Aurora Cannabis (TSE:ACB)
TSX:ACB
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Aurora Cannabis
(TSX:ACB)
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Rating:52Neutral
Price Target:
C$5.50
▲(16.03% Upside)
Action:ReiteratedDate:02/06/26
The score is held back primarily by weak cash-flow quality and poor technical momentum (price below key moving averages with bearish MACD). Offsetting factors include an improving operational trajectory with strong gross margins, a relatively manageable balance sheet, and a constructive earnings outlook centered on growing higher-margin global medical cannabis.
Positive Factors
Medical revenue & international share
A predominantly medical revenue base (81% of net revenue) with double-digit medical growth and strong international execution provides durable, higher‑margin demand. Leadership in key markets diversifies revenue away from commoditized Canadian adult-use cycles and supports steadier cash flows.
Negative Factors
Negative trailing cash generation
A multi‑year pattern of negative TTM operating cash flow and materially negative free cash flow creates a persistent execution risk. Even with recent operational gains, continued negative cash conversion could force dilutive capital raises or limit organic investment unless positive free cash flow stabilizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Medical revenue & international share
A predominantly medical revenue base (81% of net revenue) with double-digit medical growth and strong international execution provides durable, higher‑margin demand. Leadership in key markets diversifies revenue away from commoditized Canadian adult-use cycles and supports steadier cash flows.
Read all positive factors
Aurora Cannabis (ACB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$268.80M
Dividend YieldN/A
Average Volume (3M)287.03K
Price to Earnings (P/E)44.9
Beta (1Y)1.66
Revenue Growth23.87%
EPS Growth-19.57%
CountryCA
Employees1,073
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.03
Shares Outstanding56,709,423
10 Day Avg. Volume227,631
30 Day Avg. Volume287,031
Financial Highlights & Ratios
PEG Ratio-2.12
Price to Book (P/B)0.61
Price to Sales (P/S)1.01
P/FCF Ratio-121.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$9.17Price Target Upside93.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.01
Revenue Forecast (FY)C$379.91M
Aurora Cannabis Business Overview & Revenue Model
Company Description
Aurora Cannabis Inc. produces, distributes, and sells cannabis and cannabis derivative products in Canada and internationally. It also engages in facility engineering and design, cannabis breeding, research, production, derivatives, product develo...
How the Company Makes Money
Aurora Cannabis generates revenue primarily through the sale of cannabis products, which include both medical and recreational offerings. The company operates several production facilities that adhere to strict quality and regulatory standards, al...
Aurora Cannabis Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 18, 2026
Earnings Call Sentiment Positive
The call emphasized material progress: top-line growth driven by a focused medical-cannabis strategy, strong high-single-digit revenue growth, healthy adjusted gross margins (62% consolidated; 69% medical), record international execution (Germany, Poland, Australia), positive adjusted EBITDA and free cash flow, and a conservative balance sheet with $154M cash and no cannabis-related debt. Management also announced strategic moves (exiting select Canadian consumer markets, divesting plant propagation stake, and an ATM up to $100M) designed to reallocate resources to higher-margin global medical markets. Offsetting this are deliberate shrinkage in the lower-margin Canadian consumer business (48% revenue decline by design), significant margin deterioration and write-offs in the plant propagation segment, higher SG&A to support international growth, modest YoY decline in adjusted EBITDA, and lower free cash flow versus the prior year. Overall, the operational and financial positives and the clear strategy to concentrate on a higher-margin global medical opportunity outweigh the operational headwinds and one-time/divestiture-related impacts, indicating constructive momentum and a cautiously positive outlook.Positive Updates
Consolidated Revenue Growth
Net revenue of $94.2M in fiscal Q3 (period ended Dec 31, 2025), up 7% year-over-year, driven by record global medical cannabis performance.
Negative Updates
Sharp Decline in Canadian Consumer Cannabis
Consumer cannabis net revenue declined 48% YoY to $5.2M (from $9.9M), reflecting the company's strategic reallocation of product and resources away from lower-margin consumer markets.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Net revenue of $94.2M in fiscal Q3 (period ended Dec 31, 2025), up 7% year-over-year, driven by record global medical cannabis performance.
Read all positive updates
Company Guidance
Management guided fiscal 2026 toward a medical‑first outcome, forecasting annual global medical cannabis net revenue to grow 10–15% to $269–$281 million (medical was ~81% of net revenue and ~95% of adjusted gross profit in Q3), consolidated adjusted EBITDA of $52–$57 million (up ~5–10% year‑over‑year), and sustained strong consolidated adjusted gross margins (Q3 was 62% consolidated and 69% for medical). They expect plant‑propagation revenue to follow normal seasonality (65–75% of that revenue in the first half of the calendar year), noted some one‑time cash costs in Q4 tied to exiting select Canadian consumer markets but said adjusted EBITDA should improve thereafter, and filed an ATM to raise up to $100 million for accretive uses (e.g., cultivation capacity, M&A); the quarter closed with $154 million cash and no cannabis business debt.Aurora Cannabis Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
39
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 370.95M | 343.29M | 270.28M | 233.29M | 221.34M | 245.25M |
| Gross Profit | 104.06M | 187.61M | 131.46M | -64.36M | 21.23M | -21.56M |
| EBITDA | 23.50M | 51.35M | -12.34M | -210.74M | -1.55B | -535.28M |
| Net Income | -6.28M | 1.59M | -69.33M | -265.33M | -1.72B | -693.63M |
Balance Sheet | ||||||
| Total Assets | 775.29M | 852.67M | 838.67M | 926.32M | 1.08B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 154.44M | 138.47M | 117.47M | 300.84M | 439.14M | 425.21M |
| Total Debt | 134.19M | 104.58M | 104.79M | 227.52M | 269.49M | 399.55M |
| Total Liabilities | 207.47M | 244.07M | 236.80M | 409.19M | 422.00M | 567.03M |
| Stockholders Equity | 536.36M | 567.17M | 559.77M | 486.08M | 661.84M | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | -31.27M | -2.85M | -85.46M | -127.95M | -142.48M | -263.66M |
| Operating Cash Flow | -9.60M | 16.00M | -68.51M | -115.82M | -110.27M | -210.58M |
| Investing Cash Flow | -76.41M | -14.33M | -5.49M | -27.29M | -36.17M | -26.91M |
| Financing Cash Flow | 5.01M | -116.00K | -47.92M | -56.48M | 147.78M | 521.95M |
Aurora Cannabis Technical Analysis
Negative
4.74
Price Trends
5.15
Negative
5.74
Negative
6.33
Negative
Market Momentum
-0.15
Negative
45.13
Neutral
46.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACB, the sentiment is Negative. The current price of 4.74 is below the 20-day moving average (MA) of 4.82, below the 50-day MA of 5.15, and below the 200-day MA of 6.33, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 45.13 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ACB.
Aurora Cannabis Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | C$2.03B | 16.23 | 6.29% | ― | 6.18% | -28.69% | |
61 Neutral | C$1.38B | -104.58 | -0.87% | ― | 22.20% | ― | |
56 Neutral | C$1.61B | -13.95 | -9.71% | ― | 4.27% | 3.41% | |
52 Neutral | C$268.80M | 44.94 | -7.78% | ― | 23.87% | -19.57% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | C$540.46M | -2.15 | -52.88% | ― | -0.67% | 58.98% | |
50 Neutral | C$2.46B | ― | -28.58% | ― | -3.38% | -31.35% |
* Healthcare Sector Average
TSE:ACB
Aurora Cannabis
4.62
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-27.13%
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Aurora Cannabis Corporate Events
Business Operations and StrategyM&A Transactions
Aurora Cannabis to Spotlight Strategy at TD Cowen Conference, Closes Bevo Deal
Positive
Feb 18, 2026
Aurora Cannabis will showcase its growth strategy and view on global medical cannabis trends at TD Cowen’s 46th Annual Health Care Conference in Boston on March 2, 2026, where CFO Simona King will join a fireside chat and investor meetings. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.