💸 The Tape

Canopy Growth’s Q3 FY2026 results offered something the market hasn’t consistently seen from the company in recent years: stabilization, discipline, and incremental progress. No victory laps yet—but the fundamentals are finally moving in the right direction.

For the quarter ended December 31, 2025, Canopy Growth posted consolidated net revenue of $75 million, flat year over year. That headline number masks a more constructive internal shift. Cannabis revenue rose 4% to $52 million, driven primarily by renewed strength in Canada, where execution and product mix are starting to matter again.

Canada medical cannabis was the standout. Revenue jumped 15% year over year to $23 million, fueled by growth in insured patients and larger average order sizes—exactly the kind of durable demand profile investors want to see. Adult-use Canada also grew, up 8% to $23 million, supported by momentum in infused pre-rolls and new all-in-one vapes from Tweed, 7ACRES, and Claybourne. Edibles and non-infused pre-rolls lagged, but the mix shift toward higher-velocity formats is intentional.

International markets remain the soft spot. Cannabis revenue outside Canada declined 31% year over year, largely due to European supply chain bottlenecks. That said, the tone is improving: sequential revenue rose 22% versus Q2 as Canopy began unwinding those constraints in the back half of the quarter. It’s not fixed—but it’s no longer getting worse.

Storz & Bickel provided a welcome counterbalance. Device revenue hit $23 million, up 45% sequentially, benefiting from seasonality and the first full quarter of VEAZY sales. VEAZY is now the fastest-selling device launch in the brand’s history, reaching 20,000 units faster than any prior product. Year-over-year comparisons were tougher, but momentum is clearly back.

Margins compressed modestly, with consolidated gross margin at 29%, down 300 basis points year over year. The pressure came from international mix and tariffs impacting Storz & Bickel in the U.S.—manageable issues, but ones to monitor.

Where Canopy deserves real credit is cost control. SG&A declined 12% year over year on a normalized basis, and the company has captured $29 million in annualized savings since March 2025. Losses are narrowing: net loss fell 49% year over year, adjusted EBITDA loss improved for the third consecutive quarter, and free cash outflow declined to $19 million from $28 million.

The takeaway? This wasn’t a breakout quarter—but it was a credible one. With Canada stabilizing, costs right-sized, and EBITDA breakeven now targeted for fiscal 2027, Canopy Growth is finally acting like a company rebuilding from the inside out.

Full Earnings Print

📈 Dog Walkers

$CBSTF ( ▲ 8.11% ) Pays Down Debt

The Cannabist Company has officially closed a major portfolio reshaping move, finalizing the sale of its Virginia operations to an affiliate of Millstreet Credit Fund LP in a transaction valued at $130 million. The deal, first announced in December, marks a clean exit from the Commonwealth and a meaningful liquidity event for the embattled MSO.

The assets sold include five operating retail dispensaries, one additional store in development, and roughly 82,000 square feet of cultivation and production capacity in the Richmond region. In other words, this wasn’t a toe-dip—it was the entire Virginia platform.

From a cash perspective, the structure is straightforward but deliberate. Cannabist received $117.5 million in cash at closing, with the remaining $12.5 million placed into escrow. Up to $1 million of that escrow will be released once post-closing purchase price adjustments are finalized, with the balance expected to clear after nine months, assuming no indemnification claims. Final consideration may still move slightly depending on working capital, debt, and transaction-related adjustments, but the headline number is locked in.

Importantly, the company wasted little time putting that cash to work. Ahead of closing, Cannabist issued a partial redemption notice for its senior secured debt, signaling a clear intention to de-risk the balance sheet. On February 13, 2026, the company expects to redeem approximately $84.5 million of its 9.25% Senior Secured Notes and $6.5 million of its 9.00% Senior Secured Convertible Notes, plus accrued interest. That’s a meaningful dent in near-term leverage—and a welcome one for noteholders watching this name closely.

Strategically, this transaction underscores Cannabist’s pivot toward asset rationalization and liquidity preservation rather than footprint expansion. With Moelis & Company advising on the deal, the company appears focused on stabilizing the capital structure first—and asking growth questions later.

$CMND ( ▼ 6.9% ) Is Delivering

Clearmind Medicine is taking another step toward sharpening the clinical profile of its lead asset, MEAI, by teaming up with delivery-tech specialist Polyrizon on a new intranasal formulation strategy.

Under a newly signed development agreement, Clearmind will leverage Polyrizon’s proprietary intranasal hydrogel platform to create an optimized nasal delivery version of MEAI (5-methoxy-2-aminoindane), its next-generation, non-hallucinogenic neuroplastogen. The goal: improve how MEAI is delivered, absorbed, and experienced as Clearmind advances the compound toward clinical validation.

MEAI is being developed for addiction-related disorders, weight loss, and other central nervous system (CNS) indications—areas where speed, bioavailability, and patient compliance can meaningfully influence outcomes. Intranasal delivery is increasingly viewed as a compelling alternative to traditional oral dosing for CNS-targeted therapies, and this collaboration is designed to capitalize on those advantages.

Polyrizon’s hydrogel technology is engineered to increase nasal residence time through gel-like mechanisms, potentially allowing MEAI to remain in contact with nasal tissues longer and absorb more efficiently. That extended exposure may translate into improved bioavailability, faster onset, and lower effective dosing—attributes that are particularly valuable in neuropsychiatric and addiction-focused treatments.

Beyond pharmacokinetics, the partnership also targets practical considerations. Intranasal delivery can improve ease of use, support consistent dosing, and enhance patient adherence—often overlooked factors that become critical as compounds move from early development into real-world clinical settings. The formulation flexibility of Polyrizon’s platform also allows Clearmind to tailor the delivery system to MEAI’s specific chemical properties rather than forcing the compound into a one-size-fits-all approach.

Clearmind CEO Dr. Adi Zuloff-Shani framed the agreement as part of the company’s broader strategy to de-risk development through smart, targeted collaborations. By pairing MEAI’s non-hallucinogenic neuroplastogen profile with an advanced delivery system, Clearmind is aiming to strengthen both therapeutic performance and patient experience before entering later-stage trials.

The transaction is classified as a related-party arrangement under Canadian securities rules, with Clearmind relying on standard exemptions for valuation and minority shareholder approval.

Stepping back, the deal signals something important: Clearmind isn’t just developing molecules—it’s engineering delivery, usability, and clinical practicality in parallel. In a space where many CNS programs stall on execution rather than efficacy, that attention to the “how” could prove just as important as the “what.”

🗞️ The News

📺 YouTube

MSOS Weekly Recap: What the Price Action Says | TDR Cannabis in 5

What we will cover:

✅ In this episode of TDR Cannabis in Five, host Shadd Dales delivers a weekly performance recap of the AdvisorShares Pure US Cannabis ETF (NYSEARCA: MSOS) — the most liquid and closely watched cannabis ETF in the market.

From Friday close to Friday close, MSOS (NYSEARCA: MSOS) rose 3.35%, a solid weekly gain during a period when U.S. cannabis equities have struggled with volatility, short interest, and uneven sentiment following the December 18 executive order on cannabis rescheduling signed by President Donald Trump.

This episode explains why MSOS continues to act as the real-time barometer for U.S. cannabis equities. Despite investor frustration around drawdowns and false starts, the ETF’s liquidity makes it the clearest window into actual capital flows — not just speculation.

The breakdown focuses on the fund’s largest holdings, including Trulieve Cannabis Corp. (OTCQX: TCNNF), which gained 2.5%, Curaleaf Holdings, Inc. (OTCQX: CURLF), up 3.0%, and Green Thumb Industries Inc. (OTCQX: GTBIF), which led the group with a 4.5% advance. Together, these operators drove the bulk of MSOS’s weekly performance without any company-specific headlines.