Aurora Cannabis Inc Earnings - Q3 2025 Analysis & Highlights
Aurora Cannabis Inc. Q2 2026 earnings call highlighted the company's focus on global medical cannabis, strong financial results, and strategic positioning in key international markets. The discussion covered revenue growth, margin improvements, EBITDA performance, and expansion strategies in various regions, including Canada, Germany, Australia, Poland, and the U.K.
Key Financial Results
Net revenue rose 11% to CAD 90 million.
Global medical cannabis revenue increased 15%.
International revenue increased 22%.
Consolidated adjusted gross margin improved 700 basis points to 61%.
Adjusted EBITDA rose more than 52% to CAD 15 million.
Adjusted net income was CAD 7.1 million, compared to CAD 3 million in the prior-year period.
Ended the quarter with CAD 142 million in cash and cash equivalents.
No cannabis business debt.
Business Segment Results
Medical cannabis net revenue rose 15% to CAD 70.5 million.
International medical cannabis revenue grew 22%.
Adjusted gross margin for medical cannabis was 69%, up from 68%.
Consumer cannabis net revenue was CAD 6.9 million, down from CAD 10.4 million.
Adjusted gross margins for consumer cannabis was 27% compared to 15% in the prior-year quarter.
Bevo's plant propagation net revenue increased to CAD 11.6 million, up 34% from CAD 8.6 million in the prior-year quarter.
Adjusted gross margin for plant propagation revenue was 10% compared to 19% in the prior-year quarter.
Capital Allocation
Ended the quarter with CAD 142 million in cash and cash equivalents.
No cannabis business debt.
Plant propagation business holds non-recourse debt secured by fixed assets at Bevo.
Industry Trends and Dynamics
Global medical cannabis market is expected to exceed CAD 9 billion.
Australia is the largest medical cannabis market outside of Canada, representing a CAD 1 billion opportunity.
Germany is the largest market in Europe, with imports increasing rapidly.
Poland's market size has more than doubled from a little over 2 tons annually in 2023 to approximately 5 tons in 2025.
More than half of EU member countries are integrating medical cannabis into healthcare, including reimbursement.
Competitive Landscape
Aurora is Canada's largest medical cannabis company.
Aurora is Canada's leading exporter of medical cannabis.
Market leaders in Germany, Australia, Poland, and the U.K..
Vertical integration provides structural advantages.
Lower production costs due to focus on yield, potency improvement, and operational efficiencies.
Poland's regulatory standards concentrate 80% to 90% of the market share in four cannabis companies, including Aurora.
Macroeconomic Environment
Not explicitly discussed in the provided document.
Growth Opportunities and Strategies
Focus on global medical cannabis, the highest margin segment.
Vertical integration for consistency of supply and lower production costs.
Expanding production capacity in Germany.
Leveraging GMP-certified facilities in Canada and Germany to supply global markets.
Advancing medical cannabis in Poland with innovative, high-quality products.
Expanding distribution and clinic relationships in the U.K..
Pursuing opportunities in Spain and France.
Enhancing online marketplace and product innovation in Canada.
Financial Guidance and Outlook
Q3 2026 consolidated net revenue is expected to increase year-over-year, driven primarily by 8% to 12% growth in global medical cannabis.
Plant propagation revenue is expected to perform in line with traditional seasonal trends.
Consolidated adjusted gross margins are expected to remain strong.
Continued strength in adjusted gross margins and higher global medical cannabis revenue should lead to year-over-year annual adjusted EBITDA growth.
Free cash flow is expected to be positive in Q3 2026.
