Achieves Record Annual Global Medical Cannabis Net Revenue1 of $288.6 million, representing 18% YoY growth
Delivers Record Annual Adjusted EBITDA1 of $53.8 million, representing 32% YoY growth
Completes Accretive Acquisition of Safari Flower Company in April, an established EU-GMP Manufacturer, adding Critical Capacity to Serve Growing Profitable International Markets
Maintains Strong Balance Sheet with ~$164.7 million of Cash, Short Term Investments and Cash Equivalents2 with no Debt
EDMONTON, AB, June 11, 2026 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NASDAQ:ACB) (TSX:ACB), a leading Canada-based global medical cannabis company, today announced its financial and operational results for the fourth quarter and fiscal year 2026 periods ending March 31, 2026.
"During fiscal year 2026, we exceeded our projection for global medical cannabis net revenue1 led by double-digit growth in Europe and delivered on our expectation for Adjusted EBITDA1 with both at record outcomes. Our performance validates Aurora's global medical cannabis strategy which has positioned us as a leading provider in Canada, Europe, Australia, and New Zealand," said Executive Chairman and Chief Executive Officer for Aurora, Miguel Martin.
"We believe Aurora's leadership in medical cannabis is built upon our regulatory expertise, extensive and recently expanded supply network of EU-GMP certified facilities, and proven commercial execution. We are confident that these attributes create a competitive advantage as we navigate the evolving industry dynamics to maintain and expand global market share, while driving international growth," concluded Mr. Martin.
[1] This news release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See "Non-GAAP Measures" below for reconciliations of non-GAAP financial measures to GAAP financial measures.
[2] Cash Equivalents refers to cash, restricted cash and cash equivalents.
Fourth Quarter 2026 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q4 2026 and Q4 2025 results and are in Canadian dollars and reflects only the results of continuing operations, unless otherwise noted.
On February 17, 2026, the Company completed the divestiture of its 50.1% ownership interest in Bevo Agtech Inc. ("Bevo"). As such, Bevo has been excluded from the Company's Q4 2026 continuing results, along with comparative figures, due to its classification as a discontinued operation.)
Consolidated Revenue and Adjusted Gross Profit: Total net revenue1 was $84.8 million, as compared to $76.8 million in the prior year period. The 10% increase from the prior year period was mainly due to 14% growth in our global medical cannabis business and higher wholesale bulk cannabis net revenue, offset by lower quarterly net revenue1 in our consumer cannabis business.
Consolidated adjusted gross margin before fair value adjustments1 was 60% in Q4 2026 and 65% in the prior year period. Adjusted gross profit before FV adjustments1 was $50.5 million in Q4 2026 compared to $50.2 million in the prior year period.
Medical Cannabis:Medical cannabis net revenue1 was $77.1 million, a 14% increase from the prior year period, delivering 91% of Aurora's Q4 2026 consolidated net revenue1 and 101% of adjusted gross profit before fair value adjustments1.
The increase in medical cannabis net revenue1 of $9.3 million was primarily due to higher sales in Germany, related to increased market size, and growth in Poland, along with higher revenue in Canada to insured patients related to broader portfolio offerings.
Adjusted gross margin before fair value adjustments1 on medical cannabis net revenue1 was 66% for the three months ended March 31, 2026, compared to 71% in the prior year period. The year-over-year decrease was due to higher sales with lower margins and strategic price reductions.
Consumer Cannabis:Aurora's consumer cannabis net revenue1 was $3.6 million, compared to $8.2 million in the prior year period. The decrease was due to our strategic shift to focus on Canadian and international medical cannabis and wind down our consumer business.
Adjusted gross margin before fair value adjustments1 on consumer cannabis net revenue1 was 22%, a decrease from 27% compared to the prior year period. The decrease is primarily due to higher input costs related to third-party sourcing.
Adjusted Selling, General and Administrative ("Adjusted SG&A"):Adjusted SG&A1 was $40.3 million for the three months ended March 31, 2026, compared to $35.4 million in the prior year period. The increase compared to the prior year period relates to increased headcount, higher contract labour in Europe and Australia, an expected credit loss of $1.9 million due to the insolvency of two customers and additional professional fees relating to public company costs incurred in the fourth quarter of the fiscal year.
Net Income (Loss):Net loss from continuing operations for the three months ended March 31, 2026 was $27.6 million compared to a net loss of $12.1 million for the prior year period. The increase in net loss from continuing operations of $15.4 million was primarily related to other expenses of $1.7 million in the current period, compared to other income of $11.9 million in the prior year period. This was slightly offset by an increase in gross profit of $2.5 million.
Adjusted Net Income:Adjusted net income1 was $5.6 million for the three months ended March 31, 2026 compared to $15.3 million for the prior year period. The $9.7 million decrease primarily relates to an increase in adjusted SG&A of $4.9 million, a decrease in foreign exchange gains and interest income, of $10.3 million and $4.5 million, respectively.
Adjusted EBITDA:Adjusted EBITDA1 was $9.2 million for the three months ended March 31, 2026 compared to $14.1 million for the prior year period.
Free Cash Flow:Free cash flow was $0.3 million compared to $5.2 million in the prior year quarter. Free cash flow decreased by $4.9 million primarily due to a decrease in gross profit before fair value adjustments of $5.3 million.
Strategic Business Update
Plant Propagation:On February 3, 2026, Aurora and its wholly owned subsidiary entered into a definitive agreement with Bevo Agtech Inc and Bevo Farms Ltd. pursuant to which, among other things, Aurora agreed to exchange all of its common shares of Bevo for preferred shares of Bevo. On February 17, 2026, the transaction closed, resulting in the disposal of the Company's 50.1% ownership interest in Bevo and loss of control. The financial results of Bevo are no longer consolidated in Aurora's financial statements subsequent to the closing of the transaction.
Safari Flower Company Acquisition:On April 15, 2026, the Company acquired Safari Flower Company ("Safari"), through a share purchase acquisition, for total consideration of $26.5 million, subject to customary closing adjustments. The consideration is composed of $15 million in cash and 2,417,180 Common Shares with an approximate fair value of $11.5 million. Included in the total consideration is contingent consideration totaling $2 million upon satisfying certain GMP certifications.
The acquisition of Safari provides the Company with a 59,000 square foot EU-GMP certified indoor cultivation and manufacturing facility to supply cannabis to key international markets while reducing reliance on third party purchases.
Fiscal Full Year 2027 Outlook:Our outlook reflects the strategic changes we have made in exiting our low margin Canadian Consumer and Plant Propagation businesses, which will allow the Company to reallocate resources to focus on global medical cannabis. We believe this is our highest return opportunity to create value.
Over the next few quarters, we are purposely investing in our international business through strategic sales initiatives and EU GMP capacity expansion to support growth in our most profitable markets. These efforts are expected to help offset the impact of margin reductions in our Canadian medical business, following the reduction in government reimbursed pricing, effective April 1, 2026.
Total Net Revenue1 is expected to decline and be more in line with our Cannabis Net Revenue results in fiscal year 2025, following the changes in Canadian medical partially offset by international growth, driven by Germany and Poland.
Adjusted Gross Margin before FV adjustments1 are expected to be in the mid to high fifties, driven by higher revenue contributions from Europe and the exit from the lower margin businesses. These benefits will partially offset lower margins in Canadian Medical.
Adjusted SG&A1 is expected to remain broadly in line with the prior fiscal year.
Adjusted EBITDA1 is expected to vary quarter over quarter, leading to lower annual adjusted EBITDA1 compared to the prior fiscal year. This change in expectations is due to the revisions in reimbursed pricing that drive lower net revenue and adjusted gross profits contributions.
Key Quarterly Financial Results
($ thousands)
Three months ended
March 31, 2026
December 31, 2025
$ Change
% Change
March 31, 2025
$ Change
% Change
Financial Results(3)
Net revenue (1)
84,816
82,893
1,923
2 %
76,768
8,048
10 %
Medical cannabis net revenue (1)
77,096
76,247
849
1 %
67,776
9,320
14 %
Consumer cannabis net revenue (1)
3,645
5,160
(1,515)
(29 %)
8,166
(4,521)
(55 %)
Adjusted gross margin before FV adjustments on total cannabis net revenue(1)
60 %
66 %
N/A
(6 %)
65 %
N/A
(5 %)
Adjusted gross margin before FV adjustments on medical cannabis net revenue(1)
66 %
69 %
N/A
(3 %)
71 %
N/A
(5 %)
Adjusted gross margin before FV adjustments on consumer cannabis net revenue(1)
22 %
28 %
N/A
(6 %)
27 %
N/A
(5 %)
Adjusted SG&A expense(1)
40,254
34,867
5,387
15 %
35,403
4,851
14 %
Adjusted EBITDA (1)
9,227
18,371
(9,144)
(50 %)
14,056
