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Aurora Cannabis (TSE:ACB)
TSX:ACB
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Aurora Cannabis (ACB) AI Stock Analysis

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TSE:ACB

Aurora Cannabis

(TSX:ACB)

Rating:51Neutral
Price Target:
C$6.50
▼(-1.96%Downside)
Aurora Cannabis shows potential with recent profitability and strategic international growth. However, high valuation, inconsistent revenue, and cash flow challenges weigh on the score. The positive outlook from their earnings call and corporate event achievements provide optimism, though financial performance remains a significant concern.
Positive Factors
Financial Stability
The company's balance sheet offers optionality even in tough conditions.
Market Potential
A federal re-scheduling in the U.S. should provide benefits including increased research, lower stigma, improve access to capital, and unlock the world's biggest addressable cannabis market.
Strategic Shift
ACB has turned over a proverbial new leaf following the reset in the cannabis industry, now with a focus on responsible growth.
Negative Factors
Industry Risks
There are lingering risks in the emerging cannabis industry including rampant illicit markets, limited insurance coverage, and unpredictable path to further de-regulation.
Operational Challenges
There are administration delays in settlement payments.

Aurora Cannabis (ACB) vs. iShares MSCI Canada ETF (EWC)

Aurora Cannabis Business Overview & Revenue Model

Company DescriptionAurora 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 development, wholesale, and retail distribution activities. The company produces various strains of dried cannabis, cannabis oil and capsules, and topical kits for medical patients. It also sells vaporizers; consumable vaporizer accessories; and herb mills for using CanniMed herbal cannabis products, as well as grinders and vaporizer lockable containers. In addition, the company engages in the development of medical cannabis products at various stages of development, including oral, topical, edible, and inhalable products; and operation of CanvasRX, a network of cannabis counseling and outreach centers. Further, it provides patient counselling services; design and construction services; and cannabis analytical product testing services. The company's brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, Woodstock, and WMMC. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.
How the Company Makes MoneyAurora Cannabis generates revenue primarily through the sale of cannabis products for both medical and recreational purposes. The company's revenue streams include direct sales to consumers through various retail channels, wholesale distribution to other licensed producers and retailers, and sales in international markets where cannabis is legal. Aurora also partners with other companies to enhance its product offerings and expand its market reach. Additionally, the company invests in research and development to innovate and improve its product portfolio, which can drive higher sales and customer loyalty. Aurora's earnings are influenced by factors such as regulatory changes, consumer preferences, and market competition.

Aurora Cannabis Earnings Call Summary

Earnings Call Date:Jun 18, 2025
(Q4-2025)
|
% Change Since: -17.33%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Aurora Cannabis showcased a strong performance with record revenue and growth metrics, particularly in the international medical cannabis market. Despite 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.
Q4-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Net revenue rose 27% to a record $343 million, with global medical cannabis revenue increasing 39%. Adjusted gross margin improved to 55% compared to 49% in the previous year.
Strong International Performance
International revenue comprised over half of total global medical cannabis, up from 41% in fiscal 2024. International medical cannabis revenue grew 114%.
Improved Financial Metrics
Record adjusted EBITDA of almost $50 million and record positive free cash flow of about $10 million. Consolidated adjusted gross margin at 62%, a 1200 basis points increase from the previous year.
Expansion in Global Markets
Aurora expanded its product portfolio in Australia and launched new products in Germany and the U.K. Maintained leadership positions in multiple countries including Canada, Australia, and Germany.
Negative Updates
Temporary Challenges in Poland
Experienced headwinds due to regulatory changes impacting prescription volumes. This is seen as a temporary issue, but it affected short-term performance.
Decline in Consumer Cannabis Revenue
Consumer cannabis net revenue declined to $8.2 million from $10.2 million the previous year, due to a strategic focus on higher-margin medical cannabis.
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 costs related to the acquisition of MedReleaf Australia.
Company Guidance
During the Aurora Cannabis Inc. fiscal fourth quarter 2025 results conference call, the company provided notable guidance metrics, highlighting a record-setting fiscal year with net revenue rising by 27% to $343 million, primarily driven by a 39% increase in global medical cannabis revenue. Adjusted gross margin improved to 55%, while adjusted EBITDA reached nearly $50 million, and positive free cash flow was around $10 million. The company's balance sheet remains robust with $185 million in cash and no debt in the cannabis business. Aurora's focus on the medical cannabis segment, which constituted 75% of net revenue, led to international market growth, particularly in Australia and Europe, despite regulatory challenges in Poland. Moving into fiscal 2026, the company anticipates continued strong performance in global medical cannabis revenue, particularly in Europe and Australia, with expectations of slightly lower Q1 2026 global cannabis revenue due to temporary international market declines. However, margins are expected to remain strong, and free cash flow should stay positive.

Aurora Cannabis Financial Statement Overview

Summary
Aurora Cannabis has made strides towards profitability with a positive net income and improved operating cash flow. However, challenges such as inconsistent revenue growth, low margins, and negative free cash flow persist.
Income Statement
42
Neutral
Aurora Cannabis has shown a recent improvement in profitability with a positive net income for the latest period, reflecting a significant turnaround from previous losses. However, the revenue growth has been inconsistent over the past years, and margins remain low with a gross profit margin of 54.64% and a net profit margin of 0.46% for the latest period. The EBIT and EBITDA margins reflect operating challenges, despite the latest EBITDA turning positive.
Balance Sheet
55
Neutral
The company has a solid equity position with a debt-to-equity ratio of 0.18, suggesting limited leverage risk. However, the equity ratio is 66.50%, indicating a reasonable balance of equity relative to assets. Return on equity remains low at 0.28%, highlighting challenges in generating returns for shareholders.
Cash Flow
37
Negative
Aurora Cannabis shows improvement in operating cash flow, but free cash flow remains negative, indicating ongoing cash flow challenges. The operating cash flow to net income ratio is 10.06, suggesting that operating cash generation is improving relative to reported earnings, but the free cash flow to net income ratio is negative, emphasizing cash constraints.
BreakdownMar 2025Mar 2024Mar 2023Jun 2022Jun 2021
Income Statement
Total Revenue343.29M270.28M233.29M221.34M245.25M
Gross Profit187.61M131.46M-64.36M21.23M-21.56M
EBITDA51.35M-12.34M-210.74M-1.55B-535.28M
Net Income1.59M-69.33M-265.33M-1.72B-693.63M
Balance Sheet
Total Assets852.67M838.67M926.32M1.08B2.60B
Cash, Cash Equivalents and Short-Term Investments138.47M117.47M300.84M439.14M425.21M
Total Debt104.58M104.79M227.52M269.49M399.55M
Total Liabilities244.07M236.80M409.19M422.00M567.03M
Stockholders Equity567.17M559.77M486.08M661.84M2.04B
Cash Flow
Free Cash Flow-2.85M-85.46M-127.95M-142.48M-263.66M
Operating Cash Flow16.00M-68.51M-115.82M-110.27M-210.58M
Investing Cash Flow-14.33M-5.49M-27.29M-36.17M-26.91M
Financing Cash Flow-116.00K-47.92M-56.48M147.78M521.95M

Aurora Cannabis Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.63
Price Trends
50DMA
6.82
Negative
100DMA
6.59
Positive
200DMA
6.71
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
53.69
Neutral
STOCH
62.88
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 6.63 is above the 20-day moving average (MA) of 6.26, below the 50-day MA of 6.82, and below the 200-day MA of 6.71, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 62.88 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

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$368.41M112.353.05%26.98%
46
Neutral
C$201.68M-3.23-23.14%1.87%20.75%-0.36%
$230.50M-122.10%
$203.35M22.504.76%
$276.92M-17.34%
62
Neutral
C$196.10M-38.89%-6.80%11.94%
$166.91M-554.70%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ACB
Aurora Cannabis
6.63
-1.54
-18.85%
CGC
Canopy Growth
1.14
-6.16
-84.38%
OGI
OrganiGram Holdings
1.53
-0.10
-6.13%
CRLBF
Cresco Labs
0.68
-0.92
-57.50%
TSE:TSND
TerrAscend Corp
0.61
-1.39
-69.50%
CBSTF
Cannabist Company Holdings
0.12
-0.08
-40.00%

Aurora Cannabis Corporate Events

Financial Disclosures
Aurora Cannabis Schedules Q1 2026 Financial Results Conference Call
Neutral
Jul 23, 2025

Aurora Cannabis announced it will host a conference call on August 6, 2025, to discuss its financial results for the first quarter of 2026. The call will be led by CEO Miguel Martin and CFO Simona King, and it aims to provide insights into the company’s financial performance and strategic direction. This announcement is significant as it reflects Aurora’s ongoing commitment to transparency and engagement with investors, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (TSE:ACB) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Aurora Cannabis Achieves EU-GMP Certification for Distribution Centre
Positive
Jul 14, 2025

Aurora Cannabis Inc. has achieved its first-ever EU-GMP certification for its dedicated distribution centre in Brampton, Ontario, enhancing its international export capabilities. This certification, which aligns with European Union standards, allows Aurora to optimize its global supply chain and ensure consistent access to high-quality medical cannabis for patients worldwide, reinforcing its position as a leading exporter in the industry.

The most recent analyst rating on (TSE:ACB) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.

Shareholder Meetings
Aurora Cannabis Announces Shareholder Meeting Details
Neutral
Jul 9, 2025

Aurora Cannabis Inc. has announced the availability of its management information circular for the upcoming annual general and special meeting of shareholders. The meeting, scheduled for August 8, 2025, will be held virtually, allowing shareholders worldwide to participate. Aurora’s board recommends voting in favor of all director nominees and meeting resolutions, emphasizing the importance of shareholder participation. This announcement underscores Aurora’s commitment to transparent governance and active shareholder engagement, potentially impacting its industry positioning and stakeholder relations.

The most recent analyst rating on (TSE:ACB) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.

Financial Disclosures
Aurora Cannabis to Discuss Fiscal Year 2025 Results in Upcoming Investor Call
Positive
Jun 3, 2025

Aurora Cannabis announced it will host a conference call on June 18, 2025, to discuss its fourth quarter and fiscal year 2025 financial results. This announcement highlights the company’s commitment to transparency and engagement with investors, which could impact its market positioning and stakeholder relations positively.

The most recent analyst rating on (TSE:ACB) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.

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.Date of analysis: Jul 22, 2025