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Aurora Cannabis (US) (TSE:ACB)
:ACB
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Aurora Cannabis
(NASDAQ:ACB)
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Select Model
Rating:49Neutral
Price Target:
C$6.50
▲(1.09% Upside)
Aurora Cannabis faces significant financial challenges, with ongoing losses and cash flow issues weighing heavily on its score. While recent earnings call highlights and strategic investments in international markets provide some optimism, the overall outlook remains cautious due to valuation concerns and technical indicators suggesting bearish momentum.
Positive Factors
International Market Expansion
Aurora's leadership in international markets and GMP-certified facilities positions it for sustainable growth, leveraging global demand for medical cannabis.
Improved Margins
The significant improvement in gross margins reflects operational efficiencies and a focus on high-margin medical cannabis, enhancing long-term profitability.
Revenue Growth
Consistent revenue growth, driven by medical and international sales, indicates strong market demand and effective strategic positioning.
Negative Factors
Cash Flow Challenges
Negative free cash flow highlights ongoing cash management issues, which could constrain future investment and operational flexibility.
Consumer Segment Decline
Declining consumer cannabis revenue suggests challenges in maintaining market share and could impact overall revenue diversification.
Regulatory Challenges
Regulatory changes in key markets like Germany could disrupt sales channels and patient access, affecting long-term growth prospects.
Aurora Cannabis (ACB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$437.19M
Dividend YieldN/A
Average Volume (3M)496.52K
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth23.87%
EPS Growth-19.57%
CountryCA
Employees1,073
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.91
Shares Outstanding56,703,785
10 Day Avg. Volume659,430
30 Day Avg. Volume496,525
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$5.99Price Target Upside-6.78% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aurora Cannabis Business Overview & Revenue Model
Company DescriptionAurora Cannabis Inc. is a Canadian company that operates in the cannabis sector, specializing in the production and distribution of medical and recreational cannabis products. Founded in 2006 and headquartered in Edmonton, Alberta, Aurora is one of the largest cannabis producers in the world, offering a diverse range of products including dried cannabis, oils, and softgel capsules. The company also engages in research and development to innovate cannabis-related products and services, aiming to expand its market presence across Canada and internationally.
How the Company Makes MoneyAurora 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, allowing it to supply products to various Canadian provinces and international markets. Key revenue streams include direct sales to consumers through retail outlets, online sales, and wholesale distribution to licensed retailers. Additionally, Aurora has formed significant partnerships with other companies and organizations to enhance its product offerings and expand distribution channels. The company also generates revenue through its investments in cannabis-related businesses and by leveraging its expertise in cultivation and production to provide consulting services to other cannabis enterprises.
Aurora Cannabis Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call revealed strong financial performance with record revenue growth, improved margins, and significant increases in adjusted EBITDA. Aurora’s strategic focus on international markets and GMP-certified facilities positions it well for future growth. However, challenges persist, particularly in the consumer cannabis segment and potential regulatory changes in Germany and Australia. Cash flow concerns also remain.Q2-2026 Updates
Positive Updates
Record Net Revenue Growth
Net revenue rose 11% to $90 million in Q2 2026 compared to Q2 2025, with global medical cannabis revenue increasing 15% and international revenue increasing 22%.
Improved Adjusted Gross Margin
Consolidated adjusted gross margin improved 700 basis points to 61%, with the medical cannabis business consistently exceeding a 60% adjusted gross margin target, reaching 69% in Q2 2026.
Significant Increase in Adjusted EBITDA
Adjusted EBITDA rose more than 52% to $15 million, illustrating a strong focus on profitable and sustainable growth.
Strong International Market Position
Aurora is a market leader in Germany, Australia, Poland, and the U.K., and has a strong foothold in emerging markets with GMP-certified facilities in Canada and Germany.
Negative Updates
Decline in Consumer Cannabis Revenue
Consumer cannabis net revenue was $6.9 million, down from $10.4 million, due to the prioritization of higher-margin medical cannabis sales.
Challenges in Australia
Australia experienced pressure due to a market inundated with value products, impacting Aurora's transition to core and premium products.
Potential Regulatory Challenges in Germany
Proposed changes to the German market, including potential modifications to the telehealth framework, could present challenges, particularly for patients in rural areas.
Cash Flow Concerns
Free cash flow was negative $42.3 million compared to negative $26.4 million in the prior year quarter, reflecting expected cash outflows.
Company Guidance
During the fiscal second quarter of 2026, Aurora Cannabis reported impressive financial performance, with net revenue rising by 11% to $90 million compared to the previous year. This growth was driven by a 15% increase in global medical cannabis revenue and a 22% rise in international revenue. The company's consolidated adjusted gross margin improved by 700 basis points to 61%, significantly exceeding their initial target of 60% for medical cannabis, reaching 69% this quarter. Additionally, adjusted EBITDA surged by more than 52% to $15 million. Aurora's strong cash position was highlighted, with $142 million in cash and no cannabis-related debt. The company remains the largest medical cannabis provider in Canada and leads in major international markets such as Germany, Australia, Poland, and the U.K. Aurora continues to focus on operational efficiencies, regulatory expertise, and strategic investments in GMP-certified facilities to sustain its competitive advantage and profitability in the global medical cannabis market.Aurora Cannabis Financial Statement Overview
Summary
Aurora Cannabis shows modest revenue growth but faces significant profitability and cash flow challenges. The balance sheet is stable with low leverage, but the company struggles to generate positive returns on equity and cash flow.Income Statement
Aurora Cannabis shows a modest revenue growth rate of 4.25% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by a negative EBIT margin and a very low net profit margin. The gross profit margin is relatively healthy at 54.65%, but the negative EBIT and net income highlight ongoing operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is low at 0.18, suggesting manageable leverage levels. However, the return on equity is minimal at 0.28%, indicating inefficient use of equity capital. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity position relative to assets.50
Neutral
Cash Flow
Aurora Cannabis faces cash flow challenges, with negative free cash flow and a declining free cash flow growth rate. The operating cash flow to net income ratio is low, reflecting difficulties in converting earnings into cash. The negative free cash flow to net income ratio further underscores cash management issues.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 357.88M | 343.29M | 270.28M | 233.29M | 221.34M | 245.25M |
| Gross Profit | 140.64M | 187.61M | 131.46M | -64.36M | 21.23M | -21.56M |
| EBITDA | 24.75M | 51.35M | -12.34M | -210.74M | -1.55B | -535.28M |
| Net Income | -20.14M | 1.59M | -69.33M | -265.33M | -1.72B | -693.63M |
Balance Sheet | ||||||
| Total Assets | 837.84M | 852.67M | 838.67M | 926.32M | 1.08B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 186.03M | 138.47M | 117.47M | 300.84M | 439.14M | 425.21M |
| Total Debt | 101.63M | 104.58M | 104.79M | 227.52M | 269.49M | 399.55M |
| Total Liabilities | 249.16M | 244.07M | 236.80M | 409.19M | 422.00M | 567.03M |
| Stockholders Equity | 551.92M | 567.17M | 559.77M | 486.08M | 661.84M | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | -999.00K | -2.85M | -85.46M | -127.95M | -142.48M | -263.66M |
| Operating Cash Flow | 17.75M | 16.00M | -68.51M | -115.82M | -110.27M | -210.58M |
| Investing Cash Flow | -20.18M | -14.33M | -5.49M | -27.29M | -36.17M | -26.91M |
| Financing Cash Flow | 3.77M | -116.00K | -47.92M | -56.48M | 147.78M | 521.95M |
Aurora Cannabis Technical Analysis
Positive
6.43
Price Trends
6.74
Positive
6.90
Positive
6.74
Positive
Market Momentum
0.23
Negative
61.92
Neutral
70.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACB, the sentiment is Positive. The current price of 6.43 is below the 20-day moving average (MA) of 6.59, below the 50-day MA of 6.74, and below the 200-day MA of 6.74, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 61.92 is Neutral, neither overbought nor oversold. The STOCH value of 70.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | C$1.60B | 31.12 | 3.34% | ― | 22.20% | ― | |
54 Neutral | $391.51M | -13.84 | -7.93% | ― | 62.15% | 60.50% | |
52 Neutral | C$976.43M | -0.84 | -60.19% | ― | -0.67% | 58.98% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | C$437.19M | -7.23 | -10.76% | ― | 23.87% | -19.57% | |
48 Neutral | $533.02M | -8.11 | -7.82% | ― | 1.76% | 18.31% | |
47 Neutral | $1.62B | ― | -85.59% | ― | 2.31% | -726.28% |
* Healthcare Sector Average
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Aurora Cannabis
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1.29
20.98%
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Aurora Cannabis Corporate Events
Financial Disclosures
Aurora Cannabis Schedules Q2 2026 Investor Conference Call
Neutral
Oct 22, 2025
Aurora Cannabis announced it will host a conference call to discuss its second quarter 2026 financial results on November 5, 2025. The call will be led by the company’s executive chairman and CEO, Miguel Martin, and CFO, Simona King. This announcement is part of Aurora’s ongoing efforts to maintain transparency with investors and stakeholders, reflecting its commitment to providing timely updates on its financial performance.
Product-Related AnnouncementsBusiness Operations and Strategy
Aurora Cannabis Invests in German Facility to Boost Production
Positive
Sep 18, 2025
Aurora Cannabis Inc. has announced a significant investment in its EU-GMP manufacturing facility in Leuna, Germany, aimed at enhancing operational capabilities over the next five years. This investment will increase flower growth capacity, improve product quality, and drive cost efficiency, positioning Aurora to meet the growing demand for high-quality medical cannabis in Europe. The upgrades will include additional grow rooms and new irrigation and lighting systems, strengthening Aurora’s supply chain resilience and expanding its domestic capabilities in EU-GMP certified manufacturing.
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.