Aurora Cannabis Shines in Record Earnings Call

Aurora Cannabis (US) ((TSE:ACB)) has held its Q4 earnings call. Read on for the main highlights of the call.

Aurora Cannabis Earnings Call: Positive Outlook Amid Record Revenue

Aurora Cannabis showcased a strong performance during its latest earnings call, highlighting record revenue and growth metrics, particularly in the international medical cannabis market. Despite facing some temporary challenges in Poland and a decline in consumer cannabis revenue, the company’s strategic focus on high-margin international markets and improvements in financial metrics contributed to a largely positive outlook.

Record-Breaking Revenue and Growth

Net revenue for Aurora Cannabis rose by 27% to a record $343 million, with global medical cannabis revenue increasing by 39%. The company also reported an improved adjusted gross margin of 55%, up from 49% in the previous year, showcasing its robust financial health.

Strong International Performance

International revenue now comprises over half of Aurora’s total global medical cannabis revenue, up from 41% in fiscal 2024. The international medical cannabis segment saw a remarkable growth of 114%, underscoring the company’s successful expansion strategy.

Improved Financial Metrics

Aurora reported a record adjusted EBITDA of almost $50 million and a record positive free cash flow of about $10 million. The consolidated adjusted gross margin increased significantly to 62%, marking a 1200 basis points improvement from the previous year.

Expansion in Global Markets

The company expanded its product portfolio in Australia and launched new products in Germany and the U.K. Aurora maintained its leadership positions in multiple countries, including Canada, Australia, and Germany, further solidifying its global presence.

Temporary Challenges in Poland

Aurora faced headwinds in Poland due to regulatory changes impacting prescription volumes. Although this affected short-term performance, the company views these challenges as temporary.

Decline in Consumer Cannabis Revenue

Consumer cannabis net revenue declined to $8.2 million from $10.2 million the previous year. This decline was attributed to Aurora’s strategic focus on higher-margin medical cannabis, which is expected to drive future growth.

Increased SG&A Expenses

Adjusted SG&A expenses increased by 17% compared to the previous year, primarily due to higher freight and logistics costs and expenses related to the acquisition of MedReleaf Australia.

Forward-Looking Guidance

During the fiscal fourth quarter 2025 results conference call, Aurora provided notable guidance metrics, highlighting a record-setting fiscal year. The company anticipates continued strong performance in global medical cannabis revenue, particularly in Europe and Australia, despite temporary international market declines expected in Q1 2026. Margins are expected to remain strong, and free cash flow should stay positive.

In conclusion, Aurora Cannabis’s earnings call reflected a positive sentiment with record-breaking revenue and growth, particularly in the international medical cannabis market. Despite some challenges, the company’s strategic focus on high-margin markets and improved financial metrics provide a promising outlook for the future.