Full Press Release Details
Cannabis Announces Fiscal 2026 Second Quarter Results
EDMONTON, AB, Nov. 5, 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 second quarter 2026 period ending September 30, 2025.
"Aurora's quarterly performance highlights our
continued focus on profitable growth. We achieved record net revenue1 for global medical cannabis representing a 15% year-over-year
increase, while adjusted EBITDA1 rose 52%. These strong results affirm our strategic prioritization of medical cannabis as
the industry's most compelling growth area," said Executive Chairman and Chief Executive Officer, Miguel Martin.
"Our number one position in Canada, and our leadership
positions in other key international medical cannabis markets, is the result of executing a disciplined strategy based upon world-class
manufacturing and people, cutting-edge breeding and genetics, and regulatory expertise. The investments we have made in our facilities
and people provide us with the capacity and consistency of supply to effectively compete in the rapidly expanding, high margin, market
for medical cannabis," continued Mr. Martin.
"Looking ahead, we intend to deliver continued
strong results for our shareholders supported by a sizable cash balance and debt-free2 cannabis business," concluded Mr.
| __________________________________ | |
| 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 September 30, 2025 Financial Statements. |
Second Quarter 2026 Highlights
(Unless otherwise stated, comparisons are made
between fiscal Q2 2026 and Q2 2025 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue1 was $90.4 million, as
compared to $81.1 million in the prior year period. The 11% increase from the prior year period was mainly due to 15% growth in our global
medical cannabis business and 34% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer
Consolidated adjusted gross margin before fair value
adjustments1 was 61% in Q2 2026 and 54% in the prior year period. Adjusted gross profit before FV adjustments1 was
$51.8 million in Q2 2026 compared to $42.6 million in the prior year period, an increase of 22%.
Medical cannabis net revenue1 was $70.5
million, a 15% increase from the prior year period, delivering 78% of Aurora's Q2 2026 consolidated net revenue1 and 94% of
adjusted gross profit before fair value adjustments1.
The increase in medical cannabis net revenue1
of $9.2 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 September 30, 2025, compared to 68% 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 $6.9 million a 34% decrease compared to $10.4 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 27%, an increase from 15% 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 $11.6 million of net revenue1, a 34% increase compared to $8.6 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 10% for Q2 2026 and 19% for the prior year period. The decrease is from costs incurred related to inventory
write-offs caused by a non- recurring quality issue, as well as some surplus crops that were not sold, during the first quarter of fiscal
Adjusted Selling, General and Administrative
Adjusted SG&A1 was $35.5 million in
Q2 2026, compared to $31.7 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 September 30, 2025 was $53.2 million compared to a net income of $1.4 million for the prior year period. The decrease in
net income from continuing operations of $54.6 million compared to the three months ended September 30, 2024, is comprised of a decrease
in gross profit of $9.9 million, an increase in operating expenses of $6.1 million, and an increase in other expenses of $31.3 million.
Adjusted Net Income:
Adjusted net income1 was $7.1 million for
the three months ended September 30, 2025 compared to $3.0 million for the three months ended September 30, 2024. The increase compared
to the prior year period relates to an increase in adjusted gross profit before FV adjustments1 of $9.2 million, partially
offset by an increase in adjusted SG&A1 of $3.8 million.
Adjusted EBITDA1 increased 52% to $15.4
million for the three months ended September 30, 2025 compared to $10.1 million for the prior year period.
Fiscal Q3 2026 Expectations:
For Q3 2026, we expect to see consolidated net revenue1
increase year over year, driven primarily by 8% to 12% growth in our Global Medical Cannabis segment.
Plant propagation revenue1 is expected
perform in line with traditional seasonal trends, as 25% to 35% of revenues are normally earned in the second half of a calendar year.
Consolidated adjusted gross margins1 are
expected consolidated adjusted gross margins are expected to remain strong, driven primarily by industry leading margins in our cannabis
business, with plant propagation adjusted gross margins expected to mostly perform in line with historical trends. Continued strength
in our adjusted gross margins and higher global medical cannabis revenue, should lead to year over year annual adjusted EBITDA1
Free cash flow1 is expected to be positive
in Q3 2026, due to continued strong performance and improved operating cash use.
Key Quarterly Financial Results
| ($ thousands) | Three months ended | ||||||
| September 30, 2025 | June 30, 2025 | $ Change | % Change | September 30, 2024 (3) | $ Change | % Change | |
| Financial Results | |||||||
| Net revenue (1a) | 90,366 | 98,023 | (7,657) | (8 %) | 81,122 | 9,244 | 11 % |
| Medical cannabis net revenue (1a) | 70,530 | 64,768 | 5,762 | 9 % | 61,316 | 9,214 | 15 % |
| Consumer cannabis net revenue (1a) | 6,868 | 7,875 | (1,007) | (13 %) | 10,422 | (3,554) | (34 %) |
| Plant propagation revenue | 11,557 | 23,947 | (12,390) | (52 %) | 8,634 | 2,923 | 34 % |
| Adjusted gross margin before FV adjustments on total net revenue (1b) | 61 % | 52 % | N/A | 9 % | 54 % | N/A | 7 % |
| Adjusted gross margin before FV adjustments on total cannabis net revenue (1b) | 65 % | 64 % | N/A | 1 % | 57 % | N/A | 8 % |
| Adjusted gross margin before FV adjustments on medical cannabis net revenue (1b) | 69 % | 69 % | N/A | 0 % | 68 % | N/A | 1 % |
| Adjusted gross margin before FV adjustments on consumer cannabis net revenue (1b) | 27 % | 33 % | N/A | (6 %) | 15 % | N/A | 12 % |
| Adjusted gross margin before FV adjustments on plant propagation net revenue (1b) | 10 % | 6 % | N/A | 4 % | 19 % | N/A | (9 %) |
| Adjusted SG&A expense (1d) | 35,547 | 37,353 | (1,806) | (5 %) | 31,722 | 3,825 | 12 % |
| Adjusted EBITDA (1c) | 15,372 | 10,827 | 4,545 | 42 % | 10,136 | 5,236 | 52 % |
| Adjusted net income (1g) | 7,109 | 3,689 | 3,420 | 93 % | 3,021 | 4,088 | 135 % |
| Free cash flow (1e) | (42,274) | 9,228 | (51,502) | (558 %) | (26,433) | (15,841) | (60 %) |
| Balance Sheet | |||||||
| Working capital (1f) | 299,729 | 308,416 | (8,687) | (3 %) | 306,976 | (7,247) | (2 %) |
| Cannabis inventory and biological assets (2) | 186,905 | 195,620 | (8,715) | (4 %) | 176,395 | 10,510 | 6 % |
| Total assets | 756,863 | 837,839 | (80,976) | (10 %) | 807,391 | (50,528) | (6 %) |
| (1) | These terms are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of our management's discussion and analysis in the second quarter 2026 period ending September 30, 2025 (the "Q2 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. | ||
| g. | Refer to "Adjusted Net Income" section for reconciliation to the IFRS equivalent. | ||
| (2) | Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets. | ||
| (3) | In connection with the audit of 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 the Annual MD&A. |
Aurora will host a conference call today, Wednesday,
November 5, 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, November 5, 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 Q2 fiscal 2026