Aurora Cannabis Announces Fiscal 2026 Third Quarter Results

Executive Summary

• Aurora Cannabis reported Fiscal 2026 Q3 results with total net revenue of $94.2M (up 7% YoY), driven by a record $76.2M in global medical cannabis revenue (up 12% YoY).
• The company delivered Adjusted EBITDA of $18.5M and Adjusted Net Income of $7.2M, while generating $15.5M in free cash flow and maintaining a strong balance sheet with $154.4M in cash and short-term investments.
• Strategically, Aurora announced an exit from certain lower-margin Canadian consumer cannabis markets starting Q4 FY26 to prioritize high-margin medical cannabis, and entered into a definitive agreement to exchange its common shares in Bevo Agtech for preferred shares, which will be classified as a discontinued operation.
• Concurrently, the company filed a prospectus supplement for a new $100M ATM equity program to fund strategic growth and potential M&A.

Key Details

• Total Net Revenue: $94.2M (vs. $88.2M in Q3 FY25), a 7% YoY increase.
• Global Medical Cannabis Revenue: $76.2M (record), a 12% YoY increase, representing 81% of consolidated net revenue and 95% of adjusted gross profit before fair value adjustments. Growth driven by Germany, Poland, and broader portfolio offerings to Canadian insurance-covered patients.
• Consumer Cannabis Revenue: $5.2M, a 48% YoY decrease, reflecting a strategic shift to prioritize higher-margin medical products over the lower-margin consumer segment.
• Plant Propagation Revenue: $11.3M, a 27% YoY increase, driven by organic growth and expanded product offerings from increased capacity.
• Adjusted Gross Margin (before FV adjustments): 62% on total net revenue (vs. 61% prior year). Medical cannabis margin remained consistent at 69%.
• Adjusted EBITDA: $18.5M (vs. $19.4M prior year).
• Adjusted Net Income: $7.2M (vs. $7.4M prior year).
• Free Cash Flow: $15.5M.
• Balance Sheet: $154.4M in cash and short-term investments. Cannabis business remains debt-free (only remaining debt is $62M non-recourse related to Bevo Farms). Working capital stands at $299.9M.
• Strategic Exit from Consumer Cannabis: Beginning Q4 FY26, Aurora will exit certain lower-margin consumer markets in Canada to reallocate product and resources to global medical cannabis. Expected to lower adjusted SG&A and improve consolidated adjusted gross margins, with some one-time costs impacting Q4 FY26 cash flow.
• Bevo Agtech Transaction: Definitive agreement to exchange all common shares of Bevo Agtech for preferred shares. Aurora will receive a 5% annual dividend on the preferred shares' value, 30% of eligible cashflow (increasing to 40% after 15 years), and 30% of liquidation proceeds. Aurora retains earnouts of up to $25M (Edmonton facility) and $15M (Medicine Hat facility). Bevo Agtech assets/liabilities will be classified as held-for-sale and presented as a discontinued operation. Shareholder loans from Bevo Farms will be exchanged for $5.5M cash.
• ATM Equity Program: Filed prospectus supplement establishing a new at-the-market equity program allowing issuance/sale of up to US $100M of common shares from treasury. Proceeds intended for strategic/accretive purposes, including increased cultivation capacity and potential M&A.
• Full Year FY26 Guidance: Global medical cannabis net revenue expected to increase YoY to $269M–$281M. Consolidated adjusted EBITDA expected to increase to $52M–$57M.

Notable Quotes

• "Aurora has established a commanding leadership position within the rapidly expanding, high margin, global medical cannabis market. We achieved record quarterly net revenue of $76.2 million in our global medical cannabis business through double-digit growth internationally, led by Germany and Poland. Adjusted EBITDA rose sequentially to $18.5 million and we generated free cash flow of $15.5 million. These results validate our focused strategy and reinforce our confidence in the company's future." — Miguel Martin, Executive Chairman and CEO
• "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." — Miguel Martin, Executive Chairman and CEO