Aurora Cannabis Files Full Year Results and Announces Fiscal 2025 Fourth Quarter

Aurora Cannabis reported record annual global medical cannabis net revenue of $244.4 million, a 39% year-over-year increase, and record adjusted EBITDA of $49.7 million, up 261% year-over-year; the company also generated positive free cash flow of $9.9 million. Q4 2025 saw international revenue more than double, representing 61% of global medical cannabis net revenue, while adjusted EBITDA increased 619%. The company anticipates continued strong global cannabis revenue in Q1 2026, with positive adjusted EBITDA and free cash flow expected to continue, albeit with a decline versus Q4 FY25 due to lower revenue contributions from higher-margin international markets.

Analysis

Aurora Cannabis (ACB) reported a robust fiscal year, achieving record annual global medical cannabis net revenue of $244.4 million, up 39% year-over-year, and record adjusted EBITDA of $49.7 million, a 261% YoY surge, alongside $9.9 million in positive annual free cash flow. The company maintains a strong balance sheet with approximately $185.3 million in cash and a debt-free core cannabis operation, with only non-recourse debt remaining. Q4 2025 demonstrated significant momentum, as international revenue more than doubled to constitute 61% of global medical cannabis net revenue, and adjusted EBITDA increased 619% YoY; consolidated adjusted gross margin before fair value adjustments improved to 62% from 50% in the prior year period, while medical cannabis adjusted gross margin reached 70%. For Q1 2026, Aurora projects continued strong global cannabis revenue, though slightly below Q4 2025 levels due to temporary declines in some international markets which are expected to recover in later quarters, and seasonally higher plant propagation revenue. Margins are anticipated to remain robust, supporting continued positive adjusted EBITDA and free cash flow, albeit with EBITDA likely declining from Q4 FY25's peak due to lower contributions from higher-margin international markets. The company also disclosed revisions to historical quarterly results due to errors deemed not material to previously issued financial statements, with these changes to be reflected in comparative periods of prospective filings.

Key Decisions for Investors

• Investors should recognize Aurora's substantial improvement in financial performance, evidenced by record revenue, significantly higher adjusted EBITDA, and consistent positive free cash flow, which collectively strengthen its investment profile.
• The pronounced growth in international medical cannabis sales is a critical factor for future expansion; however, the guided temporary Q1 2026 moderation in this segment, and consequently overall cannabis revenue and adjusted EBITDA, warrants careful monitoring for its recovery trajectory in subsequent quarters.
• Despite an anticipated sequential decline in Q1 2026 adjusted EBITDA from a strong Q4 2025, the sustained positive free cash flow guidance, a debt-free core cannabis business, and solid cash reserves suggest a more stable operational footing and potential for ongoing profitability, making the company's execution against its Q1 2026 outlook a key point of focus.