Canopy Growth Is Closing in on Positive EBITDA. Should You Buy the Stock?

Canopy Growth is approaching positive adjusted EBITDA with Q1 fiscal 2027 revenue up 13% year-over-year to $57.4 million, narrowing adjusted EBITDA losses to $2.3 million from $5.7 million. The MTL Cannabis acquisition is driving growth across Canadian medical, adult-use, and international markets, with expected $7.2 million in annual cost savings. However, free cash flow deteriorated to a $18.5 million outflow, raising concerns about cash generation despite an encouraging balance sheet with $241.4 million in cash.