Aurora Cannabis Files Full Year Results and Announces Fiscal 2025 Fourth Quarter
NASDAQ | TSX: ACB
Achieves Record Annual Global Medical Cannabis Net Revenue1 of $244.4 million, representing 39% YoY growth
Delivers Record Adjusted EBITDA1 of $49.7 million, representing 261% YoY growth
Generates Annual Positive Free Cash Flow1 of $9.9 million
Sustains Strong Balance Sheet with ~$185.3 million of Cash and Debt-Free Cannabis Business2
EDMONTON, AB, June 18, 2025 /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 2025 periods ending March 31, 2025.
"We are pleased to report an exceptional year to our shareholders, highlighted by record annual global medical net revenue1, adjusted EBITDA1, and positive free cash flow1. These achievements underscore the thoughtful execution of our strategic plan, set us further apart from competitors, and strengthen our foundation for sustained and profitable growth," said Executive Chairman and Chief Executive Officer for Aurora, Miguel Martin.
"Specific to Q4 2025, we ended our banner fiscal year by further strengthening our business model. International revenue more than doubled, representing 61% of global medical cannabis net revenue1. Plant propagation also increased significantly as we benefited from peak seasonality along with organic expansion. These top-line gains were complemented by a sharp year over year increase in adjusted EBITDA1 profitability and the third quarter of positive free cash flow1 generation." 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 $61.7 million relating to Bevo Farms Ltd as detailed in the March 31, 2025 Financial Statements.
Fourth Quarter 2025 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q4 2025, Q3 2025, and Q4 2024 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit:Total net revenue1 was $90.5 million, as compared to $67.4 million in the prior year period. The 34% increase from the prior year period was mainly due to 48% growth in our global medical cannabis business and 32% 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 62% in Q4 2025 and 50% in the prior year period. Adjusted gross profit before FV adjustments1 was $54.2 million in Q4 2025 compared to $33.4 million in the prior year period, an increase of 62%.
Medical Cannabis:Medical cannabis net revenue1 was $67.8 million, a 48% increase from the prior year period, delivering 75% of Aurora's Q4 2025 consolidated net revenue1 and 88% of adjusted gross profit before fair value adjustments1.
The increase in medical cannabis net revenue1 of $22.1 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 revenue1 reached 70% for the three months ended March 31, 2025, compared to 66% in the prior year period. The adjusted gross margins before fair value adjustments1 improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.
Consumer Cannabis:Aurora's consumer cannabis net revenue1 was $8.2 million a 20% decrease compared to $10.2 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 16% 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:Plant propagation net revenue1 was wholly comprised of the Bevo business, and contributed $13.8 million of net revenue1, a 32% increase compared to $10.4 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 37% for Q4 2025 and 25% for the prior year period. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments1 is due to product mix with higher margin sales.
Adjusted Selling, General and Administrative ("Adjusted SG&A"):Adjusted SG&A1 was $36.7 million in Q4 2025, which excludes $5.8 million of business transformation costs. 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 Income (Loss):Net loss from continuing operations for the three months ended March 31, 2025 was $17.2 million compared to a net loss of $20.3 million for the prior year period. The decrease in net loss of $3.0 million compared to the three months ended March 31, 2024 is comprised of a decrease in gross profit of $18.8 million and an increase in operating expenses of $3.0 million, offset with other income in the current period $10.5 million compared to other expenses of $18.7 million during the three months ended March 31, 2024.
Adjusted EBITDA:Adjusted EBITDA1 increased 619% to $16.7 million for the three months ended March 31, 2025 compared to $2.3 million for the prior year period.
Fiscal Q1 2026 Expectations:
Expect continued strong global cannabis revenue driven by improved performance in Canadian medical, comparable performance in consumer, offset by temporary declines in some of our international markets. Taken together, global cannabis should be slightly lower compared to Q4 2025 and is expected to improve in later quarters due to increased distribution and further innovation.
Seasonally higher revenues for plant propagation as they complete their peak quarter, in line with historical seasonal trends.
Margins to hold strong and we expect positive adjusted EBITDA1 to continue, with a decline versus Q4 FY25 due to lower revenue contributions from the higher margin international markets.
Free cash flow1 is projected to remain positive, due to continued strong performance and improved operating cash use.
Historical Quarterly Results:In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company identified an error in inventory and cost of sales arising from intercompany profit eliminations, resulting in an overstatement of inventory and understatement of cost of sales. Additionally, the Company understated its lease liability during a period in which a rent concession was granted by the lessor. In respect of the Company's presentation of cash and cash equivalents and restricted cash, the Company determined that certain previously reported restricted cash held within its captives was accessible to the Company and therefore not restricted. The unrestricted portion has been reclassified to cash and cash equivalents.
The Company has concluded that these errors are not material to any of the Company's previously-issued audited consolidated financial statements and unaudited condensed consolidated interim financial statements. Accordingly, the Company has concluded that an amendment to its previously-filed audited consolidated financial statements and unaudited condensed consolidated interim financial statements is not required. The revisions will be reflected in the comparative period of the Company's prospective condensed consolidated interim financial statements filings. There is no impact to the annual consolidated financial statements, however the comparative periods have been revised accordingly.
The core balances impacted in the consolidated financial position and cash flow are: cash and cash equivalents, restricted cash, inventory and property, plant and equipment. In the consolidated statement of income (loss) the core areas impacted are: cost of sales, gross profit and net income (loss).
A summary of the impact to its previously filed audited consolidated financial statements and unaudited condensed consolidated interim financial statements can be found in the historical quarterly results section of the FY25 Q4 MD&A, filed June 18, 2025 (the "MD&A").
Key Quarterly Financial Results
($ thousands, except Operational Results)
Three months ended
March 31, 2025
December 31, 2024(4)
$ Change
% Change
March 31, 2024(3)
$ Change
% Change
Financial Results
Net revenue (1a)
$90,538
$88,198
$2,340
3 %
$67,411
$23,127
34 %
Medical cannabis net revenue (1a)
$67,776
$68,149
($373)
(1 %)
$45,648
$22,128
48 %
Consumer cannabis net revenue (1a)
$8,166
$9,912
($1,746)
(18 %)
$10,233
($2,067)
(20 %)
Plant propagation revenue
$13,770
$8,897
$4,873
55 %
$10,416
$3,354
32 %
Adjusted gross margin before FV adjustments on total net revenue (1b)
62 %
61 %
N/A
1 %
50 %
N/A
12 %
Adjusted gross margin before FV adjustments on cannabis net revenue (1b)
65 %
63 %
N/A
2 %
54 %
N/A
11 %
Adjusted gross margin before FV adjustments on medical cannabis net revenue (1b)
70 %
69 %
N/A
1 %
66 %
N/A
4 %
Adjusted gross margin before FV adjustments on consumer cannabis net revenue (1b)
27 %
26 %
N/A
1 %
16 %
N/A
11 %
Adjusted gross margin before FV adjustments on plant propagation net revenue (1b)
37 %
40 %
N/A
(3 %)
25 %
N/A
12 %
Adjusted SG&A expense(1d)
$36,687
$31,263
$5,424
