Canopy Growth Corporation Q2 2027 Earnings Recap

Canopy shares fell 6.3% after earnings, with the clearest disappointment in Storz & Bickel: revenue dropped 44% year over year to $50.1 million amid variable consumer spending and changing market trends. Cannabis growth was substantial, but the company has not yet demonstrated the promised production improvements, which it expects to build through fiscal 2028.

Key Takeaways

• Consolidated net revenue rose 22% year over year to $81.4 million; cannabis revenue increased 30% to $66.2 million.
• International cannabis revenue grew 141% year over year and 28% sequentially to $12.3 million. Canada Medical revenue increased 18% to $25.8 million, while Canada Adult Use rose 17% to $21.8 million.
• Management expects cultivation improvements at Kincardine to become noticeable exiting Q3, with the full impact in early fiscal 2028; it sees potential to increase flower production by at least 25%–30% within the existing footprint.
• New EU GMP certification at Smiths Falls, alongside renewed certification at Kincardine, creates a path to offer additional product categories in Europe; management said it is working with channels and expects to provide updates in future quarters.
• Storz & Bickel revenue fell 44% year over year to $50.1 million. Management expects a seasonally strong Q3 from the holiday season, but cited consumer-spending variability and evolving trends.