NASDAQ | TSX: ACB
-- Achieves Record Annual Global Medical Cannabis Net Revenue1 of $288.6
million, representing 18% YoY growth
-- Delivers Record Annual Adjusted EBITDA1 of $53.8 million, representing
32% YoY growth
-- Completes Accretive Acquisition of Safari Flower Company in April, an
established EU-GMP Manufacturer, adding Critical Capacity to Serve
Growing Profitable International Markets
-- Maintains Strong Balance Sheet with $164.7 million of Cash, Short Term
Investments and Cash Equivalents2 with no Debt
EDMONTON, AB, June 11, 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 fourth quarter and fiscal year 2026 periods ending March 31, 2026.
"During fiscal year 2026, we exceeded our projection for global medical cannabis net revenue(1) led by double-digit growth in Europe and delivered on our expectation for Adjusted EBITDA(1) with both at record outcomes. Our performance validates Aurora's global medical cannabis strategy which has positioned us as a leading provider in Canada, Europe, Australia, and New Zealand," said Executive Chairman and Chief Executive Officer for Aurora, Miguel Martin.
"We believe Aurora's leadership in medical cannabis is built upon our regulatory expertise, extensive and recently expanded supply network of EU-GMP certified facilities, and proven commercial execution. We are confident that these attributes create a competitive advantage as we navigate the evolving industry dynamics to maintain and expand global market share, while driving international growth," concluded Mr. Martin.
[1] This news 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 Equivalents refers to cash, restricted cash and cash equivalents.
Fourth Quarter 2026 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q4 2026 and Q4 2025 results and are in Canadian dollars and reflects only the results of continuing operations, unless otherwise noted.
On February 17, 2026, the Company completed the divestiture of its 50.1% ownership interest in Bevo Agtech Inc. ("Bevo"). As such, Bevo has been excluded from the Company's Q4 2026 continuing results, along with comparative figures, due to its classification as a discontinued operation.)
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue(1) was $84.8 million, as compared to $76.8 million in the prior year period. The 10% increase from the prior year period was mainly due to 14% growth in our global medical cannabis business and higher wholesale bulk cannabis net revenue, offset by lower quarterly net revenue(1) in our consumer cannabis business.
Consolidated adjusted gross margin before fair value adjustments(1) was 60% in Q4 2026 and 65% in the prior year period. Adjusted gross profit before FV adjustments(1) was $50.5 million in Q4 2026 compared to $50.2 million in the prior year period.
Medical Cannabis:
Medical cannabis net revenue(1) was $77.1 million, a 14% increase from the prior year period, delivering 91% of Aurora's Q4 2026 consolidated net revenue(1) and 101% of adjusted gross profit before fair value adjustments(1) .
The increase in medical cannabis net revenue(1) of $9.3 million was primarily due to higher sales in Germany, related to increased market size, and growth in Poland, along with higher revenue in Canada to insured patients related to broader portfolio offerings.
Adjusted gross margin before fair value adjustments(1) on medical cannabis net revenue(1) was 66% for the three months ended March 31, 2026, compared to 71% in the prior year period. The year-over-year decrease was due to higher sales with lower margins and strategic price reductions.
Consumer Cannabis:
Aurora's consumer cannabis net revenue(1) was $3.6 million, compared to $8.2 million in the prior year period. The decrease was due to our strategic shift to focus on Canadian and international medical cannabis and wind down our consumer business.
Adjusted gross margin before fair value adjustments(1) on consumer cannabis net revenue(1) was 22%, a decrease from 27% compared to the prior year period. The decrease is primarily due to higher input costs related to third-party sourcing.
Adjusted Selling, General and Administrative ("Adjusted SG&A"):
Adjusted SG&A(1) was $40.3 million for the three months ended March 31, 2026, compared to $35.4 million in the prior year period. The increase compared to the prior year period relates to increased headcount, higher contract labour in Europe and Australia, an expected credit loss of $1.9 million due to the insolvency of two customers and additional professional fees relating to public company costs incurred in the fourth quarter of the fiscal year.
Net Income (Loss):
Net loss from continuing operations for the three months ended March 31, 2026 was $27.6 million compared to a net loss of $12.1 million for the prior year period. The increase in net loss from continuing operations of $15.4 million was primarily related to other expenses of $1.7 million in the current period, compared to other income of $11.9 million in the prior year period. This was slightly offset by an increase in gross profit of $2.5 million.
Adjusted Net Income:
Adjusted net income(1) was $5.6 million for the three months ended March 31, 2026 compared to $15.3 million for the prior year period. The $9.7 million decrease primarily relates to an increase in adjusted SG&A of $4.9 million, a decrease in foreign exchange gains and interest income, of $10.3 million and $4.5 million, respectively.
Adjusted EBITDA:
Adjusted EBITDA(1) was $9.2 million for the three months ended March 31, 2026 compared to $14.1 million for the prior year period.
Free Cash Flow:
Free cash flow was $0.3 million compared to $5.2 million in the prior year quarter. Free cash flow decreased by $4.9 million primarily due to a decrease in gross profit before fair value adjustments of $5.3 million.
Strategic Business Update
Plant Propagation:
On February 3, 2026, Aurora and its wholly owned subsidiary entered into a definitive agreement with Bevo Agtech Inc and Bevo Farms Ltd. pursuant to which, among other things, Aurora agreed to exchange all of its common shares of Bevo for preferred shares of Bevo. On February 17, 2026, the transaction closed, resulting in the disposal of the Company's 50.1% ownership interest in Bevo and loss of control. The financial results of Bevo are no longer consolidated in Aurora's financial statements subsequent to the closing of the transaction.
Safari Flower Company Acquisition:
On April 15, 2026, the Company acquired Safari Flower Company ("Safari"), through a share purchase acquisition, for total consideration of $26.5 million, subject to customary closing adjustments. The consideration is composed of $15 million in cash and 2,417,180 Common Shares with an approximate fair value of $11.5 million. Included in the total consideration is contingent consideration totaling $2 million upon satisfying certain GMP certifications.
The acquisition of Safari provides the Company with a 59,000 square foot EU-GMP certified indoor cultivation and manufacturing facility to supply cannabis to key international markets while reducing reliance on third party purchases.
Fiscal Full Year 2027 Outlook:
Our outlook reflects the strategic changes we have made in exiting our low margin Canadian Consumer and Plant Propagation businesses, which will allow the Company to reallocate resources to focus on global medical cannabis. We believe this is our highest return opportunity to create value.
Over the next few quarters, we are purposely investing in our international business through strategic sales initiatives and EU GMP capacity expansion to support growth in our most profitable markets. These efforts are expected to help offset the impact of margin reductions in our Canadian medical business, following the reduction in government reimbursed pricing, effective April 1, 2026.
-- Total Net Revenue1 is expected to decline and be more in line with our
Cannabis Net Revenue results in fiscal year 2025, following the changes
in Canadian medical partially offset by international growth, driven by
Germany and Poland.
-- Adjusted Gross Margin before FV adjustments1 are expected to be in the
mid to high fifties, driven by higher revenue contributions from Europe
and the exit from the lower margin businesses. These benefits will
partially offset lower margins in Canadian Medical.
-- Adjusted SG&A1 is expected to remain broadly in line with the prior
fiscal year.
-- Adjusted EBITDA1 is expected to vary quarter over quarter, leading to
lower annual adjusted EBITDA1 compared to the prior fiscal year. This
change in expectations is due to the revisions in reimbursed pricing that
drive lower net revenue and adjusted gross profits contributions.
Key Quarterly Financial Results
Three months ended
--------------
March December March
($ thousands) 31, 2026 31, 2025 $ Change % Change 31, 2025 $ Change % Change
-------------- -------- -------- --------- -------- -------- --------- --------
Financial
Results(3)
-------------- -------- -------- --------- -------- -------- --------- --------
Net revenue
(1) 84,816 82,893 1,923 2 % 76,768 8,048 10 %
Medical
cannabis net
revenue (1) 77,096 76,247 849 1 % 67,776 9,320 14 %
Consumer
cannabis net
revenue (1) 3,645 5,160 (1,515) (29 %) 8,166 (4,521) (55 %)
Adjusted gross
margin before
FV
adjustments
on total
cannabis net
revenue(1) 60 % 66 % N/A (6 %) 65 % N/A (5 %)
Adjusted gross
margin before
FV
adjustments
on medical
cannabis
net
revenue(1) 66 % 69 % N/A (3 %) 71 % N/A (5 %)
Adjusted gross
margin before
FV
adjustments
on
consumer
cannabis net
revenue(1) 22 % 28 % N/A (6 %) 27 % N/A (5 %)
Adjusted SG&A
expense(1) 40,254 34,867 5,387 15 % 35,403 4,851 14 %
Adjusted
EBITDA (1) 9,227 18,371 (9,144) (50 %) 14,056 (4,829) (34 %)
Adjusted net
income (1) 5,581 11,711 (6,130) (52 %) 15,272 (9,691) (63 %)
Free cash flow
(1) 316 18,569 (18,253) (98 %) 5,249 (4,933) (94 %)
Balance Sheet
-------------- -------- -------- --------- -------- -------- --------- --------
Working
capital (1) 330,523 299,901 30,622 10 % 367,465 (36,942) (10 %)
Cannabis
inventory and
biological
assets (2) 169,629 191,064 (21,435) (11 %) 193,980 (24,351) (13 %)
Total assets 601,087 775,292 (174,205) (22 %) 852,666 (251,579) (30 %)
(1) These terms are defined in the "Cautionary Statement Regarding Certain
Non--GAAP Performance Measures" section of the Annual MD&A, including
information on reconciliation to the most directly comparable IFRS
measures.
(2) Represents total biological assets and inventory, exclusive of
merchandise, accessories, supplies and consumables.
(3) Results shown are from continuing operations. On February 17, 2026, the
Company completed the divestiture of its 50.1% ownership interest in
Bevo. As such, Bevo has been excluded from the Company's Q4 2026
continuing results, along with comparative figures, due to its
classification as a discontinued operation.
Conference Call
Aurora will host a conference call today, Thursday, June 11, 2026, 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: Thursday, June 11, 2026 TIME: 8:00 a.m. Eastern Time | 6:00 a.m. Mountain Time WEBCAST: Click Here
About Aurora Cannabis
Aurora is a global leader in medical cannabis, dedicated to improving lives through scientific expertise, proven performance, and a deep commitment to patient care. Aurora serves medical markets across Canada, Europe, Australia, and New Zealand with a portfolio of trusted, leading brands including Aurora$(R)$, MedReleaf(R), Pedanios(R), IndiMed$(TM)$, San Raf(R), and Whistler Medical Marijuana Corporation(R). With world-class GMP-certified manufacturing facilities in Canada and Germany, and a team of industry-leading professionals, Aurora continues to expand its global footprint and deliver consistent, high-quality cannabis products with the purpose of Opening the World to Cannabis(TM).
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 fiscal 2026 results; statements under the heading "Fiscal Full Year 2027 Outlook ", including, but not limited to, those related to expectations for net revenue, adjusted gross margin before FV adjustments, adjusted EBITDA, and adjusted SG&A; statements regarding the Company's long-term outlook, ability to respond to changing global market dynamics and ability to mitigate the impact of margin reductions in the Canadian medical business; statements regarding the Company's global medical cannabis leadership and anticipated growth in the Company's international medical business; 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 the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. Forward-looking information and statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including, among other things, assumptions about: development costs remaining consistent with budgets; the ability to manage anticipated and unanticipated costs; access to favorable equity and debt capital markets; the ability to raise sufficient capital to advance the business of the Company; favorable operating and economic conditions; political and regulatory stability; obtaining and maintaining all required licenses and permits; receipt of governmental approvals and permits; sustained labour stability; stability in financial and capital goods markets; favorable production levels and costs from the Company's operations; the pricing of various cannabis products; the level of demand for cannabis products; the availability of third-party service providers and other inputs for the Company's operations; and the Company's ability to conduct operations in a safe, efficient, and effective manner. The Company does not give any assurance that the assumptions on which forward-looking information or statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the availability of additional capital to complete construction projects and facilities improvements, the risk of successful integration of acquired business and operations, management's estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crisis ,and other risks as set out under the heading "Risk Factors" in the Company's annual information form dated June 11, 2026 and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR+ at www.sedarplus.com and filed with and available on the SEC's website at www.sec.gov. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Non-GAAP Measures
This news release contains reference to certain financial performance measures that are not recognized or defined under IFRS (termed "Non-GAAP Measures"). As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. Non-GAAP Measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company's operating results, underlying performance and prospects in a manner similar to Aurora's management. Accordingly, these non-GAAP Measures are intended to provide additional information and to assist management and investors in assessing financial performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The information included under the heading "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" in the FY26 Q4 MD&A is incorporated by reference into this news release. The MD&A is available on the Company's issuer profiles on SEDAR+ at www.sedarplus.com and on the U.S. Securities and Exchange Commission's (the "SEC") EDGAR website at www.sec.gov.
Net Revenue, Adjusted Gross Profit and Margin
Net revenue, adjusted gross profit before FV adjustments, and adjusted gross margin before FV adjustments are Non-GAAP Measures and can be reconciled with revenue, gross profit and gross margin, the most directly comparable GAAP financial measures, respectively, as follows:
Three months ended Years ended
--------------
March 31, December March 31, March 31, March 31,
($ thousands) 2026 31, 2025 2025 2026 2025
-------------- ----------- ---------- ----------- ----------- -----------
Medical
cannabis net
revenue(1)
Canadian
medical
cannabis net
revenue 28,314 28,250 26,751 112,116 107,432
International
medical
cannabis net
revenue 48,782 47,997 41,025 176,524 137,010
-------------- ----------- ---------- ----------- ----------- -----------
Total medical
cannabis net
revenue(1) 77,096 76,247 67,776 288,640 244,442
Consumer
cannabis net
revenue(1) 3,645 5,160 8,166 23,548 40,033
Wholesale bulk
cannabis net
revenue(1) 4,075 1,486 826 8,405 4,436
Total net
revenue(1) 84,816 82,893 76,768 320,593 288,911
-------------- ----------- ---------- ----------- ----------- -----------
(1) These terms are defined in the "Cautionary Statement Regarding Certain
Non--GAAP Performance Measures" section of the Annual MD&A, including
information on reconciliation to the most directly comparable IFRS
measures.
Adjusted EBITDA
The following is the Company's adjusted EBITDA:
Three months ended Years ended
---------------
December
March 31, 31, March 31, March 31, March 31,
($ thousands) 2026 2025(3) 2025(3) 2026 2025(3)
--------------- ----------- ---------- ---------- ----------- -----------
Net income
(loss) from
continuing
operations (27,566) 6,317 (12,128) (58,619) 27,050
Income tax
expense
(recovery) (538) 97 3,285 2,095 4,245
Other expense
(income) 1,673 2,322 (11,925) 9,862 (20,861)
Share-based
compensation 689 (551) 3,786 7,293 12,930
Depreciation
and
amortization 3,871 4,583 3,379 16,228 15,430
Business
development
costs 850 443 624 1,975 3,435
Inventory and
biological
assets fair
value and
impairment
adjustments 20,487 1,306 21,953 50,419 (20,969)
Business
transformation
costs (1) 9,761 3,854 5,082 24,555 19,610
Adjusted EBITDA
(2) 9,227 18,371 14,056 53,808 40,870
--------------- ----------- ---------- ---------- ----------- -----------
(1) Business transformation related charges include costs related to closed
facilities, certain IT project costs, sublease income, severance and
retention costs in connection with the exit of the consumer market, legal
provisions and costs associated with the retention of certain medical
aggregators.
(2) Adjusted EBITDA is defined in the "Cautionary Statement Regarding Certain
Non--GAAP Performance Measures" section of the Annual MD&A, including
information on reconciliation to the most directly comparable IFRS
measures.
(3) Prior period comparatives were adjusted to include the adjustments for
markets under development, business transformation costs and
non-recurring charges related to non-core bulk cannabis wholesale to be
comparable to the current period presentation.
Adjusted Net Income
The following is the Company's adjusted net income (loss):
Three months ended Years ended
---------------
March 31, December March 31, March 31, March 31,
($ thousands) 2026 31, 2025 2025 2026 2025
--------------- ---------- ---------- ----------- ----------- -----------
Net income
(loss) from
continuing
operations (27,566) 6,317 (12,128) (58,619) 27,050
Inventory and
biological
assets fair
value and
impairment
adjustments 20,487 1,306 21,953 50,419 (20,969)
Business
development
costs 850 443 624 1,975 3,435
Impairment of
property,
plant and
equipment 2,246 4 -- 2,775 (696)
Impairment of
intangible
assets and
goodwill -- -- -- 13,186 --
Deferred tax
expense -
impairment of
intangible
assets and
goodwill -- -- -- 5,856 --
Business
transformation
costs (1) 9,564 3,641 4,823 23,746 18,401
Adjusted net
income (2) 5,581 11,711 15,272 39,338 27,221
--------------- ---------- ---------- ----------- ----------- -----------
(1) Business transformation costs include certain IT project costs, severance
and retention costs in connection with the exit of the consumer market,
legal provision and costs associated with the retention of certain
medical aggregators.
(2) Adjusted net income is defined in the "Cautionary Statement Regarding
Certain Non--GAAP Performance Measures" section of the Annual MD&A,
including information on reconciliation to the most directly comparable
IFRS measures
Adjusted SG&A
Adjusted SG&A is a Non-GAAP Measure and can be reconciled with sales and marketing and general and administrative expenses, the most directly comparable GAAP financial measure, as follows:
Three months ended Years ended
March 31, December March 31, March 31, March 31,
($ thousands) 2026 31, 2025 2025 2026 2025
--------------- ---------- ---------- ----------- ----------- -----------
General and
administration 29,540 23,861 25,078 106,567 91,323
Sales and
marketing 16,022 14,860 15,407 59,641 56,170
Business
transformation
costs (2) (5,308) (3,854) (5,082) (20,105) (19,610)
Adjusted SG&A
(1) 40,254 34,867 35,403 146,103 127,883
--------------- ---------- ---------- ----------- ----------- -----------
(1) Adjusted SG&A is defined in the "Cautionary Statement Regarding Certain
Non--GAAP Performance Measures" section of the Annual MD&A, including
information on reconciliation to the most directly comparable IFRS
measures.
(2) Business transformation costs include certain IT project costs, severance
and retention costs in connection with the business transformation plan
and costs associated with the consumer channel exit
Free Cash Flow
The table below outlines free cash flow for the periods ended:
Three months ended Years ended
March 31, December March 31, March 31, March 31,
($ thousands) 2026 31, 2025 2025 2026 2025
---------------- ---------- ---------- ---------- ----------- -----------
Cash provided by
(used in)
operating
activities from
continuing
operations
before changes
in non-cash
working
capital (9,410) 9,517 (2,969) 1,386 4,764
Changes in
non-cash
working
capital 11,823 10,573 9,736 (9,214) 14,205
---------------- ---------- ---------- ---------- ----------- -----------
Net cash
provided by
(used in)
operating
activities from
continuing
operations 2,413 20,090 6,767 (7,828) 18,969
Less:
maintenance
capital
expenditures(1) (2,097) (1,521) (1,518) (6,425) (8,084)
---------------- ---------- ---------- ---------- ----------- -----------
Free cash
flow(2) 316 18,569 5,249 (14,253) 10,885
---------------- ---------- ---------- ---------- ----------- -----------
(1) Maintenance capital expenditures are comprised of costs to sustain
facilities, machinery and equipment in working order to support
operations and excludes discretionary investments for revenue growth.
(2) Free cash flow is defined in the "Cautionary Statement Regarding Certain
Non--GAAP Performance Measures" section of the Annual MD&A, including
information on reconciliation to the most directly comparable IFRS
measures.
Working Capital
Working capital is a Non-GAAP Measure and can be reconciled with total current assets and total current liabilities, the most directly comparable GAAP financial measure, as follows:
Three months ended
--------------------------
($ thousands) March 31, 2026 December 31, 2025 March 31, 2025
-------------------------- -------------- ----------------- --------------
Total current assets 397,453 445,836 488,548
Total current liabilities (66,930) (145,935) (149,807)
-------------------------- -------------- ----------------- --------------
Working capital 330,523 299,901 338,741
-------------------------- -------------- ----------------- --------------
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SOURCE Aurora Cannabis Inc.
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