Canopy Growth Corporation (NASDAQ:CGC) on Friday reported a first-quarter fiscal 2027 loss of two cents (three Canadian cents) per share, compared to the consensus loss of four cents (five Canadian cents).

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The Canadian cannabis company reported sales of $58.63 million (CA$ 81.2 million), beating the consensus of $58.52 million (CA$ 82.03 million). Revenues increased 13% year over year.

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Medical Cannabis and Adult-Use Sales Drive Revenue Growth

Cannabis net revenue was CA$65.1 million Canadian, up 14%.

Canada medical cannabis net revenue rose 22% to CA$25.8 million, driven by growth in the number of insured customers and the acquisition of MTL Cannabis, partially offset by the Canadian government’s reduction in the Veterans Affairs Canada reimbursement rate for medical cannabis.

Canada adult-use cannabis revenues jumped 10% to CA$29.7 million, driven by the MTL Cannabis deal, partially offset by declines in opportunistic bulk sales.

Storz & Bickel sales increased 6% to CA$16.1 million, attributable to prior-year product portfolio expansion and increasing sales across non-core markets.

Margins Improve

Adjusted gross margin increased to 31% in the quarter, compared to 25% a year ago.

Adjusted EBITDA loss was $CA 3.2 million, an improvement of CA$4.7 million, primarily attributable to revenue growth across both segments and continued cost savings, partially offset by the reduction in the VAC reimbursement rate available for medical cannabis.

CFO Expects Stronger Results In Second Half

"The combination of top-line growth and disciplined cost management is enabling us to make steady progress on key profitability measures including gross margin and adjusted EBITDA.”

“As expected, the integration of MTL Cannabis is leading to increased supply of high-quality flower, expanded revenue opportunities and the realization of meaningful synergies. We anticipate further improvements in our financial results, especially in the second half of fiscal 2027, as the integration is completed," said CFO Tom Stewart.

CGC Stock Price Activity: Canopy Growth shares were up 5.99% at 98 cents at the time of publication Friday, according to Benzinga Pro data.

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