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

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TSE:ACB

Aurora Cannabis

(NASDAQ:ACB)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
C$6.50
▼(-13.22% Downside)
Aurora Cannabis's overall stock score is primarily impacted by its financial performance challenges, including profitability and cash flow issues. While the earnings call provided positive insights into revenue growth and strategic positioning, the technical analysis and valuation metrics indicate ongoing market and financial struggles.
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)

Aurora Cannabis Business Overview & Revenue Model

Company DescriptionAurora Cannabis Inc. is a Canadian licensed cannabis producer that operates in the legal cannabis industry, focusing on the cultivation, production, and distribution of medical and recreational cannabis products. Founded in 2006, the company has grown to become one of the largest cannabis companies globally, offering a diverse range of products including dried flower, oils, capsules, and edibles. Aurora operates in various sectors within the cannabis market, including medical cannabis, consumer products, and international markets, while also emphasizing research and development to innovate and improve its offerings.
How the Company Makes MoneyAurora Cannabis primarily generates revenue through the sale of its cannabis products in both the medical and recreational markets. The company operates several production facilities, which allow it to cultivate and manufacture a wide array of cannabis products. Key revenue streams include direct sales to consumers through retail channels, wholesale distribution to other retailers, and export sales to international markets where cannabis is legal. Additionally, Aurora has formed significant partnerships and collaborations with other companies, enhancing its distribution capabilities and market reach. The company's revenue is also supported by ongoing investments in product development and innovation, which help maintain its competitive edge in the rapidly evolving cannabis industry.

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, yet the company struggles with generating positive returns on equity and cash flow.
Income Statement
45
Neutral
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.
Balance Sheet
50
Neutral
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.
Cash Flow
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue357.88M343.29M270.28M233.29M221.34M245.25M
Gross Profit140.64M187.61M131.46M-64.36M21.23M-21.56M
EBITDA24.75M51.35M-12.34M-210.74M-1.55B-535.28M
Net Income-20.14M1.59M-69.33M-265.33M-1.72B-693.63M
Balance Sheet
Total Assets837.84M852.67M838.67M926.32M1.08B2.60B
Cash, Cash Equivalents and Short-Term Investments186.03M138.47M117.47M300.84M439.14M425.21M
Total Debt101.63M104.58M104.79M227.52M269.49M399.55M
Total Liabilities249.16M244.07M236.80M409.19M422.00M567.03M
Stockholders Equity551.92M567.17M559.77M486.08M661.84M2.04B
Cash Flow
Free Cash Flow-999.00K-2.85M-85.46M-127.95M-142.48M-263.66M
Operating Cash Flow17.75M16.00M-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 Flow3.77M-116.00K-47.92M-56.48M147.78M521.95M

Aurora Cannabis Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.49
Price Trends
50DMA
7.25
Negative
100DMA
6.84
Negative
200DMA
6.86
Negative
Market Momentum
MACD
-0.28
Positive
RSI
34.37
Neutral
STOCH
15.19
Positive
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 7.49 is above the 20-day moving average (MA) of 7.15, above the 50-day MA of 7.25, and above the 200-day MA of 6.86, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 34.37 is Neutral, neither overbought nor oversold. The STOCH value of 15.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ACB.

Aurora Cannabis Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
C$1.33B51.181.73%31.72%
59
Neutral
C$294.17M70.001.86%38.86%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
$1.39B-85.59%2.31%-726.17%
49
Neutral
$478.76M-7.82%1.76%18.31%
47
Neutral
C$362.43M-10.76%23.87%-19.57%
40
Underperform
C$588.17M-98.42%-4.24%55.82%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ACB
Aurora Cannabis
6.18
-0.50
-7.49%
TSE:WEED
Canopy Growth
1.55
-4.35
-73.73%
TSE:OGI
OrganiGram Holdings
2.10
-0.10
-4.55%
TSE:CRON
Cronos Group
3.47
0.67
23.93%
TLRY
Tilray
1.21
-0.28
-18.79%
SNDL
SNDL
1.76
-0.22
-11.11%

Aurora Cannabis Corporate Events

Aurora Cannabis Reports Increased Revenue in Latest Financial Release
Nov 5, 2025

Aurora Cannabis Inc. released its interim financial statements for the three and six months ended September 30, 2025, showing a notable increase in revenue compared to the previous year. The company’s financial position reflects a decrease in total assets and liabilities, with a slight decline in shareholders’ equity, indicating ongoing financial adjustments and strategic positioning in the competitive cannabis market.

The most recent analyst rating on (TSE:ACB) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.

Aurora Cannabis Achieves Record Revenue in Q2 2026
Nov 5, 2025

Aurora Cannabis reported its fiscal 2026 second quarter results, showcasing a 15% year-over-year increase in global medical cannabis net revenue to a record $70.5 million and a 22% rise in international medical cannabis revenue to $42.7 million. The company achieved a 52% growth in adjusted EBITDA, reaching $15.4 million, and maintained a strong balance sheet with $141.9 million in cash and a debt-free cannabis business. Despite a decrease in consumer cannabis revenue, Aurora’s strategic focus on high-margin medical cannabis markets and operational efficiencies contributed to improved gross margins and profitability, positioning the company for continued growth.

The most recent analyst rating on (TSE:ACB) stock is a Hold with a C$7.00 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 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.

The most recent analyst rating on (TSE:ACB) stock is a Hold with a C$9.00 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
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.

The most recent analyst rating on (TSE:ACB) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Aurora Cannabis Announces 2025 AGM Results and Board Changes
Neutral
Aug 8, 2025

Aurora Cannabis Inc. announced the results of its 2025 Annual General and Special Meeting, where shareholders voted on various resolutions, including the election of directors and the appointment of auditors. Theresa Firestone resigned from the Board of Directors, and Michael Singer was appointed as the new Lead Independent Director and Chair of the Human Resources and Compensation Committee. The meeting also saw the approval of amendments to the company’s RSU Plan, PSU Plan, and Share Option Plan, although the advisory vote on executive compensation did not pass.

The most recent analyst rating on (TSE:ACB) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.

Aurora Cannabis Reports Strong Q1 2026 Results
Aug 7, 2025

Aurora Cannabis Inc., a prominent player in the global medical cannabis industry, is headquartered in Edmonton, Alberta, and operates across Canada, Europe, Australia, and New Zealand, offering a diverse range of cannabis products for both medical and consumer markets.

Aurora Cannabis Shines in Earnings Call Despite Challenges
Aug 7, 2025

Aurora Cannabis Reports Strong Earnings Amid Challenges

Aurora Cannabis Reports Strong Q1 2026 Results with Significant Growth in Medical Cannabis Revenue
Aug 6, 2025

Aurora Cannabis announced its fiscal first quarter 2026 results, highlighting a 37% increase in global medical cannabis net revenue to $64.8 million, with international revenue growing by 85%. The company achieved a 209% growth in adjusted EBITDA to $10.8 million and generated positive free cash flow of $9.2 million. Despite a decrease in consumer cannabis revenue, Aurora maintained a strong balance sheet with $186 million in cash and a debt-free cannabis business. The results underscore Aurora’s strategic focus on high-margin medical cannabis markets, particularly in Europe, and the continued expansion of its plant propagation business.

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.

Aurora Cannabis Reports Revenue Growth in Latest Financial Update
Aug 6, 2025

Aurora Cannabis Inc. has released its interim financial statements for the three months ended June 30, 2025, showing a net revenue increase to $98.023 million from $83.435 million in the same period in 2024. This financial update indicates a positive trend in the company’s revenue, which could enhance its market position and stakeholder confidence.

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.

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: Nov 05, 2025