NASDAQ | TSX: ACB
-- Expands YoY Total Net Revenue1 by 7% to $94.2 million, with Global
Medical Cannabis Net Revenue1 Increasing by 12% to a Record $76.2 million
-- Delivers Adjusted EBITDA1 of $18.5 million and Adjusted Net Income1 of
$7.2 million
-- Generates Free Cash Flow1 of $15.5 million
-- Maintains Strong Balance Sheet with $154.4 million of Cash2 and
Short-Term Investments, and a Debt-Free Cannabis Business2
EDMONTON, AB, Feb. 4, 2026 /PRNewswire/ - 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 third quarter 2026 period ending December 31, 2025.
"Aurora has established a commanding leadership position within the rapidly expanding, high margin, global medical cannabis market. We achieved record quarterly net revenue(1) of $76.2 million in our global medical cannabis business through double-digit growth internationally, led by Germany and Poland. Adjusted EBITDA(1) rose sequentially to $18.5 million and we generated free cash flow(1) of $15.5 million. These results validate our focused strategy and reinforce our confidence in the company's future," said Miguel Martin, Executive Chairman and Chief Executive Officer for Aurora.
"Aurora's prioritization of medical cannabis as the industry's most compelling growth area is anchored by our investments in key markets, world-class cultivation and GMP manufacturing facilities, operational efficiencies, cutting-edge science and genetics, and regulatory expertise. Our success in these areas positions us for potential M&A opportunities to expand capacity and further accelerate market opportunities," 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] Cash refers to cash, restricted cash and cash equivalents. Aurora's only remaining debt is non-recourse debt of $62 million relating to Bevo Farms Ltd as detailed in the December 31, 2025 Financial Statements.
Third Quarter 2026 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q3 2026 and Q3 2025 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue(1) was $94.2 million, as compared to $88.2 million in the prior year period. The 7% increase from the prior year period was mainly due to 12% growth in our global medical cannabis business and 27% growth in our plant propagation business, slightly offset by lower quarterly net revenue(1) in our consumer cannabis business.
Consolidated adjusted gross margin before fair value adjustments(1) was 62% in Q3 2026 and 61% in the prior year period. Adjusted gross profit before FV adjustments(1) was $55.6 million in Q3 2026 compared to $52.3 million in the prior year period, an increase of 6%.
Medical Cannabis:
Medical cannabis net revenue(1) was $76.2 million, a new record, with a 12% increase from the prior year period, delivering 81% of Aurora's Q3 2026 consolidated net revenue(1) and 95% of adjusted gross profit before fair value adjustments(1) .
The increase in medical cannabis net revenue(1) of $8.1 million was primarily due to higher sales in Germany, and Poland, as well as higher revenue in Canada to insurance covered patients related to broader portfolio offerings.
Adjusted gross margin before fair value adjustments(1) on medical cannabis net revenue(1) remained consistent at 69% for the three months ended December 31, 2025, compared to the prior year period. The Company's ability to maintain high adjusted gross margins before fair value adjustments(1) is primarily due to sustainable cost reductions, higher selling prices, and improved production efficiencies.
Consumer Cannabis:
Aurora's consumer cannabis net revenue(1) was $5.2 million, a 48% decrease compared to $9.9 million in the prior year period. The decrease was due to the continued decision to prioritize the supply of GMP manufactured products to the high margin global medical cannabis business rather than the significantly lower margin consumer segment.
Adjusted gross margin before fair value adjustments(1) on consumer cannabis net revenue(1) was 28%, an increase from 26% compared to the prior year period. The increase is primarily due to a shift in sales towards higher margin products.
Plant Propagation:
Plant propagation net revenue(1) contributed $11.3 million of net revenue(1) , a 27% increase compared to $8.9 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 adjustments(1) on plant propagation revenue was 16% for Q3 2026 and 40% for the prior year period. The decrease is due to increased contract labour and utilities costs to adjust to production schedules and inventory write-offs of $1.1 million in the current quarter related to surplus plants.
Adjusted Selling, General and Administrative ("Adjusted SG&A"):
Adjusted SG&A(1) was $35.8 million in Q3 2026, compared to $31.3 million in the prior year period. The increase compared to the prior year period relates to increased headcount and higher contract labor in Europe and MedReleaf Australia, as well as increased professional fees.
Net Income (Loss):
Net loss from continuing operations for the three months ended December 31, 2025 was $1.7 million compared to a net income of $28.1 million for the prior year period. The decrease in net income from continuing operations of $29.9 million compared to the three months ended December 31, 2024, is comprised of a decrease in gross profit of $28.3 million, an increase in operating expenses of $2.1 million, and a decrease in other expenses of $1.1 million.
Adjusted Net Income:
Adjusted net income(1) was $7.2 million for the three months ended December 31, 2025 compared to $7.4 million for the three months ended December 31, 2024. Adjusted net income remained relatively consistent compared to the three months ended December 31, 2024.
Adjusted EBITDA:
Adjusted EBITDA(1) was $18.5 million for the three months ended December 31, 2025 compared to $19.4 million for the prior year period.
Strategic Business Update
Following careful evaluation and building on the sustained strong performance of its high margin global medical cannabis business, the Company has made the following strategic decisions, to re-prioritize its resources and focus on further strengthening its global leadership position in this rapidly expanding global medical cannabis market.
Consumer Cannabis
Beginning in Q4 FY26, the Company will be exiting certain markets in the lower margin consumer segment in Canada and will further prioritize the allocation of product and resources to the higher margin global medical cannabis business. Due to the higher sales and marketing costs associated with the consumer segment, this decision is expected to result in lower adjusted SG&A and improved consolidated adjusted gross margins in the coming quarters, with some one-time costs impacting cash flow in Q4 FY26. Following the completion of this strategic initiative, the Company expects to see adjusted EBITDA improvements in the coming quarters.
Plant Propagation
On February 3, 2026, Aurora and its wholly owned subsidiary entered into a definitive agreement with Bevo Agtech Inc. ("Bevo Agtech") and Bevo Farms Ltd. ("Bevo Farms") pursuant to which, among other things, Aurora agreed to exchange all of its common shares of Bevo Agtech for preferred shares (the "Bevo Preferred Shares") of Bevo Agtech (the "Bevo Transaction"). The closing of the Bevo Transaction remains subject to certain conditions, including Bevo Agtech shareholder approval and the consent of Bevo Farms' lender.
As holder of the Bevo Preferred Shares, Aurora will, among other things, be entitled to an annual 5% dividend on the value of the Bevo Preferred Shares and distributions of 30% of eligible Bevo Agtech cashflow (which will increase to 40% following the 15-year anniversary of closing of the Bevo Transaction), which cashflow will first be paid to satisfy any unpaid dividend entitlements on the Bevo Preferred Shares and then be used to redeem the outstanding Bevo Preferred Shares, and 30% of proceeds on a Bevo Agtech liquidation event, including any sale of Bevo Agtech. The remaining eligible Bevo Agtech cash flow and the proceeds on a liquidation event will be distributed to the holders of the common shares of Bevo Agtech. Aurora will also have certain customary preferred shareholder protections such as veto rights on the creation or issuance of shares ranking equal to or senior to the Bevo Preferred Shares. Upon the closing of the Bevo Transaction, the Aurora-nominated directors will resign from the board of Bevo Agtech and its subsidiaries, and Aurora will no longer have any right to appoint directors. Aurora will retain its entitlement to the earnouts of up to $25 million and $15 million related to the Aurora Sky facility in Edmonton, Alberta and Aurora Sun facility in Medicine Hat, Alberta, respectively, both of which are payable upon Bevo Farms successfully achieving certain financial milestones. As a result of the Bevo Transaction, the assets and liabilities of Bevo Agtech will be classified as held-for-sale and remeasured at the lower of their carrying amount and fair value. Any impairment losses which may be recognized upon initial classification as held-for-sale and subsequent gains and losses on re-measurement will be recognized in the consolidated statements of income (loss) and comprehensive income (loss), and the financial results of Bevo, including comparative periods, will be restated and presented as a discontinued operation, separate from
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