#Canada #Aurora Cannabis #Edmonton #medical cannabis #Adjusted EBITDA

Aurora Cannabis Reports Q1 2026 Financial Results

Aurora Cannabis Inc., a prominent player in the global medical cannabis industry, released its financial results for the first quarter of fiscal 2026, showcasing an impressive leap in performance. As of June 30, 2025, the company reported a remarkable 37% increase in global medical cannabis net revenue, amounting to $64.8 million. This growth reflects strong demand, particularly in international markets such as Germany and Poland, contributing significantly to Aurora's top line.

In addition, Aurora's Adjusted EBITDA soared over 200%, reaching $10.8 million for the quarter, signaling robust operational profitability. The company managed to generate a positive free cash flow of $9.2 million, marking a 42% growth compared to the previous year. These financial highlights illustrated not just revenue growth but also a disciplined execution of Aurora's strategy in the competitive landscape of the medical cannabis sector.

Executive Chairman and CEO Miguel Martin stated, *"Our sustained growth in a challenging marketplace demonstrates the strength of our strategy and the competitive advantage of our platform. The expansion of our International Medical Cannabis segment, which now constitutes 57% of our total revenue, is a testament to our successful global outreach and commitment to quality."

Revenue Breakdown and Key Segments

Total consolidated revenue for the quarter reached $98.0 million, compared to $83.4 million in the same period last year, predominantly driven by the growth of the medical cannabis sector. The medical cannabis segment not only accounted for 66% of consolidated net revenue but also comprised a striking 91% of adjusted gross profit before fair value adjustments. The revenue increase by $17.6 million was significantly attributable to higher sales in international markets and a rise in sales to both insurance-covered and self-paying patients in Canada.

On the consumer side, however, revenue declined by 32%, totaling $7.9 million for the quarter. This reduction stemmed from Aurora's strategic decision to prioritize its higher-margin medical cannabis products over the consumer cannabis market, which typically features lower profit margins.

Plant Propagation Growth

Interestingly, Aurora’s plant propagation division, which operates under Bevo Farms Ltd., also witnessed growth, reporting $23.9 million in net revenue—a 4% rise from the previous year. Despite facing some operational challenges, such as non-recurring inventory quality issues, the overall momentum remains positive due to the continued expansion in product offerings and market demand.

Cost Management and Future Initiatives

Aurora's performance also accentuated efforts in cost management. The adjusted gross margin for medical cannabis reached an impressive 69%, driven by better pricing strategies and operational efficiencies. This is a notable increase compared to 67% in the same quarter last year. The company's ability to maintain a cash and debt-free status in its operations is a significant factor in managing expenses effectively and fostering long-term sustainability.

As Aurora looks towards the rest of FY 2026, expectations remain optimistic. For Q2 2026, the company anticipates continued revenue increases, primarily propelled by 8% to 12% growth in its global medical cannabis segment. Aurora also expects an increase in consolidated adjusted gross margins, bolstered by the efficiency of its cannabis operations.

In summary, Aurora Cannabis has demonstrated remarkable growth and resilience in the first quarter of fiscal 2026, showing robust performance across key segments while reaffirming its commitment to quality and operational excellence within the competitive landscape of the cannabis industry. The forward-looking guidance emphasizes further potential as the organization reinforces its expansion initiatives globally. Stay tuned for the upcoming conference call where management will discuss these results in greater detail.