Aurora Cannabis Announces Fiscal 2025 Third Quarter Results

Canada NewsWire

EDMONTON, AB, Feb. 5, 2025

NASDAQ | TSX: ACB

   -- Reports Total Net Revenue1 of $88.2 Million, up 37% YoY, Including Record 
      Net Revenue1 of $68.1 Million in Global Medical Cannabis, up 51% YoY 
 
   -- Generates Record Net Income of $31.2 Million, up 282% YoY, and Record 
      Adjusted EBITDA1 of $23.1 Million, up 316% YoY 
 
   -- Achieves Target of Positive Free Cash Flow1 in Q3, Generating $27.4 
      Million of Free Cash Flow1 
 
   -- Maintains Strong Balance Sheet with $180 Million of Cash and Debt-Free 
      Cannabis Business2 

EDMONTON, AB, Feb. 5, 2025 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") $(ACB)$ (TSX: ACB), a leading Canada-based global medical cannabis company, today announced its financial and operational results for the third quarter fiscal 2025.

"This quarter was record-breaking for Aurora, driven by all-time highs in global medical net revenue(1) , net income, adjusted EBITDA(1) , and free cash flow(1) . These achievements, along with our strong cash position and debt-free cannabis business, underscore Aurora's leadership in the global cannabis industry as we continue to set ourselves apart from our peers," said Miguel Martin, Executive Chairman and Chief Executive Officer for Aurora Cannabis.

"Our strong top-line performance and record adjusted EBITDA(1) were mostly fueled by contributions from our global medical cannabis business. International net revenue(1) grew 112% and accounted for 60% of global medical cannabis net revenue(1) . Additionally, our plant propagation segment increased 22%, driven by organic expansion and an enhanced product portfolio, further strengthening our operating model. Our stated goals of continued strategic growth, operational excellence, and long-term sustained profitability are unwavering and we are deeply appreciative of our team's efforts in helping us achieve these milestones," concluded Mr. Martin.

 
_________________________________________________________________________________________ 
(1) This press 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) Aurora's only remaining debt is non-recourse debt 
 of $57.9 million relating to Bevo Farms Ltd as detailed 
 in the FY2025 Q3 Financial Statements. 
 

Third Quarter 2025 Highlights

(Unless otherwise stated, comparisons are made between fiscal Q3 2025, Q2 2025, and Q3 2024 results and are in Canadian dollars)

Consolidated Revenue and Adjusted Gross Profit:

Total net revenue(1) was $88.2 million, as compared to $64.4 million in the prior year period. The 37% increase from the prior period was mainly due to 51% growth in our global medical cannabis business and 22% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business.

Consolidated adjusted gross margin before fair value adjustments(1) was 65% in Q3 2025 and 53% in the prior year quarter. Adjusted gross profit before FV adjustments(1) was $56.0 million in Q3 2025 vs $33.6 million in the prior year quarter, an increase of 67%.

Medical Cannabis:

Medical cannabis net revenue(1) was $68.1 million, a 51% increase from the prior year quarter, delivering 77% of Aurora's Q3 2025 consolidated net revenue(1) and 90% of adjusted gross profit before fair value adjustments(1) .

The increase in net revenue(1) of $23.1 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients.

Adjusted gross margin before fair value adjustments(1) on medical cannabis net revenue reached 74% for the three months ended December 31, 2024, compared to 63% in the prior year quarter. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.

Consumer Cannabis:

Aurora's consumer cannabis net revenue(1) was $9.9 million, a 15% decrease compared to $11.6 million in the prior year quarter. The decrease was due to our decision to prioritize the supply of our GMP manufactured products to our high margin global medical cannabis business rather than the consumer business, which offers lower margins.

Adjusted gross margin before fair value adjustments(1) on consumer cannabis net revenue(1) was 26%, decreasing from 29% compared to the prior year quarter. The decrease from the prior year comparative quarter is primarily due to product sales with lower margins relative to the same period in the prior year.

Plant Propagation:

Plant propagation net revenue(1) was wholly comprised of the Bevo business, and contributed $8.9 million of net revenue(1) , a 22% increase compared to $7.3 million in the prior year quarter. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity.

Adjusted gross margin before fair value adjustments(1) on plant propagation revenue was 40% for Q3 2025 and 28% for the prior year quarter. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments is due is due to higher margin ornamental plant sales in the third quarters. Additionally, Bevo's greenhouses are producing at higher capacity.

Selling, General and Administrative ("SG&A"):

Adjusted SG&A(1) was $31.3 million in Q3 2025, which excludes $4.9 million of business transformation costs. The increase compared to the three months ended December 31, 2023 relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia.

Net Income (Loss):

Net income from continuing operations for the three months ended December 31, 2024 was $31.2 million compared to net loss of $17.1 million for the prior year period. The increase in net income of $48.3 million compared to the three months ended December 31, 2023 primarily relates to the improvement in gross profit of $54.0 million, partially offset with a decrease in other income of $5.3 million. The increase in gross profit includes an increase in unrealized gain on changes in fair value of biological assets of $42.4 million, partially offset by an increase in changes in fair value of inventory and biological assets sold of $15.2 million.

Adjusted EBITDA:

Adjusted EBITDA(1) increased 316% to $23.1 million for the three months ended December 31, 2024 compared to $5.5 million for the prior year quarter.

Fiscal Q4 2025 Expectations:

   -- Continued revenue growth across our cannabis business, supported by year 
      over year growth in international medical cannabis. 
 
   -- Seasonally higher revenues for plant propagation, in line with historical 
      seasonal trends. 
 
   -- Margins to hold strong and positive adjusted EBITDA to continue. 
 
   -- Improved operating cash use will be supported by continued spend 
      discipline on capex and expected revenue growth. 
 
   -- Free cash flow is projected to be modestly positive due to continued 
      revenue growth and improved operating cash use. 

Subsequent Events:

Concurrently with filing of the Q3 Financials, the Company has filed a preliminary base shelf prospectus which, together with a corresponding registration statement to be filed with the United States Securities and Exchange Commission, when made final or effective, will replace the Company's existing base shelf prospectus that is due to expire on May 27, 2025 and will qualify the issuance of U.S.$250 million of common shares, warrants, options, subscription receipts, debt securities and/or units of the Company during the 25-month period that it remains effective.

Key Quarterly Financial Results

 
($ thousands,   Three months ended 
except 
Operational 
Results) 
                December31,  September30,  $ Change  % Change  December31,  $ Change  % Change 
                2024         2024                              2023(3) 
Financial 
Results 
Net revenue 
 (1a)               $88,198       $81,122    $7,076       9 %      $64,375   $23,823      37 % 
Medical 
 cannabis net 
 revenue (1a)       $68,149       $61,316    $6,833      11 %      $45,038   $23,111      51 % 
Consumer 
 cannabis net 
 revenue (1a)        $9,912       $10,422    ($510)     (5 %)      $11,623  ($1,711)    (15 %) 
Plant 
 propagation 
 revenue             $8,897        $8,634      $263       3 %       $7,285    $1,612      22 % 
Adjusted gross 
 margin before 
 FV 
 adjustments 
 on total 
 net revenue 
 (1b)                  65 %          54 %       N/A      11 %         53 %       N/A      12 % 
Adjusted gross 
 margin before 
 FV 
 adjustments 
 on cannabis 
 net revenue 
 (1b)                  67 %          57 %       N/A   10% 11%         56 %       N/A      11 % 
Adjusted gross 
 margin before 
 FV 
 adjustments 
 on medical 
 cannabis net 
 revenue (1b)          74 %          68 %       N/A       6 %         63 %       N/A      11 % 
Adjusted gross 
 margin before 
 FV 
 adjustments 
 on consumer 
 cannabis net 
 revenue (1b)          26 %          14 %       N/A      12 %         29 %       N/A     (3 %) 
Adjusted gross 
 margin before 
 FV 
 adjustments 
 on plant 
 propagation 
 net revenue 
 (1b)                  40 %          19 %       N/A      21 %         28 %       N/A      12 % 
Adjusted SG&A 
 expense(1d)        $31,262       $31,722    ($460)     (1 %)      $27,759    $3,503      13 % 
Adjusted 
 EBITDA (1c)        $23,101       $10,122   $12,979     128 %       $5,549   $17,552     316 % 
Free cash flow 
 (1e)               $27,364     ($26,433)   $53,797     204 %     ($4,702)   $32,066     682 % 
 
Balance Sheet 
Working 

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