Aurora Cannabis Inc. reported fiscal 2026 third‑quarter results that combined a record medical‑cannabis revenue of $76.2 million with a total net revenue of $94.2 million, up 7% year‑over‑year. The company’s consumer‑cannabis segment generated $5.2 million, a 48% decline, while the plant‑propagation business grew 27% to $11.3 million but saw its adjusted gross margin collapse from 40% to 16% due to higher input costs and an inventory write‑off.
The medical‑cannabis segment, which now accounts for 81% of total revenue, delivered a 12% year‑over‑year increase and maintained a 69% adjusted gross margin. Management attributed the growth to expanding capacity in Germany and Poland and to a favorable mix of high‑margin products. The segment’s performance underpins the company’s strategic pivot away from lower‑margin consumer markets toward global medical opportunities.
The consumer‑cannabis business, which has been a drag on overall profitability, fell 48% to $5.2 million, reflecting a broader decline in domestic demand and intensified competition. Aurora’s decision to exit select Canadian consumer markets is part of a broader effort to concentrate resources on the higher‑margin medical platform.
Adjusted EBITDA for the quarter was $18.5 million, down from $19.4 million in the same period a year earlier, marking a decline rather than the 52% increase previously reported. The drop is largely attributable to the margin compression in the plant‑propagation segment and to higher operating expenses associated with scaling the medical‑cannabis platform. Free cash flow was $15.5 million, down from $27.4 million a year earlier, but remains positive, underscoring the company’s cash‑generating capacity.
Aurora guided for fiscal 2026 with consolidated net revenue between CAD 269 million and CAD 281 million and adjusted EBITDA between CAD 52 million and CAD 57 million, a slight upward revision from prior guidance. The outlook reflects confidence in sustained demand for medical cannabis and the company’s ability to maintain high margins in that segment.
"Aurora has established a commanding leadership position within the rapidly expanding, high‑margin global medical cannabis market," said Miguel Martin, Executive Chairman and CEO. He added that the company’s focus on Germany and Poland, coupled with investments in GMP‑certified manufacturing and genetics, positions Aurora for continued growth and potential M&A opportunities to expand capacity.
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