Canopy Growth Corporation

Good morning. My name is Joanna, and I will be your conference operator today. I would like to welcome you to Canopy Growth's third quarter fiscal 2026 financial results conference call. Currently, all participants are in the listen-only mode. I will now turn the call over to Tyler Burns, Director, Investor Relations. Tyler, you may begin the conference call.

Good morning, and thank you for joining us. On our call today, we have Canopy Growth Chief Executive Officer, Luke Mongeau, and Chief Financial Officer Tom Stewart. Before financial markets opened today, Canopy Growth issued a news release announcing the financial results for our third quarter fiscal 2026 and in December 31st, 2025. The news release and financial statements have been filed on EDGAR and CDAR and will be available on the website under the Investors tab. Before we begin, I would like to remind you that our discussion during the call will include forward-looking statements that are based on management's current views 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 news release issued today. Please review today's earnings release and Canopy's reports filed with the SEC and CDAR for various factors that could cause actual results to differ materially from projections. 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 Luke and Tom, we will conduct a question and answer session where we will take questions from analysts. With that, I will turn the call over to Luke.

Thank you, Tyler. Good morning, everyone. And thank you for joining us today. Q3 was a quarter where Canopy Growth delivered significant progress on multiple levels, and it reinforced my confidence that we're building stronger business. For me, the fundamentals of the business are both about how the business is performing and our financial strength, which allows us to execute with discipline. Across the organization, our teams are focused on the right things, and that focus is starting to pay dividends. We're building a company that can consistently deliver superior experiences for consumers and patients, grow and manufacture high-quality products, and create consistent value over time. On the balance sheet, we ended the quarter with $371 million in cash and cash equivalents and a net cash possession of $146 million, putting us on solid footing as we move into the next phase of execution. Post-quarter end, we completed a $150 million U.S. recapitalization that improved our liquidity and extended all debt majorities to 2031. This gives us more flexibility around near-term financing, including how and when we use tools like the ATM, and more room to make the right long-term decisions. This financial strength matters because it allows us to act intentionally. A good example is a proposed acquisition of MTL Cannabis, which we announced during Q3. MTL brings in a creative profile, a strong entrepreneurial leadership team, and high quality cultivation capabilities to our platform. They built a profitable, task-generating business that we expect to be accretive to the combined organization. High-quality flour, cost-efficiency, and operational discipline are the foundation of any scale cannabis company, and MTL strengthens our ability to achieve all three. Following closing, MTL will strengthen our leadership position in Canadian medical cannabis, enhance our presence in Quebec adult use, and importantly, provide high-quality flower supply that we can leverage to drive growth domestically and in international markets. Turning to our Q3 business results, the focus on fundamentals is really paying off. In Q3, we delivered our slimmest adjusted even though lost to date driven by continued cost discipline and improving execution across our Canadian medical and adult use channels. In Canada Medical, net revenue grew 15% year-over-year, our sixth consecutive quarter of growth, supported by a high-quality, best-in-class patient experience, strong service levels, and increasing engagement with insured patients. We've also taken deliberate actions to preemptively mitigate the financial impact of the proposed changes to the Veterans Reimbursement Program, while continuing to support veterans with best-in-class care and innovative, high-quality products. We expect to continue strengthening this platform, maintain our leadership position in Canadian medical cannabis, and use our scale to elevate service and drive margin improvement over time. In Canadian adult use, we're seeing continuing momentum as well, with net revenue up 8% year over year. Growth this quarter was driven by strength in pre-rolls and vapes, supported by focused innovation and improved execution at retail. What really gives me confidence here is not just the growth we're seeing today, but where we're directing our attention. We're shifting our focus toward elevating the quality of our brands, straightening product innovation, and improving the quality, potency, and cost of our flour to delight consumers and patients alike. Looking ahead, our focus now turns to unlocking the next phase of growth. particularly in Europe where we are spending significant time and attention. In Q3, we started sub-stabilizing this national business, improving execution and laying the groundwork for growth with net revenue of 22% sequentially. Progress on EU GMP certification at our Smith Falls facility Combined with our continued focus on elevating flower quality across our sites, it's expected to position us to better serve international medical markets as demand continues to develop and regulation continues to evolve. Additionally, access to NTL's high-quality supply will fuel our strategy. There's more work to do, but I see a meaningful opportunity ahead. At stores and Bickel, net revenue grew 45% sequentially, with the new VZ Reparizer reinforcing our strategy around affordability and portability. Our focus remains on accelerating product development and strengthening sales and market execution, especially in North America, where we believe cannabis consumers should experience the joy and fullness of flavor that an SMB device offers. In the U.S., we remain indirectly invested in one of the world's largest THC markets, providing us with long-term strategic optionality as the regulatory environment continues to evolve. So overall, this was a quarter of real progress. Our balance sheet is stronger, Canadian cannabis sales are growing, and the confidence of our team continues to build. Looking ahead, the business is well-positioned to unlock additional value to elevated cultivation, innovative brands, and disciplined execution. I'll now turn it over to Tom to walk through the financial results in more details.