Canopy Growth Corp (CGC) 2026 Q1 法說會逐字稿

Good morning. My name is Joanna, and I will be a conference operator today. I would like to welcome you to Canopy Growth's first-quarter fiscal 2026 financial results conference call. (Operator Instructions)

早安.我叫喬安娜，今天我將擔任會議主持人。歡迎您參加 Canopy Growth 2026 財年第一季財務業績電話會議。（操作員指示）

I will now turn the call over to Tyler Burns, Director, Investor Relations. Tyler, you may begin the conference call.

現在我將把電話轉給投資者關係總監泰勒伯恩斯 (Tyler Burns)。泰勒，你可以開始電話會議了。

Good morning, and thank you for joining us. On our call today, we have Canopy Growth's Chief Executive Officer, Luc Mongeau; and Interim Chief Financial Officer, Tom Stewart. Before financial markets opened today, Canopy Growth issued a news release announcing the financial results for our first quarter fiscal 2026 ended June 30, 2025. The news release and financial statements have been filed on EDGAR and SEDAR and will be available on our website under the Investors tab.

早安，感謝您加入我們。今天的電話會議邀請了 Canopy Growth 的執行長 Luc Mongeau 和臨時財務長 Tom Stewart。在今天金融市場開盤前，Canopy Growth 發布了一份新聞稿，宣布了截至 2025 年 6 月 30 日的 2026 財年第一季的財務表現。新聞稿和財務報表已在 EDGAR 和 SEDAR 上提交，並將在我們網站的「投資者」標籤下提供。

Before we begin, I would like to remind you that our discussion during this call will include forward-looking statements that are based on management's current view 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 press news release issued today.

在我們開始之前，我想提醒您，我們在本次電話會議中的討論將包括基於管理層當前觀點和假設的前瞻性陳述，並且本次討論完全符合今天發布的新聞稿末尾關於前瞻性陳述的警告說明。

As of the three months ended June 30, 2025, Canopy began reporting financial results for the following two reportable segments. Our Cannabis segment includes the global production, distribution and sale of a diverse range of cannabis and cannabis-related products. Our Storz & Bickel segment includes the production, distribution and sale of vaporizers and vaporizer accessories.

截至 2025 年 6 月 30 日的三個月，Canopy 開始報告以下兩個可報告部門的財務表現。我們的大麻部門包括多種大麻和大麻相關產品的全球生產、分銷和銷售。我們的 Storz & Bickel 部門包括蒸發器和蒸發器配件的生產、分銷和銷售。

It is important to highlight that information regarding segment net revenue and gross margin for the comparative periods has been recast to reflect the reportable segment changes. 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.

值得強調的是，有關比較期間分部淨收入和毛利率的資訊已重述，以反映可報告的分部變化。請查看今天的收益報告和 Canopy 向 SEC 和 SEDAR 提交的報告，以了解可能導致實際結果與預測有重大差異的各種因素。

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.

此外，我們的收益報告還包含任何非 GAAP 指標與其最接近的報告 GAAP 指標之間的對帳。請注意，除非另有說明，所有財務資訊均以加幣提供。在 Luc 和 Tom 發言之後，我們將進行問答環節，回答分析師的提問。

With that, I will turn the call over to Luc.

說完這些，我會把電話轉給 Luc。

Thank you, Tyler. Good morning, everyone, and thank you for joining us today. It's great to be with you again to share the momentum building across our business and how it's translating into topline growth.

謝謝你，泰勒。大家早安，感謝大家今天加入我們。很高興再次與您相聚，分享我們業務的發展勢頭以及它如何轉化為收入成長。

To begin, I'm very encouraged by the performance that our cannabis business delivered in the first quarter. Cannabis net revenue grew 24% year over year, while our team managed its way to significant structural changes while making meaningful progress on our cost reduction initiatives.

首先，我對我們的大麻業務在第一季的業績感到非常鼓舞。大麻淨收入年增 24%，同時我們的團隊成功實現了重大結構性變革，並在成本削減計劃方面取得了有意義的進展。

In the first quarter, Canada Medical net revenue grew 13%, marking three consecutive quarters of growth and continuing to outpace the market. International net revenues returned to growth at 4%, with Germany delivering triple-digit growth. In Canada, adult-use net revenue increased 43%, our largest improvement in recent years.

第一季度，加拿大醫療淨收入成長13%，連續三個季度成長，持續跑贏市場。國際淨收入恢復 4% 的成長，其中德國實現了三位數的成長。在加拿大，成人用藥淨收入成長了 43%，這是我們近年來最大的進步。

This performance reflects improved fundamentals across the business from better supply planning and a more focused portfolio to stronger retail execution and patient engagement. Everyone at Canopy has stepped up and delivered.

這項業績反映了整個業務基本面的改善，從更好的供應計劃和更集中的產品組合到更強的零售執行力和患者參與度。Canopy 的每個人都積極行動起來，並取得了成果。

Let's talk of this growth, starting with Canada Medical. The team's ability to ensure consistent supply in market and deliver high-quality, best-in-class patient care delivered another quarter of double-digit growth, and cemented Canopy as one of the top medical businesses in Canada.

讓我們來談談這種成長，從加拿大醫療開始。該團隊能夠確保市場供應穩定，並提供高品質、一流的患者護理，從而使 Canopy 在本季度再次實現了兩位數的增長，並鞏固了其在加拿大頂級醫療企業之一的地位。

This was achieved while delivering superior gross margin performance in this segment, which I like the operational strength of this business. In Q1, Spectrum Therapeutics expanded several of its core offerings to further enhance value and the patient experience. Canada Medical has quietly become one of our most consistent performers, and I see it as a blueprint for how we can scale success in international markets.

這是在該部門實現卓越毛利率表現的同時實現的，我喜歡該業務的營運實力。在第一季度，Spectrum Therapeutics 擴展了其幾項核心產品，以進一步提升價值和患者體驗。加拿大醫療已悄悄成為我們表現最穩定的公司之一，我將其視為我們如何在國際市場上取得更大成功的藍圖。

Turning to international markets. We're continuing to strengthen execution while positioning ourselves for future growth. In Europe, beyond improved product availability, we delivered double-digit revenue growth in Q1, including triple digit growth in Germany. Bulk sales into the UK supported our performance across the region, while supply challenges temporarily impacted results in Poland.

轉向國際市場。我們將繼續加強執行力，同時為未來的成長做好準備。在歐洲，除了產品供應量提高之外，我們在第一季實現了兩位數的收入成長，其中德國實現了三位數的成長。對英國的大量銷售支撐了我們在整個地區的業績，而供應挑戰暫時影響了波蘭的業績。

During the quarter, we advanced a series of operational improvements to increase our cannabis supply into Europe. This work is expected to conclude in Q3 and support topline acceleration and margin accretion in the back half of the year. We recently appointed Miles Worne as Managing Director of European markets to lead our commercial strategy across the region.

本季度，我們推進了一系列營運改進，以增加對歐洲的大麻供應。這項工作預計將於第三季完成，並支持下半年營收加速成長和利潤率成長。我們最近任命 Miles Worne 為歐洲市場董事總經理，領導我們在該地區的商業策略。

Miles will be focused on strengthening our routes to market, ensuring consistent supply, and building the infrastructures needed to drive long-term leadership in Europe. As we see it today, I'm energized by the progress we're seeing in Canada international market. Our fundamentals are getting better, and the team is focused on delivering sustainable growth.

邁爾斯將致力於加強我們的市場管道、確保穩定的供應以及建立推動我們在歐洲長期保持領先所需的基礎設施。正如我們今天所看到的，加拿大國際市場所取得的進展讓我感到振奮。我們的基本面正在好轉，團隊致力於實現永續成長。

In Canada adult-use, Q1 revenue grew 43% year over year. This performance was driven by a tighter, more targeted product portfolio aligned to high velocity, high demand SKUs, which strengthen our shelf presence. Our refined sales models that expanded national reach added nearly 4,800 new points of distribution in Q1 and contributed to larger order volume.

在加拿大成人用品領域，第一季營收年增 43%。這一業績是由更緊密、更有針對性的產品組合推動的，這些產品組合與高速度、高需求的 SKU 相一致，從而增強了我們的貨架存在感。我們改進的銷售模式擴大了全國覆蓋範圍，在第一季增加了近 4,800 個新的分銷點，並促進了訂單量的增加。

We saw strong consumer demand for our core offerings, including Claybourne infused pre-rolls, with sales of 58% in the 13th weeks ended June 29. Additionally, our Tweed and 7ACRES branded all in one vapes, Sweet Blood Orange Cush flower and Tweet Quickie PRJ large packs also contributed to topline gains.

我們發現消費者對我們的核心產品（包括 Claybourne 注入式預捲菸）的需求強勁，截至 6 月 29 日的第 13 週內銷售量成長了 58%。此外，我們的 Tweed 和 7ACRES 品牌一體式電子煙、Sweet Blood Orange Cush 花香型電子煙和 Tweet Quickie PRJ 大包裝也為營收成長做出了貢獻。

This momentum is further showing up in several key operational metrics, including reduced grow costs, improved inventory management and increased fill rates. Looking ahead, I am confident our retail ground game will keep driving distribution gains with new innovations to come supporting our continued momentum.

這一勢頭進一步體現在幾個關鍵的營運指標中，包括降低種植成本、改善庫存管理和提高填充率。展望未來，我相信我們的零售業務將繼續推動分銷成長，新的創新將支持我們持續的發展勢頭。

At Storz & Bickel, revenue was softer in Q1. This was due in large part to lapping strong sales from a year ago and weaker consumer demands and spending in key markets like the US. However, we remain confident in the long-term potential of this category leading business.

Storz & Bickel 第一季的營收有所下降。這在很大程度上是由於去年同期的強勁銷售以及美國等主要市場的消費需求和支出疲軟。然而，我們仍然對這一類別領先業務的長期潛力充滿信心。

We're preparing to launch a new device in the coming weeks, which we expect will broaden the consumer appeal for Storz & Bickel, premium vaporizers and support performance in the second half of the year.

我們準備在未來幾週推出一款新設備，預計它將擴大消費者對 Storz & Bickel、優質蒸發器的吸引力，並支援下半年的性能。

Now turn to cost discipline. Since launching our expense reduction initiative earlier this year, we've already delivered $17 million in annualized savings against our original $20 million target, reaching 85% of our goal to date well ahead of plan. Our team is continuing to look for additional efficiencies this year to ensure we're creating as effectively as possible.

現在來談談成本紀律。自今年稍早啟動削減開支計畫以來，我們已經實現了年度節省 1,700 萬美元的目標，而我們最初的目標是 2,000 萬美元，迄今已提前完成目標的 85%。我們的團隊今年將繼續尋求額外的效率，以確保我們盡可能有效地創造。

Finally, I'd like to address our compressed margins. We understand where the pressure is coming from and are acting decisively to improve them, which Tom will unpack during his remarks. For me, improving growth margin is fundamental to strengthening our balance sheet, achieving positive EBITDA and unlocking future growth.

最後，我想談談我們的利潤壓縮問題。我們理解壓力來自哪裡，並正在果斷採取行動來改善這些問題，湯姆將在演講中對此進行闡述。對我來說，提高成長利潤率對於加強我們的資產負債表、實現正 EBITDA 和釋放未來成長至關重要。

This is a company-wide priority, and we're embedding margin accountability into how we plan, execute and measure performance across every part of the business. Before I close, I want to briefly touch on Canopy USA. We continue to see the US as one of the most promissive long-term opportunities in global cannabis, while rescheduling and legalization hasn't happened yet, momentum continues to build.

這是全公司的首要任務，我們將利潤責任融入業務各部分的規劃、執行和績效衡量中。在結束之前，我想簡單談談 Canopy USA。我們仍然認為美國是全球大麻領域最具前景的長期機會國家之一，雖然重新安排和合法化尚未發生，但勢頭仍在不斷增強。

In Q1, Acreage focused on reducing operating expenses and completed the divestiture of non-core retail assets, allowing them to focus on vertically integrated markets. In addition, following the quarter end, Acreage secured USD20 million in funding to support its operation.

第一季度，Acreage 專注於降低營運費用，並完成了非核心零售資產的剝離，使其能夠專注於垂直整合市場。此外，本季結束後，Acreage 獲得了 2000 萬美元的資金來支持其營運。

Wana maintained business continuity while streamlining costs and expanding the distribution of its new plan derived CBD beverages, and Jetty continues to outperform both topline and profitability expectations.

Wana 在精簡成本和擴大其新計劃衍生的 CBD 飲料分銷的同時保持了業務連續性，而 Jetty 繼續超越收入和盈利預期。

In closing, I'm excited by our topline growth, the meaningful progress we've made on cost reductions and improvement to key operational fundamentals in Q1. The priority now is to sustain this momentum, improve our margins and achieve positive adjusted EBITDA. I'm confident we have the right focus, strategy, structure, and team in place to keep building momentum for the quarters ahead.

最後，我對我們的營收成長、第一季在降低成本和改善關鍵營運基礎方面取得的重大進展感到興奮。目前的首要任務是保持這一勢頭，提高我們的利潤率並實現正的調整後 EBITDA。我相信，我們擁有正確的重點、策略、結構和團隊，能夠為未來幾季保持強勁發展勢頭。

I'll now turn it over to Tom to walk through our financials.

現在我將把時間交給湯姆來介紹我們的財務狀況。

Thank you, Luc, and good morning, everyone. I would first like to take a moment to say how proud and excited I am to take on the Interim Chief Financial Officer role here at Canopy Growth. I'll bring to this role 20 years of experience with public companies, including leadership roles in accounting, reporting, FP&A and operations finance.

謝謝你，盧克，大家早安。首先，我想花點時間表達我對擔任 Canopy Growth 臨時財務長一職的自豪和興奮。我將為這個職位帶來 20 年的上市公司經驗，包括在會計、報告、財務規劃與分析和營運財務方面的領導職位。

I've been with Canopy since 2019 when I joined as the Chief Accounting Officer. During my time here, I've been exposed to every aspect of the business, and I believe my background brings a strong balance of financial rigor and operational insight to support our goals around efficiency, profitability and long-term value creation.

我自 2019 年加入 Canopy 並擔任首席會計官以來就一直在該公司工作。在此期間，我接觸到了業務的各個方面，我相信我的背景能夠在財務嚴謹性和營運洞察力之間實現良好的平衡，從而支持我們實現效率、盈利能力和長期價值創造方面的目標。

Let's now review our first quarter fiscal 2026 results which will be followed by a review of our balance sheet and cash flow, and I'll close with our priorities and fiscal 2026 outlook. Q1 fiscal '26 topline performance exceeded expectations, driven primarily by strength in the Canada adult-use and Canada Medical channels, but partially offset by softness in our Storz & Bickel business.

現在讓我們回顧一下 2026 財年第一季的業績，然後回顧我們的資產負債表和現金流，最後我將介紹我們的優先事項和 2026 財年展望。26 財年第一季的營收表現超出預期，主要得益於加拿大成人用品和加拿大醫療管道的強勁表現，但部分被 Storz & Bickel 業務的疲軟所抵消。

While we were pleased with the higher topline performance in Q1, our adjusted EBITDA loss was higher as compared to the prior year, driven by challenged gross margin performance in both segments, partially offset by lower SG&A expenses.

雖然我們對第一季更高的營業額表現感到滿意，但我們的調整後 EBITDA 損失與上年相比有所增加，這是由於兩個部門的毛利率表現均面臨挑戰，但銷售、一般及行政費用的降低部分抵消了這一損失。

Moving on to our detailed segment results and starting with Cannabis. Q1 cannabis net revenue was $57 million, up 24% compared to a year ago. This improvement was driven by strong growth in Canada Medical, which increased 13%, driven by an increase in the number of insured patients, larger order sizes and a broader assortment of product choices on our Spectrum Therapeutic store.

接下來我們來看看詳細的細分結果，先從大麻開始。第一季大麻淨收入為 5,700 萬美元，年增 24%。這一改善是由加拿大醫療的強勁增長推動的，該業務增長了 13%，這得益於投保患者數量的增加、訂單規模的擴大以及我們 Spectrum Therapeutic 商店的產品選擇種類的增加。

In addition, international market sales increased 4% compared to last year. This topline performance was driven by triple-digit percentage growth year over year in Germany, driven by improved supply consistency, as well as margin of creative bulk cannabis sales in Europe.

此外，國際市場銷售額較去年同期成長了4%。這項營收表現得益於德國同比三位數的百分比成長、供應一致性的提高以及歐洲創意大麻銷售的利潤率。

These improvements were partially offset by two items. One, softer sales in Poland due to regulatory changes limiting online prescriptions as well as supply challenges. And two, lower sales in Australia resulting from increase in supply in market, resulting in price compression.

這些改進被兩項內容部分抵消。首先，由於監管變化限制了網路處方以及供應挑戰，波蘭的銷售疲軟。二是澳洲市場供應增加導致銷售下降，造成價格壓縮。

Moving to Canada adult-use, net revenue increased 43% compared to a year ago, driven primarily by increased distribution and strong consumer demand for our infused pre-roll joints, flower and vapes.

轉向加拿大成人用品市場，淨收入較去年同期增長 43%，主要得益於分銷量的增加以及消費者對我們注入式預捲菸、花卉和電子煙的強勁需求。

In our Cannabis segment, we expect continued topline growth in Canada Medical and growth in Europe with new product registrations aimed at increasing strain availability and supply in Germany and Poland in the second half of fiscal '26.

在我們的大麻領域，我們預計加拿大醫療部門的營收將持續成長，歐洲的營收也將持續成長，新產品的註冊旨在增加26財年下半年德國和波蘭的大麻品種供應量。

We also expect Canada adult-use to deliver sustained topline performance over the remaining quarters of fiscal 26, driven by increased distribution, improved commercial execution within the retail channel, and continued strong consumer demand for new products, including infused pre-rolls, all in one vapes and new flower offerings.

我們也預計，加拿大成人用品市場將在 26 財年剩餘季度持續保持營收表現，這得益於分銷量的增加、零售通路內商業執行力的提升，以及消費者對新產品（包括注入式預捲菸、一體式電子煙和新花卉產品）的持續強勁需求。

Cannabis gross margin in Q1 fiscal '26 was 24%, which was down from the prior year. This decline was the result of a number of factors. First, similar to Q4 last year, we experienced higher near-term costs to produce Claybourne infused pre-roll joints due to the need for additional labor and third-party partners to meet stronger than anticipated demand.

26 財年第一季大麻毛利率為 24%，較前一年下降。這種下降是多種因素造成的。首先，與去年第四季類似，由於需要額外的勞動力和第三方合作夥伴來滿足比預期更強勁的需求，我們在生產 Claybourne 注入式預捲接頭方面的近期成本較高。

Second, softer sales in the high margin Polish market contributed to reduced cannabis gross margins. Importantly, we have a number of actions underway to drive marginal improvement, including taking price on select cannabis products in certain markets, implementing new automation and freeroll capacity to improve production efficiency, which we expect to be in place before the end of Q3, pursuing margin of bulk cannabis sales in Canada as well as in Europe and finally, we are expecting new European product registrations to be completed in the current quarter, which we expect to drive increased supply into priority markets in the second half of fiscal '26.

其次，高利潤的波蘭市場銷售疲軟導致大麻毛利率下降。重要的是，我們正在採取一系列措施來推動邊際改善，包括對某些市場中的精選大麻產品進行定價，實施新的自動化和免費產能以提高生產效率，我們預計這些措施將在第三季度末之前到位，追求加拿大和歐洲大宗大麻銷售的利潤率，最後，我們預計新的歐洲產品市場註冊將在本季度完成，我們預計這將推動26年下半年的優先財增加。

I will now speak about the performance of our Storz & Bickel segment in Q1 fiscal '26. Storz & Bickel had a soft quarter with revenue of $15 million, down 25% year over year. Last year's first quarter benefited from strong sales of the [Plenty and Mighty] vaporizers, as well as strong growth in Germany driven by regulatory reform.

現在我將談談我們 Storz & Bickel 部門在 26 財年第一季的業績。Storz & Bickel 本季業績疲軟，營收 1,500 萬美元，年減 25%。去年第一季受益於 [Plenty and Mighty] 霧化器的強勁銷售，以及由監管改革推動的德國強勁成長。

As we communicated during our last conference call, Storz & Bickel is operating against a challenging macroeconomic backdrop, particularly in the United States that is weighed on consumer sentiment reflected in softer demand for our premium devices.

正如我們在上次電話會議中所傳達的那樣，Storz & Bickel 正面臨著嚴峻的宏觀經濟形勢，尤其是在美國，消費者情緒受到拖累，這反映出對我們高端設備的需求疲軟。

However, in the current quarter, we are starting to see improvement in sales velocity. Also, as Luc mentioned earlier, Storz & Bickel is preparing to launch a new device over the coming weeks, which we expect to support improved performance in the second half of the year. As a result, we are cautiously optimistic that Storz & Bickel will see topline growth over the remainder of fiscal 206.

然而，在本季度，我們開始看到銷售速度的改善。另外，正如 Luc 先前提到的，Storz & Bickel 準備在未來幾週內推出一款新設備，我們預計該設備將在今年下半年支援效能的提升。因此，我們謹慎樂觀地認為，Storz & Bickel 在 206 財年剩餘時間內將實現營收成長。

Storz & Bickel gross margin in the first quarter fiscal '26 was 29% compared to 39% last year, driven primarily by lower sales. Actions underway to improve Storz & Bickel gross margins include bringing more manufacturing processes in-house to lower costs, as well as launching the new device in the coming weeks, which we expect will generate renewed consumer excitement while supporting improved performance in the second half of the year.

Storz & Bickel 26 財年第一季的毛利率為 29%，去年同期為 39%，主要原因是銷售額下降。Storz & Bickel 目前正在採取的提高毛利率的措施包括將更多的製造流程轉移到公司內部以降低成本，以及在未來幾週內推出新設備，我們預計這將重新激發消費者的興趣，同時支持下半年業績的提升。

With the segment's expected topline growth and cost reductions, we expect Storz & Bickel's gross margins to increase over the course of fiscal '26.

隨著該部門預期的營收成長和成本降低，我們預計 Storz & Bickel 的毛利率將在 26 財年期間上升。

Moving on to our discussion of operating expenses. SG&A expenses in the first quarter declined 21% as compared to last year, primarily due to ongoing cost reduction initiatives. These savings reflect permanent structural changes across multiple functions and markets aimed at aligning our cost base with the size and priorities of our business.

我們繼續討論營運費用。第一季銷售、一般及行政費用較去年同期下降 21%，主要由於持續實施的成本削減措施。這些節省反映了多個職能和市場的永久性結構性變化，旨在使我們的成本基礎與我們的業務規模和優先順序保持一致。

These actions include a 15% year over year reduction in SG&A headcount, elimination of multiple layers of management, reducing professional fees and streamlining back-office functions and non-essential programs.

這些措施包括年減 15% 的銷售、一般及行政開支員工數量、取消多層級管理、降低專業費用以及精簡後台職能和非必要程序。

Importantly, these changes have been implemented with limited disruption to the business which has allowed us to reallocate resources to the areas that matter most. I have high confidence in our team's ability to maintain the discipline while continuing to execute against our strategy.

重要的是，這些變化的實施對業務的影響有限，這使我們能夠將資源重新分配到最重要的領域。我對我們的團隊在繼續執行策略的同時保持紀律的能力充滿信心。

Turning to adjusted EBITDA, our first quarter fiscal '26 loss was $8 million compared to a loss of $5 million a year ago. Adjusted EBITDA in the first quarter of this year was primarily impacted by the lower cannabis gross margins discussed earlier as well as lower Storz & Bickel sales.

談到調整後的 EBITDA，我們 26 財年第一季的虧損為 800 萬美元，而去年同期的虧損為 500 萬美元。今年第一季的調整後 EBITDA 主要受到前面討論過的大麻毛利率下降以及 Storz & Bickel 銷售額下降的影響。

I'd like to now review our cash flow and balance sheet. Free cash flow was an outflow of $12 million in Q1 compared to an outflow of $56 million in the same period last year. Cash used from operating activities was $10 million, which is down from $52 million last year.

我現在想回顧一下我們的現金流量和資產負債表。第一季自由現金流流出 1,200 萬美元，而去年同期自由現金流流出 5,600 萬美元。經營活動所用現金為 1,000 萬美元，低於去年的 5,200 萬美元。

Cash interest payments in the first quarter of fiscal '26 totaled $6 million, which is down from $18 million in the first quarter of last year. This reduction in cash interest payments is a result of the pre-payments to our senior secured term loan made during fiscal 25 as well as the timing of interest payments. Working capital in the first quarter of fiscal '26 decreased sequentially by $8 million, driven primarily by lower inventory.

26 財年第一季的現金利息支付總額為 600 萬美元，低於去年第一季的 1,800 萬美元。現金利息支付的減少是由於我們在 25 財年期間預付了優先擔保定期貸款以及支付利息的時間。26 財年第一季營運資本季減 800 萬美元，主要原因是庫存減少。

For fiscal '26, we expect to achieve significant improvement in free cash flow driven by a reduction in cash interest costs due to lower debt balances, as well as an improvement in working capital driven by tighter inventory management, as well as initiatives to improve the timeliness of receivable collections, particularly in the medical cannabis -- Canadian Medical business. We also expect lower restructuring and non-recurring cash expenses, and lower capital expenditures as compared to fiscal '25.

對於 26 財年，我們預計自由現金流將顯著改善，這得益於債務餘額降低導致的現金利息成本降低，以及更嚴格的庫存管理推動的營運資本改善，以及旨在提高應收帳款收款及時性的舉措，特別是在醫用大麻——加拿大醫療業務方面。我們也預計，與 25 財年相比，重組和非經常性現金支出以及資本支出將會降低。

Turning now to the balance sheet. As of June 30, 2025, we had $144 million in cash and short-term investments and a debt balance of $295 million. Subsequent to the end of Q1, we announced that we had entered into an agreement with certain of our lenders to make three prepayments that are expected to reduce our senior secured term loan by USD50 million by March 31, 2026.

現在來看資產負債表。截至 2025 年 6 月 30 日，我們擁有 1.44 億美元現金和短期投資，債務餘額為 2.95 億美元。第一季結束後，我們宣布已與某些貸款人達成協議，進行三筆預付款，預計到 2026 年 3 月 31 日將我們的優先擔保定期貸款減少 5,000 萬美元。

When completed, the pre-payments are expected to reduce the company's interest expense under the term loan by approximately USD6.5 million on an annualized basis, which is expected to improve our free cash flow. In connection with this agreement, Cannabis USA obtained our consent to secure additional financing for Acreage, and as a result, Acreage is no longer in default under their senior secured credit facility.

完成後，預付款預計將使公司定期貸款下的利息支出將每年減少約 650 萬美元，從而有望改善我們的自由現金流。與本協議相關，Cannabis USA 獲得我們的同意，為 Acreage 獲得額外融資，因此，Acreage 不再違反其優先擔保信貸安排。

Finally, we have generated total gross proceeds of USD94 million through today under the USD200 million ATM program launched earlier this year. In my role, I am zeroed in on driving the rapid and disciplined execution of the focused actions discussed on today's call.

最後，截至今天，我們在今年稍早啟動的 2 億美元 ATM 計畫下已獲得總計 9,400 萬美元的總收益。在我的職位上，我專注於推動快速、有紀律地執行今天電話會議上討論的重點行動。

We are committed to ensuring that our focus on key operational fundamentals not only fuels top line revenue growth but also delivers meaningful improvement to our gross margin in the second half of the fiscal year. The decisive and at times difficult adjustments we have made to our cost structure are both deliberate and essential.

我們致力於確保對關鍵營運基本面的關注不僅能推動營收成長，還能在財年下半年顯著提高我們的毛利率。我們對成本結構所做的決定性、有時困難的調整是經過深思熟慮且必要的。

These measures are designed to reposition Canopy for long-term competitiveness and operational efficiency, placing us firmly on a defined and achievable trajectory toward generating positive free cash flow and adjusted EBITDA.

這些措施旨在重新定位 Canopy 的長期競爭力和營運效率，使我們堅定地走上明確且可實現的軌道，以產生正的自由現金流和調整後的 EBITDA。

This concludes my prepared remarks. We will now take questions.

我的準備好的發言到此結束。我們現在開始回答問題。

(Operator Instructions) Aaron Grey, Alliance Global Partners.

（操作員指示）Aaron Grey，Alliance Global Partners。

Hi. Thank you very much for the question. So I wanted to touch more on gross margins. Sounds like that's a key initiative for you guys. Gross margin, it was down year over year and a lot of the reasoning there was similar to what we heard prior quarter. But sequentially, we did see a meaningful improvement, particularly in cannabis, which are now combined.

你好。非常感謝您的提問。所以我想多談談毛利率。聽起來這對你們來說是一項重要舉措。毛利率年減，其中許多原因與我們上一季聽到的類似。但隨後，我們確實看到了有意義的改善，特別是大麻，它們現在已經結合在一起。

So can you speak to some of the drivers there? Was it fixed cost leverage with Claybourne as we saw an increase in Canadian sales. So maybe some of the drivers to that and how that might have been qualitatively broken out between international and Canadian. Thank you.

那麼你能和那裡的一些司機談談嗎？由於我們看到加拿大銷售額的成長，Claybourne 是否採用了固定成本槓桿？因此，也許存在一些導致這一現象的驅動因素，以及如何在國際和加拿大之間進行定性區分。謝謝。

Thanks, Aaron, for the question. As we said, we are very pleased with the topline performance and gross margin will be an area of focus in the coming quarters. We expect, ideally, we're exiting this year with the margin in the low to mid-30s and a lot of the efficiency improvements we discussed on the call.

謝謝 Aaron 提出這個問題。正如我們所說，我們對營收表現非常滿意，毛利率將成為未來幾季關注的重點。我們預計，理想情況下，今年我們的利潤率將在 35% 左右，並將實現我們在電話會議上討論的許多效率改進。

So expanding our production capacity, being able to reduce temporary labor costs on our key categories are going to meaningfully improve the gross margin in the Cannabis segment, and a lot of that you're seeing the continuation from actions that we've started to take to date.

因此，擴大我們的生產能力，降低主要類別的臨時勞動成本，將顯著提高大麻領域的毛利率，而且您會看到，我們迄今為止採取的許多行動都將延續下去。

Ultimately, we're also ensuring we're prioritizing our supply to kind of the most profitable markets. So ultimately, the improvements coming through in Q1 were a bit expected and we expect continued improvement going into the second part of the year.

最終，我們也確保優先向最賺錢的市場供應產品。因此，最終，第一季的改善是意料之中的，我們預計今年下半年將繼續改善。

Frederico Gomes, ATB Capital Markets.

Frederico Gomes，ATB 資本市場。

Hi. Good morning. Thanks for taking my questions. Just on Poland, obviously, you mentioned the regulatory changes there, but also some supply challenges. Can you speak to those supply challenges and whether the situation has already normalized or not. Thanks.

你好。早安.感謝您回答我的問題。就波蘭而言，顯然您提到了那裡的監管變化，但也提到了一些供應挑戰。您能否談談這些供應挑戰以及情況是否已正常化。謝謝。

Yeah. We're really focusing on the fundamentals and worryingly focusing on the fundamentals. And for us, it's making sure we've got the right flower allocation process internally, and that frankly stood in the way of us having success in the Polish market. So these processes are well implemented, and we look forward to returning to growth in Poland very soon.

是的。我們確實關注的是基本面，並且擔憂地關注著基本面。對我們來說，這確保我們內部擁有正確的鮮花分配流程，坦白說，這阻礙了我們在波蘭市場取得成功。因此，這些流程得到很好的實施，我們期待波蘭很快恢復成長。

Pablo Zuanic, Zuanic & Associates.

Pablo Zuanic，Zuanic & Associates。

Thank you. Good morning, everyone. Look, I know that we are all very focused on Europe in the case of Germany and Poland, but from a growth perspective, what are the two or three other European markets taking a two or three year view that you're excited about based on the reform changes that you're seeing there.

謝謝。大家早安。你看，我知道我們都非常關注歐洲，例如德國和波蘭，但從成長的角度來看，根據你所看到的改革變化，您對另外兩三個歐洲市場未來兩三年的發展有何期待？

We hear a lot of news flow back and forth, but it would be helpful if you can give some color in that regard. And the second part of the question is can you confirm that everything you sell in Europe, it's going to be growth product or are you also sourcing part of that from outside vendors? Thank you.

我們聽到了很多來回的消息，但如果您能在這方面提供一些說明，將會很有幫助。問題的第二部分是，您能否確認您在歐洲銷售的所有產品都是成長型產品，還是您也從外部供應商購買部分產品？謝謝。

Good morning, Pablo. Thank you for the questions. I mean, the task at the end right now is to set up the right infrastructure, the right processes, the right team to win in Germany and Poland.

早上好，巴勃羅。謝謝您的提問。我的意思是，現在的最終任務是建立正確的基礎設施、正確的流程和正確的團隊，以便在德國和波蘭取得勝利。

Near term, we've got significant opportunity for growth in these two markets. As I indicated, we recently hired a managing director for Europe. He starts Monday, this coming Monday, and one of his primary responsibilities will really be to develop the strategy for us to really put in place the right infrastructures to win across Europe as the market develops.

短期內，我們在這兩個市場都有巨大的成長機會。正如我所說，我們最近聘請了一位歐洲董事總經理。他將於下週一開始上班，他的主要職責之一就是製定策略，以便我們真正建立正確的基礎設施，隨著市場的發展贏得整個歐洲的勝利。

But as I said at the beginning of my answer, worryingly, we're focusing our efforts where the near-term opportunities are right now, and we see great potential for growth for Canopy in Germany and Poland. So more to come on your question in the coming quarters, and the bulk of what we sell in Europe is grown here in Canada in [Kindergarten].

但正如我在回答開頭所說的那樣，令人擔憂的是，我們目前將精力集中在近期機會上，我們看到 Canopy 在德國和波蘭具有巨大的成長潛力。關於你的問題，我們將在接下來的幾個季度中做出更多解釋，我們在歐洲銷售的大部分產品都是在加拿大種植的。[幼稚園]。

Bill Kirk, Roth Capital Partners.

羅斯資本合夥公司的比爾‧柯克 (Bill Kirk)。

Hey, good morning, everyone. Luc, you mentioned that while rescheduling US obviously hasn't happened, that momentum is building. So I guess what's the momentum you see out there and why are the prospects for rescheduling better today maybe than they have been?

嘿，大家早安。盧克，您提到，雖然重新安排美國之行顯然尚未發生，但這種勢頭正在增強。那麼我想您看到的勢頭是什麼樣的呢？為什麼今天重新安排的前景可能比以前更好？

I'm not going to comment on the rescheduling prospect, but for us we see select geographies in the US where the demand increases, where the infrastructure is being put in place, allow for profitable operation ahead of rescheduling. So we're very thrilled with the -- we're very energized by the work that Brooks, the CEO of Cusa and his team are putting in place to position CUSA well for potential rescheduling.

我不會對重新安排的前景發表評論，但對我們來說，我們看到美國某些地區的需求增加，基礎設施正在到位，可以在重新安排之前實現盈利運營。因此，我們對此感到非常興奮——我們對 Cusa 執行長布魯克斯和他的團隊所做的工作感到非常振奮，他們為 CUSA 未來的重新安排做好了準備。

This concludes Canopy Growth's first quarter fiscal 2026 financial results conference call. A replay of this conference call will be available until November 6, 2025, 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.

Canopy Growth 2026 財年第一季財務業績電話會議到此結束。本次電話會議的重播將保留至 2025 年 11 月 6 日，您可以按照本公司今天稍早發布的新聞稿中的說明進行存取。Canopy Growth 的投資者關係團隊將解答其他問題。

Thank you for attending today's call.

感謝您參加今天的電話會議。