.
Speaker #4: With our aggressive cost-saving actions taken to date, we have been able to identify and capture 29 million of annualized savings far exceeding our initial expectations.
We remain an indirectly invested in 1 of the world's largest THC markets. Providing us with long-term strategic optionality as the regular regulatory environment continues to evolve.
Speaker #4: This coupled with the growth we are witnessing in the Canadian business gives us the confidence that we can achieve our goal of positive adjusted EBITDA during fiscal 2027.
Tom Stewart: goal of positive Adjusted EBITDA during fiscal 2027. Turning quickly to the balance sheet, we ended the quarter with our strongest net cash position since fiscal 2022, with CAD 371 million of cash and short-term investments and a net cash position of CAD 146 million.
Speaker #4: Turning quickly to the balance sheet, we ended the quarter with our strongest net cash position since fiscal 2022 with $371 million of cash and short-term investments and a net cash position of $146 million.
So overall, this was a quarter of real progress. Our balance sheet is stronger. Canadian canvas sales are growing and the confidence of our team continues to build.
Speaker #4: We further strengthened our balance sheet subsequent to quarter-end with the previously announced recapitalization which enhanced our near-term available cash while extending our debt maturities to 2031.
Tom Stewart: We further strengthened our balance sheet subsequent to quarter end with the previously announced recapitalization, which enhanced our near-term available cash while extending our debt maturities to 2031. These actions reinforce our financial foundation as we continue to execute against our operating and strategic priorities while expanding our near-term financing flexibility, including greater discretion over the timing and use of our remaining ATM capacity. With this level of balance sheet strength and expected sustained improvements to our operations, I'm extremely encouraged as we close out the fiscal year. I will now review our detailed segment results, starting with global cannabis. Q3 cannabis net revenue was CAD 52 million, up 4% compared to a year ago. This growth was led by Canada Medical Cannabis, with revenue increasing 15% year-over-year to CAD 23 million, marking another record quarter.
Tom Stewart: We further strengthened our balance sheet subsequent to quarter end with the previously announced recapitalization, which enhanced our near-term available cash while extending our debt maturities to 2031. These actions reinforce our financial foundation as we continue to execute against our operating and strategic priorities while expanding our near-term financing flexibility, including greater discretion over the timing and use of our remaining ATM capacity. With this level of balance sheet strength and expected sustained improvements to our operations, I'm extremely encouraged as we close out the fiscal year. I will now review our detailed segment results, starting with global cannabis. Q3 cannabis net revenue was CAD 52 million, up 4% compared to a year ago. This growth was led by Canada Medical Cannabis, with revenue increasing 15% year-over-year to CAD 23 million, marking another record quarter.
Looking ahead, the business is well positioned to unlock additional value through elevated cultivation, innovative brands, and disciplined execution.
I'll now turn it over to Tom to walk through the financial results in more detail.
Judy Hong: Thanks, Luc. I echo your sentiments and remain confident in the direction our business is heading. The Q3 reflects our continued focus on disciplined execution across the business, while sustaining cost savings and significantly improving our balance sheet. With our aggressive cost-saving actions taken to date, we have been able to identify and capture CAD 29 million of annualized savings, far exceeding our initial expectations. This, coupled with the growth we are witnessing in the Canadian business, gives us the confidence that we can achieve our goal of positive Adjusted EBITDA during fiscal 2027. Turning quickly to the balance sheet. We ended the quarter with our strongest net cash position since fiscal 2022, with CAD 371 million of cash and short-term investments and a net cash position of CAD 146 million.
Speaker #4: These actions reinforce our financial foundation as we continue to execute against our operating and strategic priorities while expanding our near-term financing flexibility including greater discretion over the timing and use of our remaining ATM capacity.
Thanks, Luke. How are your sentiments? And remaining confident in the direction. Our business setting, the third quarter, reflects our continued focus on disciplined execution across the business, while sustaining cost savings and significantly improving our balance sheet.
Speaker #4: With this level of balance sheet strength and expected sustained improvements to our operations, I'm extremely encouraged as we close out the fiscal year. I will now review our detailed segment results starting with global revenue was $52 million up 4% compared to a year ago.
With our aggressive, cost-saving actions taken today, we have been able to identify and capture $29 million of annualized savings, far exceeding our initial expectations. This, coupled with the growth we are witnessing in the Canadian business, gives us the confidence that we can achieve our goal of positive adjusted EVA during fiscal 2027.
Speaker #4: This growth cannabis. Q3 cannabis net was led by Canada Medical Cannabis with revenue increasing 15% year over year to $23 million marking another record quarter.
Speaker #4: This growth was driven by continued expansion and ensured patient registrations and larger order sizes. Our medical team's focus on improving service levels including faster fulfillment and reduced shipping times continues to generate positive results.
Tom Stewart: This growth was driven by continued expansion and ensured patient registrations and larger order sizes. Our medical team's focus on improving service levels, including faster fulfillment and reduced shipping times, continues to generate positive results. Canada adult-use cannabis revenue increased 8% year-over-year to CAD 23 million, supported by growth in infused pre-roll joints and our new all-in-one vapes from Tweed and Claybourne. In addition, disrupted retail operations in British Columbia reduced purchases by the province during the quarter, which created revenue headwinds not expected to recur in the fourth quarter. Turning to international cannabis, sales increased 22% quarter-over-quarter, reflecting stabilization and a return to growth. As we retooled our supply chain, we saw encouraging signs of operational improvements as we exited the quarter. Cannabis gross margin was 25% in Q3 as compared to 28% in Q3 last year.
Tom Stewart: This growth was driven by continued expansion and ensured patient registrations and larger order sizes. Our medical team's focus on improving service levels, including faster fulfillment and reduced shipping times, continues to generate positive results. Canada adult-use cannabis revenue increased 8% year-over-year to CAD 23 million, supported by growth in infused pre-roll joints and our new all-in-one vapes from Tweed and Claybourne. In addition, disrupted retail operations in British Columbia reduced purchases by the province during the quarter, which created revenue headwinds not expected to recur in the fourth quarter. Turning to international cannabis, sales increased 22% quarter-over-quarter, reflecting stabilization and a return to growth. As we retooled our supply chain, we saw encouraging signs of operational improvements as we exited the quarter. Cannabis gross margin was 25% in Q3 as compared to 28% in Q3 last year.
Judy Hong: We further strengthened our balance sheet subsequent to quarter end with the previously announced recapitalization, which enhanced our near-term available cash while extending our debt maturities to 2031. These actions reinforce our financial foundation as we continue to execute against our operating and strategic priorities, while expanding our near-term financing flexibility, including greater discretion over the timing and use of our remaining ATM capacity. With this level of balance sheet strength and expected sustained improvements to our operations, I'm extremely encouraged as we close out the fiscal year. I will now review our detailed segment results, starting with global cannabis. Q3 cannabis net revenue was CAD 52 million, up 4% compared to a year ago. This growth was led by Canada medical cannabis, with revenue increasing 15% year-over-year to CAD 23 million, marking another record quarter.
Journey quickly to the balance sheet. We ended the quarter with our strongest net cash position since fiscal 2022, with $371 million of cash, short-term investments, and a net cash position of $146 million.
Speaker #4: Canada Adult Use Cannabis $23 million supported by growth in revenue increased 8% year over year to infused pre-roll joints and our new all-in-one vapes from Tweed and Clayborne.
Speaker #4: In addition, disrupted retail operations in British Columbia reduced purchases by the province during the expected to recur in the fourth quarter. Turning to international cannabis, sales increased 22% quarter over quarter reflecting stabilization and a return to growth.
We further strengthened our balance sheet subsequent to quarter end with the previously announced recapitalization, which enhanced our near-term available cash. While extending our debt maturities to 2031, these actions reinforce our financial foundation as we continue to execute against our operating and strategic priorities, while expanding our near-term financing flexibility—including greater discretion over the timing and use of our remaining ATM capacity.
With this level of balance sheet strength and expected sustained improvements to our operations, I'm extremely encouraged as we close out this figure.
I will now review our detailed segments results, starting with global cannabis.
Speaker #4: As we retooled our supply chain, we saw encouraging signs of operational improvements as we exited the quarter. Cannabis gross margin was 25% in Q3 as compared to 28% in Q3 last year.
Judy Hong: This growth was driven by continued expansion in insured patient registrations and larger order sizes. Our medical teams focus on improving service levels, including faster fulfillment and reduced shipping times, continues to generate positive results. Canadian adult-use cannabis revenue increased 8% year-over-year to CAD 23 million, supported by growth in infused pre-rolled joints and our new all-in-one vapes from Tweed and Claybourne. In addition, disrupted retail operations in British Columbia reduced purchases by the province during the quarter, which created revenue headwinds not expected to recur in Q4. Turning to international cannabis, sales increased 22% quarter-over-quarter, reflecting stabilization and a return to growth. As we retooled our supply chain, we saw encouraging signs of operational improvements as we exited the quarter. Cannabis gross margin was 25% in Q3, as compared to 28% in Q3 last year.
A year ago, this growth was led by Canada medical cannabis, with revenue increasing 15% year-over-year to the $23 million mark in another record quarter.
Speaker #4: The year-over-year decrease in gross margin percentage was primarily attributable to lower sales in international markets and a change in sales mix within the Canadian Adult Use market.
Tom Stewart: The year-over-year decrease in gross margin percentage was primarily attributable to lower sales in international markets and a change in sales mix within the Canadian adult use market. Turning to the performance of Storz & Bickel. Storz & Bickel net revenue was CAD 23 million in Q3, an increase of 45% sequentially, driven by traditionally strong seasonal sales, with Black Friday online sales increasing 16% year-over-year and the first full quarter of sales for the new VEAZY device, offset by softer demand in certain markets and tariff-related pressures. Storz & Bickel gross margins decreased to 37% in Q3 from 40% last year, with tariff impacts and lower volumes providing gross margin headwinds. Moving to operating expenses. Excluding the impact of acquisition, divestiture, and other costs, which includes litigation costs and recoveries from previously divested businesses, SG&A expense decreased 12% year-over-year.
Tom Stewart: The year-over-year decrease in gross margin percentage was primarily attributable to lower sales in international markets and a change in sales mix within the Canadian adult use market. Turning to the performance of Storz & Bickel. Storz & Bickel net revenue was CAD 23 million in Q3, an increase of 45% sequentially, driven by traditionally strong seasonal sales, with Black Friday online sales increasing 16% year-over-year and the first full quarter of sales for the new VEAZY device, offset by softer demand in certain markets and tariff-related pressures. Storz & Bickel gross margins decreased to 37% in Q3 from 40% last year, with tariff impacts and lower volumes providing gross margin headwinds. Moving to operating expenses. Excluding the impact of acquisition, divestiture, and other costs, which includes litigation costs and recoveries from previously divested businesses, SG&A expense decreased 12% year-over-year.
This growth was driven by continued expansion and insured patient registrations and larger order sizes.
Our Medical Teams focus on improving service levels, including faster fulfillment. Reduced shipping times continue to generate positive results.
Speaker #4: Turning to the performance of Stores & Bickle, Stores & Bickle net revenue was $23 million in Q3 an increase of 45% sequentially driven by traditionally strong seasonal sales with Black Friday online sales increasing 16% year over year and the first full quarter of sales for the new VZ device.
Canada adult-use cannabis revenue increased 8% year-over-year to $23 million, supported by growth in Infused Free World joints and our new all-in-one vapes from Tweed and Claiborne.
Speaker #4: Offset by softer demand in certain markets and tariff-related pressures. Bickle gross margins decreased to Stores & 37% in Q3 from 40% last year with tariff impacts and lower volumes providing gross margin headwinds.
In addition disrupted retail operations in British Columbia reduced purchases by The Province, during the quarter which created Revenue. Headwinds not expected to recur in the fourth quarter.
Turning to International cannabis sales, these increased 22% quarter over quarter, reflecting stabilization and a return to growth.
Speaker #4: Moving to operating expenses, excluding the impact of acquisition divestiture and other costs which includes litigation costs and recoveries from previously divested businesses, SG&A expenses decreased 12% year over year.
As we retool our supply chain, we saw encouraging signs of operational improvements as we exited the quarter.
Judy Hong: The year-over-year decrease in gross margin percentage was primarily attributable to lower sales in the international markets and a change in sales mix within the Canadian adult use market. Turning to the performance of Storz & Bickel. Storz & Bickel net revenue was CAD 23 million in Q3, an increase of 45% sequentially, driven by traditionally strong seasonal sales, with Black Friday online sales increasing 16% year over year, and the first full quarter of sales for the new VEAZY device, offset by softer demand in certain markets and tariff-related pressures. Storz & Bickel gross margins decreased to 37% in Q3 from 40% last year, with tariff impacts and lower volumes providing gross margin headwinds. Moving to operating expenses. Excluding the impact of acquisition, divestiture, and other costs, which includes litigation costs, and recoveries from previously divested businesses, SG&A expenses decreased 12% year over year.
Speaker #4: This improvement is to the direct result of our ongoing cost savings initiatives which remain a central focus for Canopy. These savings combined with the performance of our Canadian cannabis business led to our narrowest adjusted EBITDA loss to date of $3 million.
Tom Stewart: This improvement is the direct result of our ongoing cost savings initiatives, which remain a central focus for Canopy. These savings, combined with the performance of our Canadian cannabis business, led to our narrowest Adjusted EBITDA loss to date of CAD 3 million. We remain focused on balancing cost discipline with maintaining the capabilities required to execute in our core markets. Free Cash Flow was an outflow of CAD 19 million in Q3 fiscal 2026, down from an outflow of CAD 28 million in the same period last year. The year-over-year decrease primarily reflects a reduction in the cash interest payments due to a reduction in our debt balances and decrease in working capital movements. As we move forward, our focus remains on delivering positive Adjusted EBITDA in fiscal 2027, improving inventory turns, and tighter capital allocation, all of which supports sustainable Free Cash Flow improvements. Looking ahead.
Tom Stewart: This improvement is the direct result of our ongoing cost savings initiatives, which remain a central focus for Canopy. These savings, combined with the performance of our Canadian cannabis business, led to our narrowest Adjusted EBITDA loss to date of CAD 3 million. We remain focused on balancing cost discipline with maintaining the capabilities required to execute in our core markets. Free Cash Flow was an outflow of CAD 19 million in Q3 fiscal 2026, down from an outflow of CAD 28 million in the same period last year. The year-over-year decrease primarily reflects a reduction in the cash interest payments due to a reduction in our debt balances and decrease in working capital movements. As we move forward, our focus remains on delivering positive Adjusted EBITDA in fiscal 2027, improving inventory turns, and tighter capital allocation, all of which supports sustainable Free Cash Flow improvements. Looking ahead.
Cannabis gross margin was 25% in Q3 as compared to 28% in Q3 last year. The year-over-year decrease in gross margin percentage was primarily attributable to lower sales, international markets, and a change in sales mix within the Canadian adult-use market.
Turning to the performance of stores and Pickle.
Speaker #4: We remain focused on balancing cost discipline with maintaining the capabilities required to execute in our core markets. Free cash flow was an outflow of $19 million in Q3 fiscal 2026 down from an outflow of $28 million in the same period last year.
Stores and Pickle. Net revenue was $23 million in Q3, an increase of 45% sequentially, driven by traditionally strong seasonal sales, with Black Friday online sales increasing 16% year-over-year, and the first full quarter of sales for the new BC device.
Offset by softer demand in certain markets and tariff-related pressures.
Speaker #4: The
Speaker #1: over year . Year Decrease , primarily reflects a reduction the cash in interest payments due to a in our debt reduction balances and decrease capital working movements , balances and in capital movements .
Stores and BLE. Gross margins decreased to 37% in Q3 from 40% last year, with tariff impacts on lower volume and providing gross margin headwinds.
Speaker #1: working As we move forward , our focus remains on decrease positive adjusted in fiscal 2027 , inventory EBITDA improving tighter capital allocation , all of which support sustainable free cash flow improvements Looking .
Judy Hong: This improvement is the direct result of our ongoing cost savings initiatives, which remain a central focus for Canopy. These savings, combined with the performance of our Canadian cannabis business, led to our narrowest Adjusted EBITDA loss to date of $3 million. We remain focused on balancing cost discipline with maintaining the capabilities required to execute in our core markets. Free cash flow was an outflow of $19 million in Q3 fiscal 2026, down from an outflow of $28 million in the same period last year. The year-over-year decrease primarily reflects a reduction in the cash interest payments due to a reduction in our debt balances and decrease in working capital movements. As we move forward, our focus remains on delivering positive Adjusted EBITDA in fiscal 2027, improving inventory turns, and tighter capital allocation, all of which support sustainable free cash flow improvements.
Tom Stewart: In Canada Cannabis, we expect continued strength in adult use driven by innovation, expanding distribution with key accounts, and elevating our flower capabilities. In Canada Medical, we remain focused on patient growth and service excellence, which we expect to continue to drive growth in the medical channel. In international cannabis, our priority is operational stability and execution, with sequential improvements expected in Q4 and into fiscal 2027, driven primarily by performance in our European markets. With this momentum, we expect to see improvements in our cannabis gross margins in Q4 and into fiscal 2027. At Storz & Bickel, VZ momentum and cost discipline remain key drivers as we navigate near-term macro and tariff headwinds. With Storz & Bickel's strongest quarter being Q3 traditionally, we can expect the sequential top-line comparison in Q4 to be challenged.
Tom Stewart: In Canada Cannabis, we expect continued strength in adult use driven by innovation, expanding distribution with key accounts, and elevating our flower capabilities. In Canada Medical, we remain focused on patient growth and service excellence, which we expect to continue to drive growth in the medical channel. In international cannabis, our priority is operational stability and execution, with sequential improvements expected in Q4 and into fiscal 2027, driven primarily by performance in our European markets. With this momentum, we expect to see improvements in our cannabis gross margins in Q4 and into fiscal 2027. At Storz & Bickel, VZ momentum and cost discipline remain key drivers as we navigate near-term macro and tariff headwinds. With Storz & Bickel's strongest quarter being Q3 traditionally, we can expect the sequential top-line comparison in Q4 to be challenged.
Speaker #1: ahead in Canada , we cannabis , continued expect strength in adult use , driven by innovation , expanding distribution with key accounts and elevating our flower capabilities in Canada .
Moving to operating expenses, excluding the impact of acquisition diversion and other costs—which includes litigation costs and recoveries from previously divested businesses—SG&A expense decreased 12% year-over-year. This improvement is the direct result of our ongoing cost savings initiatives, which remained a central focus for Canopy.
These savings, combined with the performance of our Canadian cannabis business, led to our narrowest adjusted EVA loss to date of $3 million.
Speaker #1: Medical . We focused on remain patient growth and service excellence , which we expect to continue to drive growth in the medical channel in international cannabis , our priority is operational stability and execution , with improvement expected in and into fiscal 2027 , primarily by performance Q4 in our European driven markets .
We remain focused on balancing costs to spend with maintaining the capabilities required to execute in our core markets.
Free cash flow was an outflow of $19 million in Q3 fiscal 2026, down from an outflow of $28 million in the same period last year.
Speaker #1: With this momentum , we expect to see improvements in our cannabis gross margins in into Q4 and 2027 Bickel fiscal VC , momentum and in cost discipline remain drivers as we navigate at stores macro and tariff near-term headwinds with stores and vehicles strongest quarter being Q3 .
The year-over-year decrease primarily reflects a reduction in the cash interest payments due to a reduction in our debt balances and decrease in working capital movements.
As we move forward, our focus remains on delivering positive adjusted EBITDA in fiscal 2027, improving inventory turns, and tighter capital allocation, all of which support sustainable free cash flow improvements.
Judy Hong: Looking ahead, in Canada cannabis, we expect continued strength in adult use, driven by innovation, expanding distribution with key accounts, and elevating our flower capabilities. In Canada medical, we remain focused on patient growth and service excellence, which we expect to continue to drive growth in the medical channel. In international cannabis, our priority is operational stability and execution, with sequential improvements expected in Q4 and into fiscal 2027, driven primarily by performance in our European markets. With this momentum, we expect to see improvements in our cannabis gross margins in Q4 and into fiscal 2027. At Storz & Bickel, VEAZY momentum and cost discipline remain key drivers as we navigate near-term macro and tariff headwinds. With Storz & Bickel's strongest quarter being Q3 traditionally, we can expect a sequential top-line comparison in Q4 to be challenged.
Speaker #1: Traditionally , key we can expect the sequential top line comparison in Q4 challenged to be with the expected in top growth gross improved margins , line well as saving initiatives as today .
Tom Stewart: With the expected growth in top-line revenue on improved gross margins, as well as the cost saving initiatives executed today, we would expect Canopy to achieve positive Adjusted EBITDA during Fiscal 2027. Furthermore, upon the expected closing of the MTL transaction, Canopy expects to consolidate MTL's results from the closing date onwards, which will contribute to net revenue, gross margin, and Adjusted EBITDA improvements. While integration planning is already underway, our immediate focus post-close will be on ensuring operational continuity and beginning to capture the strategic and cost synergies we have previously outlined, while also maintaining our disciplined approach to financial management. In closing, I want to underscore that our priorities across the business remain clear and unchanged: rigorous operational execution, disciplined capital allocation, and achieving positive Adjusted EBITDA. With these three elements, we are positioning Canopy for sustainable, long-term success.
Tom Stewart: With the expected growth in top-line revenue on improved gross margins, as well as the cost saving initiatives executed today, we would expect Canopy to achieve positive Adjusted EBITDA during Fiscal 2027. Furthermore, upon the expected closing of the MTL transaction, Canopy expects to consolidate MTL's results from the closing date onwards, which will contribute to net revenue, gross margin, and Adjusted EBITDA improvements. While integration planning is already underway, our immediate focus post-close will be on ensuring operational continuity and beginning to capture the strategic and cost synergies we have previously outlined, while also maintaining our disciplined approach to financial management. In closing, I want to underscore that our priorities across the business remain clear and unchanged: rigorous operational execution, disciplined capital allocation, and achieving positive Adjusted EBITDA. With these three elements, we are positioning Canopy for sustainable, long-term success.
Looking ahead in Canada, cannabis, we expect continued strength in adult use driven by innovation, expanding distribution with key accounts, and elevating our flower capabilities.
Speaker #1: We would expect executed to achieve the cost positive adjusted EBITDA during fiscal year 2027 . Furthermore , revenue on the upon expected the closing of transaction , can we expects to consolidate results from the closing date onwards , which will contribute to net revenue , gross margin and adjusted EBITDA integration already while underway , our improvements immediate close will be on focus post operational continuity and to capture the strategic and cost synergies we have beginning previously outlined , maintaining our disciplined also financial approach to management .
In Canada Medical, we remain focused on patient growth and service excellence, which we expect to continue to drive growth in the medical channel.
In international cannabis, our priority is operational stability and execution, with sequential improvements expected in Q4 and into fiscal 2027, driven primarily by performance in our European markets.
With this momentum. We expect to see improvements in our cannabis growth margins in Q4 and into fiscal 2027
Speaker #1: In closing , I want to underscore that our priorities across business remain clear and unchanged . Rigorous operational execution , disciplined capital allocation and achieving positive adjusted EBITDA .
At stores and pickle VC, momentum and cost discipline remain key drivers as we navigate near-term macro and tariff headwinds.
Judy Hong: With the expected growth in top-line revenue on improved gross margins, as well as the cost-saving initiatives executed today, we would expect Canopy to achieve positive adjusted EBITDA during fiscal year 2027. Furthermore, upon the expected closing of the MTL transaction, Canopy expects to consolidate MTL's results from the closing day onwards, which will contribute to net revenue, gross margin, and adjusted EBITDA improvements. While integration planning is already underway, our immediate focus post-close will be on ensuring operational continuity and beginning to capture the strategic and cost synergies we have previously outlined, while also maintaining our disciplined approach to financial management. In closing, I want to underscore that our priorities across the business remain clear and unchanged: rigorous operational execution, disciplined capital allocation, and achieving positive adjusted EBITDA. With these three elements, we are positioning Canopy for sustainable long-term success.
With stores and vehicle's strongest quarter being Q3 traditionally. We can expect the sequential Topline comparison in Q4 to be challenged
Speaker #1: With these three elements , we are positioning canopy for sustainable success long term . I will now turn it back over to his closing remarks Luc for .
Tom Stewart: I will now turn it back over to Luc for his closing remarks.
Tom Stewart: I will now turn it back over to Luc for his closing remarks.
Luc Mongeau: Thank you, Tom. For me, the takeaway from this quarter is clear. The focus we've placed on fundamentals is working, and it's straightening the foundation of our business. We have made real progress on the balance sheet, built momentum across our Canadian cannabis businesses, and took an important step forward with the proposed acquisition of MTL Cannabis. With that foundation in place, our focus now shifts to accelerating Europe, expanding the reach of Storz & Bickel, and elevating cultivation, quality, and efficiency at scale across our platform. From my very first day, I believe that Canopy Growth had the potential to transform, refine its focus, improve its cost structure, and deliver on its promise of a sustainable and profitable cannabis company. With each quarter, we're demonstrating sustainable improvement, and I'm confident we're positioned to get further momentum as we move into fiscal 2027. Thank you. Operator will now take questions.
Luc Mongeau: Thank you, Tom. For me, the takeaway from this quarter is clear. The focus we've placed on fundamentals is working, and it's straightening the foundation of our business. We have made real progress on the balance sheet, built momentum across our Canadian cannabis businesses, and took an important step forward with the proposed acquisition of MTL Cannabis. With that foundation in place, our focus now shifts to accelerating Europe, expanding the reach of Storz & Bickel, and elevating cultivation, quality, and efficiency at
Speaker #2: you . Thank Tom . Well , the takeaway from this quarter is clear . The focus we've placed on fundamentals is working , and it straightening the foundation of our business .
Speaker #2: We have real made the balance sheet , built momentum across our cannabis businesses and took an important Canadian step forward with the proposed acquisition of MTL cannabis .
Expected closing of the MTL transaction. Can we expect to consolidate MTL's results from the closing date onwards, which will contribute to net revenue, gross margin, and adjusted UDA improvements?
Speaker #2: foundation in place With that shifts focus now , our to Europe accelerating of reach stores and , expanding the vehicle , and cultivation elevating and quality efficiency and scale across our .
While integration planning is already underway. Our immediate Focus post close will be on ensuring operational continuity and beginning to capture the Strategic and cost synergies. We have previously outlined while maintaining our disciplined approach to financial management,
Luc Mongeau: scale across our platform. From my very first day, I believe that Canopy Growth had the potential to transform, refine its focus, improve its cost structure, and deliver on its promise of a sustainable and profitable cannabis company. With each quarter, we're demonstrating sustainable improvement, and I'm confident we're positioned to get further momentum as we move into fiscal 2027. Thank you. Operator will now take questions.
Speaker #2: From my very I first day , believe Canopy that potential to transform , refine its focus . cost Improve its structure and on its deliver platform sustainable promise of a and profitable Growth has company .
In closing, I want to underscore that our priorities across the business remain clear and unchanged: rigorous operational execution, disciplined capital allocation, and achieving positive adjusted EBITDA.
Judy Hong: I will now turn it back over to Luc for his closing remarks.
With these three elements, we are positioning Canopy for sustainable long-term success.
Luc Mongeau: Thank you, Tom. For me, the takeaway from this quarter is clear. The focus we've placed on fundamentals is working, and it's strengthening the foundation of our business. We have made real progress on the balance sheet, built momentum across our Canadian cannabis businesses, and took an important step forward with the proposed acquisition of MTL Cannabis. With that foundation in place, our focus now shifts to accelerating Europe, expanding the reach of Storz & Bickel, and elevating cultivation, quality, and efficiency at scale across our platform. From my very first day, I believe that Canopy Growth had the potential to transform, refine its focus, improve its cost structure, and deliver on its promise of a sustainable and profitable cannabis company. With each quarter, we're demonstrating sustainable improvement, and I'm confident we're positioned to gain further momentum as we move into fiscal 2027. Thank you. Operator, we'll now take questions.
I will now turn it back over to Luke for his closing remarks.
Thank you, Tom.
For me, the takeaway from this quarter is clear.
Speaker #2: With each quarter , we're cannabis demonstrating sustainable improvement and I'm we're positioned to gain further momentum as we move confident into fiscal you .
The focus we place on fundamentals is working and it's straightening the foundation of our business.
Speaker #2: Thank take We'll now 2027 . questions .
Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the 1 on your touchscreen phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. We do ask that you please limit yourself to two questions. Should you have additional questions, you may press star 1 again. First question comes from Aaron Grey from Alliance Global Partners. Please go ahead.
Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the 1 on your touchscreen phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. We do ask that you please limit yourself to two questions.
Speaker #3: Thank you . Ladies and gentlemen , we will now begin the question and answer session . Should you have a question , please press the star , followed by one on your touch tone the phone .
We have made real progress on the balance sheet built momentum across our Canadian cannabis businesses and took an important step forward with the proposed acquisition of MTL cannabis.
With that foundation in place, our focus now shifts.
Speaker #3: You will hear a prompt that
Speaker #3: your hand has been raised . you wish to If decline from the polling process , please by the two . If you are using Operator .
Speaker #3: a lift the followed speakerphone , please handset before pressing any keys . We do you please limit ask that yourself to two Should you have questions .
To accelerating Europe, expanding the reach of stores and vehicles, and elevating cultivation, quality, efficiency, and scale across our platform.
Operator: Should you have additional questions, you may press star 1 again. First question comes from Aaron Grey from Alliance Global Partners. Please go ahead.
Speaker #3: additional questions , you may press star one again . First question comes from Erin Gray from Alliance Global Partners . Please go ahead
Aaron Grey: Hi. Thank you very much for the questions. First, for me, just wanted to dig a bit more in terms of the international business and what to expect maybe for the next 12 to 18 months for growth opportunities. MTL had a small international business today, but it does seem that our production capabilities could help you improve your international supply chain. So maybe any color in terms of how to think about the timing of that flowing through, and is there any additional capacity needs to ensure MTL's legacy domestic business continues to be serviced? And then additionally, in terms of the EU GMP at Smiths Falls, how should we think about potential timing of that and that improving your international supply chain capabilities? Thanks.
Aaron Grey: Hi. Thank you very much for the questions. First, for me, just wanted to dig a bit more in terms of the international business and what to expect maybe for the next 12 to 18 months for growth opportunities. MTL had a small international business today, but it does seem that our production capabilities could help you improve your international supply chain. So maybe any color in terms of how to think about the timing of that flowing through, and is there any additional capacity needs to ensure MTL's legacy domestic business continues to be
From my very first day, I believed that Canopy Growth had the potential to transform, refine its focus, improve its cost structure, and deliver on its promise of a sustainable and profitable cannabis company.
Speaker #4: you very much for the
Speaker #4: questions . First , for me . . Hi . Thank wanted dig a bit to more in terms of the international business and what to expect , maybe for the next 12 to 18 months for growth opportunities .
Speaker #4: You know , MTL had a small international business , you know , today , but it does seem that production capabilities could help you improve your supply international chain .
With each quarter, we're demonstrating sustainable improvement, and I'm confident we're positioned to get further momentum as we move into fiscal 2027.
Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. We do ask that you please limit yourself to two questions. Should you have additional questions, you may press star one again. First question comes from Aaron Gray, from Alliance Global Partners. Please go ahead.
Thank you. Operator will now take questions.
Thank you.
Speaker #4: So maybe any color in terms of , you know , how think about the timing of that flowing through . And is there any additional needs to capacity ensure mtls legacy domestic business continues to be serviced ?
Aaron Grey: serviced? And then additionally, in terms of the EU GMP at Smiths Falls, how should we think about potential timing of that and that improving your international supply chain capabilities? Thanks.
Speaker #4: And then additionally , in terms of the EU , Smith Falls , how should GMP we think at about potential timing of that and that improving your international supply chain capabilities ?
Ladies and gentlemen we will now begin the question and answer session. Should you have a question please? Press the star followed by the 1 on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2 if you want us to speak a phone, please lift, the handset, before pressing any keys.
Luc Mongeau: Good morning. Hope you're well. Thank you for the question. Okay, there's a lot to unpack here. Let's start with flower. So we've demonstrated in the past when we have flower in Europe, our capabilities are there, whether it's sales, distribution, I mean, deliver results. And so the focus is really on ensuring that we have the right supply of flower going to Europe. So the team have been doing quite a bit of work in recent weeks and months to ensure that our demand signal that we're seeing in Europe are well integrated with our growth capabilities in North America. And this has been pretty much fully resolved. So we're in a good place where we can really meet the demand better than we did in the past. Let me give you a bit of a data point.
Luc Mongeau: Good morning. Hope you're well. Thank you for the question. Okay, there's a lot to unpack here. Let's start with flower. So we've demonstrated in the past when we have flower in Europe, our capabilities are there, whether it's sales, distribution, I mean, deliver results. And so the focus is really on ensuring that we have the right supply of flower going to Europe. So the team have been doing quite a bit of work in recent weeks and months to ensure that our demand signal that we're seeing in Europe are well integrated with our growth capabilities in
Speaker #4: .
Speaker #2: morning . Good Hope you're well . Thank you for the There's a question . Okay . lot to unpack here . the And let's start with let's start with .
We do ask that you please limit yourself to two questions. Should you have additional questions, you may press star 1 again.
First question comes from Aaron Gray from Alliance Global Partners. Please go ahead.
Judy Hong: Hi. Thank you very much for the questions. First for me, just wanted to dig a bit more in terms of the international business and what to expect maybe for the next, you know, 12 to 18 months for growth opportunities. You know, MTL, they had a small international business, you know, today, but it does seem their production capabilities could help you improve your international supply chain. So maybe any color in terms of, you know, how to think about the timing of that flowing through, and is there any additional capacity needs to ensure MTL's legacy domestic business continues to be serviced? Then additionally, in terms of the EU GMP at Smiths Falls, how should we think about potential timing of that and that improving your international supply chain capabilities? Thanks.
Speaker #2: So we've flower demonstrated in the past when we flower in Europe , our capabilities out there , whether it's sale , I mean deliver , deliver results .
Speaker #2: And so the is really distribution on have the focus right ensuring that we supply flower of going to to , Europe . we've So been the team have been doing quite a bit of in recent weeks and work months to that our demand ensure signal that in well we're seeing integrated with our growth in North capabilities America .
Luc Mongeau: North America. And this has been pretty much fully resolved. So we're in a good place where we can really meet the demand better than we did in the past. Let me give you a bit of a data point.
Speaker #2: this And been pretty much fully resolved . So we're a good place where has where we can really meet the demand better than we did in the past .
Luc Mongeau: ... Good morning. Hope you're well. Thank you for the question. Okay, there's a lot to unpack here on the. Let's start with flower. So we've demonstrated in the past, when we have flower in Europe, our capabilities out there, whether it's sale, distribution, I mean, deliver, deliver results. And so the focus is really on ensuring that we have the right supply of flower going to Europe. So the team have been doing quite a bit of work in recent weeks and months to ensure that our demand signal that we're seeing in Europe are well integrated with our growth capabilities in North America. And this has been pretty much fully resolved, so we're in a good place where we can really meet the demand better than we did in the past.
Hi. Thank you very much for the questions. Um, first for me just wanted to dig a bit more in terms of the international business and what to expect maybe for the next, you know, 12 to 18 months for growth opportunities. Uh, you know, MTL had a small international business, you know today. Uh but it does seem that our production capabilities could help you improve your International Supply Chain. So maybe any color in terms of you know how to think about the timing of that flowing through. And is there any additional capacity needs to ensure mtl's Legacy domestic business continues to be serviced then additionally in terms of the EU GMP at at Smith Falls as we think about potential timing of that and that improving your International slides and capabilities. Thanks.
Speaker #2: Let me bit of a give you a maybe a bit a bit of a Europe are , data So during Q3 , sales team in our , at Europe point .
Luc Mongeau: So during Q3, our sales team in Europe had about two strains for a long period of time, two strains to sell. We forecast that in early fiscal '27, they'll have over a dozen different strains to sell. So we're confident that we're unlocking supply of flower there. This will build on the unique capabilities that Canopy has established over the years. So Smiths Falls is already EU GMP qualified. We're going for a, let's call it, a second level of certification. All the docs are in a row to get this approved, so we feel confident there. As well, we have the facility in Europe. We have a facility in Germany in SLR that can receive, clear, and distribute flower in Europe. And we're continually doing operational improvements there. So we feel really good there. As for MTL expanding capacity, we've met with the extremely qualified team there.
Luc Mongeau: So during Q3, our sales team in Europe had about two strains for a long period of time, two strains to sell. We forecast that in early fiscal '27, they'll have over a dozen different strains to sell. So we're confident that we're unlocking supply of flower there. This will build on the unique capabilities that Canopy has established over the years. So Smiths Falls is already EU GMP qualified. We're going for a, let's call it, a second level of certification. All the docs are in a row to get this approved, so we feel confident there. As well, we have the facility in Europe. We have a facility in Germany in SLR that can receive, clear, and distribute flower in Europe. And we're continually doing operational improvements there. So we feel really good there. As for MTL expanding capacity, we've met with the extremely qualified team there.
Good morning. Hope you're well, thank you for the question. Okay, there's a lot to impact here on the um,
let's start with, um,
Speaker #2: about two strains . For a period of time , two strains to We forecast long that in early fiscal 27 , they'll have over a dozen different strains to sell .
Speaker #2: So , you know , we're confident that we're unlocking supply of flower . There . This will build on the sell . unique capabilities that has established over the years .
Speaker #2: So Smith Falls is already . EU , GMP qualified . We're going for a a level of ducks are in . All the to get this approved .
Let's start with flour. So we've demonstrated in the past when we have flour in Europe, uh, where capabilities are there, whether it's cell distribution, I mean deliver deliver results. And so the focus is really on ensuring that we have the right supply of flour going to uh, to Europe. So we've been the team, I've been doing quite a bit of work and uh recent weeks and months to ensure that our uh, demand signal that we're seeing in Europe are well, integrated with our growth capabilities, um, in North America.
Speaker #2: So we feel second confident there as well . We have the facility in Europe and we have a facility in Germany in SLR that can receive clear and distribute flower in Europe we're .
Luc Mongeau: Let me give you a bit of a data point. So during Q3, our sales team in Europe had about two strains for a long period of time, two strains to sell. We forecast that in early fiscal 2027, they'll have over a dozen different strains to sell. So, you know, we're confident that we're unlocking supply of flower there. This will build on the unique capabilities that Canopy has established over the years. So Smiths Falls is already EU GMP qualified. We're going for a, let's call it a second level of certification. All the docs are in a row to get this approved, so we feel confident there. As well, we have the facility in Europe.
Speaker #2: continually And doing operational improvements , improvements feel really So there . good there . As MTL for , expanding , expanding capacity , we've met with the extremely qualified team there .
Luc Mongeau: They have amazing growers. Plans are in place to ensure capacity improves. As well, we're working on our facilities at Canopy to improve yield out of our facilities, and the work streams are there. We're seeing great progress. So our level of confidence to build step-change performance in Europe next year is building every week.
Luc Mongeau: They have amazing growers. Plans are in place to ensure capacity improves. As well, we're working on our facilities at Canopy to improve yield out of our facilities, and the work streams are there. We're seeing great progress. So our level of confidence to build step-change performance in Europe next year is building every week.
Speaker #2: They have amazing growers . Plans are in place to ensure capacity improves as well . We're working on our facilities at at canopy to improve yield out of our facilities and the work streams there .
And this has been, uh, pretty much fully resolved. So we're at a good place where, uh, where we can really, uh, meet, uh, the demand better than we did in the past. Let me give you a bit of a, uh, maybe a bit, bit of a data point. So, during, uh, Q3 our sales team in Europe had about two strains, um, for a long period of time—two strains to sell. We forecast that in early, uh, fiscal '27, they'll have over a dozen different strains up to sell. So, you know, we're confident that we're unlocking supply of flower, um, there.
Speaker #2: are We're seeing great progress , so our level of confidence to build , step , change , performance in Europe year next is is building is building every week .
Luc Mongeau: We have a facility in Germany, in SLR, that can receive, clear and distribute flower in Europe, and we're continually doing operational improvements there. So we feel really good there. As for MTL expanding capacity, we've met with the extremely qualified team there. They have amazing growers. Plans are in place to ensure capacity improves. As well, we're working on our facilities at Canopy to improve yield out of our facilities, and the work streams are there. We're seeing great progress. So our level of confidence to build step change performance in Europe next year is building every week.
Aaron Grey: Appreciate the color and data points there. That was really helpful and thorough. Second question for me is maybe just touching on the expectations for the gross margin, both on the legacy business and how you expect those to trend, particularly for cannabis, which has been volatile the past few quarters, both on the up and downside, and then how best to think about layering on MTL, which has had a higher legacy gross margin profile.
Aaron Grey: Appreciate the color and data points there. That was really helpful and thorough. Second question for me is maybe just touching on the expectations for the gross margin, both on the legacy business and how you expect those to trend, particularly for cannabis, which has been volatile the past few quarters, both on the up and downside, and then how best to think about layering on MTL, which has had a higher legacy gross margin profile.
Speaker #4: Appreciate the color and data points was really there . That helpful and thorough . Second question for me is maybe just touching the on expectations for the gross margin , both on the legacy and business how you expect those to trend , particularly cannabis , which has been volatile in the for past few quarters , both on the up and down side .
Speaker #4: how best to you know , think about , on MTL , which has had , you know , a higher And then legacy margin profile .
Tom Stewart: Yeah. Thanks, Aaron. I'll take that one. So as Luc said, we're excited about the acquisition of MTL and believe it really complements and enhances the existing business in Canada as well as abroad. With MTL's historical margin performance, which you're right, does exceed ours, we're targeting in the near term here, a blended gross margin of, say, mid- to high 30s%. But I think there's still a lot of runway after that as we see the European business stabilize and grow, just given the high price points in the European market. So definitely, we expect the MTL transaction to be accretive to gross margin as well as to our adjusted EBITDA.
Aaron Grey: Yeah. Thanks, Aaron. I'll take that one. So as Luc said, we're excited about the acquisition of MTL and believe it really complements and enhances the existing business in Canada as well as abroad. With MTL's historical margin performance, which you're right, does exceed ours, we're targeting in the near term here, a blended gross margin of, say, mid- to high 30s%. But I think there's still a lot of runway after that as we see the European business stabilize and grow, just given the high price points in the European market. So definitely, we expect the MTL transaction to be accretive to gross margin as well as to our adjusted EBITDA.
Speaker #1: Thanks , Yeah . Aaron . I'll take that one . So as Luke said , we're about the acquisition of MTL and believe it really complements and enhances the existing business in Canada as well as abroad .
Speaker #1: Mtls historical . Margin With which performance , which , you're right , does ours exceed . we're You know , targeting , you know , in the , we're near term here .
And we have a facility in Germany, in SLR, that can, uh, receive, uh, clear and distributed flour in Europe. And we're continually doing operational, uh, improvements, um, improvements of there. So we feel really good there as for MPL expanding uh, expanding capacity. Uh, we've met with the, uh, extremely qualified, uh, Team there they have amazing Growers. Uh, plans are in place to ensure capacity, uh, improves, uh, as well. We're working on our uh, facilities at uh, at canopy uh, to improve yield, uh, out of our facilities and the work streams are there. We're seeing great progress, so our our level of confidence to build step change performance in Europe. Next year is, uh, is building is building every week.
Aaron Grey: Appreciate the color and data points there. That was really helpful and thorough. The second question for me is maybe just touching on the expectations for the gross margin, both on the legacy business, on how you expect those to trend, particularly for cannabis, which has been volatile the past few quarters, both on the up and down side, and then how best to think about, you know, layering on MTL, which has had, you know, a higher legacy gross margin profile.
Speaker #1: blending gross say , mid to margin of high think 30s . But I there's still a runway after that . lot of As we see the European business stabilize and grow .
I appreciate the color and data points there. That was really helpful and thorough.
Speaker #1: Just given the high price points in the European market definitely we We're expect MTL transaction to be accretive to gross as well as .
Second question for me is maybe just touching on the expectations for the gross margin, both on the legacy business.
Speaker #1: to our adjusted EBITDA
Operator: Thank you. The next question comes from Bill Kirk from Roth Capital Partners. Please go ahead.
Operator: Thank you. The next question comes from Bill Kirk from Roth Capital Partners. Please go ahead.
Speaker #3: Thank you . The next question comes from Bill Kirch from Roth Capital
Speaker #3: Partners . ahead .
Bill Kirk: Hey, good morning, everybody. Tom, when you said a positive Adjusted EBITDA during 2027, does that mean for the full year, or does that mean one of the quarters in the fiscal 2027 will be positive? And do you expect positive numbers if you were to exclude the contribution from MTL?
Bill Kirk: Hey, good morning, everybody. Tom, when you said a positive Adjusted EBITDA during 2027, does that mean for the full year, or does that mean one of the quarters in the fiscal 2027 will be positive? And do you expect positive numbers if you were to exclude the contribution from MTL?
On how you expect those to Trend, particularly for cannabis, which has been volatile, the past few quarters, um, both on the up and down side and then how best to think about, you know, layering on MTL, which has had, you know, a higher Legacy, gross margin profile.
Speaker #5: morning Hey , good everybody
Judy Hong: Yeah. Thanks, Aaron. I'll take that one. So as Luc said, we're excited about the acquisition of MTL and believe it really complements and enhances the existing business in Canada as well as abroad. You know, with MTL's historical margin performance, which you're right, does exceed ours, you know, we're targeting, you know, in the near term here, a blended gross margin of, say, mid- to high thirties. But I think there's still a lot of runway after that as we see the European business stabilize and grow just given the high price points in the European market. So definitely we expect the MTL transaction to be accretive to gross margin, as well as to our Adjusted EBITDA.
Speaker #5: . Tom , when said you margin a positive adjusted EBITDA during 2027 , does that mean for the So full year or does that mean one of the quarters in the fiscal 27 will be positive ?
Speaker #5: you And do expect positive numbers if were to exclude the contribution from MTL ?
Tom Stewart: Yeah. So a couple of parts there. So as I said on the call, Bill, I am encouraged by the progress we continue to make to grow the business and, of course, correct our cost structure. We continue to work towards achieving Adjusted EBITDA positivity as soon as possible. We will benefit from or we will see headwinds with the veteran changes, and that's a lot of the reason why you're seeing us take more aggressive cost-saving actions now. So I'll say we're trying to get there as quickly as we can, Bill, and we would expect to be there at some point during Fiscal 2027.
Tom Stewart: Yeah. So a couple of parts there. So as I said on the call, Bill, I am encouraged by the progress we continue to make to grow the business and, of course, correct our cost structure. We continue to work towards achieving Adjusted EBITDA positivity as soon as possible. We will benefit from or we will see headwinds with the veteran changes, and that's a lot of the reason why you're seeing us take more aggressive cost-saving actions now. So I'll say we're trying to get there as quickly as we can, Bill, and we would expect to be there at some point during
Speaker #1: Yeah . So a couple parts there . So as I said on the call , . am encouraged by Bill , I the progress .
Speaker #1: You we continue to make to grow the business course correct our and of cost structure . continue to work We towards
Speaker #1: achieving adjusted EBITDA , EBITDA positivity as soon as possible . You know , we will benefit Please go from or we will see headwinds veteran changes .
Yeah, thanks Aaron. Um, I'll take that 1. So as Luke said, we're excited about the acquisition of MTL and and believe it really complements and enhances the existing uh business uh in in Canada, as well as as broad, you know, with with mtl's historical margin performance which which you're right, does exceed ours, you know we're we're we're targeting you know in the in the you know near-term here we're a blended gross margin of say mid to high 30s but I think there's still a lot of Runway after that as we see the European business uh, stabilizing grow, uh just given the the the high price points in the European market.
Speaker #1: And with the lot of the that's a reason why you're seeing us . You know , aggressive , cost saving take more actions .
So definitely, we expect the MTL transaction to be accretive to gross margin, as well as to our adjusted EBITDA.
Operator: Thank you. The next question comes from Bill Kirk, from Roth MKM. Please go ahead.
Speaker #1: Now . say what So I'll trying to get we're there as quickly as we can . Bill . And we would expect to be point during during there at some fiscal 2027 .
Tom Stewart: Fiscal 2027.
Luc Mongeau: Hey, good morning, everybody. Tom, when you said a positive adjusted EBITDA during 2027, does that mean for the full year, or does that mean one of the quarters in the fiscal 2027 will be positive? And do you expect positive numbers if you were to exclude the contribution from MTL?
Thank you. The next question comes from Bill Kirk from Roth Capital Partners. Please go ahead.
Bill Kirk: Okay. And then for my second question, the indebtedness maturities are out to 2031. You're sitting on net cash. So would you expect the period, the last 5 quarters or so, that period of large equity issuance and dilution, would you expect that to be over?
Bill Kirk: Okay. And then for my second question, the indebtedness maturities are out to 2031. You're sitting on net cash. So would you expect the period, the last 5 quarters or so, that period of large equity issuance and dilution, would you expect that to be over?
Speaker #5: Okay . And then for my second question , you know , the the indebtedness maturities are out 2031 . to You're sitting on net cash .
Speaker #5: So would you expect , you know , period , the last five quarters that period of , the or so you know , large equity issuance and dilution , would you expect that to over be ?
Hey, good morning everybody. Um, Tom when you said a positive adjusted, EBA dot during 2027. Uh, does that mean for the full year or does that mean 1 of The Quarters Inn in? The fiscal, 27 will be positive. And do you expect positive numbers? If you were to exclude the contribution from ntl
Judy Hong: Yeah, so a couple parts there. So as I said on the call, Bill, I am encouraged by the progress, you know, we continue to make to grow the business and, of course, correct our cost structure. We continue to work towards achieving adjusted EBITDA positivity as soon as possible. You know, we will benefit from... Or we will see headwinds with the veteran changes, and that's a lot of the reason why you're seeing us, you know, take more aggressive cost saving actions now. So I'll say what we're trying to get there as quickly as we can, Bill, and we would expect to be there at some point during, during fiscal 2027.
Tom Stewart: Yeah. So yeah, we're pleased with the current balance sheet position we're in after completing the January recap with the level of cash we have on hand now. I would fully expect that does reduce our utilization of the ATM in the coming quarters. But we will preserve capacity for future strategic opportunities and if they arise.
Tom Stewart: Yeah. So yeah, we're pleased with the current balance sheet position we're in after completing the January recap with the level of cash we have on hand now. I would fully expect that does reduce our utilization of the ATM in the coming quarters. But we will preserve capacity for future strategic opportunities and if they arise.
Speaker #1: yeah , we're Yeah . So pleased with the current balance sheet position we're in . After completing the January recap with a level of cash we have on hand now , I would fully expect that does reduce our utilization at the in the coming ATM in the quarters .
Yeah, so a couple parts there. So, as I said on the call Bill, like I am encouraged by the progress, uh, you know, we continue to make to grow the business, and, of course, correct. Our cost structure. Uh, we continue to work towards achieving adjust, even a positivity as soon as possible. Um,
Speaker #1: But we will preserve capacity for future strategic opportunities as and if they arise .
Operator: Thank you. Ladies and gentlemen, as a reminder, if you have any questions, please press star 1. The next question comes from Pablo Zuanic at Zuanic & Associates. Please go ahead.
Operator: Thank you. Ladies and gentlemen, as a reminder, if you have any questions, please press star 1. The next question comes from Pablo Zuanic at Zuanic & Associates. Please go ahead.
Speaker #3: Thank you , ladies and gentlemen . As a reminder , if you have any questions , please press star one . The next question comes from Pablo Zuanic at Associates .
You know, we will benefit from, or we will see headwinds with, the veteran changes, and that's a lot of the reason why you're seeing us, you know, take more aggressive cost-saving actions. Now, so I'll say what—we're trying to get there as quickly as we can, Bill, um, and we would expect to be there at some point during fiscal 2027.
Luc Mongeau: Okay. And then, for my second question, you know, the indebtedness maturities are out to 2031. You're sitting on net cash. So would you expect, you know, the period, the last five quarters or so, that period of, you know, large equity issuance and dilution, would you expect that to be over?
Luc Mongeau: Thank you and good morning, everyone. Luc, can you comment in terms of the domestic medical business? There's this proposal in the budget to reduce the cap for veterans from CAD 8 per gram to CAD 6 per gram. That could become effective 1 April. Where are we with that? Is there room, do you think, that that will be delayed or scratched?
Pablo Zuanic: Thank you and good morning, everyone. Luc, can you comment in terms of the domestic medical business? There's this proposal in the budget to reduce the cap for veterans from CAD 8 per gram to CAD 6 per gram. That could become effective 1 April. Where are we with that? Is there room, do you think, that that will be delayed or scratched?
Speaker #3: Please go ahead .
Speaker #6: Thank you and good morning , everyone
And then for my second question, you know, the indebtedness maturities are out to 2031, uh, you're sitting on net cash.
Speaker #6: you comment in terms of domestic medical business , does this proposal in the budget to reduce the cap veterans from Zurich and for $8 per gram ?
So, would you expect, you know, the period, the last 5 quarters or so that period of, you know, large Equity, issuance and dilution, would you expect that to be over?
Speaker #6: That could become April 1st ? are we You know , where with that ? Is there a room ? Do you think that that will be delayed or scratched gram to ?
Judy Hong: Yeah. So we're pleased with the current balance sheet position we're in after completing the January recap, with a lot of the cash we have on hand now. I would fully expect that does reduce our utilization of at-the-market ATM in the coming quarters. But we will preserve capacity for future strategic opportunities as and if they arise.
Speaker #6: effective
Luc Mongeau: Good morning, Pablo. Thank you for the question. This is a very, very important subject. And we want to make it clear that Canopy is really not in support of this reduction because it can potentially impact the level of care that veterans receive. So as you can imagine, we've channeled a lot of efforts to work with the authorities to see if this could be either delayed or the reduction may be minimized. So far, we have not been successful. So we're taking all the actions to maintain both the integrity of the quality of the care and service the veterans are receiving. And at the same time, we're taking all the actions to maintain the integrity of our margins. So as Tom said, we took additional actions to be even more stringent on our efficiencies, cost savings. We're able to find more cost savings.
Luc Mongeau: Good morning, Pablo. Thank you for the question. This is a very, very important subject. And we want to make it clear that Canopy is really not in support of this reduction because it can potentially impact the level of care that veterans receive. So as you can imagine, we've channeled a lot of efforts to work with the authorities to see if this could be either delayed or the reduction may be minimized. So far, we have not been successful. So we're taking all the actions to maintain both the integrity of the quality of the care and service the veterans are
Speaker #2: Good
Speaker #2: thank you for the question . This is a very , very important . Subjects and we want to make it clear that canopy is really not in support of this reduction , because it can potentially impact level of that veterans , veterans receive .
Yeah, so we're yeah, we're pleased with the current balance sheet position. We're in after completing, the January recap, um, with the level of cash, we have on hand now, uh, I I would fully expect that does, uh, reduce our utilization of AP at the ATM in the, in the coming quarters, um, well, we will preserve capacity for future strategic opportunities as and if they arise.
Operator: Thank you. Ladies and gentlemen, as a reminder, if you have any questions, please press star one. The next question comes from Pablo Zuanic at Zuanic & Associates. Please go ahead.
Thank you. Ladies and gentlemen, as a reminder, if you have any questions, please press star 1.
Speaker #2: So as you can of , imagine , we've we've channeled a lot of efforts to work with the authorities to see if this could be either delayed or the reduction may be minimized .
The next question comes from Pablo Zuanic at Zuanic and Associates. Please go ahead.
Aaron Grey: Thank you, and good morning, everyone. Luc, can you comment in terms of the domestic medical business; there's this proposal in the budget to reduce the cap for veterans from CAD 8 per gram to CAD 6 per gram.
Speaker #2: So far , we have not successful . So we're taking all the actions to maintain both the integrity of the quality of the the care and service , the veterans are And at receiving .
Pablo Zuanic: ... that could become effective 1 April. You know, where are we with that? Is there room, do you think, that that will be delayed or scratched?
Luc Mongeau: receiving. And at the same time, we're taking all the actions to maintain the integrity of our margins. So as Tom said, we took additional actions to be even more stringent on our efficiencies, cost savings. We're able to find more cost savings.
Speaker #2: the same time , we're taking all the actions to maintain the integrity of our of our , as Tom said , margin . So we were we took additional to be actions even more stringent on our efficiencies , cost savings .
Thank you, and good morning, everyone. Um, uh, look, can you comment, uh, in terms of domestic medical business? Does this proposal in the budget to reduce the cap for veterans from, uh, $8 per gram to $6 per gram that could become effective April 1st—you know, where are we with that? Uh, is there room—do you think that that will be delayed or, or scratched?
Luc Mongeau: Good morning, Pablo. Thank you for the question. This is a very, very important subject, and we wanna make it clear that Canopy is really not in support of this reduction, because it can potentially impact the level of care that veterans receive. So as you can imagine, we've channeled a lot of efforts to work with the authorities to see if this could be either delayed or the reduction may be minimized. So far, we have not been successful. So, we're taking all the actions to maintain both the integrity of the quality of the care and service the veterans are receiving, and at the same time, we're taking all the actions to maintain the integrity of our margins.
Speaker #2: We're able to find more cost savings . So we're we're doing everything maintain we can integrity of to our margins we to add ?
Luc Mongeau: So we're doing everything we can to maintain the integrity of our margins. Tom, anything to add?
Luc Mongeau: So we're doing everything we can to maintain the integrity of our margins. Tom, anything to add?
Tom Stewart: No. I think it definitely presents a headwind for us, but we're taking the actions now prior to the changes coming to effect to make sure we can preserve Adjusted EBITDA performance to the full extent possible.
Tom Stewart: No. I think it definitely presents a headwind for us, but we're taking the actions now prior to the changes coming to effect to make sure we can preserve Adjusted EBITDA performance to the full extent possible.
Speaker #1: No , think you I know , it definitely
Speaker #1: but we're taking the now . Prior to the coming into effect , to make sure we can we can preserve , you know , adjusted EBITDA performance to the full extent possible . .
Speaker #1: but we're taking the now . Prior to the coming into effect , to make sure we can we can preserve , you know , adjusted EBITDA performance to the full extent possible .
Luc Mongeau: Right. Luc, thank you. And before I ask my follow-up, I mean, according to my math, the veteran part of the domestic medical business, it's almost about 2/3 of the market. Or am I wrong in that calculation?
Pablo Zuanic: Right. Luc, thank you. And before I ask my follow-up, I mean, according to my math, the veteran part of the domestic medical business, it's almost about 2/3 of the market. Or am I wrong in that calculation?
Speaker #6: Thank you . And before I ask my follow
Speaker #6: up , I Tom , anything mean , according to my math , the the part of the veteran domestic medical business , it's almost about two thirds of the market .
Speaker #6: Or am I wrong in that calculation ?
Tom Stewart: You mean the total cannabis market on the medical side in Canada, Pablo?
Tom Stewart: You mean the total cannabis market on the medical side in Canada, Pablo?
Luc Mongeau: So as Tom said, we were, we took even additional actions to be even more stringent on our efficiencies, on cost savings. We're able to find more cost savings, so we're doing everything we can to maintain the integrity of our margins. Tom, anything to add?
Speaker #1: You mean the total cannabis on medical side in in the Pablo .
Speaker #1: market
Luc Mongeau: Right. Yeah. Would the veteran piece be about 2/3 of the total market, roughly?
Pablo Zuanic: Right. Yeah. Would the veteran piece be about 2/3 of the total market, roughly?
Speaker #6: Right . about Yeah . Canada ?
Speaker #6: With the veteran piece , be
Speaker #6: two thirds of the total market , roughly .
Luc Mongeau: 2/3 of the total medical?
Luc Mongeau: 2/3 of the total medical?
Speaker #2: Two thirds of the total medical .
Luc Mongeau: Yep.
Pablo Zuanic: Yep.
Luc Mongeau: Or two?
Luc Mongeau: Or two?
Luc Mongeau: Of the market in Canada.
Pablo Zuanic: Of the market in Canada.
Speaker #6: Yep . the Of market Canada in .
Luc Mongeau: Yeah. And all of that's, we'll get follow-up with you. For me, I look at the market in a couple of ways. The adult-use market in Canada is at close to CAD 5 billion, growing at 4% to 6% every year. The medical market is about somewhere between CAD 300 to 400 million. We can get back to you with the exact numbers. The veterans are a good portion of the medical market, but there are a large group of insured and non-insured medical patients in Canada as well. So what's important there, Pablo, is that. Look at it. In the last quarter, we grew at 50% in this highly profitable market. MTL is growing at double digits as well, but their last reported results. Combined together, we're going to be the number one player there. We care about the veterans. We care about all cannabis patients in Canada.
Luc Mongeau: Yeah. And all of that's, we'll get follow-up with you. For me, I look at the market in a couple of ways. The adult-use market in Canada is at close to CAD 5 billion, growing at 4% to 6% every year. The medical market is about somewhere between CAD 300 to 400 million. We can get back to you with the exact numbers. The veterans are a good portion of the medical market, but there are a large group of insured and non-insured medical patients in Canada as well. So what's important there, Pablo, is that. Look at it. In the last quarter, we grew at 50% in this
Speaker #2: Yeah . that's we get follow up with you . And for me , the at the market in a couple of ways . The I look adult use market in Canada is close to five 5 billion growing the at 4 to 6% every every year .
Judy Hong: No, I think, you know, it definitely presents a headwind for us, but we're taking the actions now prior to the changes coming into effect, to make sure we can preserve, you know, just even a performance to the full extent possible.
Could be either delayed, or the reduction may be minimized. Um, so far we have not been, um, successful. So, uh, we're taking all the actions, um, to maintain, uh, both the integrity of the quality of the, uh, the current service the veterans, uh, are receiving. And at the same time, we're taking all the actions, uh, to maintain the integrity of our, uh, of our margin. So, as Tom said, we, uh, we were, uh, we took even, uh, additional, uh, actions to be even more stringent, um, on our, um, efficiencies, uh, cost savings. We're able to find more cost, uh, savings. So we're, uh, we're doing everything we can to maintain the integrity of our margins on top of anything to us.
Speaker #2: The the medical market is about somewhere 3 to 400 million . between We can get back to you with the exact , exact numbers .
Pablo Zuanic: Right. Look, and thank you. Before I ask my follow-up, I mean, according to my math, the veteran part of the domestic medical business, it's almost about 2/3 of the market, or am I wrong in that calculation?
No, I I think you know, it definitely presents a a headwind for us, but we're taking the actions now, uh, prior to the changes coming to affect to make sure we can we could preserve, you know, just even a performance to the full extent possible.
Speaker #2: The veterans are a good of the portion medical market , but there are other large group of insured and non-insured medical patients Canada in as well .
Right. Look, and thank you. And before I ask my follow-up, I mean, according to my math, the veteran part of the domestic medical business—it's almost about two-thirds of the market, or am I wrong in that calculation?
Judy Hong: You mean the total cannabis market in, on the medical side in Canada, Pablo?
Speaker #2: So you know what's important there , Pablo , is that look at it . You know , the last quarter we grew at 50% in this highly profitable market .
Pablo Zuanic: Right, yeah. Would the veteran piece be about 2/3 of the total market, roughly?
Luc Mongeau: highly profitable market. MTL is growing at double digits as well, but their last reported results. Combined together, we're going to be the number one player there. We care about the veterans. We care about all cannabis patients in Canada.
Luc Mongeau: 2/3 of the total medical?
Pablo Zuanic: Yep, or 2 of the market in Canada.
You mean the total cannabis uh Market in on the medical side in Canada, Pablo, right? Yeah. With the veteran, peace be about 2/3 of the total Market. Roughly 2/3 of the Total Medical
Speaker #2: FTL is growing at double digits as as well , but they're less reported results combined together . We're going to be the number player one there .
Luc Mongeau: Yeah, no, that's... We can follow up with you. For me, the...
Yep. Or 2 of the market in Canada.
Pablo Zuanic: Yeah.
Luc Mongeau: I look at the market in a couple of ways. The adult use market in Canada is a close to CAD 5 billion, growing at 4 to 6% every year. The medical market is about somewhere between CAD 300 and 400 million. We can get back to you with the exact numbers. The veterans are a good portion of the medical market, but there are other large group of insured and non-insured medical patients in Canada as well. So you know what's important there, Pablo, is that look at it. You know, in the last quarter, we grew at 50% in the slightly profitable market. MTL is growing at double digits as well, but their last reported results.
Speaker #2: We care about the veterans . We care about all medical , cannabis patients in Canada . And we're doing everything , as I mentioned , to maintain the integrity of our service and our care and the integrity of our and our margins .
Luc Mongeau: We're doing everything, as I mentioned, to maintain the integrity of our service and our care and the integrity of our margins. As we come together with MTL, we'll look at every single synergies possible there. We'll have the benefit of greater scale to maintain margin integrity and more to follow.
Luc Mongeau: We're doing everything, as I mentioned, to maintain the integrity of our service and our care and the integrity of our margins. As we come together with MTL, we'll look at every single synergies possible there. We'll have the benefit of greater scale to maintain margin integrity and more to follow.
Speaker #2: come together with MTL , we'll look at every single possible there . We'll have the benefit of greater scale to maintain margin integrity and more to follow
Operator: Thank you. Next question comes from Brenna Cunnington at ATB Capital Markets. Please go ahead.
Operator: Thank you. Next question comes from Brenna Cunnington at ATB Capital Markets. Please go ahead.
Yeah, and all that's um, we can follow up with you. Uh, for me, the, uh, I look at the market in a couple of ways, the, the adult use Market in Canada and then close to 5, 5 billion growing. At 46%, every, every year, the uh, the medical Market is about uh, somewhere between 3 to 400 million. Uh, we can get back to you with the exact exact numbers. Uh, the veterans are a good portion of the medical Market, but there are, uh, other large group of insured, uh, and not insured. Uh, medical patients in Canada as well. So, you know what's important there?
Speaker #3: Thank you .
Speaker #3: Next question comes from Brenna Cunnington at ATB Capital Markets . . Please go .
Brenna Cunnington: Thank you. Good morning, everyone. Just looping back to the balance sheet here. Cash balance of roughly CAD 376 million ending the quarter and roughly CAD 425 million following the recapitalization. Quite the war chest that you're building up here. We know that some of the cash will be going towards the consideration for MTL. Kind of a two-pronged question here. Could you shed some light on roughly how much cash you're wanting to keep on hand and the top priorities for the excess cash? And then also, could you remind us of roughly how much spend will be needed right off the bat for MTL integration?
Brenna Cunnington: Thank you. Good morning, everyone. Just looping back to the balance sheet here. Cash balance of roughly CAD 376 million ending the quarter and roughly CAD 425 million following the recapitalization. Quite the war chest that you're building up here. We know that some of the cash will be going towards the consideration for MTL. Kind of a two-pronged question here. Could you shed some light on roughly how much cash you're wanting to keep on hand and the top priorities for the excess cash?
Speaker #7: and good morning , everyone . So Thank you just looping back to the balance sheet here . So cash balance of roughly And 3.76 ending the quarter .
Luc Mongeau: Combined together, we're gonna be the number one player there. We care about the veterans, we care about all medic- all cannabis patients in Canada, and we're doing everything, as I mentioned, to maintain the integrity of our service and our care, and the integrity of our and our margins. So as we come together with MTL, we'll look at every single synergies possible there. We'll have the benefit of greater scale to maintain margin integrity and more to follow.
Speaker #7: roughly 4.25 following the recapitalization . So quite the war chest that building up here . We know that some of the you're cash will be going towards the consideration for MTL .
Speaker #7: So kind of a two pronged question here . So could you shed some light on roughly how much wanting to cash you're keep on hand .
Fabulous. Is that? Look at at it you know and the last quarter we grew at 50% and the as highly profitable uh Market. Uh MTL is growing at double digits uh, as uh as well, but their last reported uh results uh combined together. We're going to be the number 1 player there. Uh we care about the veterans. We care about uh all medic all cannabis patients in Canada and we're doing everything as I mentioned to maintain the Integrity of uh, our service.
Speaker #7: And the top the excess cash . And then also , could you remind us of roughly how much spend will be needed right off the bat for MTL integration ?
Brenna Cunnington: And then also, could you remind us of roughly how much spend will be needed right off the bat for MTL integration?
Tom Stewart: Yeah. Good morning, Brenna. So I would say from a cash standpoint, we want to make sure we have sufficient flexibility, and we want to maintain sufficient cash if we find opportunities in the market. So I'm not going to pinpoint that to a number, but I would say this is a healthier position than probably you would expect in terms of cash level. For the MTL acquisition, and again, this is math we could do here, but it'll be probably between CAD 40 and 50 million of cost is what we're expecting the cash outlay to be, Canadian dollars for the MTL acquisition.
Tom Stewart: Yeah. Good morning, Brenna. So I would say from a cash standpoint, we want to make sure we have sufficient flexibility, and we want to maintain sufficient cash if we find opportunities in the market. So I'm not going to pinpoint that to a number, but I would say this is a healthier position than probably you would expect in terms of cash level. For the MTL acquisition, and again, this is math we could do here, but it'll be probably between CAD 40 and 50 million of cost is what we're expecting the cash outlay to be, Canadian dollars for the MTL acquisition.
Speaker #1: Yeah . Good morning Brenna . So I would say from a cash standpoint , we want to make sure we have sufficient flexibility and we want to maintain sufficient cash if we as and if we find opportunities in the in the market .
At our care and the integrity of our, uh, and our margins. So, as we come together with MTL, we'll look at every single, uh, synergy, uh, possible. There, we'll have the benefit of greater scale, uh, to maintain margin, uh, integrity and, uh, more to follow.
Operator: Thank you. Next question comes from Brenna Cunnington at ATB Capital Markets. Please go ahead.
Thank you. Next question comes from Brena Cunning.
Brenna Cunnington: Thank you, and good morning, everyone. So just looping back to the balance sheet here. So cash balance of roughly CAD 376 million, ending the quarter and roughly CAD 425 million following the recapitalization. So quite the war chest that you're building up here. We know that some of the cash will be going towards the consideration for MTL. So kind of a two-pronged question here. So could you shed some light on roughly how much cash you're wanting to keep on hand, and the top priorities for the excess cash? And then also, could you remind us of roughly how much spend will be needed right off the bat for MTL integration?
Speaker #1: So I'm not going to pinpoint that to , to a number . But I would say , you know , this is a this is a healthier position than probably you would expect in terms of cash level for the MTL acquisition .
Speaker #1: And again , this is this is math . You we could could do it'll here , but be probably between 40 and 50 million of cost expecting .
Speaker #1: is what we're The cash outlay be Canadian dollars to the MTL for for acquisition .
Brenna Cunnington: Okay. Perfect. Thank you for that color there. And then just looking at Storz & Bickel, so good to see some of the improvements here. Looking ahead and apologies if I missed the pre-read remarks, but given the dynamics at play here, what can be done to help improve sales and make it sort of more stable going forward?
Brenna Cunnington: Okay. Perfect. Thank you for that color there. And then just looking at Storz & Bickel, so good to see some of the improvements here. Looking ahead and apologies if I missed the pre-read remarks, but given the dynamics at play here, what can be done to help improve sales and make it sort of more stable going forward?
Speaker #7: Okay . Perfect . Thank you for that color . There . And then just looking at stores and vehicles . So good to see some of the improvements here .
Speaker #7: Looking ahead . And apologies if I missed this . The prepared given the dynamics at play here , what can be done to help improve sales and make it sort of more stable ?
Judy Hong: Yes. Good morning, Brenna. So I would say from a cash standpoint, we want to make sure we have sufficient flexibility, and we want to maintain sufficient cash if we have, as and if we find opportunities in the market. So I'm not going to pinpoint that to a number, but I would say, you know, this is a healthier position than probably you would expect in terms of cash level. For the MTL acquisition, and again, this is math we could do here, but it'll be probably between CAD 40 and 50 million of cost is what we're expecting the cash outlay to be, Canadian dollars for the MTL acquisition.
Luc Mongeau: Yes. Thank you for the question. Storz & Bickel, amazing brand, amazing products, amazing company. I strongly suggest to anybody who has never used a device to try it. It's still a brand that has very low brand awareness, very low trial, and everything, especially in the US. So the strategy to drive growth and value creation is two-pronged: real expansion of market penetration usage in the US and as well acceleration of the innovation. And innovation, we see in a couple of ways. Price point expansion, as we expand into affordability, we see the brand really exploding. We're seeing it with the VZ right now, which is the entry-level device, and it's doing extremely well. And we will continue to expand that way. And right now, we're only offering devices that are suited to flower.
Luc Mongeau: Yes. Thank you for the question. Storz & Bickel, amazing brand, amazing products, amazing company. I strongly suggest to anybody who has never used a device to try it. It's still a brand that has very low brand awareness, very low trial, and everything, especially in the US. So the strategy to drive growth and value creation is two-pronged: real expansion of market penetration usage in the US and as well acceleration of the innovation. And innovation, we see in a couple of ways.
Speaker #7: Going forward ?
Speaker #2: Yes . Thank you for the question . And the stores that make all amazing brand amazing products , amazing company . strongly I suggest to anybody who has used a never device to try it .
Speaker #2: It's brand that has very still a low brand awareness , very low trial and everything . Especially especially in the US . And so it's , you know , the strategy to drive and value growth creation is two pronged real market expansion of penetration , usage in the in the as well and US acceleration the of innovation .
Good morning Brena. So I would say, from from a cash, uh, standpoint we want to make sure we have sufficient flexibility and we want to maintain sufficient cash, if we as, and if we find opportunities in the, in the in the market. Um so I'm not going to pinpoint that to to a number. But I would say, you know, this is a this is a healthier position and probably um you would expect in terms of cash level um for the MTL acquisition. And again this is this is
Math, you can we could do here but it'll be probably between 40 and 50 million of of cost is what we're expecting the cash outlay, to be, uh, Canadian dollars for for the MTL, um, acquisition.
Brenna Cunnington: Okay, perfect. Thank you for that color there. And then just looking at Storz & Bickel, so good to see some of the improvements here. Looking ahead, and apologies if I missed this in the prepared remarks, but given the dynamics at play here, what can be done to help improve sales and make it, sort of more stable going forward?
Speaker #2: This an in a couple a couple of ways innovation we see . Price point expansion . As we are expand into affordability . We see the brand really exploding .
Luc Mongeau: Price point expansion, as we expand into affordability, we see the brand really exploding. We're seeing it with the VZ right now, which is the entry-level device, and it's doing extremely well. And we will continue to expand that way. And right now, we're only offering devices that are suited to flower.
Speaker #2: We're seeing the it with VZ right now , which is the entry level device , and it's doing extremely well . And we will continue to expand that way .
Okay, perfect, thank you for that color there. And then just looking at stores and vehicles—so good to see some of the improvements here. Looking ahead, and apologies if I missed the trade remarks, but given the dynamics at play here, what can be done to help improve sales and make it sort of more stable going forward?
Luc Mongeau: Yes, thank you for the question. And the, you know, Storz & Bickel, amazing brand, amazing, products, amazing company. I strongly suggest to anybody who has never used the device to try it. It's still a brand that has very low brand awareness, very low trial and everything, especially, especially in the US. So it's, you know, the strategy to drive growth and value creation is two-pronged. Real expansion of market penetration, usage, in the US, and as well, acceleration of the innovation. This, and innovation we see in a couple, a couple of ways. Price point expansion. As we expand into affordability, we see the brand really exploding.
Speaker #2: And right now we're only offering devices that are suited to flower , and we can expand the brand into other devices that that use concentrates and distillates , which is a very large segment of the market that we're not playing playing in .
Luc Mongeau: We can expand the brand into devices that use concentrates and distillates, which is a very large segment of the market that we're not playing in. Multiple avenues for growth and value creation expansion for the brand.
Luc Mongeau: We can expand the brand into devices that use concentrates and distillates, which is a very large segment of the market that we're not playing in. Multiple avenues for growth and value creation expansion for the brand.
Speaker #2: So multiple avenues for growth and value creation the brand , expansion for .
Operator: Thank you. This concludes Canopy Growth's third-quarter Fiscal 2026 financial results conference call. A replay of this conference call will be available until 7 May 2026, and can be accessed following the instructions provided in the company's press release issued earlier today. Canopy Growth's investor relations team will be available to answer additional questions. Thank you for attending today's call.
Operator: Thank you. This concludes Canopy Growth's third-quarter Fiscal 2026 financial results conference call. A replay of this conference call will be available until 7 May 2026, and can be accessed following the instructions provided in the company's press release issued earlier today. Canopy Growth's investor relations team will be available to answer additional questions. Thank you for attending today's call.
Speaker #3: Thank you . This concludes Canopy Growth third quarter 2020 financial results . fiscal Conference call A replay of this conference call will be May 7th , until available 2026 , accessed following the and can be instructions provided in the company's press release issued earlier today .
Luc Mongeau: We're seeing it with the VZ right now, which is the entry-level device, and it's doing extremely well, and we will continue to expand that way. And right now, we're only offering devices that are suited to flower, and we can expand the brand into devices that use concentrates and distillates, which is a very large segment of the market that we're not playing in. So, multiple avenues for growth and value creation expansion for the brand.
Products, amazing. So but yeah, I was trying to suggest to anybody who had never used a device to try it. Uh, it's still a brand that has very low brand awareness, very low trial, and everything, especially, especially in the US. So it's, uh, you know, the the strategy to drive growth and value creation is too strong. Um, real expansion of Market penetration, uh, usage, uh, in the, uh, in the US and as well acceleration of the Innovation. This uh, and Innovation, we see in a couple, a couple ways price point, uh, expansion. As we are expanding into affordability. We see the brand really exploding. We're seeing it with the VZ right now, which is the entry level, uh, device that it's doing extremely well and we will, we will continue to expand that weight. And right now, we're only, uh, offering uh, devices that are suited to flower and we can expand the brand into
Uh, devices that, uh, that use concentrates and distillates, which is a very large, uh, segment of the market that we're not playing, uh, playing in so, uh, multiple avenues for, uh, growth and value creation expansion for the blood.
Operator: Thank you. This concludes Canopy Growth's Q3 fiscal 2026 financial results conference call. A replay of this conference call will be available until 7 May 2026, and can be accessed following the instructions provided in the company's press release issued earlier today. Canopy Growth's investor relations team will be available to answer additional questions. Thank you for attending today's call.
Thank you, this concludes Canopy Growth's third quarter fiscal 2026 financial results conference call. A replay of this conference call will be available until May 7, 2026, and can be accessed following the instructions provided in the company's press release issued earlier today.
Canopy Growth's investor relations team will be available to answer additional questions. Thank you for attending today's call.
