#Canada #Aurora Cannabis #Edmonton #medical cannabis #Plant Propagation

Aurora Cannabis Financial Highlights for Q3 FY2025

Aurora Cannabis Inc., a leading provider in the global medical cannabis sector, has released its financial results for the third quarter of fiscal year 2025. The company has reported an impressive total net revenue of $88.2 million, marking a significant year-over-year increase of 37%. This rise is largely attributed to a record net revenue of $68.1 million from its global medical cannabis offerings, reflecting a remarkable growth of 51%.

Miguel Martin, CEO of Aurora Cannabis, expressed enthusiasm over the company's accomplishments. He highlighted that the quarterly performance was unprecedented, characterized by record levels of global medical net revenue, net income, adjusted EBITDA, and free cash flow. Aurora is now positioned strongly within the cannabis sector, distinguishing itself from competitors through its efficient operating model and robust financial health.

Key Financial Metrics and Revenue Growth

The financial report indicates that Aurora Cannabis achieved a record net income of $31.2 million during this quarter, a staggering increase of 282% compared to the previous year. Additionally, the company generated an adjusted EBITDA of $23.1 million, reflecting a performance increase of 316% from the same quarter last year. This performance improvement has enabled Aurora to maintain a positive free cash flow of $27.4 million.

Notably, the company has managed to keep a debt-free position in its operations, with a strong cash reserve of $180 million, enhancing its financial stability moving forward. The increase in revenues was primarily driven by international medical cannabis sales, which jumped an impressive 112%, now accounting for 60% of total medical cannabis net revenues.

Breakdown of Revenue Sources

In terms of revenue streams, the medical cannabis segment was the most lucrative, contributing 77% to the consolidated net revenue and 90% to adjusted gross profits. Sales to international markets such as Australia, Germany, Poland, and the United Kingdom vastly improved, indicating a successful expansion strategy.

Conversely, the consumer cannabis segment experienced a decline, with net revenues dropping to $9.9 million, representing a 15% decrease year-over-year. This was a strategic decision to prioritize high-margin products for the medical sector over the consumer cannabis market, which typically yields lower margins.

The plant propagation sector has seen a positive upward trend as well, with revenue from Bevo Farms Ltd. contributing $8.9 million, up 22% year-on-year. This segment's increase is attributed to enhanced organic growth and product diversification, alongside improved operational efficiency.

Outlook for Q4 2025 and Beyond

Looking ahead, Aurora Cannabis aims to continue its growth trajectory, particularly in the international medical cannabis arena. The company anticipates seasonally higher revenues from its plant propagation business aligned with historical trends, and reiterated its commitment to operational excellence and strategic growth.

These positive expectations are grounded in the company's disciplined approach to capital expenditures and cost management, which is expected to foster continued revenue growth and further enhance cash flow generation. Aurora is also in the process of updating its regulatory filings to expand its share issuance capabilities, solidifying its position for future growth.

In summary, Aurora Cannabis is positioning itself as a leader in the cannabis industry, and with its strong financial results and strategic direction, it shows promise for sustained success in both medical and consumer markets.