Aurora Cannabis Announces Fiscal 2027 First Quarter Results
Rhea-AI Summary
Aurora Cannabis (NASDAQ | TSX: ACB) reported fiscal Q1 2027 net revenue of $67.6 million, down 9% year over year, with medical cannabis contributing $64.0 million. International medical cannabis net revenue rose 17% to $43.3 million, while Canadian medical cannabis fell to $20.7 million, mainly due to lower federal reimbursement rates.
Adjusted gross margin before fair value adjustments was 58% versus 64% a year ago. Net loss from continuing operations narrowed to $4.0 million from $10.2 million, but adjusted EBITDA declined to $3.4 million from $10.8 million and free cash flow swung to an outflow of $5.8 million. Aurora ended the quarter with $149.1 million in cash, cash equivalents and short-term investments and no debt. The Company closed the acquisition of Safari Flower Company, adding a 59,000 sq. ft. EU-GMP indoor facility, which later received a three-year EU-GMP certification, and reiterated its strategy to focus on global medical cannabis, expecting sequential increases in revenue and adjusted EBITDA in fiscal Q2.
Positive
- International medical cannabis net revenue increased to $43.3 million, up 17% year over year
- Net loss from continuing operations improved to $4.0 million from $10.2 million
- Cash, cash equivalents and short-term investments totaled $149.1 million with no debt
- Safari Flower Company acquisition adds 59,000 sq. ft. EU-GMP facility and three-year EU-GMP certification
- Operating expenses decreased to $44.4 million from $45.5 million
- Adjusted SG&A declined to $35.1 million from $36.1 million
Negative
- Total net revenue decreased to $67.6 million from $74.1 million year over year
- Canadian medical cannabis net revenue declined to $20.7 million from $27.7 million
- Consumer cannabis net revenue dropped to $2.1 million from $7.9 million amid business wind down
- Adjusted gross margin before fair value adjustments fell to 58% from 64%
- Adjusted EBITDA decreased to $3.4 million from $10.8 million
- Free cash flow moved to an outflow of $5.8 million from an inflow of $6.8 million
News Explained
Aurora completed the divestiture of its
AI-generated analysis. How Rhea-AI works. Not financial advice.
NASDAQ | TSX: ACB
- Delivers Net Revenue of
$67.6 million 17% YoY Increase in International Medical Cannabis Net Revenue - Safari Flower Company Receives Three-Year EU-GMP Certification, Strengthens Ability to Supply Growing, High-Margin International Medical Cannabis Markets
- Maintains Strong Balance Sheet with
$149.1 million
"We remain confident in our commercial execution, supported by our genetics program and regulatory and operational expertise which underpin our leadership in
"The first quarter reflects our continued strength, as we delivered international revenue growth and leading adjusted gross margins1, anchored by a cost structure designed to support topline growth. In the second quarter, we expect both revenue and Adjusted EBITDA1 to improve sequentially, driven by increasing global patient demand for medical cannabis," 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 and Cash Equivalents refers to cash, restricted cash and cash equivalents. |
First Quarter 2027 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q1 2027 and Q1 2026 results and are in Canadian dollars)
On February 17, 2026, the Company completed the divestiture of its
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue was
Consolidated adjusted gross margin before fair value adjustments1 was
Medical Cannabis:
Medical cannabis net revenue was
Canadian medical cannabis net revenue1 was
International medical cannabis net revenue increased to
Adjusted gross margin before fair value adjustments1 on medical cannabis net revenue1 was
Consumer Cannabis:
Aurora's consumer cannabis net revenue was
Adjusted gross margin before fair value adjustments1 on consumer cannabis net revenue1 was
Adjusted Selling, General and Administrative ("Adjusted SG&A"):
Adjusted SG&A1 was
Net Income (Loss):
Net loss from continuing operations was
Adjusted Net Income:
Adjusted net income1 was
Adjusted EBITDA:
Adjusted EBITDA1 was
Free Cash Flow:
Free cash flow was an outflow
Safari Flower Company Acquisition:
The accretive acquisition of Safari Flower Company ("Safari"), which closed on April 14, 2026, provides us with a 59,000 square foot EU-GMP certified indoor cultivation and manufacturing facility, adding critical EU GMP capacity to support further revenue growth in the expanding, high margin international markets.
This incremental capacity is expected to improve product availability and speed to market, while also reducing reliance on third-party suppliers, which should help drive top line growth. We intend to invest approximately
On July 23, 2026, we announced that Safari received its EU-GMP certification for its
Fiscal Full Year 2027 Outlook (Unchanged):
Our reiterated outlook now capitalizes on the strategic decisions taken to exit our low margin Canadian Consumer and Plant Propagation businesses, which will allow the Company to reallocate resources to focus exclusively on global medical cannabis. We believe this is our highest return and growth opportunity to create shareholder 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. This includes our new wholly owned subsidiary, Safari Flower Company, a trusted cultivator and manufacturer of high-quality medical cannabis, which provides incremental capacity to support further revenue growth in our key high margin international markets.
These investments support our goal of driving the business to new records for revenue and adjusted EBITDA and generate sustained returns for our shareholders in the long term.
In the fiscal second quarter, we expect revenue and adjusted EBITDA to be sequentially higher than in the fiscal first quarter.
Key Quarterly Financial Results
($ thousands) | Three months ended | |
June 30, 2026 | June 30, 2025 | |
Financial Results | ||
Net revenue (1) | 67,554 | 74,076 |
Medical cannabis net revenue(2) | 64,036 | 64,768 |
Gross profit | 35,622 | 33,528 |
Gross profit before fair value ("FV") adjustments (1) | 29,192 | 38,849 |
Gross margin (3) | 53 % | 45 % |
Gross margin before FV adjustments (3) | 43 % | 52 % |
Adjusted gross margin before FV adjustments on total net revenue (4) | 58 % | 64 % |
Adjusted gross margin before FV adjustments on medical cannabis net revenue (4) | 61 % | 69 % |
Operating expenses | 44,353 | 45,470 |
General and administration | 24,602 | 26,872 |
Sales and marketing | 15,591 | 14,455 |
Adjusted selling, general & administration expense ("adjusted SG&A")(4) | 35,084 | 36,095 |
Other income (expenses) | 5,101 | 1,685 |
Net loss from continuing operations | (4,033) | (10,186) |
Net income (loss) from discontinued operations, net of taxes | — | (9,679) |
Net loss | (4,033) | (19,865) |
Adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") (4) | 3,443 | 10,815 |
Adjusted net income (4) | 3,811 | 6,598 |
Net cash provided by (used in) operating activities from continuing operations | (4,446) | 7,679 |
Free cash flow (4) | (5,793) | 6,772 |
(1) | As presented in the interim condensed consolidated statements of loss and comprehensive loss. |
(2) | See "Net Revenue" section in the MDA. |
(3) | Gross margin and Gross margin before FV adjustments, respectively, are calculated as gross profit and gross profit before FV adjustments, respectively, divided by net revenue. |
(4) | These terms are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the MD&A, including information on reconciliation to the most directly comparable IFRS measure. See "Non-GAAP Measures" below for reconciliations of non-GAAP financial measures to GAAP financial measures. |
Conference Call
Aurora will host a conference call today, Wednesday, August 5, 2026, to discuss these results. Miguel Martin, Chief Executive Officer, and Simona King, Chief Financial Officer, will host the call starting at 8:00 a.m. Eastern time | 6:00 a.m. Mountain Time. A question and answer session will follow management's presentation.
DATE: | Wednesday, August 5, 2026 |
TIME: | 8:00 a.m. Eastern Time | 6:00 a.m. Mountain Time |
WEBCAST: |
About Aurora Cannabis
Aurora is a global leader in medical cannabis, dedicated to improving lives through scientific expertise, proven performance, and a deep commitment to patient care. Aurora serves medical markets across
Aurora's common shares trade on the NASDAQ and TSX under the symbol "ACB".
Forward Looking Statements
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements made in this news release include, but are not limited to, statements regarding the Company's fiscal 2027 first quarter results; competitive advantages, including but not limited to commercial execution, genetics, and regulatory and operational expertise; the Company's leadership in
These forward-looking statements are only predictions. Forward-looking information or statements contained in this news release have been developed based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. Forward-looking information and statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including, among other things, assumptions about: development costs remaining consistent with budgets; the ability to manage anticipated and unanticipated costs; access to favorable equity and debt capital markets; the ability to raise sufficient capital to advance the business of the Company; favorable operating and economic conditions; political and regulatory stability; obtaining and maintaining all required licenses and permits; receipt of governmental approvals and permits; sustained labour stability; stability in financial and capital goods markets; favorable production levels and costs from the Company's operations; the pricing of various cannabis products; the level of demand for cannabis products; the availability of third-party service providers and other inputs for the Company's operations; and the Company's ability to conduct operations in a safe, efficient, and effective manner. The Company does not give any assurance that the assumptions on which forward-looking information or statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in
Non-GAAP Measures
This news release contains reference to certain financial performance measures that are not recognized or defined under IFRS (termed "Non-GAAP Measures"). As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. Non-GAAP Measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company's operating results, underlying performance and prospects in a manner similar to Aurora's management. Accordingly, these non-GAAP Measures are intended to provide additional information and to assist management and investors in assessing financial performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The information included under the heading "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" in the FY27 Q1 MD&A is incorporated by reference into this news release. The MD&A is available on the Company's issuer profiles on SEDAR+ at www.sedarplus.com and on the
Net Revenue, Adjusted Gross Profit and Margin
Net revenue, adjusted gross profit before FV adjustments, and adjusted gross margin before FV adjustments are Non-GAAP Measures and can be reconciled with revenue, gross profit and gross margin, the most directly comparable GAAP financial measures, respectively, as follows:
($ thousands) | Three months ended | |
June 30, 2026 | June 30, 2025 | |
Medical cannabis net revenue: | ||
Canadian medical cannabis net revenue | 20,699 | 27,674 |
International medical cannabis net revenue | 43,337 | 37,094 |
Total medical cannabis net revenue | 64,036 | 64,768 |
Consumer cannabis net revenue | 2,060 | 7,875 |
Wholesale bulk cannabis net revenue | 1,458 | 1,433 |
Total net revenue(1) | 67,554 | 74,076 |
(1) | As presented in the interim condensed consolidated statements of loss and comprehensive loss. |
Adjusted EBITDA
The following is the Company's adjusted EBITDA:
($ thousands) | Three months ended | |
June 30, 2026 | June 30, 2025 (3) | |
Net loss from continuing operations | (4,033) | (10,186) |
Income tax expense (recovery) | 403 | (71) |
Other income | (5,101) | (1,685) |
Share-based compensation | 693 | 2,186 |
Depreciation and amortization | 3,427 | 3,560 |
Business development costs | 1,589 | 361 |
Inventory and biological assets fair value and impairment adjustments | 1,356 | 11,418 |
Business transformation costs (1) | 5,109 | 5,232 |
Adjusted EBITDA (2) | 3,443 | 10,815 |
(1) | Business transformation related charges include costs related to restructuring, certain IT project costs, sublease income, severance and retention costs in connection with the consumer channel exit, and legal provisions. |
(2) | Adjusted EBITDA is defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the MD&A, including information on reconciliation to the most directly comparable IFRS measure. |
(3) | Prior period comparatives were adjusted to include the adjustments for markets under development, business transformation costs and non-recurring charges related to non-core bulk cannabis wholesale to be comparable to the current period presentation. |
Adjusted Net Income
The following is the Company's adjusted net income (loss):
($ thousands) | Three months ended | |
June 30, 2026 | June 30, 2025 | |
Net income (loss) from continuing operations | (4,033) | (10,186) |
Inventory and biological assets fair value and impairment adjustments | 1,356 | 11,418 |
Business development costs | 1,589 | 361 |
Business transformation costs (1) | 4,899 | 5,005 |
Adjusted net income (2) | 3,811 | 6,598 |
(1) | Business transformation related charges include costs related to restructuring costs, certain IT project costs, severance and retention costs in connection with the consumer channel exit, and legal provisions. |
(2) | Adjusted net income is defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the MD&A, including information on reconciliation to the most directly comparable IFRS measure. |
Adjusted SG&A
Adjusted SG&A is a Non-GAAP Measure and can be reconciled with sales and marketing and general and administrative expenses, the most directly comparable GAAP financial measure, as follows:
Three months ended | ||
($ thousands) | June 30, 2026 | June 30, 2025 |
General and administration | 24,602 | 26,872 |
Sales and marketing | 15,591 | 14,455 |
Business transformation costs (2) | (5,109) | (5,232) |
Adjusted SG&A (1) | 35,084 | 36,095 |
(1) | Adjusted SG&A is defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the MD&A, including information on reconciliation to the most directly comparable IFRS measure.. |
(2) | Business transformation related charges include costs related to restructuring, certain IT project costs, sublease income, severance and retention costs in connection with the consumer channel exit, and legal provisions. |
Free Cash Flow
The table below outlines free cash flow for the periods ended:
Three months ended | ||
($ thousands) | June 30, 2026 | June 30, 2025 |
Net cash provided by (used in) operating activities from continuing operations | (4,446) | 7,679 |
Less: maintenance capital expenditures(1) | (1,347) | (907) |
Free cash flow(2) | (5,793) | 6,772 |
(1) | Maintenance capital expenditures includes the costs to sustain facilities, machinery and equipment in working order to support operations and excludes discretionary investments for revenue growth. |
(2) | Free cash flow is defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the MD&A, including information on reconciliation to the most directly comparable IFRS measure. |
Working Capital
Working capital is a Non-GAAP Measure and can be reconciled with total current assets and total current liabilities, the most directly comparable GAAP financial measure, as follows:
($ thousands) | Three months ended | |
June 30, 2026 | June 30, 2025 | |
Total current assets | 393,449 | 465,301 |
Total current liabilities | (73,429) | (156,885) |
Working capital | 320,020 | 308,416 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/aurora-cannabis-announces-fiscal-2027-first-quarter-results-302843099.html
SOURCE Aurora Cannabis Inc.