Q4 2026 Canopy Growth Corp Earnings Call

June 15, 2026

Speaker #1: From Eliseo Therapeutics' Phase 2 F57P study and refined Phase 3 development strategy for ELI-0027P in adjuvant pancreatic cancer conference call. At this time, all participants are in listen-only mode.

Speaker #1: Rolf, and you know, I have to remember that the market, the European market as a whole, sells a lot. The potential for growth penetration is still extremely low.

Speaker #1: And we’re very encouraged by our progress in the last two quarters.

Speaker #2: Great, thank you. I'll get back in the queue.

Speaker #1: A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

Speaker #3: Thank you. The next question comes from Aaron Gray with Alliance Global Partners. Please go ahead.

Speaker #4: Hi, thank you for the questions here. So, first one for me, just on the MTL acquisition—you gave hard numbers in terms of cost synergies: six, expected to be ten when complete.

Speaker #1: As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Brian Richie with LifeSci Advisors. Please go ahead, sir.

Speaker #4: But maybe on some top-line synergies—you alluded to maybe some sharing of best practices, you know, flower quality. So, maybe can you go into more detail in terms of some of the benefits that might have been better than you expected in terms of central top-line synergies from the MTL, and then how we can think about that flowing through to the P&L for Canopy Growth as you start to get some of those best practices that you're learning?

Speaker #2: Thank you, operator. Good morning, everyone, and welcome to Eliseo Therapeutics conference call. To discuss results from the Phase 2 Amplify 7P study and the path forward for ELI-0027P in adjuvant mutant KRAS-driven pancreatic cancer.

Speaker #4: Thank you.

Speaker #2: Earlier this morning, Eliseo issued a press release reporting top-line results from the study. In addition, following the call, the company will post a presentation on the Investor Relations section of its website that we will reference during today's call.

Speaker #1: Yep. Thank you for the question. It's a bit early to, to, to tell, there, but what we're seeing, you know, one of the key reasons behind the acquisition of MTL, was their greater ability to, to grow great flowers consistently and at scale.

Speaker #2: The complete dataset and supporting analyses are included in the file presentation. While today's discussion will focus on the key findings, clinical implications, and development strategy moving forward.

Speaker #1: And the work I started a couple of months ago, where we're really bringing the teams together to unlock the full potential of our growth facilities.

Speaker #1: What we're seeing behind the scenes is extremely encouraging right now. And you can imagine that this great flower will really accelerate our growth in both the Canadian.

Speaker #2: Before we begin, I would like to remind everyone that comments made during this call will include forward-looking statements within the meaning of the Federal Securities Laws.

Speaker #2: These statements are based on current expectations and assumptions and involve risks and uncertainties that may cause actual results to differ materially from those described.

Speaker #2: Please refer to the company's SEC filings and today's press release for a discussion of these risks and uncertainties. Eliseo undertakes no obligation to update any forward-looking statements, except as required by law.

Speaker #2: Joining me on today's call are Robert Connolly, President and Chief Executive Officer of Eliseo Therapeutics; Dr. Christopher Hack, Executive Vice President, Head of Research and Development, and Chief Medical Officer; and Dr. Shubam Pond, Professor of Gastrointestinal Medical Oncology at the University of Texas MD Anderson Cancer Center, principal investigator in the Amplify 7P trial, and an internationally recognized expert in pancreatic cancer.

Speaker #2: Dr. Pond will provide his perspective on the clinical implications of these findings and the ongoing unmet need in this disease. With that, I will turn the call over to Robert Connolly, President and Chief Executive Officer of Eliseo Therapeutics.

Speaker #2: Robert?

Speaker #3: Thank you, Brian, and good morning, everyone. Thank you for joining us today. While we are disappointed that the Amplify 7P study did not meet its primary endpoint, we believe the dataset generated important clinical and biological insights that have informed a clear development strategy moving forward.

Speaker #3: The study helped identify the patients most likely to benefit from ELI-0027P, demonstrated biological activity through the association of KRAS-specific immune responses with clinical outcomes, established a favorable safety profile, and informed the precision medicine Phase 3 strategy focused on patient selection and extended treatment duration.

Speaker #3: These results strengthen our conviction in the potential of ELI-0027P as an off-the-shelf, mutant KRAS-targeted immunotherapy, and we believe the clinical and biological findings from the study have broader implications for the development of Amplify-enabled immunotherapies across mutant KRAS-driven cancers.

Speaker #3: Today, Chris will review the study results in detail and discuss how these findings have informed our proposed precision medicine Phase 3 strategy. With that, I will turn the call over to Chris.

Speaker #3: Chris?

Speaker #2: Thank you, Bob. Good morning, everyone. As Bob mentioned, although Amplify 7P did not meet its primary endpoint, we believe the study identified a robust signal in completely resected patients that informs future development and provides a clear path forward for ELI-002 7P.

Speaker #2: Turning to slide 3, this slide summarizes what we believe are the key conclusions from the Amplify 7P study. First, the trial did not achieve its primary disease-free survival, or DFS, endpoint in the intent-to-treat population.

Speaker #2: However, we believe that the overall dataset generated important clinical and biological insights that inform a clear path forward for ELI-002. Second, we observed early separation of the DFS curves during active ELI-002 treatment, suggesting anti-tumor activity in the adjuvant setting.

Speaker #2: Third, post-hoc analyses demonstrated a stronger treatment effect in completely resected R0 patients, who were the majority of patients enrolling in the study, supporting our Phase 3 development strategy, which will now be focused on this group.

Speaker #2: Fourth, we observed a significant association between mutant KRAS-specific T-cell responses and improved disease-free survival, supporting that the immune responses generated by ELI-002 may translate into meaningful clinical benefit.

Speaker #2: And finally, ELI-0027P maintained a favorable safety and tolerability profile, supporting future extended treatment duration and combination strategies. Taken together, we believe these findings identify a clear precision medicine path forward for Phase 3 development, focused on R0 patient selection and extended treatment duration.

Speaker #2: With that overview, let's move to slide 4 and review the study design. This slide summarizes the design of the Amplify 7P study. As you can see, it is a randomized Phase 2 study evaluating ELI-002 in patients with mutant KRAS-driven pancreatic ductal adenocarcinoma, or PDAC, following completion of standard local regional treatment.

Speaker #2: The study enrolled 144 patients across 24 U.S. sites and randomized patients 2-to-1 to receive either ELI-002 or standard of care observation. Eligible patients had stages 1 through 3 mutant KRAS-positive pancreatic cancer, underwent either R0 or R1 surgical resection, were radiographically free of disease at enrollment, and had completed standard local regional therapy.

Speaker #2: Including surgery and perioperative or adjuvant chemotherapy. Before reviewing the results, it's important to understand the distinction between R0 and R1 resection status. Patients with an R0 resection have no microscopic tumor remaining at the surgical margin, while an R1 resection indicates microscopic residual disease remains following surgery, or is found within 1 millimeter of the margin.

Speaker #2: This distinction is clinically important because R0 patients generally have a lower residual disease burden and slower recurrence kinetics, whereas R1 patients face a substantially higher risk of recurrence.

Speaker #2: I'll come back to discuss this later in the deck. Patients assigned to ELI-002 received an initial immunization series, followed by a booster phase, while patients assigned to the control arm underwent standard observation.

Speaker #2: The primary endpoint of the study was disease-free survival. Secondary and exploratory endpoints included tumor biomarker response, overall survival, safety, and immunogenicity. The primary objective of the study was to determine whether ELI-002 could improve DFS following completion of standard local regional therapy in a population at high risk for recurrence and for whom no approved treatment options currently exist.

Speaker #2: After the completion of standard therapy. With that background, let's move to slide 5 and review the primary DFS results. In the intent-to-treat population, the study did not meet its primary endpoint of improving disease-free survival, with a hazard ratio of 0.85 and a p-value of 0.533.

Speaker #2: While the primary endpoint was not achieved, we observed several encouraging observations. First, if you look at the Kaplan-Meier curves, you can see that separation between the treatment arms emerged early during the five-month active ELI-002 treatment period.

Speaker #2: To better understand this observation, we conducted post-hoc landmark analyses at three and six months. Approximately 14% absolute DFS benefit was seen consistently during active treatment at both three and six months.

Speaker #2: Suggesting early clinical activity within treatment arms, and the separation persisted through nine months. While these analyses are exploratory and should be interpreted accordingly, we believe they provide evidence of anti-tumor activity during active treatment and suggest that ELI-002 was influencing disease recurrence dynamics while patients were receiving therapy.

Speaker #2: Importantly, these findings raise an important question for future development—whether extending treatment duration beyond the initial immunization and booster regimen may help sustain anti-tumor benefit.

Speaker #2: This observation is one of the key elements informing our proposed Phase 3 strategy, which I will discuss later in the presentation. Before that, I'd like to review analyses that helped us better understand which patients appear most likely to benefit from treatment.

Speaker #2: Turning to slide 6, we evaluated disease-free survival in patient populations with differing levels of recurrence risk. As shown on this slide, we observed a stronger treatment effect in patients who underwent complete surgical resection, which is called R0.

Speaker #2: In the intent-to-treat population, which included all 144 randomized patients, the unstratified hazard ratio was 0.79 with a p-value of 0.25. When we evaluated the R0 resected population, representing 121 of the 144 patients enrolled in the study, the hazard ratio improved to 0.65 with a p-value of 0.048.

Speaker #2: Importantly, the R0 population represents approximately 84% of patients enrolled in the Amplify 7P trial, potentially representing a large patient population with a high relapse risk and no current treatment options.

Speaker #2: We believe these findings are important because a patient population with lower residual disease burden may be well suited to immunotherapy like ELI-002. These findings helped inform our thinking around future study design, and prompted us to examine whether baseline prognostic factors could help explain a stronger treatment effect observed in the R0 population.

Speaker #2: Now let's turn to slide 7. We examined baseline prognostic factors across the two treatment arms. Importantly, the study was randomized based on metastasis to lymph nodes as a stratification factor, and nodal status was balanced between treatment arms.

Speaker #2: We then performed multivariable analyses to evaluate factors associated with recurrence in Amplify 7P. These analyses identified R1 resection status as a significant adverse prognostic factor, with a hazard ratio of 1.56.

Speaker #2: When we reviewed the distribution of R1 patients across treatment arms, we observed that a higher proportion of patients randomized to ELI-002 had undergone R1 resection compared with patients in the observation arm.

Speaker #2: Specifically, 19% of patients in the ELI-002 arm had an R1 resection status, compared with 10% in the observation arm. Because R1 resection is associated with a substantially higher risk of recurrence, this implies that the imbalance meaningfully and negatively impacted the ELI-002 arm.

Speaker #2: To correct for the R1 imbalance, we further evaluated outcomes in the R0 resected population. Importantly, these findings do not change the primary intent-to-treat result.

Speaker #2: However, they help explain why a stronger treatment effect was observed in the lower residual disease, R0, population. The results of those analyses are shown on the next slide.

Speaker #2: This slide summarizes the treatment effect observed in the two populations we have discussed. As shown here, the unstratified DFS hazard ratio in the intent-to-treat population was 0.79.

Speaker #2: However, in the completely R0 resected population, representing 121 patients, the hazard ratio improved to 0.65 with a small p-value of 0.048. Importantly, the Kaplan-Meier curves in the R0 population separated immediately and remained separated throughout the observation period, with an observed advantage for ELI-002 patients in delaying the time to relapse.

Speaker #2: 23.8 versus 12.8 months. We also saw a decrease in the proportion with relapse: a 9.5% absolute advantage at 18 months. The analyses shown here support the potential for improving treatment effect in the lower residual disease R0 population and help this R0 analysis to find the patient population we believe is most appropriate for future Phase 3 evaluation.

Speaker #2: Importantly, these clinical observations were also supported by strong mechanism-of-action immunologic signals, which I will discuss on the next slide. Now, turning to slide 9.

Speaker #2: This slide addresses what we believe is one of the most important findings from the study: the relationship between immune response and disease-free survival. ELI-002 was designed to generate robust mutant KRAS-specific T-cell responses.

Speaker #2: We evaluated whether the magnitude of the immune response generated by treatment was associated with clinical outcome. Using the threshold previously defined in our Phase 1 studies and subsequently published by Weinberg, Hunt, and O'Reilly in Nature Medicine, patients who achieved greater than a 9.17-fold increase in mutant KRAS-specific T cells experienced substantially better outcomes than those below the threshold.

Speaker #2: Among the 90 evaluable patients treated with ELI-002, the hazard ratio was 0.22 with a p-value of less than 0.0001. We believe this analysis demonstrates a strong and highly significant relationship between the magnitude of mKRAS-specific T-cell response and disease-free survival, with patients generating the strongest immune responses experiencing the most favorable outcomes.

Speaker #2: While correlation does not establish causation, these data provide important biological validation of ELI-002 7P activity and support the potential relationship between immune response and clinical outcome.

Speaker #2: We believe this finding strongly supports the proposed mechanism of action and reinforces the rationale for continued development of ELI-002 in patients most likely to benefit from treatment.

Speaker #2: Next, I'll review the safety profile observed in the study. Turning to slide 10, ELI-002 demonstrated a favorable safety and tolerability profile throughout the study.

Speaker #2: Importantly, there were no treatment-related discontinuations and no treatment-related deaths. Only 5% of patients.

Speaker #1: Behind the scenes so far, and we will start seeing the benefits of this in the quarters to come.

Luc Mongeau: Behind the scenes so far, we will start seeing the benefits of this in the quarters to come.

Speaker #2: Okay, great. Thanks for that. Second question from me, just so I can understand: Canada International seemed to be, you know, the priority today. But a lot of things are starting to move now here in the US.

Aaron Grey: Okay, great. Thanks for that. Second question from me. Can I understand Canada International seems to be a priority today, but a lot of things are starting to move now here in the US. You had phase I rescheduling with FDA and state medical, anticipation for phase II whole plant rescheduling to come, potentially later this summer. As we think about Canopy Growth, historically, you've been one of the more aggressive in terms of looking to capitalize on those US opportunities. Now in 2026, FY 2027, how do we think about your view in terms of what it will take for you to want to reengage in terms of getting aggressive in the US market, if there's any types of key things, such as being able to maintain uplisting and consolidate adult use or otherwise?

Speaker #2: You had phase one rescheduling with FDA and state medical, you know, anticipation for phase two, whole plant rescheduling to come, you know, potentially later this summer.

Speaker #2: So, as we think about Canopy Growth, historically, you've been one of the more aggressive in terms of looking to capitalize on those U.S. opportunities.

Speaker #2: So now, in 2026, FY 2027, how do we think about your view in terms of what it will take for you to want to, you know, reengage in terms of getting aggressive in the US market? If there's any types of key things, such as being able to, you know, maintain uplifting and consolidate adult use, or otherwise?

Speaker #2: And then, what do you think are the best opportunities in the US market today, having historically done both MSOs and brands? Thanks.

Aaron Grey: What do you think are the best opportunities in the US market today, having historically done both MSO and brands? Thanks.

Speaker #1: Yeah, we've been pretty consistent there. We're right near-term, focused on priorities. Our Canada International, where we can re-realize value creation instantly.

Luc Mongeau: Yeah, we've been pretty consistent there. Our near-term focus and priorities are Canada International, where we can realize value creation instantly. Our focus there is not changing. That being said, we're very encouraged by the regulatory changes that are happening across the US. We know what's happened recently is focus on medical cannabis. Our investment in the US has been more in mixed-use, call it recreational. We're not seeing any immediate benefits there. That being said, on the strategy, the Canopy strategy has been to lay out investment across the US to ensure that as the regulatory changes happen in the market, that we will benefit from there. We're very happy with our invest in the Jelly brand in California, our affiliation with the Claybourne infused pre-roll brand. We've got a sizable investment in TerrAscend.

Speaker #1: So, our focus there is not changing. That being said, we're very encouraged by the regulatory changes that are happening across the US.

Speaker #1: So, we know what's happened recently is a focus on medical cannabis. Our investment in the US has been more in mixed-use, call it, recreational.

Speaker #1: So, we're not seeing any immediate benefits there. But, that being said, under strategy, the Canopy strategy has been to lay out investment across the US to ensure that as regulatory changes happen in the market, we will benefit from there.

Speaker #1: So we're very happy with our investment in the Jelly brand in California. We're affiliated with the Claybourne infused pre-roll brand. We've got a sizable investment in Terrasense.

Speaker #1: So, you know what? We're well-positioned to take advantage of the markets as regulatory changes continue to happen.

Luc Mongeau: In all, we're well-positioned to take advantage of the markets as regulatory changes continue to happen.

Speaker #2: Okay, great. I appreciate the call there. I'll go ahead and jump back in the queue.

Aaron Grey: Okay, great. Appreciate the color there. I'll go and jump back in the queue.

Speaker #3: Thank you. The next question comes from Bill Kirk with Roth Capital Partners. Please go ahead.

Operator: Thank you. The next question comes from Bill Kirk with Roth Capital Partners. Please go ahead.

Speaker #4: I'd like to keep going on Aaron's question there. You know, when we think about the US, why isn't now the time to get more aggressive in the US?

Bill Kirk: I'd like to keep going on Aaron's question there. When we think about the US, why isn't now the time to get more aggressive in the US? I understand the Canadian and international opportunities might be more immediate, but what else would you need to see in the US to start getting more aggressive? Then if you could you remind us maybe some of the run rate metrics for the assets you do have exposure to in the past? I think you've given trailing 12-month revenue and a rough EBITDA kind of range for the US assets. Could you update us on those?

Speaker #4: Like, I understand the Canadian and international opportunities might be more immediate, but what else would you need to see in the U.S. to start getting more aggressive?

Speaker #4: And then, if you could, could you remind us, maybe, some of the run-rate metrics for the assets you do have exposure to? In the past, I think you've given trailing 12-month revenue and a rough EBITDA kind of range for the U.S. assets?

Speaker #4: Could you, could you update us on those?

Speaker #5: Yeah, Bill, this is Tom. So, I guess building on kind of what would change, again, the Canopy USA business is not skewed as much to the medical side as kind of some of our, some of the U.S. MSOs.

Tom Stewart: Yeah, Bill, this is Tom. I guess building on what would change. Again, the Canopy USA business is not skewed as much as the medical side as some of the US MSOs. For us, until there's full uplisting potential for fully plant-touching businesses, there's not as much in the way of benefits to us as you might see with peers. I would say in terms of the run rates, we do disclose in the 10K, Bill, some are financial information, I would direct you to those disclosures. Again, that would be a cumulative across all of our assets. As we think through to building on what Luc said, that includes retail operations, that would include brand revenues for the Wana assets, as well as the Jelly business in California and certain states. Really the unlock for us-

Speaker #5: So for us, until there's full kind of uplifting potential for fully plant-touching businesses, there's not as much in the way of benefits to us as you might see with peers.

Speaker #5: I would say, in terms of the run rates, we do disclose, and in the 10-K, Bill, some of our expenditure information.

Speaker #5: So I would I would direct you, to those, disclosures. But again, that would be kind of a cumulative across all of our assets. So as we think through to, you know, building on what Luke said, that includes, you know, retail operations that would include kind of brand revenues for, for the, the one assets as well as the jelly business in, in California in certain states.

Speaker #5: So, really, the unboxing for us.

Speaker #4: Thank you.

Speaker #5: Yeah.

Bill Kirk: Okay. Thank you.

Tom Stewart: Yeah.

Speaker #4: Go ahead. The unlock?

Bill Kirk: Go ahead. The unlock?

Speaker #5: No, I was gonna say the really the unlock for us is that until we're at a point where we can, US plant-touching businesses irrespective of medical versus non-medical can, can list and, and further regulations open up, we're really kind of in the same boat as we as we, we were before.

Tom Stewart: No, I was going to say that really the unlock for us is until we're at a point where we can, US plant-touching businesses, irrespective of medical versus non-medical, can list and further regulations open up. We're really in the same boat as we were before.

Speaker #4: Okay, thank you. In the cash flow statement, there was a cash outflow for, I think it said, deconsolidating two subsidiaries.

Bill Kirk: Okay. Thank you. In the cash flow statement, there was a cash outflow for, I think it said deconsolidating or two subsidiaries. What was that in the period? What was that deconsolidating cash outflow?

Speaker #4: What was that in the period? What was that deconsolidating cash outflow?

Speaker #5: That might have been related to a prior year bill. I'd have to go back and look at it separately. We can follow up in a separate session if you'd like.

Tom Stewart: That might have been related to prior year, Bill. I'd have to go back and look at it. Certainly, we can follow up in a separate session if you'd like.

Speaker #4: Okay. Okay. Thank you, Tom.

Bill Kirk: Okay. Thank you, Tom.

Speaker #5: No problem.

Tom Stewart: No problem.

Speaker #3: Thank you. The next question comes from Brenda K-Cunnington with ATP Cormark. Please go ahead.

Operator: Thank you. The next question comes from Brenna Cunnington with ATB Capital Markets. Please go ahead.

Speaker #6: Hey, y'all. Thanks for taking our questions. Just looking at the balance sheet, we do have quite the cash balance here with $365 million exiting the quarter.

Brenna Cunnington: Hey, y'all. Thanks for taking our questions. Just looking at the balance sheet, we do have quite the cash balance here with CAD 365 million exiting the quarter. From what I recall, some of this will be used with transitional costs related to the integration of MTL. I do understand that the cash reserves won't be at this level indefinitely. I'm all for squirreling away resources for a rainy day, but it does seem like we have a decent amount of excess cash on hand here above and beyond what's needed for near to medium-term operations. Could you just walk us through some of your strategic goals for putting this excess cash to work? You mentioned potentially expanding into the UK, and we know maybe the US is a potential for investment on the horizon. Could you just provide more details and color on that?

Speaker #6: From what I recall, some of this will be used for transitional costs related to the integration of MTL. And so, I do understand that the cash reserves won’t be at this level indefinitely.

Speaker #6: And I'm all for squirreling away resources for a rainy day, but it does seem like we have a decent amount of excess cash on hand here, above and beyond what's needed for near- to medium-term operations.

Speaker #6: Could you just walk us through some of your strategic goals for putting this excess cash to work? You mentioned potentially expanding into the UK, and we know the US may also be a potential area for investment on the horizon.

Speaker #6: Could you just provide us with more details and color on that?

Speaker #1: Yes. I'll start, and I'll ask Tom to jump in. So our priority remains clear: it's to achieve positive EBITDA and generate positive cash flows.

Luc Mongeau: Yes. Brenna, I'll start and I'll ask Tom to jump in. Our priority remains clear. It's to achieve positive EBITDA and generate positive cash flows. On this, we're focusing our efforts in accelerating growth in Canadian rec and across Europe as well. What's really good with all the hard work that we did during fiscal 2026, we're at a place where the balance sheet is way more solid than it was a year ago, and we're positioned to better take advantage of strategic opportunities that will present themselves to us. Tom, anything to add?

Speaker #1: On this, we're focusing our efforts on accelerating growth in Canadian REC and across Europe as well. What's really good is that with all the hard work that we did during fiscal 2026, we're at a place where the balance sheet is way more solid than it was a year ago.

Speaker #1: And we're positioned to better take advantage of strategic opportunities that will present themselves to us. Tom, anything to add?

Speaker #5: No, I think that's right. I mean, you're, you're right, Brenda. We're not we're not looking to squirrel away cash indefinitely, but we wanna be able be able to be well positioned to capitalize on opportunities if and when they, they arise.

Tom Stewart: No, I think that's right. You're right, Brenna. We're not looking to squirrel away cash indefinitely, but we want to be able to be well-positioned to capitalize on opportunities if and when they arise.

Speaker #6: Okay, understood. And then just looking internationally, we have heard commentary from various LP peers regarding the standards for German flower getting stricter, specifically with respect to the flower that's moving through Portugal to be EU GMP certified.

Brenna Cunnington: Okay. Understood. Just looking internationally, we have heard commentary from various LP peers regarding the standards for Germany flower getting stricter, specifically with respect to the flower that's moving through Portugal to be EU GMP-certified. Could you just provide us with more color on what you're seeing on this front? Is there potentially an opportunity to gain EU GMP certification at some point in the future?

Speaker #6: Could you just provide us with more color on what you're seeing on this front? And is there potentially an opportunity to gain EU GMP certification at some point in the future?

Speaker #1: Yes. We're seeing we're very seeing very similar s-similar things. I think we're extremely well positioned to, to function in that type of environment. We've been functioning under EU GMP, regulation codes for many years, now.

Luc Mongeau: Yes, we're seeing very similar things. I think we're extremely well-positioned to function in that type of environment. We've been functioning under EU GMP regulation codes for many years now. We have resources, capabilities on the ground in Germany to allow us to bring the right products to market. I was over in Europe last week and come back very confident and energized by the quality of the work our teams are doing across Germany and Poland that we're very bullish on these two markets and expanding and newly opening markets across Europe. We look forward to improving our performance in fiscal 2027 across Europe.

Speaker #1: We have a we have resources, capabilities in the ground in Germany to allow us to bring the right products, to market. I was over, in Europe, last week, and, come back very confident and energized, but the quality of our the of the work our teams are doing, across Germany, and, and Poland, and we're very bullish on what our, these two markets and expanding, and new, newly opening market, across, Europe.

Speaker #1: So, we look forward to improving our performance in fiscal 2027 across Europe.

Speaker #6: Okay, thank you for the color. I'll jump back in with you.

Brenna Cunnington: Okay. Thank you for the color. I'll drop back in queue.

Speaker #5: Operator, for Bill Kirk's question—Bill, that related to the deconsolidation of Canopy USA in the prior fiscal year. So, that was a one-time event which didn’t recur this year.

Tom Stewart: Operator, for Bill Kirk's question, Bill, that related to the deconsolidation of Canopy USA in the prior fiscal year. That was a one-time event for which didn't recur this year.

Speaker #3: Thank you. The next question comes from Pablo Zuenic from Zuenic and Associates. Please go ahead.

Operator: Thank you. The next question comes from Pablo Zuanic from Zuanic & Associates. Please go ahead.

Speaker #7: Hey, everyone. Luke, just to follow up on the medical side of things regarding the impact on veterans, we are now in the middle of June.

Pablo Zuanic: Everyone, look, just to follow up on the medical side of things, regarding the impact on veterans, we are now in the middle of June. Can you give some color in terms of how are veteran users of medical cannabis reacting? Are they cutting back on sales, or are they absorbing the effect of the reduced quota? Can you maybe expand also in terms of how much are you absorbing? It's not clear from the comments you made before. More color in that regard would help. To be clear, you are guiding for full-year sales growth in 2027, but that's for international and rec. Domestic medical, you are guiding for the decline, right? If you can just confirm that. Thank you.

Speaker #7: Can you give some color in terms of how are, you know, veteran, users of medical cannabis reacting? Are they cutting back on sales or are they, you know, absorbing the, the effect of the reduced quota?

Speaker #7: Can you maybe expand also in terms of how much you are absorbing? It's not clear from the comments you made before. More color in that regard would help.

Speaker #7: And, and, and to be clear, you are guiding for full-year sales growth in '27, but that's for international and REC. Domestic medical, you are guiding for the decline, right?

Speaker #7: So, if you can just confirm that, thank you.

Speaker #5: Yeah, so a few different parts within that, Pablo. So, for us, we're continuing to go after new veterans to sign up—new customers.

Tom Stewart: Yeah. A few different parts within that, Pablo. For us, we're continuing to go after new veterans to sign up new customers. We still see that as a very attractive and profitable market for our business. I would say through the first few weeks of fiscal 2027, we are seeing positive momentum year over year, but we're likely not going to maintain the same level of growth that we saw throughout fiscal 2026. We are doing everything we can to maintain a flat medical business year over year in terms of EBITDA margin. Overall, it will be a headwind for us on the Canadian side. The overall growth that we're talking about, you're right, it is including a bigger uplift from the international business as well as growth in Storz & Bickel that will drive us up.

Speaker #5: We still see that as a very attractive and profitable market for our business. I would say it's, you know, through the first few weeks of fiscal 2027, we are seeing positive momentum year over year, but we're likely not going to maintain the same level of growth that we saw throughout fiscal 2026.

Speaker #5: So we are doing everything we can to kind of maintain a flat medical business year over year in terms of EBITDA margin.

Speaker #5: But overall, it will be a headwind for us on the Canadian side. And the overall growth that we're talking about, you're right.

Speaker #5: It, it is including it is including a, a bigger uplift from, from the international business as well as growth in stores and Bickle. that, that will that will drive us up.

Speaker #5: So again, we're we the veteran change is presents quite the headwind to us as well as any other medical player in, in Canada. We're doing everything we can to limit the impact on EBITDA, but it is gonna be challenging just to get back to, to call it flat year over year on the on the Canadian medical side.

Tom Stewart: Again, the veteran changes presents quite the headwind to us as well as any other medical player in Canada. We're doing everything we can to limit the impact on EBITDA, but it is going to be challenging just to get back to call it flat year over year on the Canadian medical side.

Speaker #1: Yeah. So me, to this, I mean, the, the, the business, this Canadian medical business is the core of who Canopy is, and we're, we're positioning a, a company based on trust, on excellence, a company that is focused on bettering life through cannabis.

Luc Mongeau: If I may add to this Canadian medical business is the core of who Canopy is, and we're positioning a company based on trust, on excellence, a company that is focused on bettering life through cannabis. As a result, that medical business is really the core of who we are. We love it. We're putting tremendous effort to make sure that through these changes, the quality of the service, the products, the supplies we provide to veterans and other insured patients and non-insured patients remains of the highest integrity. Yes, we're seeing veterans adapting, adjusting how they purchase, but they're extremely loyal to the quality of service and products we've been providing. We provide some of the best service, fastest delivery, consistency of in-store products of any competitors in Canada.

Speaker #1: And so as a result, that medical business is really the core of who we are. We love it. We are we're putting tremendous effort to make sure that through these changes, the quality of the service the products, the supplies, we product we produ we, we, we provide to veterans and other insured patients and non-insured patients remains of the highest integrity.

Speaker #1: Yes, we're seeing veterans adapting and adjusting how they purchase, but they're extremely loyal to the quality of service and products we've been providing. We provide some of the best service, fastest delivery, and consistency of installed products of any competitors in Canada.

Speaker #1: And you can see these, these consumers—these patients—being extremely loyal to our platform. And we continue to strive to provide the best service in the industry.

Luc Mongeau: You can see these consumers, these patients, being extremely loyal to our platform, and we continue to strive to provide the best service in the industry.

Speaker #7: Thank you. That's good color. And then, just a follow-up in terms of REC, REC sales in Canada—obviously, you've done very well with IPRs.

Pablo Zuanic: Thank you. That's good color. Just to follow up in terms of rec sales in Canada, obviously, you've done very well with IPRs. Now the Hifyre data shows very good growth in vape. Can you talk about any gaps or rooms, areas where you're still under indexed, where you see room to expand the portfolio, whether it's flower or different segments within the other formats? Thank you.

Speaker #7: Now the high-fire data shows very good, growth in vape. Can you talk about, you know, any gaps or, or, or rooms, a-areas where you're still underindexed, where you see, room to, expand the portfolio, whether it's flower or different segments, within the other format?

Speaker #7: Thank you.

Speaker #1: Yeah, yeah, absolutely. And thank you for the congrats on the progress. So, our latest data shows us as number six. I won't be shy to say that our long-term aspiration is to be a top-three player.

Luc Mongeau: Yeah, absolutely. Thank you, Pablo. Congrats on the progress. We're now latest data shows us as number six. I won't be shy to say that our long-term aspiration is to be a top-three player. We believe we can get there. It's not going to be easy. It's going to take time. Think of the big categories out there. Let's start products. We'll talk about regions later. In the Canadian market where the growth is, where the volume is, it's flower, it's pre-rolled, infused or not, and it's vape. We have opportunities across these three large segments. In flower, we've been saying it, the acquisition of MTL was driven in one large part by their talent, their ability to grow consistently great flower at scale in an efficient manner. Now we're partnering, we're together with some really great growers.

Speaker #1: We believe we can get there. It's not going to be easy. It's going to take time. But think of the big categories out there. Let's start with products.

Speaker #1: We'll talk about regions later. So, you know, in the Canadian market, where the growth is, where the volume is—it's flower, it's pre-rolls, infused or not, and it's vapes.

Speaker #1: we have ca we have opportunities across these three large, segments. In flower, we've been saying it, the acquisition of MTL was driven in one part in one large part by their, their, their talent, their ability to grow consistently.

Speaker #1: Great flower at scale in an efficient manner. And now we're partnering, we're together with some really great growers. So, you know, look out in the quarters to come for the quality of our flower to keep improving.

Luc Mongeau: Look out in the quarters to come for the quality of our flower to keep improving. As a result, we know share will follow. In PRJs, we're doing really well. The Claybourne with infused pre-rolls is really driving our growth there, but we still have a lot of opportunities in regular pre-rolls driven by our brands, whether it's MTL brands, premium pre-rolls, or it's Tweed with mainstream pre-rolls. We still have a lot of opportunities there. Finally, we launched all-in-one vape during fiscal 2026. We're very encouraged by the results. Again, there, we're only scratching the surface. We're almost absent of the 510 category, which is still very large. As you can see, there's tons of runway. There's significant runway for us to grow Canadian rec there.

Speaker #1: And as a result, we know share will follow. In PRGs, we're doing really well. The Clayborn with infused pre-rolls is really driving our growth there.

Speaker #1: But we still have a lot of opportunities in regular pre-rolls driven by our brands—whether it's MTL brands with premium pre-rolls, or it's Tweed with mainstream pre-rolls.

Speaker #1: We still have a lot of opportunities there. And finally, we launched all-in-one vape during fiscal '26. We're very encouraged by the results. But again, there, we're only scratching the surface.

Speaker #1: We're almost absent from the 510 category, which is still very large. So, as you can see, there's tons of runway. There's significant runway for us to grow Canadian REC there.

Speaker #1: And we're confident that, with our brands combined with our capabilities and the reset of our supply chain, we will be able to win in fiscal 2027.

Luc Mongeau: We're confident that with our brands, combined with our capabilities and the reset of our supply chain, that we will be able to win in fiscal 2027 and for the years to come.

Speaker #1: In 40 years to come.

Speaker #7: That's great. Thank you.

Pablo Zuanic: That's great. Thank you.

Speaker #8: Thank you, ladies and gentlemen. As a reminder, if you have any questions, please press star one now. We have no further questions. This concludes Canopy Growth's fourth quarter fiscal 2026 financial results conference call.

Operator: Thank you, ladies and gentlemen. As a reminder, if you have any questions, please press star one now. We have no further questions. This concludes Canopy Growth's Q4 fiscal 2026 financial results conference call. A replay of this conference call will be available until 13 September 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 #8: Our replay of this conference call will be available until September 13, 2026, and can be accessed by following the instructions provided in the company's press release issued earlier today.

Q4 2026 Canopy Growth Corp Earnings Call

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