Full Press Release Details
Aurora Cannabis Announces
Fiscal 2026 First Quarter Results
EDMONTON, AB, Aug. 6, 2025 /CNW/ - Aurora Cannabis
Inc. (the "Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB), a leading Canada-based global medical cannabis
company, today announced its financial and operational results for the first quarter 2026 period ending June 30, 2025.
"We delivered another strong quarter of sustained,
profitable growth, driven by disciplined execution of our strategy. Global medical cannabis net revenue1 rose 37%, supported
by 85% growth in international markets, most notably Germany and Poland, alongside growth in Canadian medical cannabis and record contributions
from our plant propagation business. These top-line gains were supported by more than 200% growth in adjusted EBITDA1,
and 42% growth in positive free cash flow1," said Executive Chairman and Chief Executive Officer Miguel Martin.
"Our performance highlights the competitive distinction
of our platform. International medical cannabis our highest-margin segment now accounts for 57% of our global medical cannabis net
revenue¹. Bevo, our plant propagation business, which diversifies our revenue streams beyond cannabis, added further momentum
through seasonal strength and continued organic expansion. And for the second consecutive year, we expect to generate positive annual
free cash flow¹, reinforcing our operational execution and differentiation from peers," concluded Mr. Martin.
| __________________________ |
| 1 This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See "Non-GAAP Measures" below for reconciliations of non-GAAP financial measures to GAAP financial measures. |
| 2 Aurora's only remaining debt is non-recourse debt of $59.8 million relating to Bevo Farms Ltd as detailed in the June 30, 2025 Financial Statements. |
First Quarter 2026 Highlights
(Unless otherwise stated, comparisons are made
between fiscal Q1 2026 and Q1 2025 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue1 was $98.0 million, as compared to $83.4 million in the prior year period. The 17% increase from
the prior year period was mainly due to 37% growth in our global medical cannabis business and 4% growth in our plant propagation business,
slightly offset by lower quarterly revenue in our consumer cannabis business.
Consolidated adjusted gross margin before fair value
adjustments1 was 52% in Q1 2026 and 42% in the prior year period. Adjusted gross profit before FV adjustments1 was
$49.0 million in Q1 2026 compared to $34.6 million in the prior year period, an increase of 42%.
Medical cannabis net revenue1 was $64.8 million, a 37% increase from the prior year period, delivering 66% of Aurora's
Q1 2026 consolidated net revenue1 and 91% of adjusted gross profit before fair value adjustments1.
The increase in medical cannabis net revenue1
of $17.6 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to
insurance covered and self-paying patients.
Adjusted gross margin before fair value adjustments1
on medical cannabis net revenue reached 69% for the three months ended June 30, 2025, compared to 67% in the prior year period. The adjusted
gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved efficiency
in production operations, including sourcing for Europe from Canada.
Aurora's consumer cannabis net revenue1 was $7.9 million a 32% decrease compared to $11.5 million in the prior year
period. The decrease was due to our continued decision to prioritize the supply of our GMP manufactured products to our high margin global
medical cannabis business rather than the consumer business, which offers lower margins.
Adjusted gross margin before fair value adjustments1
on consumer cannabis net revenue1 was 33%, an increase from 20% compared to the prior year period. The increase from the prior
year period is primarily due to cost improvements resulting from spend efficiencies.
Plant propagation net revenue1 was wholly comprised of the Bevo business, and contributed $23.9 million of net revenue1,
a 4% increase compared to $23.1 million in the prior year period. The increase was a result of organic growth and expanded product offerings,
both arising from increased capacity.
Adjusted gross margin before fair value adjustments1
on plant propagation revenue was 6% for Q1 2026 and 18% for the prior year period. During the quarter, Bevo incurred costs of $1.6 million
related to inventory write-offs caused by a non-recurring quality issue, as well as some surplus crops that were not sold. Excluding these
costs, adjusted gross margin before fair value adjustments1 was 14% for the three months ended June 30, 2025.
Adjusted Selling, General and Administrative
Adjusted SG&A1 was $37.4 million in Q1 2026, compared to $31.4 million in the prior year period. The increase compared
to the prior year period relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from
Canada and incremental costs following the acquisition of MedReleaf Australia.
Net loss from continuing operations for the three months ended June 30, 2025 was $19.4 million compared to a net income of $3.5 million
for the prior year period. The increase in net loss from continuing operations of $22.8 million compared to the three months ended June
30, 2024 is comprised of a decrease in gross profit of $15.0 million, an increase in operating expenses of $4.3 million and a decrease
in other income of $6.0 million.
Adjusted EBITDA1 increased 209% to $10.8 million for the three months ended June 30, 2025 compared to $3.5 million
for the prior year period.
Fiscal Q2 2026 Expectations:
For Q2 2026, we expect to see consolidated net revenue1 increase year over year, driven primarily by 8% to 12% growth
in our Global Medical Cannabis segment.
Plant propagation net revenue1 is expected
perform in line with traditional seasonal trends, as 25% to 35% of revenues are normally earned in the second half of a calendar year.
Consolidated adjusted gross margins1 are
expected to increase, driven primarily by 250 to 475 basis points growth in our cannabis business, with plant propagation adjusted gross
margins1 expected to mostly perform in line with historical trends. Improvements in our adjusted gross margins1
and higher global medical cannabis revenue, should lead to continued strong positive adjusted EBITDA1.
While free cash flow1 is expected to be
positive on an annual basis for the second consecutive year, there will be several significant cash outflows, in line with historical
trends, that will impact free cash flow1 results in Q2 2026.
Key Quarterly Financial Results
| ($ thousands, except Operational Results) | Three months ended | ||||||
| June 30, 2025 | March 31, 2025 (4) | $ Change | % Change | June 30, 2024 (3) | $ Change | % Change | |
| Financial Results | |||||||
| Net revenue (1a) | $98,023 | $90,538 | $7,485 | 8 % | $83,435 | $14,588 | 17 % |
| Medical cannabis net revenue (1a) | $64,768 | $67,776 | ($3,008) | (4 %) | $47,201 | $17,567 | 37 % |
| Consumer cannabis net revenue (1a) | $7,875 | $8,166 | ($291) | (4 %) | $11,533 | ($3,658) | (32 %) |
| Plant propagation revenue | $23,947 | $13,770 | $10,177 | 74 % | $23,081 | $866 | 4 % |
| Adjusted gross margin before FV adjustments on total net revenue (1b) | 52 % | 62 % | N/A | (10 %) | 42 % | N/A | 10 % |
| Adjusted gross margin before FV adjustments on total cannabis net revenue (1b) | 64 % | 65 % | N/A | (1 %) | 51 % | N/A | 13 % |
| Adjusted gross margin before FV adjustments on medical cannabis net revenue (1b) | 69 % | 70 % | N/A | (1 %) | 67 % | N/A | 2 % |
| Adjusted gross margin before FV adjustments on consumer cannabis net revenue (1b) | 33 % | 27 % | N/A | 6 % | 20 % | N/A | 13 % |
| Adjusted gross margin before FV adjustments on plant propagation net revenue (1b) | 6 % | 37 % | N/A | (31 %) | 18 % | N/A | (12 %) |
| Adjusted SG&A expense (1d) | $37,353 | $36,687 | $666 | 2 % | $31,396 | $5,957 | 19 % |
| Adjusted EBITDA (1c) | $10,827 | $16,678 | ($5,851) | (35 %) | $3,502 | $7,325 | 209 % |
| Free cash flow (1e) | $9,228 | $2,495 | $6,733 | 270 % | $6,490 | $2,738 | 42 % |
| Balance Sheet | |||||||
| Working capital (1f) | $308,416 | $367,465 | ($59,049) | (16 %) | $320,934 | ($12,518) | (4 %) |
| Cannabis inventory and biological assets (2) | $195,620 | $193,980 | $1,640 | 1 % | $171,568 | $24,052 | 14 % |
| Total assets | $837,839 | $852,666 | ($14,827) | (2 %) | $837,288 | $551 | 0 % |
| (1) | These terms are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of our management's discussion and analysis the first quarter 2026 period ending June 30, 2025 (the "Q1 MD&A"). Refer to the following sections for reconciliation of Non-GAAP Measures to the IFRS equivalent measure: |
| a. Refer to the "Revenue" and "Cost of Sales and Gross Margin" section for a reconciliation of cannabis net revenue to the IFRS equivalent. | |
| b. Refer to the "Adjusted Gross Margin" section for reconciliation to the IFRS equivalent. | |
| c. Refer to the "Adjusted EBITDA" section for reconciliation to the IFRS equivalent. | |
| d. Refer to the "Operating Expenses" section for reconciliation to the IFRS equivalent. | |
| e. Refer to the "Liquidity and Capital Resources" section for a reconciliation to the IFRS equivalent. | |
| f. "Working capital" is defined as Current Assets less Current Liabilities as reported on the Company's Consolidated Statements of Financial Position. | |
| (2) | Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets. |
| (3) | Certain previously reported amounts have been adjusted to exclude the results of discontinued operations. |
| (4) | In connection with the audit of our Financial Statements for the year ended March 31, 2025(the "Annual Financial Statements"), the Company noted that inventory and lease obligation were misstated, impacting the interim condensed consolidated financial statements filed during the 2025 fiscal year. Certain balances in the interim condensed consolidated financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to the "Historical Quarterly Results" section of our management's discussion and analysis the year ended March 31, 2025 (the "Annual MD&A"). |
Aurora will host a conference call today, Wednesday,
August 6, 2025, to discuss these results. Miguel Martin, Chief Executive Officer, and Simona King, Chief Financial Officer, will host
the call starting at 8:00 a.m. Eastern time | 6:00 a.m. Mountain Time. A question and answer session will follow management's presentation.
| DATE: | Wednesday, August 6, 2025 |
| TIME: | 8:00 a.m. Eastern Time | 6:00 a.m. Mountain Time |
| WEBCAST: | Click Here |
About Aurora Cannabis
Aurora is opening the world to cannabis, serving both
the medical and consumer markets across Canada, Europe, Australia and New Zealand. Headquartered in Edmonton, Alberta, Aurora is a pioneer
in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio includes Drift, San Rafael
'71, Daily Special, Tasty's, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana
Co., as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. Aurora also has a controlling interest in Bevo Farms Ltd.,
North America's leading supplier of propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality
cannabis products, Aurora's brands continue to break through as industry leaders in the medical, wellness and adult recreational markets
Aurora's common shares trade on the NASDAQ and TSX
under the symbol "ACB".
Forward Looking Statements
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking
statements are frequently characterized by words such as "plan", "continue", "expect", "project",
"intend", "believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur.
Forward-looking statements made in this news release include, but are not limited to: statements regarding the Company's Q1 fiscal 2026
results; statements under the heading "Fiscal Q2 2026 Expectations", including, but not limited to those related to consolidated
net revenue growth, expectations for consolidated adjusted gross margins, positive adjusted EBITDA and free cash flow in Q2 and on an
annual basis; statements regarding the Company's operational execution and differentiation from peers; and statements regarding the Company's
conference call to discuss results
These forward-looking statements are only predictions.
Forward looking information or statements contained in this news release have been developed based on assumptions management considers