Canopy Growth’s Turnaround Has Not Yet Reached Shareholders

Canopy Growth’s shares were trading near $0.92 on September 15, 2026, less than half their 52-week high of $2.38. That is the market’s blunt response to a turnaround that looks more convincing in the income statement than in the stock chart.

The Canadian cannabis company reported first-quarter fiscal 2027 net revenue of C$81.2 million, up 13% from a year earlier. Every operating area contributed. Canadian medical cannabis revenue jumped 22% to C$25.8 million, adult-use sales rose 10% to C$29.7 million, international cannabis increased 10%, and Storz & Bickel revenue edged 6% higher to C$16.1 million, according to Canopy’s August 7 earnings release and quarterly filing.

Profitability is moving in the right direction, too. The adjusted EBITDA loss narrowed to C$3.2 million from C$7.9 million a year earlier, while the net loss shrank to C$14.6 million from C$44.9 million. Canopy has also assembled a far sturdier cash position than it carried through much of its earlier restructuring, ending June with C$336.6 million in cash.

But investors are not valuing revenue growth alone. The company used C$25.7 million in free cash during the quarter, more than double the year-earlier outflow. Management blamed working-capital timing, yet the result underscores the distance between a smaller loss and a self-funding business.

Shareholders have also absorbed substantial dilution. Canopy’s weighted-average share count reached 422.3 million in the latest quarter, compared with 188.3 million a year earlier. That makes each share’s claim on any future earnings thinner, even if the underlying operation improves.

The most valuable part of Canopy’s U.S. strategy remains difficult to monetize. Through Canopy USA, the company has exposure to Wana, Jetty, Acreage and TerrAscend, but its interest is held through non-voting securities that cannot convert until major U.S. exchange restrictions around cannabis businesses change. The assets offer strategic optionality, not current operating earnings.

That leaves CGC as a proof-of-execution story. Canopy says it expects positive adjusted EBITDA during fiscal 2027. Until that promise becomes recurring cash generation, investors are likely to treat better sales as progress, not a rerating catalyst.