Aurora Cannabis (Nasdaq: ACB) June 30, 2026 results show smaller loss
Rhea-AI Filing Summary
Aurora Cannabis Inc. reported results for the three months ended June 30, 2026, as it refocuses on higher-margin global medical cannabis. Net revenue was C$67.6 million, down from C$74.1 million a year earlier, while net loss from continuing operations narrowed to C$4.0 million from C$10.2 million.
Medical cannabis net revenue was stable at C$64.0 million: Canadian medical declined to C$20.7 million after an estimated 30% cut to federal reimbursement rates, offset by international medical growth to C$43.3 million, mainly in Germany. Consumer cannabis revenue fell to C$2.1 million as that business is wound down.
Gross margin before fair value adjustments fell to 43%, but reported gross margin rose to 53% on higher fair value gains from biological assets. Adjusted EBITDA was C$3.4 million versus C$10.8 million, and free cash flow was an outflow of C$5.8 million.
The company acquired Safari Flower Company for total consideration of about C$24.7 million, adding EU-GMP-certified capacity that contributed C$2.8 million of revenue and C$1.7 million of pre-tax profit in the period. Liquidity comprised C$69.3 million of cash, C$30.7 million of short-term investments and restricted cash, including about C$46.4 million expected to be released after winding up a segregated cell insurance program.
Positive
- None.
Negative
- None.
Key Figures
Net revenue: C$67,554 thousand
Net loss from continuing operations: C$4,033 thousand
Medical cannabis net revenue: C$64,036 thousand
+5 more
8 metrics
Net revenue
C$67,554 thousand
For the three months ended June 30, 2026
Net loss from continuing operations
C$4,033 thousand
For the three months ended June 30, 2026
Medical cannabis net revenue
C$64,036 thousand
For the three months ended June 30, 2026
Adjusted EBITDA
C$3,443 thousand
Non-GAAP measure for the three months ended June 30, 2026
Safari acquisition consideration
C$24,730 thousand
Total fair value of consideration for Safari Flower Company
Cash and cash equivalents
C$69,307 thousand
Balance as of June 30, 2026
Restricted cash to be released
C$46.4 million
Expected to become unrestricted after segregated cell wind-up
Free cash flow
C$(5,793) thousand
Free cash flow for the three months ended June 30, 2026
Key Terms
EU-GMP certification, segregated cell program, adjusted EBITDA, At-The-Market Equity Program, +2 more
6 terms
EU-GMP certification regulatory
"Safari received its EU-GMP certification for its Ontario facility"
EU-GMP certification is an official approval that a drug or medical product maker follows the European Union’s Good Manufacturing Practice standards for consistent, safe production. For investors it signals lower regulatory and quality risk, smoother access to EU markets, and greater likelihood that products will pass inspections—similar to a restaurant earning a high food-safety grade showing reliable, repeatable processes.
segregated cell program financial
"wind-up of the Company's segregated cell program associated with its self-insurance policy"
adjusted EBITDA financial
"drive the business to new records for revenue and adjusted EBITDA"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
At-The-Market Equity Program financial
"establishing a new ATM Program that allows the Company to issue and sell up to U.S.$100 million"
An at-the-market equity program lets a company sell newly issued shares directly into the open market at the current trading price through a broker, rather than in a single, prearranged block. It provides flexible, on-demand access to cash—like drawing small amounts from a credit line—but increases the number of shares outstanding, which can reduce existing shareholders’ ownership percentage and put downward pressure on the stock price, so investors monitor program size and pacing.
biological assets financial
"Gain on changes in fair value of biological assets was $38.7 million"
Biological assets are living organisms — such as livestock, crops, orchards, vineyards or trees — that a business cultivates or raises because they are expected to produce future economic value. For investors they matter because these assets grow, age, reproduce and can be lost to disease or weather, so their value and the company’s future revenue can change more quickly and unpredictably than with nonliving property; think of them as inventory that can grow or shrink on its own.
IFRS 18 regulatory
"IFRS 18, Presentation and Disclosures in Financial Statements, replaces IAS 1"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Aurora Cannabis (ACB) perform in the quarter ended June 30, 2026?
Aurora generated C$67.6 million in net revenue and a net loss from continuing operations of C$4.0 million. Gross profit was C$35.6 million, gross margin was 53%, and adjusted EBITDA, a non-GAAP measure, came in at C$3.4 million.
What were Aurora Cannabis (ACB)’s medical and consumer cannabis revenues?
Medical cannabis net revenue was C$64.0 million, with C$20.7 million from Canada and C$43.3 million from international markets. Consumer cannabis net revenue declined to C$2.1 million as Aurora continues to wind down its Canadian consumer business.
How does the Safari Flower Company acquisition affect Aurora Cannabis (ACB)?
Aurora acquired Safari for total consideration of about C$24.7 million, including cash and shares. Safari adds EU-GMP-certified cultivation and manufacturing capacity and contributed C$2.8 million of revenue and C$1.7 million of pre-tax profit in the quarter.
What liquidity and capital resources did Aurora Cannabis (ACB) have as of June 30, 2026?
Aurora held C$69.3 million in cash and cash equivalents, C$30.7 million in short-term investments, and C$49.1 million in restricted cash. Working capital was C$320.0 million, with lease liabilities of C$22.7 million and total equity of C$527.1 million.
How did Aurora Cannabis (ACB)’s adjusted EBITDA and free cash flow change year over year?
Adjusted EBITDA was C$3.4 million, down from C$10.8 million a year earlier, mainly due to lower adjusted gross profit. Free cash flow swung to an outflow of C$5.8 million, compared with an inflow of C$6.8 million in the prior-year period.
What future cash benefit will the segregated cell wind-up bring Aurora Cannabis (ACB)?
Aurora’s board approved winding up its self-insurance segregated cell program, which is expected to release about C$46.4 million of restricted cash. Once completed, targeted by the third quarter of fiscal 2027, this cash will be reclassified to cash and cash equivalents.
How are Canadian and international medical markets affecting Aurora Cannabis (ACB)?
Canadian medical net revenue fell to C$20.7 million, mainly from about a 30% cut in federal reimbursement rates from April 1, 2026. International medical net revenue grew to C$43.3 million, driven largely by higher patient demand in Germany and other key export markets.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2026
Commission File No. 001-38691
AURORA CANNABIS INC.
(Translation of registrant’s name into English)
2207 90B St. SW
Edmonton, Alberta T6X 1V8
Canada
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F
Form 20-F ☐ Form 40-F ☒
INCORPORATION BY REFERENCE
Each of Exhibit 99.1 and 99.2 to this Form 6-K is hereby filed and incorporated by reference into the registrant’s Registration Statements on Form F-10 (File No. 333-284958) and on Form S-8 (File No. 333-282253).
SUBMITTED HEREWITH
| Exhibits | Description | ||||
99.1 | Condensed Consolidated Interim Financial Statements for the three months ended June 30, 2026 and 2025 | ||||
99.2 | Interim Management’s Discussion and Analysis for the three months ended June 30, 2026 and 2025 | ||||
99.3 | Certification of Chief Executive Officer | ||||
99.4 | Certification of Chief Financial Officer | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AURORA CANNABIS INC.
/s/ Miguel Martin
Miguel Martin
Miguel Martin
Chief Executive Officer
Date: August 5, 2026
AURORA CANNABIS INC.
Interim Condensed Consolidated Financial Statements
(Unaudited)
For the three months ended June 30, 2026 and 2025
(in Canadian Dollars)
Table of Contents
Interim Condensed Consolidated Statements of Financial Position | 3 | ||||
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss | 4 | ||||
Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity | 6 | ||||
Interim Condensed Consolidated Statements of Cash Flows | 7 | ||||
Notes to the Interim Condensed Consolidated Financial Statements | |||||
| Note 1 | Nature of Operations | 8 | Note 8 | Property, Plant and Equipment | 12 | |||||||||||||||
| Note 2 | Basis of Presentation and Measurement | 8 | Note 9 | Share Capital | 13 | |||||||||||||||
| Note 3 | Business Combination | 9 | Note 10 | Share-Based Compensation | 13 | |||||||||||||||
| Note 4 | Discontinued Operations | 10 | Note 11 | Loss Per Share | 16 | |||||||||||||||
| Note 5 | Biological Assets | 10 | Note 12 | Segmented Information | 17 | |||||||||||||||
| Note 6 | Inventory | 11 | Note 13 | Supplemental Cash Flow Information | 18 | |||||||||||||||
Note 7 | Assets Held for Sale | 11 | Note 14 | Fair Value of Financial Instruments | 19 | |||||||||||||||
Note 15 | Subsequent Event | 19 | ||||||||||||||||||
AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited)
| ($ thousands) | Note | June 30, 2026 | March 31, 2026 | ||||||||
| $ | $ | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 69,307 | 64,690 | |||||||||
| Restricted cash | 13 | 49,086 | 47,791 | ||||||||
| Short-term investments | 30,722 | 52,213 | |||||||||
| Accounts receivable | 41,091 | 44,578 | |||||||||
| Biological assets | 5 | 24,000 | 20,213 | ||||||||
| Inventory | 6 | 163,543 | 154,862 | ||||||||
| Prepaids and other current assets | 12,564 | 11,120 | |||||||||
| Assets held for sale | 7 | 3,136 | 1,986 | ||||||||
| 393,449 | 397,453 | ||||||||||
| Property, plant and equipment | 8 | 146,752 | 123,688 | ||||||||
| Long-term investments | 12,533 | 12,113 | |||||||||
| Deposits and other long-term assets | 2,267 | 3,618 | |||||||||
| Lease receivable | 3,246 | 3,665 | |||||||||
| Intangible assets | 32,731 | 31,441 | |||||||||
| Goodwill | 27,342 | 26,651 | |||||||||
| Deferred tax assets | 2,557 | 2,458 | |||||||||
| Total assets | 620,877 | 601,087 | |||||||||
| Liabilities | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and accrued liabilities | 56,830 | 50,592 | |||||||||
| Income taxes payable | 7,439 | 6,959 | |||||||||
| Deferred revenue | 799 | 1,270 | |||||||||
| Lease liabilities - current portion | 5,875 | 5,729 | |||||||||
| Provisions | 2,486 | 2,380 | |||||||||
| 73,429 | 66,930 | ||||||||||
| Lease liabilities | 16,809 | 18,130 | |||||||||
| Derivative liabilities | 2,892 | 3,697 | |||||||||
| Other long-term liabilities | 569 | 498 | |||||||||
| Deferred tax liabilities | 47 | — | |||||||||
| Total liabilities | 93,746 | 89,255 | |||||||||
| Shareholders’ equity | |||||||||||
| Share capital | 9 | 7,027,979 | 7,007,226 | ||||||||
| Contributed surplus | 158,807 | 160,108 | |||||||||
| Accumulated other comprehensive loss | (213,714) | (213,594) | |||||||||
| Accumulated deficit | (6,445,941) | (6,441,908) | |||||||||
| Total shareholders’ equity | 527,131 | 511,832 | |||||||||
| Total liabilities and shareholders’ equity | 620,877 | 601,087 | |||||||||
See accompanying notes to these interim condensed consolidated financial statements.
3
AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
| Three months ended June 30, | |||||||||||
| ($ thousands) | Note | 2026 | 2025(1) | ||||||||
| $ | $ | ||||||||||
| Revenue | 70,757 | 80,508 | |||||||||
| Excise taxes | (3,203) | (6,432) | |||||||||
| Net revenue | 12 | 67,554 | 74,076 | ||||||||
| Cost of sales | 6 | 38,362 | 35,227 | ||||||||
| Gross profit before fair value adjustments | 29,192 | 38,849 | |||||||||
Loss on changes in fair value of inventory and biological assets sold | 5, 6 | 32,272 | 31,437 | ||||||||
| Gain on changes in fair value of biological assets | 5 | (38,702) | (26,116) | ||||||||
| Gross profit | 35,622 | 33,528 | |||||||||
Operating expenses | |||||||||||
| General and administration | 24,602 | 26,872 | |||||||||
| Sales and marketing | 15,591 | 14,455 | |||||||||
| Business development costs | 3 | 1,589 | 361 | ||||||||
| Research and development | 941 | 829 | |||||||||
| Depreciation and amortization | 8 | 937 | 767 | ||||||||
| Share-based compensation | 10 | 693 | 2,186 | ||||||||
| 44,353 | 45,470 | ||||||||||
| Other income (expenses) | |||||||||||
| Interest and other income | 1,241 | 1,823 | |||||||||
| Finance and other costs | (464) | (486) | |||||||||
| Foreign exchange gain (loss) | 2,881 | (86) | |||||||||
| Other gains | 1,443 | 434 | |||||||||
| 5,101 | 1,685 | ||||||||||
| Loss before income tax (expense) recovery | (3,630) | (10,257) | |||||||||
| Income tax (expense) recovery | |||||||||||
| Current | (502) | 173 | |||||||||
| Deferred, net | 99 | (102) | |||||||||
| (403) | 71 | ||||||||||
| Net loss from continuing operations | (4,033) | (10,186) | |||||||||
| Net loss from discontinued operations, net of tax | 4 | — | (9,679) | ||||||||
Net loss | (4,033) | (19,865) | |||||||||
(1) Adjusted for discontinued operations (Note 4).
See accompanying notes to these interim condensed consolidated financial statements.
4
AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
| Three months ended June 30, | |||||||||||
| ($ thousands) | Note | 2026 | 2025(1) | ||||||||
| $ | $ | ||||||||||
| Net loss from continuing operations | (4,033) | (10,186) | |||||||||
| Net loss from discontinued operations, net of tax | 4 | — | (9,679) | ||||||||
| Net loss | (4,033) | (19,865) | |||||||||
Other comprehensive loss that may be reclassified to net loss | |||||||||||
| Foreign currency translation loss | (120) | (685) | |||||||||
Total other comprehensive loss | (120) | (685) | |||||||||
| Comprehensive loss from continuing operations | (4,153) | (10,871) | |||||||||
| Comprehensive loss from discontinued operations | 4 | — | (9,679) | ||||||||
| Comprehensive loss | (4,153) | (20,550) | |||||||||
| Net loss from continuing operations attributable to: | |||||||||||
| Common shareholders | (4,033) | (10,186) | |||||||||
| Non-controlling interests | — | — | |||||||||
| Net loss from discontinued operations attributable to: | 4 | ||||||||||
| Common shareholders | — | (5,023) | |||||||||
| Non-controlling interests | — | (4,656) | |||||||||
| Comprehensive loss attributable to: | |||||||||||
| Common shareholders | (4,153) | (15,894) | |||||||||
| Non-controlling interests | — | (4,656) | |||||||||
| Net loss per share - basic | |||||||||||
| Continuing operations | 11 | (0.07) | (0.18) | ||||||||
| Discontinued operations | 11 | — | (0.09) | ||||||||
| Total operations | 11 | (0.07) | (0.27) | ||||||||
| Net loss per share - diluted | |||||||||||
| Continuing operations | 11 | (0.07) | (0.18) | ||||||||
| Discontinued operations | 11 | — | (0.09) | ||||||||
| Total operations | 11 | (0.07) | (0.27) | ||||||||
(1) Adjusted for discontinued operations (Note 4).
See accompanying notes to these interim condensed consolidated financial statements.
5
AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
| Share Capital | |||||||||||||||||||||||||||||
| ($ thousands) | Note | Common Shares | Amount | Contributed Surplus | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||
| # | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Balance, March 31, 2026 | 58,947,593 | 7,007,226 | 160,108 | (213,594) | (6,441,908) | 511,832 | |||||||||||||||||||||||
| Shares issued for business combination | 3 | 2,417,180 | 11,627 | — | — | — | 11,627 | ||||||||||||||||||||||
| Shares issued through equity financing | 9(b) | 1,577,330 | 6,844 | (284) | — | — | 6,560 | ||||||||||||||||||||||
| Share issuance costs | 9(b) | — | (233) | — | — | — | (233) | ||||||||||||||||||||||
| Shares issued under share-based compensation plans | 10 | 367,958 | 2,515 | (2,515) | — | — | — | ||||||||||||||||||||||
| Share-based compensation | 10 | — | — | 1,498 | — | — | 1,498 | ||||||||||||||||||||||
| Comprehensive loss | — | — | — | (120) | (4,033) | (4,153) | |||||||||||||||||||||||
Balance, June 30, 2026 | 63,310,061 | 7,027,979 | 158,807 | (213,714) | (6,445,941) | 527,131 | |||||||||||||||||||||||
| Share Capital | ||||||||||||||||||||||||||||||||
| ($ thousands) | Note | Common Shares | Amount | Contributed Surplus | Accumulated Other Comprehensive Loss | Accumulated Deficit | Non-Controlling Interests (Note 4) | Total | ||||||||||||||||||||||||
| # | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Balance, March 31, 2025 | 56,234,231 | 6,991,154 | 158,970 | (215,208) | (6,367,745) | 41,420 | 608,591 | |||||||||||||||||||||||||
| Share issuance costs | — | (73) | — | — | — | — | (73) | |||||||||||||||||||||||||
| Exercise of stock options | 3,968 | 46 | (16) | — | — | — | 30 | |||||||||||||||||||||||||
| Shares issued under share-based compensation plans | 10 | 14,461 | 287 | (287) | — | — | — | — | ||||||||||||||||||||||||
| Share-based compensation | 10 | — | — | 1,805 | — | — | — | 1,805 | ||||||||||||||||||||||||
| Put option liability | — | — | — | — | (1,119) | — | (1,119) | |||||||||||||||||||||||||
| Comprehensive loss | — | — | — | (685) | (15,209) | (4,656) | (20,550) | |||||||||||||||||||||||||
| Balance, June 30, 2025 | 56,252,660 | 6,991,414 | 160,472 | (215,893) | (6,384,073) | 36,764 | 588,684 | |||||||||||||||||||||||||
See accompanying notes to these interim condensed consolidated financial statements.
6
AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Three months ended June 30, | |||||||||||
| ($ thousands) | Note | 2026 | 2025(1) | ||||||||
| $ | $ | ||||||||||
| Operating activities | |||||||||||
| Net loss from continuing operations | (4,033) | (10,186) | |||||||||
| Adjustments for non-cash items: | |||||||||||
| Unrealized gain on changes in fair value of biological assets | 5 | (38,702) | (26,116) | ||||||||
Changes in fair value of inventory and biological assets sold | 5, 6 | 32,272 | 31,437 | ||||||||
| Depreciation of property, plant and equipment | 3,872 | 4,004 | |||||||||
| Amortization of intangible assets | 93 | 164 | |||||||||
| Share-based compensation | 10 | 693 | 2,186 | ||||||||
| Net interest accrual and accretion | (112) | (394) | |||||||||
| Deferred tax (recovery) expense | (99) | 102 | |||||||||
| Other (gains) losses | (1,443) | 230 | |||||||||
| Foreign exchange gain | (3,358) | (241) | |||||||||
| Deferred compensation amortization | 951 | 951 | |||||||||
| Net cash provided by (used in) operating activities from continuing operations before changes in non-cash working capital | (9,866) | 2,137 | |||||||||
| Changes in non-cash working capital | 13 | 5,420 | 5,542 | ||||||||
| Net cash provided by (used in) operating activities from continuing operations | (4,446) | 7,679 | |||||||||
| Net cash provided by operating activities from discontinued operations | — | 2,442 | |||||||||
| Net cash provided by (used in) operating activities | (4,446) | 10,121 | |||||||||
| Investing activities | |||||||||||
| Purchase of property, plant and equipment and intangible assets | (5,410) | (4,875) | |||||||||
| Proceeds from sale of short-term investments | 21,491 | — | |||||||||
| Acquisition of business, net of cash acquired | 3 | (14,842) | — | ||||||||
| Net cash provided by (used in) investing activities from continuing operations | 1,239 | (4,875) | |||||||||
| Net cash used in investing activities from discontinued operations | — | (159) | |||||||||
| Net cash provided by (used in) investing activities | 1,239 | (5,034) | |||||||||
| Financing activities | |||||||||||
| Net principal payments of lease liabilities | (1,236) | (1,193) | |||||||||
| Proceeds from issuance of Common Shares | 9(b) | 6,844 | — | ||||||||
| Share issuance costs | 9(b) | (233) | — | ||||||||
| Proceeds from stock option exercise | — | 30 | |||||||||
| Net cash provided by (used in) financing activities from continuing operations | 5,375 | (1,162) | |||||||||
| Net cash used in financing activities from discontinued operations | — | (2,160) | |||||||||
| Net cash provided by (used in) financing activities | 5,375 | (3,322) | |||||||||
| Effect of foreign exchange on cash and cash equivalents | 2,449 | 474 | |||||||||
| Increase in cash and cash equivalents | 4,617 | 2,239 | |||||||||
| Cash and cash equivalents, beginning of period | 64,690 | 137,921 | |||||||||
| Cash and cash equivalents, end of period | 69,307 | 140,160 | |||||||||
(1) Adjusted for discontinued operations (Note 4).
See accompanying notes to these interim condensed consolidated financial statements.
7
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 1 Nature of Operations
Aurora Cannabis Inc.’s (the “Company” or “Aurora”) principal strategic business lines are focused on the production, distribution and sale of medical cannabis products in Canada and internationally. The Company currently conducts the following key business activities in the jurisdictions specified below:
•Production, distribution and sale of medical cannabis products and, on a very limited basis, consumer cannabis products in Canada, pursuant to the Cannabis Act;
•Production and distribution of wholesale medical cannabis in the European Union (“EU”) pursuant to the German Medicinal Products Act and German Narcotic Drugs Act; and
•Distribution of wholesale medical cannabis in various international markets, including Australia and New Zealand.
The Company’s head office and principal address is 2207 90B St. SW, Edmonton, Alberta, Canada, T6X 0J9. The Company’s registered and records office address is Suite 1700, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8.
The Company’s shares are listed on the Nasdaq Capital Market (“Nasdaq”) and the Toronto Stock Exchange (“TSX”) under the trading symbol “ACB”, and on the Frankfurt Stock Exchange (“FSE”) under the trading symbol “21P”.
Note 2 Basis of Presentation and Measurement
The Company’s unaudited interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). Unless otherwise noted, all amounts are presented in thousands of Canadian dollars, except share and per share data. The accounting policies applied in the preparation of the interim condensed consolidated financial statements are consistent with those used in the annual audited consolidated financial statements for the year ended March 31, 2026.
The interim condensed consolidated financial statements do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with the Company’s audited annual consolidated financial statements for the year ended March 31, 2026.
These interim condensed consolidated financial statements were authorized for issue by the Audit Committee of the Board of Directors on August 4, 2026.
(a) Material Accounting Policies and Judgments
Preparation of these interim condensed consolidated financial statements requires management to make certain judgments, estimates and assumptions based on existing knowledge that affect the application of accounting policies and reported amounts and disclosures. Actual results could differ from these estimates and assumptions. Management has, to the extent reasonable, incorporated known facts and circumstances into estimates made, however actual results could differ from those estimates and those differences could be material. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
(b) Adoption of New Accounting Pronouncements
On April 1, 2026, the Company adopted the amendments to IFRS 9, Financial Instruments, and IFRS 7, Financial Instruments: Disclosures, relating to the classification and measurement requirements of financial instruments recognized within those standards. These amendments include, among others:
•Clarify that a financial liability is to be derecognized on the 'settlement date' and introduces an accounting policy to derecognize financial liabilities settled through an electronic payment system before settlement date if certain conditions are met; and
•Require additional disclosures for financial assets and liabilities with contractual terms that reference a contingent event and equity instruments classified at fair value through other comprehensive income.
The Company uses the settlement date to derecognize financial liabilities for electronic payments. The other amendments did not have an impact upon adoption.
(c) New Accounting Pronouncements Not Yet Adopted
IFRS 18, Presentation and Disclosures in Financial Statements, replaces IAS 1, Presentation of Financial Statements for reporting periods beginning on or after January 1, 2027, including for interim financial statements with retrospective application. IFRS 18 introduces a specified structure for the income statement by requiring income and expenses to be presented into the three defined categories of operating, investing and financing, and by specifying certain defined totals and subtotals.
Where company-specific measures related to the income statement are provided, IFRS 18 requires companies to disclose explanations around these measures, which are referred to as management defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation and disaggregation which apply to the primary financial statements and the notes. The Company intends to adopt IFRS 18 upon its mandatory effective date and is currently assessing the impact of the Standard on its consolidated financial statements. The Company expects that its consolidated statements of loss and comprehensive loss will require further disaggregation, including the addition of new subtotals not currently presented and the potential for additional categories of operating expenses requiring disclosure on the face of the consolidated
8
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
statements of loss and comprehensive loss. The Company also expects its consolidated statements of cash flows will be impacted by the application of IFRS 18, since it applies the indirect method for presenting its consolidated statements of cash flows, whereby net income will no longer be the starting point, which is expected to be replaced by operating profit. Further, management will be required to disclose in the notes to the consolidated financial statements certain performance measures currently disclosed and reconciled in management’s discussion and analysis.
Note 3 Business Combination
Safari Flower Company
On April 14, 2026 (the “acquisition date”), a wholly-owned subsidiary of the Company acquired 100% of the shares of Safari Flower Company (“Safari”). The purchase consideration comprises cash consideration of $15.0 million, subject to customary post-closing adjustments, and the issuance of 2,417,180 Common Shares with a fair value on the acquisition date of $11.6 million. Included in the cash consideration is $2.0 million that is contingent upon satisfying European Union Good Manufacturing Practice ("EU-GMP") certification conditions, or is otherwise repayable to the Company. The acquisition of Safari provides the Company with incremental EU-GMP certified cultivation and manufacturing capacity that is closely aligned with its existing operations. The additional capacity will be used to supply EU-GMP certified flower to the Company’s key international markets, including Germany, Australia, Poland, and the United Kingdom, and support further market expansion.
The acquisition has been accounted for as a business combination, and the results of Safari have been consolidated with those of the Company, commencing on the acquisition date.
Transaction costs of $1.0 million were expensed to business development costs in the interim condensed consolidated statements of loss and comprehensive loss and are part of operating cash flows in the interim condensed consolidated statements of cash flows.
The following table sets forth the provisional calculation of the purchase price and the provisional allocation of the purchase price based on the estimated fair values of the identifiable assets acquired and liabilities assumed on the acquisition date. The purchase consideration and certain elements of the purchase price allocation are provisional pending finalization of customary post-closing adjustments, including a working capital adjustment.
| Provisional purchase consideration | |||||
| $ | |||||
Cash consideration (a) | 13,103 | ||||
| Common shares issued | 11,627 | ||||
| Total fair value of consideration | 24,730 | ||||
| Provisional purchase price allocation | |||||
| Cash and cash equivalents | 158 | ||||
| Accounts receivable | 293 | ||||
| Biological assets | 585 | ||||
| Inventory | 917 | ||||
| Prepaid expenses and other current assets | 526 | ||||
| Property, plant and equipment | 22,517 | ||||
Intangible asset(b) | 800 | ||||
| 25,796 | |||||
| Accounts payable and accrued liabilities | 1,019 | ||||
| Deferred tax liability | 47 | ||||
| Total identifiable net assets at fair value | 24,730 | ||||
| Net cash outflows | |||||
Cash consideration paid(a) | 15,000 | ||||
| Cash and cash equivalents acquired | (158) | ||||
| Acquisition of business, net of cash acquired | 14,842 | ||||
a.Cash consideration paid of $15.0 million is subject to a customary post-closing working capital adjustment, which was provisionally determined to be a reduction of $0.7 million and recognized in accounts receivable in the interim condensed consolidated statements of financial position as at June 30, 2026.
In respect of the $2.0 million contingent cash consideration, the fair value of the contingent consideration was determined to be $0.7 million based on the Company’s expectation, as at the acquisition date, of the satisfaction of conditions under the agreement. The Company will revalue the contingent consideration at each reporting date, with any changes recognized in the consolidated statements of loss and comprehensive loss (see Note 14). As at June 30, 2026, the fair value of the contingent consideration remains at $0.7 million.
9
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
b.The Company has acquired an existing GMP license which is classified as an intangible asset and measured at fair value. The fair value of the license was determined to be $0.8 million based on its incremental discounted cash flows. For the three months ended June 30, 2026, the Company has recognized $0.1 million in the interim condensed consolidated statements of loss and comprehensive loss in respect of amortization for the GMP license.
From the acquisition date, Safari has contributed $2.8 million of revenue and $1.7 million of net profit before tax from continuing operations. If the acquisition had been completed on April 1, 2026, the additional financial impact was immaterial.
Note 4 Discontinued Operations
Bevo
On February 17, 2026, the Company disposed of its 50.1% controlling interest in Bevo Agtech Inc. (“Bevo”), the sole parent of Bevo Farms Ltd., resulting in the Company no longer controlling Bevo and, accordingly, classifying the operations of Bevo as discontinued operations. Prior to the divestiture, Bevo comprised the Company’s plant propagation operating segment and constituted a cash generating unit.
The following table summarizes the financial results of Bevo presented as discontinued operations for the prior period:
Three months ended June 30, | |||||
2025 | |||||
$ | |||||
Revenue | 23,947 | ||||
Cost of sales | 26,828 | ||||
Loss on changes in fair value of inventory and biological assets sold | 5,237 | ||||
| Gain on changes in fair value of biological assets | (2,542) | ||||
Gross loss | (5,576) | ||||
Operating expenses | (2,720) | ||||
| Other expenses | (1,314) | ||||
Income tax expense | (69) | ||||
| (4,103) | |||||
Net loss | (9,679) | ||||
Note 5 Biological Assets
The changes in the carrying value of biological assets during the period are as follows:
| Note | $ | |||||||
Balance, March 31, 2026 | 20,213 | |||||||
| Production costs capitalized | 16,655 | |||||||
Biological assets acquired through business combinations | 3 | 585 | ||||||
| Gain on changes in fair value of biological assets | 38,702 | |||||||
| Transferred to inventory upon harvest | (52,667) | |||||||
| Other | 512 | |||||||
Balance, June 30, 2026 | 24,000 | |||||||
As of June 30, 2026, the weighted average fair value less cost to complete and cost to sell a gram of dried cannabis produced at the Company’s cannabis cultivation facilities was $3.17 per gram (March 31, 2026 – $3.22 per gram) and the stage of completion of cannabis was 46% (March 31, 2026 – 42%).
During the three months ended June 30, 2026, the Company’s cannabis biological assets produced 14,986 kilograms of dried cannabis (three months ended June 30, 2025 – 11,690 kilograms).
10
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 6 Inventory
| June 30, 2026 | March 31, 2026 | |||||||||||||||||||
| Capitalized cost | Fair value adjustment | Carrying value | Capitalized cost | Fair value adjustment | Carrying value | |||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||
Harvested cannabis | ||||||||||||||||||||
Work-in-process | 60,984 | 54,137 | 115,121 | 58,021 | 51,713 | 109,734 | ||||||||||||||
Finished goods | 16,523 | 12,819 | 29,342 | 14,173 | 11,800 | 25,973 | ||||||||||||||
| 77,507 | 66,956 | 144,463 | 72,194 | 63,513 | 135,707 | |||||||||||||||
Extracted cannabis | ||||||||||||||||||||
Work-in-process | 3,248 | 1,814 | 5,062 | 3,768 | 1,916 | 5,684 | ||||||||||||||
Finished goods | 7,954 | 719 | 8,673 | 7,370 | 655 | 8,025 | ||||||||||||||
| 11,202 | 2,533 | 13,735 | 11,138 | 2,571 | 13,709 | |||||||||||||||
| Supplies and consumables | 4,634 | — | 4,634 | 4,701 | — | 4,701 | ||||||||||||||
| Merchandise and accessories | 711 | — | 711 | 745 | — | 745 | ||||||||||||||
| Ending balance | 94,054 | 69,489 | 163,543 | 88,778 | 66,084 | 154,862 | ||||||||||||||
During the three months ended June 30, 2026, inventory expensed to cost of sales was $70.6 million (three months ended June 30, 2025 – $72.6 million), which included $32.3 million (three months ended June 30, 2025 – $31.4 million) related to the changes in fair value of inventory sold.
During the three months ended June 30, 2026, the Company recognized $13.9 million in inventory provisions and net realizable value adjustments (three months ended June 30, 2025 – $12.9 million) consisting of cost of sales of $7.8 million (three months ended June 30, 2025 – $5.9 million) and changes in fair value of inventory sold of $6.1 million (three months ended June 30, 2025 – $7.0 million). As at June 30, 2026, the inventory provision was $24.3 million (March 31, 2026 – $27.3 million).
Note 7 Assets Held for Sale
Assets held for sale are comprised of the following:
| Note | Land | Equipment | Total | |||||||||||
| $ | $ | $ | ||||||||||||
| Balance, March 31, 2026 | 1,615 | 371 | 1,986 | |||||||||||
| Transfer from property, plant and equipment | 8 | 1,104 | — | 1,104 | ||||||||||
| Foreign exchange | 46 | — | 46 | |||||||||||
| Balance, June 30, 2026 | 2,765 | 371 | 3,136 | |||||||||||
Land
During the three months ended June 30, 2026, the Company listed for sale excess land resulting in a transfer of $1.1 million, representing its net book value, from property, plant and equipment to assets held for sale.
During the year ended March 31, 2026, the Company listed land for sale, which was reclassified to assets held for sale and measured at its carrying value. On July 22, 2026, the land was sold and the Company received $2.2 million in cash, net of transaction costs of $0.1 million.
Equipment
Equipment reclassified to assets held for sale as at March 31, 2026 relates to equipment used exclusively in the Company's consumer channel, which is winding down. Upon its reclassification, the equipment was measured at its fair value less costs to dispose.
11
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 8 Property, Plant and Equipment
The following summarizes the carrying values of property, plant and equipment:
| June 30, 2026 | March 31, 2026 | |||||||||||||||||||
| Cost | Accumulated depreciation | Net book value | Cost | Accumulated depreciation (1) | Net book value | |||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||
| Owned assets | ||||||||||||||||||||
| Land | 12,151 | — | 12,151 | 12,052 | — | 12,052 | ||||||||||||||
| Buildings | 139,677 | (57,942) | 81,735 | 110,125 | (48,885) | 61,240 | ||||||||||||||
| Construction in progress | 22,166 | (514) | 21,652 | 17,464 | (514) | 16,950 | ||||||||||||||
Computer software & equipment | 21,622 | (20,497) | 1,125 | 21,351 | (20,351) | 1,000 | ||||||||||||||
| Furniture & fixtures | 7,071 | (5,875) | 1,196 | 7,024 | (5,755) | 1,269 | ||||||||||||||
| Production & other equipment | 83,030 | (66,994) | 16,036 | 82,455 | (64,672) | 17,783 | ||||||||||||||
| Total owned assets | 285,717 | (151,822) | 133,895 | 250,471 | (140,177) | 110,294 | ||||||||||||||
| Right-of-use leased assets | ||||||||||||||||||||
| Land | — | — | — | 1,990 | (1,990) | — | ||||||||||||||
| Buildings | 35,573 | (23,017) | 12,556 | 35,487 | (22,295) | 13,192 | ||||||||||||||
| Production & other equipment | 5,762 | (5,461) | 301 | 4,499 | (4,297) | 202 | ||||||||||||||
| Total right-of-use lease assets | 41,335 | (28,478) | 12,857 | 41,976 | (28,582) | 13,394 | ||||||||||||||
| Total property, plant and equipment | 327,052 | (180,300) | 146,752 | 292,447 | (168,759) | 123,688 | ||||||||||||||
(1) Comparative amounts have been re-presented to conform to current year presentation, with impairment no longer shown separately, as such amounts are not material.
The following summarizes the changes in the net book values of property, plant and equipment for the three months ended June 30, 2026:
| Balance, March 31, 2026 | Additions | Additions from business combination (2) | Other (1) | Depreciation | Foreign currency translation | Balance, June 30, 2026 | |||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| Owned assets | |||||||||||||||||||||||
| Land | 12,052 | — | 880 | (781) | — | — | 12,151 | ||||||||||||||||
| Buildings | 61,240 | 48 | 20,803 | 519 | (974) | 99 | 81,735 | ||||||||||||||||
| Construction in progress | 16,950 | 4,669 | — | (20) | — | 53 | 21,652 | ||||||||||||||||
Computer software & equipment | 1,000 | 205 | — | 9 | (282) | 193 | 1,125 | ||||||||||||||||
| Furniture & fixtures | 1,269 | 19 | — | (26) | (166) | 100 | 1,196 | ||||||||||||||||
Production & other equipment | 17,783 | 15 | 834 | (984) | (1,829) | 217 | 16,036 | ||||||||||||||||
| Total owned assets | 110,294 | 4,956 | 22,517 | (1,283) | (3,251) | 662 | 133,895 | ||||||||||||||||
| Right-of-use leased assets | |||||||||||||||||||||||
| Buildings | 13,192 | — | — | — | (718) | 82 | 12,556 | ||||||||||||||||
Production & other equipment | 202 | 145 | — | — | (51) | 5 | 301 | ||||||||||||||||
Total right-of-use lease assets | 13,394 | 145 | — | — | (769) | 87 | 12,857 | ||||||||||||||||
Total property, plant and equipment | 123,688 | 5,101 | 22,517 | (1,283) | (4,020) | 749 | 146,752 | ||||||||||||||||
(1) Includes reclassification of construction in progress when associated projects are complete, transfers to assets held for sale (Note 7) and reclassifications between asset classes.
(2) Refer to Note 3 - Business Combination.
12
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Depreciation relating to manufacturing equipment and production facilities for owned and right-of-use leased assets is capitalized to inventory and is expensed to cost of sales upon the sale of goods. During the three months ended June 30, 2026, the Company recognized $4.0 million (three months ended June 30, 2025 – $6.0 million) of depreciation expense for manufacturing equipment and production facilities, of which $2.5 million (three months ended June 30, 2025 – $2.8 million) was expensed to cost of sales.
Note 9 Share Capital
(a) Shares Issued and Outstanding
At June 30, 2026, 63,310,061 Common Shares (March 31, 2026 – 58,947,593) were issued and outstanding. During the three months ended June 30, 2026, 2,417,180 Common Shares were issued in connection with the acquisition of Safari (Note 3) and 1,577,330 Common Shares were issued under the ATM program (Note 9(b)).
(b) At-The-Market Equity Program (“ATM Program”)
On February 4, 2026, the Company filed a prospectus supplement, establishing a new ATM Program that allows the Company to issue and sell up to U.S.$100 million of Common Shares in the capital of the Company from treasury to the public.
| US$ equivalent | ||||||||||||||||||||
| Three months ended June 30 | Three months ended June 30 | |||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Gross proceeds | $ | 6,844 | $ | — | $ | 4,889 | $ | — | ||||||||||||
| Commission | $ | 162 | $ | — | $ | 98 | $ | — | ||||||||||||
| Net proceeds | $ | 6,682 | $ | — | $ | 4,791 | $ | — | ||||||||||||
Weighted average gross price | $ | 4.29 | $ | — | $ | 3.09 | $ | — | ||||||||||||
| Number of shares issued | 1,577,330 | — | 1,577,330 | — | ||||||||||||||||
In addition, during the three months ended June 30, 2026, the Company sold 52,658 shares for gross proceeds of $0.2 million which were subsequently settled on July 2, 2026. As at June 30, 2026, the obligation to issue shares resulted in an increase in contributed surplus in the interim condensed consolidated statements of changes in shareholders’ equity with a corresponding increase to accounts receivable on the interim condensed consolidated statements of financial position. During the three months ended June 30, 2026, the Company incurred $0.2 million (three months ended June 30, 2025 – $nil) in transaction costs directly related to the ATM Program, which were recognized in the interim condensed consolidated statements of changes in shareholders’ equity.
Note 10 Share-Based Compensation
(a) Stock Options
The Option Plan provides the right for directors, officers, employees and consultants to purchase shares at a specified price (exercise price) in the future. The stock options have a service requirement of three years, vest 1/3 on each grant date anniversary over the three years and are amortized on an accelerated basis over that period. Stock options expire after five years.
A summary of stock options outstanding is as follows:
| Stock options | Weighted average exercise price | |||||||
| # | $ | |||||||
Balance, March 31, 2026 | 1,992,445 | 12.74 | ||||||
| Granted | 369,370 | 4.22 | ||||||
| Expired | (25,896) | 86.30 | ||||||
Balance, June 30, 2026 | 2,335,919 | 10.58 | ||||||
The following table summarizes the stock options that are outstanding as at June 30, 2026:
| Exercise Price | Expiry Date | Weighted average remaining life | Options outstanding | Options exercisable | ||||||||||
| $ | # | # | ||||||||||||
4.22 - 7.91 | June 23, 2028 - June 18, 2031 | 3.35 | 1,966,495 | 1,055,328 | ||||||||||
16.70 - 48.60 | February 28, 2027 - September 23, 2027 | 1.21 | 302,867 | 302,867 | ||||||||||
82.20 - 112.40 | September 30, 2026 - November 30, 2026 | 0.26 | 66,557 | 66,557 | ||||||||||
| 2,335,919 | 1,424,752 | |||||||||||||
During the three months ended June 30, 2026, stock option expense of $0.6 million (three months ended June 30, 2025 – $0.7 million) was recognized in share-based compensation in the interim condensed consolidated statements of loss and comprehensive loss.
13
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Stock options granted during the periods presented below were fair valued based on the following weighted average assumptions:
Three months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
Risk-free annual interest rate (1) | 2.86 | % | 2.66 | % | ||||
| Expected annual dividend yield | — | % | — | % | ||||
Expected stock price volatility (2) | 85.53 | % | 91.41 | % | ||||
Expected life of options (years) (3) | 3.3 | 3.1 | ||||||
| Forfeiture rate | 7.98 | % | 8.78 | % | ||||
| Fair value | $ | 2.46 | $ | 3.50 | ||||
| Exercise price | $ | 4.22 | $ | 5.90 | ||||
(1)The risk-free rate is based on Canada government bonds with a remaining term equal to the expected life of the options.
(2)Volatility was estimated by using the Company’s historical share price over a commensurate period of the expected life.
(3)The expected life in years represents the period of time that options granted are expected to be outstanding, based on historical actuals.
(b) Restricted Share Units (“RSUs”)
The RSU Plan was designed to provide certain executive officers and other key employees of the Company and its subsidiaries with the opportunity to acquire RSUs of the Company in order to enable them to participate in the long-term success of the Company and to promote a greater alignment of their interests with the interests of the shareholders. Under the terms of the RSU Plan, officers, employees and consultants of the Company may be granted RSUs that are released as Common Shares upon completion of the vesting period. Each RSU gives the participant the right to receive one common share of the Company. The RSUs have a service requirement of three years, vest 1/3 on each grant date anniversary over the three years and are amortized on an accelerated basis over that period. RSUs expire after three years.
A summary of the RSUs outstanding is as follows:
| RSUs | |||||
| # | |||||
| Balance, March 31, 2026 | 1,023,746 | ||||
| Issued | 1,043,203 | ||||
| Vested | (401,854) | ||||
| Forfeited | (53,340) | ||||
| Balance, June 30, 2026 | 1,611,755 | ||||
During the three months ended June 30, 2026, RSU expense of $0.7 million (three months ended June 30, 2025 – $0.9 million) was recognized in the interim condensed consolidated statements of loss and comprehensive loss.
(c) Deferred Share Units (“DSUs”)
Under the terms of the Company’s Non-Employee Directors Deferred Share Unit Plan (the “DSU Plan”), non-employee directors of the Company may be granted DSUs. Each non-employee director is entitled to redeem their DSUs for a period of 180 days following their termination date, being the date of their retirement from the Board. The DSUs can be redeemed, at the Company’s sole discretion, for (i) cash (Note 10(e)); (ii) Common Shares issued from treasury; (iii) Common Shares purchased in the open market; or (iv) any combination of the foregoing. DSUs are issued in recognition of past service for non-employee directors and are expensed immediately at fair value to share-based compensation expense in the interim condensed consolidated statements of loss and comprehensive loss. DSUs vest immediately upon grant and have no expiry date.
14
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
A summary of the DSUs outstanding is as follows:
DSUs (1) | |||||
| # | |||||
| Balance, March 31, 2026 | 322,638 | ||||
Issued | 36,228 | ||||
| Balance, June 30, 2026 | 358,866 | ||||
(1)Includes DSUs issued under cash settlement plan (Note 10(e)).
During the three months ended June 30, 2026, DSU expense of $nil (three months ended June 30, 2025 – $0.1 million) was recognized in share-based compensation in the interim condensed consolidated statements of loss and comprehensive loss.
(d) Performance Share Units (“PSUs”)
Under the terms of the Company’s Performance Share Unit Plan (the “PSU Plan”), officers, employees and consultants of the Company may be granted PSUs that are released as Common Shares equal to the market price of Common Shares on the entitlement date, multiplied by the number of performance share units being settled. In each case, upon the three year cliff vesting date, the performance share units are subject to performance conditions multiplied by the achieved performance ratio. If the performance criteria are not met at the time of vesting, the PSUs will expire. The PSUs are amortized on a straight line basis over the three year period and expire after three years.
A summary of the PSUs outstanding is as follows:
PSUs(1) | |||||
| # | |||||
| Balance, March 31, 2026 | 1,651,009 | ||||
Granted | 1,203,737 | ||||
| Vested | (39,084) | ||||
| Forfeited | (33,355) | ||||
Expired | (34,460) | ||||
| Balance, June 30, 2026 | 2,747,847 | ||||
(1)Includes PSUs issued under cash settlement plan (Note 10(e)).
During the three months ended June 30, 2026, a PSU recovery of $0.6 million (three months ended June 30, 2025 – expense of $0.5 million) was recognized in share-based compensation in the interim condensed consolidated statements of loss and comprehensive loss.
The PSUs granted during the periods presented below were fair valued based on the following weighted average assumptions:
Three months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
Risk-free annual interest rate (1) | 2.78 | % | 2.58 | % | ||||
| Dividend yield | — | % | — | % | ||||
Expected stock price volatility (2) | 71.50 | % | 74.99 | % | ||||
Expected stock price volatility of peer group (2) | 74.94 | % | 83.40 | % | ||||
Expected life of PSUs (years) (3) | 3.00 | 3.00 | ||||||
| Forfeiture rate | 26.65 | % | 16.61 | % | ||||
Equity correlation against peer group (4) | 72.47 | % | 37.63 | % | ||||
(1)The risk-free rate is based on Canada government bonds with a remaining term equal to the expected life of the PSUs.
(2)Volatility was estimated by using the Company’s historical share price over a commensurate period of the expected life.
(3)The expected life in years represents the period of time that the PSUs granted are expected to be outstanding.
(4)The equity correlation is estimated by using 1-year historical equity correlations for the Company and the peer group of companies.
(e) Cash Settled DSUs and PSUs
During the three months ended June 30, 2026, the Company issued 36,228 DSUs and 1,203,737 PSUs, which will be settled in cash, pursuant to the DSU Plan and PSU Plan, respectively. The DSUs and PSUs issued under these plans are included in the continuities above.
15
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
The DSUs subject to cash settlement are classified as a derivative liability in the interim condensed consolidated statements of financial position and are initially measured at fair value. These DSUs are remeasured at each reporting period with changes in fair value recognized in share-based compensation expense. Upon settlement, the DSUs are remeasured and the derivative liability is extinguished at the remeasured amount. As at June 30, 2026, the related derivative liability was $1.3 million (March 31, 2026 – $1.3 million).
The PSUs subject to cash settlement are classified as a derivative liability in the interim condensed consolidated statements of financial position. They are initially measured at fair value using a Monte Carlo simulation model, which is classified as level 2 on the fair value hierarchy. These PSUs have a service requirement of three years and are amortized ratably over that period. These PSUs are remeasured at fair value each reporting period, with the changes in fair value recognized in share-based compensation expense. As at June 30, 2026, the related derivative liability was $1.5 million (March 31, 2026 – $2.3 million).
Note 11 Loss per Share
The following is a reconciliation of basic loss per share:
Three months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| | ||||||||
| Net loss from continuing operations attributable to common shareholders | $ | (4,033) | $ | (10,186) | ||||
| Net loss from discontinued operations attributable to common shareholders | $ | — | $ | (5,023) | ||||
Net loss attributable to common shareholders | $ | (4,033) | $ | (15,209) | ||||
| Weighted average number of Common Shares outstanding | 61,678,703 | 56,243,178 | ||||||
Basic loss per share, continuing operations | $ | (0.07) | $ | (0.18) | ||||
| Basic loss per share, discontinued operations | $ | — | $ | (0.09) | ||||
Basic loss per share | $ | (0.07) | $ | (0.27) | ||||
The following is a reconciliation of diluted loss per share:
Three months ended June 30, | ||||||||
2026(1) | 2025 | |||||||
| | ||||||||
| Net loss from continuing operations attributable to common shareholders | $ | (4,033) | $ | (10,186) | ||||
| Net loss from discontinued operations attributable to common shareholders | $ | — | $ | (5,023) | ||||
Net loss attributable to common shareholders | $ | (4,033) | $ | (15,209) | ||||
| Weighted average number of Common Shares outstanding | 61,678,703 | 56,243,178 | ||||||
Dilutive shares outstanding (1) | ||||||||
| RSUs | 32,243 | 174,444 | ||||||
| PSUs | 13,663 | 289,126 | ||||||
| DSUs | 28,555 | 56,755 | ||||||
| 74,461 | 520,325 | |||||||
| Weighted average dilutive Common Shares | 61,753,164 | 56,763,503 | ||||||
Diluted loss per share, continuing operations(1) | $ | (0.07) | $ | (0.18) | ||||
Diluted loss per share, discontinued operations(1) | $ | — | $ | (0.09) | ||||
Diluted loss per share | $ | (0.07) | $ | (0.27) | ||||
(1)Diluted loss per share is not applicable when the impact will decrease loss per share or increase earnings per share.
16
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 12 Segmented Information
The Company defines an operating segment on the same basis that it uses to evaluate performance internally and to allocate resources by the Chief Operating Decision Makers (“CODMs”).
As at June 30, 2026, the Company has one reportable operating segment, Cannabis. The Cannabis operating segment comprises the Canadian, European, Australian and New Zealand cash generating units (“CGU”).
The Company’s core business is vertically integrated, comprised of cultivation, manufacturing, packaging and distribution of cannabis products, in addition to ancillary support services such as research and development and patient counselling. The Company’s sales channels are defined as medical (Canada, Europe, Australia, New Zealand and rest of world), Canadian consumer and wholesale (bulk). The cultivation and manufacturing facilities that support the revenue channels are interchangeable. As a result, disaggregated financial information reviewed by the CODMs is limited to revenue and cost of sales. Therefore, the Company has determined that there is one reportable operating segment. There is no aggregation of operating segments.
Key measures used by the CODMs to assess performance and make resource allocation decisions include net revenue and gross profit based on standard costing for each revenue channel.
The following tables summarize the Company’s net revenue and non-current assets by geographic location:
Three months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| $ | $ | |||||||
| Net Revenue | ||||||||
| Canada | 24,217 | 36,982 | ||||||
| Europe | 32,110 | 24,950 | ||||||
| Australia | 10,354 | 10,951 | ||||||
| New Zealand | 873 | 1,193 | ||||||
| Total net revenue | 67,554 | 74,076 | ||||||
During the three months ended June 30, 2026 and June 30, 2025, no customer contributed 10 per cent or more to the Company’s net revenue.
| Canada | Europe | Australia | Total | |||||||||||
| $ | $ | $ | $ | |||||||||||
| Non-current assets other than financial instruments | ||||||||||||||
| June 30, 2026 | 143,484 | 37,469 | 28,139 | 209,092 | ||||||||||
| March 31, 2026 | 121,500 | 36,412 | 27,486 | 185,398 | ||||||||||
The New Zealand CGU has no non-current assets.
17
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 13 Supplemental Cash Flow Information
The changes in non-cash working capital are as follows:
| Three months ended June 30, | ||||||||
| 2026 | 2025(1) | |||||||
| $ | $ | |||||||
| Accounts receivable | 3,944 | 3,475 | ||||||
| Biological assets | (17,418) | (15,652) | ||||||
| Inventory | 13,030 | 8,400 | ||||||
| Prepaid and other current assets | 637 | (252) | ||||||
| Accounts payable and accrued liabilities | 5,065 | 10,334 | ||||||
| Income taxes payable | 480 | (709) | ||||||
| Deferred revenue | (471) | (23) | ||||||
| Deferred taxes | 47 | (27) | ||||||
| Provisions | 106 | (4) | ||||||
| Changes in non-cash working capital | 5,420 | 5,542 | ||||||
(1) Comparative information has been adjusted for discontinued operations (Note 4).
Additional supplementary cash flow information is as follows:
| Three months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| $ | $ | |||||||
Property, plant and equipment in accounts payable | (170) | 1,413 | ||||||
| Right-of-use asset additions | 145 | — | ||||||
| Amortization of prepaids | 3,120 | 4,870 | ||||||
| Interest paid | 354 | 1,327 | ||||||
| Interest received | (723) | (1,320) | ||||||
Included in restricted cash as at June 30, 2026 is $2.6 million (March 31, 2026 – $2.6 million) attributed to collateral held for letters of credit and corporate credit cards, $0.1 million (March 31, 2026 – $0.1 million) attributed to international subsidiaries and $46.4 million (March 31, 2026 – $45.1 million) of funds reserved for the segregated cell program for insurance coverage and not held for the purpose of meeting short term cash commitments.
18
AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 14 Fair Value of Financial Instruments
The carrying values of the financial instruments as at June 30, 2026 are summarized in the following table:
| Amortized cost | Fair value through profit and loss | Total | |||||||||
| $ | $ | $ | |||||||||
| Financial assets | |||||||||||
| Cash and cash equivalents | 69,307 | — | 69,307 | ||||||||
| Restricted cash | 49,086 | — | 49,086 | ||||||||
| Short-term investments | — | 30,722 | 30,722 | ||||||||
| Accounts receivable, excluding sales taxes and lease receivable | 37,181 | — | 37,181 | ||||||||
Contingent consideration receivable(1) | — | 1,250 | 1,250 | ||||||||
| Lease receivable | 4,866 | — | 4,866 | ||||||||
Preferred shares(2) | — | 10,980 | 10,980 | ||||||||
Royalty receivable(2) | — | 1,553 | 1,553 | ||||||||
| Financial liabilities | |||||||||||
| Accounts payable and accrued liabilities | 56,830 | — | 56,830 | ||||||||
| Lease liabilities | 22,684 | — | 22,684 | ||||||||
| Derivative liabilities | — | 2,892 | 2,892 | ||||||||
| Other long term liabilities | 569 | — | 569 | ||||||||
(1) Contingent consideration receivable is included in prepaids and other current assets on the interim condensed consolidated statements of financial position.
(2) Preferred shares and royalty receivable is included in long-term investments on the interim condensed consolidated statements of financial position.
The following is a summary of financial instruments measured at fair value segregated based on the various levels of inputs:
| Note | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| $ | $ | $ | $ | ||||||||||||||
| As at June 30, 2026 | |||||||||||||||||
Contingent consideration receivable(1) | 3 | — | — | 1,250 | 1,250 | ||||||||||||
Short-term investments | — | 30,722 | — | 30,722 | |||||||||||||
Preferred shares | — | — | 10,980 | 10,980 | |||||||||||||
Royalty receivable | — | — | 1,553 | 1,553 | |||||||||||||
| Derivative liabilities | 10(e) | 1,345 | 1,547 | — | 2,892 | ||||||||||||
| As at March 31, 2026 | |||||||||||||||||
| Short-term investments | — | 52,213 | — | 52,213 | |||||||||||||
| Preferred shares | — | — | 10,560 | 10,560 | |||||||||||||
| Royalty receivable | — | — | 1,553 | 1,553 | |||||||||||||
| Derivative liabilities | 10(e) | 1,387 | 2,310 | — | 3,697 | ||||||||||||
(1) Contingent consideration receivable is included in prepaids and other current assets on the interim condensed consolidated statements of financial position.
There were no changes in the nature, characteristics and risks of financial instruments that would result in a change in classification of financial assets and financial liabilities disclosed above. There were no transfers between fair value measurement hierarchy levels during the three months ended June 30, 2026.
The preferred shares received as consideration in the disposition of Bevo (Note 4) were initially measured at fair value and are remeasured at fair value through profit and loss at each reporting period. The fair value of the preferred shares was determined based on scenario-based discounted cash flow methodology, using level 3 inputs. Significant assumptions and estimates used in the valuation model include Bevo’s projected cash flows until the year 2080, the probability of a liquidation event as defined in the agreement and the discount rate. As at June 30, 2026, the fair value of the preferred shares was $11.0 million (March 31, 2026 – $10.6 million) recorded on the interim condensed consolidated statements of financial position.
Note 15 Subsequent Event
Subsequent to June 30, 2026, the Board of Directors approved the wind-up of the Company's segregated cell program associated with its self-insurance policy. Upon completion of the wind-up, approximately $46.4 million of restricted cash held within the segregated cell will become unrestricted and reclassified to cash and cash equivalents. The wind-up is expected to be completed by the third quarter of fiscal 2027.
19
AURORA CANNABIS INC.
Management’s Discussion & Analysis
For the three months ended June 30, 2026 and 2025
(in Canadian Dollars)
1 | AURORA CANNABIS INC. | Q1 2027 MD&A | |||||||
Management’s Discussion & Analysis
Table of Contents
Business Overview | 3 | ||||
Key Developments | 3 | ||||
Consolidated Financial Results | 4 | ||||
Liquidity and Capital Resources | 9 | ||||
Accounting Policies and Critical Accounting Estimates | 11 | ||||
Summary of Outstanding Share Data | 12 | ||||
Summary of Quarterly Results | 12 | ||||
Risk Factors | 13 | ||||
Disclosure Controls and Procedures and Internal Controls Over Financial Reporting | 14 | ||||
Cautionary Statement Regarding Forward-Looking Statements | 15 | ||||
Cautionary Statement Regarding Certain Non-GAAP Performance Measures | 16 | ||||
2 | AURORA CANNABIS INC. | Q1 2027 MD&A | |||||||
Interim Management’s Discussion and Analysis of Financial Condition and Results of Operations for the three months ended June 30, 2026
This Management’s Discussion and Analysis (“MD&A”) of Aurora Cannabis Inc. (“Aurora”, the “Company”, “us”, “we”, or “our”) as at and for the three months ended June 30, 2026 should be read in conjunction with the Company’s annual audited consolidated financial statements as at and for the year ended March 31, 2026 (the “2026 Annual Financial Statements”), the interim condensed consolidated financial statements for the three months ended June 30, 2026 (“Interim Condensed Financial Statements”) , and the MD&A as at and for the year ended March 31, 2026 (the “2026 Annual MD&A”). This MD&A has been prepared as of August 4, 2026 pursuant to the disclosure requirements under National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”) of the Canadian Securities Administrators (“CSA”). Under the United States (“U.S.”) / Canada Multijurisdictional Disclosure System, we are permitted to prepare this MD&A in accordance with Canadian disclosure requirements which may differ from U.S. disclosure requirements.
Unless otherwise noted, all financial information is prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). Unless otherwise noted, all amounts are presented in thousands of Canadian dollars, except share and per share data.
This MD&A contains forward-looking information within the meaning of applicable securities laws, and the use of Non-GAAP Measures (as defined below). Refer to “Cautionary Statement Regarding Forward-Looking Statements” and “Cautionary Statement Regarding Certain Non- GAAP Performance Measures” included within this MD&A.
Additional information about Aurora, including the Interim Condensed Financial Statements as at and for the three months ended June 30, 2026, the 2026 Annual Financial Statements, the Annual MD&A and Aurora’s annual information form (“AIF”) as at and for the year ended March 31, 2026 are available in Canada on SEDAR+ at www.sedarplus.ca and in the U.S. on EDGAR at www.sec.gov and Aurora’s website at www.auroramj.com.
Business Overview
Aurora’s principal strategic business lines are focused on the production, distribution and sale of medical cannabis products in Canada and internationally. Aurora currently conducts the following key business activities in the jurisdictions specified below:
•Production, distribution and sale of medical cannabis products and, on a very limited basis, consumer cannabis products in Canada, pursuant to the Cannabis Act;
•Production and distribution of wholesale medical cannabis in the European Union (“EU”) pursuant to the German Medicinal Products Act and German Narcotic Drugs Act; and
•Distribution of wholesale medical cannabis in various international markets, including Australia and New Zealand.
The Company’s head office and principal address is 2207 90B St. SW, Edmonton, Alberta, Canada, T6X 0J9. The Company’s registered and records office
address is Suite 1700, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8.
The Company’s shares are listed on the Nasdaq Capital Market (“Nasdaq”) and the Toronto Stock Exchange (“TSX”) under the trading symbol “ACB”, and on the Frankfurt Stock Exchange (“FSE”) under the trading symbol “21P”.
Key Developments
Investing Activities
On April 14, 2026 (“the acquisition date”), the Company acquired 100% of the shares of Safari Flower Company (“Safari”). The purchase consideration comprises cash consideration of $15.0 million, subject to customary post-closing adjustments, and the issuance of 2,417,180 Common Shares with a fair value on the acquisition date of $11.6 million. Included in the cash consideration is $2.0 million that is contingent upon satisfying EU Good Manufacturing Practice ("EU-GMP") certification conditions, or is otherwise repayable to the Company. The acquisition of Safari provides the Company with incremental EU-GMP certified cultivation and manufacturing capacity that is closely aligned with its existing operations. The additional capacity will be used to supply EU-GMP certified flower to the Company’s key international markets, including Germany, Australia, Poland, and the United Kingdom (“UK”), and support further market expansion.
Cash consideration paid of $15.0 million is subject to a customary post-closing working capital adjustment, which was provisionally determined to be a reduction of $0.7 million and recognized in accounts receivable in the interim condensed consolidated statements of financial position as at June 30, 2026.
In respect of the $2.0 million contingent cash consideration, the fair value of the contingent consideration was determined to be $0.7 million based on the Company’s expectation, as at the acquisition date, of the satisfaction of conditions under the agreement. The Company will revalue the contingent consideration at each reporting date, with any changes recognized in the consolidated statements of loss and comprehensive loss. As at June 30, 2026, the fair value of the contingent consideration remains at $0.7 million.
On July 23, 2026, the Company announced that Safari received its EU-GMP certification for its Ontario facility, which is granted for a three-year term.
The Company plans to invest approximately $3.5 million over the next three years in growth capital expenditures at the Safari facility to improve operational efficiencies and maximize cultivation output.
3 | AURORA CANNABIS INC. | Q1 2027 MD&A | |||||||
Subsequent to June 30, 2026, the Board of Directors approved the wind-up of the Company's segregated cell program associated with its self-insurance policy. Upon completion of the wind-up, approximately $46.4 million of restricted cash held within the segregated cell will become unrestricted and reclassified to cash and cash equivalents. The wind-up is expected to be completed by the third quarter of fiscal 2027.
Fiscal Full Year 2027 Outlook
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 earnings before interest, taxes, depreciation, and amortization (“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.
Consolidated Financial Results
On February 17, 2026, the Company disposed of its 50.1% controlling interest in Bevo Agtech Inc. (“Bevo”), the sole parent of Bevo Farms Ltd. The financial results of Bevo were classified as discontinued operations and presented separately from the Company’s continuing operations. Bevo formerly comprised the Company’s plant propagation operating segment. Certain prior period financial information on the interim condensed consolidated statements of loss and comprehensive loss and the interim condensed consolidated statements of cash flows have been updated to present Bevo as discontinued operations, and Bevo has therefore been excluded from both continuing operations and discussions for all periods presented in this MD&A.
($ 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 | 5,101 | 1,685 | ||||||
| Net loss from continuing operations | (4,033) | (10,186) | ||||||
| Net loss from discontinued operations, net of taxes | — | (9,679) | ||||||
| Net loss | (4,033) | (19,865) | ||||||
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 this MD&A.
(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 this MD&A, including information on reconciliation to the most directly comparable IFRS measure.
4 | AURORA CANNABIS INC. | Q1 2027 MD&A | |||||||
($ thousands) | As at | |||||||
| June 30, 2026 | March 31, 2026 | |||||||
| Balance Sheet | ||||||||
| Current assets | 393,449 | 397,453 | ||||||
| Current liabilities | 73,429 | 66,930 | ||||||
Net Revenue
The table below outlines the net revenue attributed to medical, consumer and wholesale bulk cannabis sales channels:
| ($ 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.
Medical Cannabis Net Revenue
Total medical cannabis net revenue in the three months ended June 30, 2026 was comparable to the three months ended June 30, 2025.
Canadian medical cannabis net revenue was $20.7 million during the three months ended June 30, 2026 compared to $27.7 million for the three months ended June 30, 2025. The decrease of $7.0 million is primarily due to changes to the federal reimbursement program, effective April 1, 2026, which decreased reimbursement rates by approximately 30%.
International medical cannabis net revenue was $43.3 million during the three months ended June 30, 2026 compared to $37.1 million for the three months ended June 30, 2025. The increase of $6.2 million is mainly due to higher sales in Germany, mainly driven by increased patient demand.
Consumer Cannabis Net Revenue
During the three months ended June 30, 2026, consumer cannabis net revenue decreased to $2.1 million compared to $7.9 million for the three months ended June 30, 2025. The decrease is a result of the Company’s strategic shift to focus on Canadian and international medical cannabis and the wind down of its consumer cannabis business.
Gross Margin
| Three months ended | ||||||||
| ($ thousands) | June 30, 2026 | June 30, 2025 | ||||||
| Revenue | 70,757 | 80,508 | ||||||
| Excise taxes | (3,203) | (6,432) | ||||||
Net revenue (1) | 67,554 | 74,076 | ||||||
| Cost of sales | (38,362) | (35,227) | ||||||
Gross profit before FV adjustments (1) | 29,192 | 38,849 | ||||||
Gross margin before FV adjustments (2) | 43 | % | 52 | % | ||||
Loss on changes in fair value of inventory and biological assets sold | (32,272) | (31,437) | ||||||
| Gain on changes in fair value of biological assets | 38,702 | 26,116 | ||||||
| Gross profit | 35,622 | 33,528 | ||||||
Gross margin(2) | 53 | % | 45 | % | ||||
(1)As presented in the interim condensed consolidated statements of loss and comprehensive loss.
(2)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.
5 | AURORA CANNABIS INC. | Q1 2027 MD&A | |||||||
Gross margin before fair value adjustments was 43% for the three months ended June 30, 2026 compared to 52% for the three months ended June 30, 2025. The decrease is due to a decrease in revenue resulting from changes to the federal reimbursement program, effective April 1, 2026, which decreased reimbursement rates by approximately 30%.
During the three months ended June 30, 2026, the Company recognized $13.9 million in inventory provisions and net realizable value adjustments (three months ended June 30, 2025 – $12.9 million) consisting of cost of sales of $7.8 million (three months ended June 30, 2025 – $5.9 million) and changes in fair value of inventory sold of $6.1 million (three months ended June 30, 2025 – $7.0 million). As at June 30, 2026, the inventory provision was $24.3 million compared to $27.3 million as at March 31, 2026. The $3.0 million decrease was primarily attributable to the sale of inventory that was previously provided for in connection with the wind-down of the Company’s consumer cannabis business.
Gain on changes in fair value of biological assets was $38.7 million for the three months ended June 30, 2026 compared to $26.1 million for the three months ended June 30, 2025. The increase of $12.6 million reflects higher cannabis propagation yields and improved cultivation performance. The increase demonstrates the value in capital improvements within the cultivation process and supports future inventory supply.
Adjusted Gross Margin(4)
The table below outlines adjusted gross profit and margin before fair value adjustments for the following periods:
($ thousands) | Medical cannabis | Consumer cannabis | Wholesale bulk cannabis | Total | ||||||||||
| Three months ended June 30, 2026 | ||||||||||||||
| Revenue | 66,989 | 2,310 | 1,458 | 70,757 | ||||||||||
| Excise taxes | (2,953) | (250) | — | (3,203) | ||||||||||
Net revenue (1) | 64,036 | 2,060 | 1,458 | 67,554 | ||||||||||
| Cost of sales | (31,638) | (1,841) | (4,883) | (38,362) | ||||||||||
Gross profit before FV adjustments (1) | 32,398 | 219 | (3,425) | 29,192 | ||||||||||
Gross margin before FV adjustments (2) | 51 | % | 11 | % | (235 | %) | 43 | % | ||||||
| Depreciation | 2,188 | 146 | 156 | 2,490 | ||||||||||
Inventory impairment included in cost of sales(3) | 4,771 | 48 | 2,967 | 7,786 | ||||||||||
Adjusted gross profit before FV adjustments (4) | 39,357 | 413 | (302) | 39,468 | ||||||||||
Adjusted gross margin before FV adjustments (4) | 61 | % | 20 | % | (21 | %) | 58 | % | ||||||
Three months ended June 30, 2025 | ||||||||||||||
| Revenue | 67,778 | 11,297 | 1,433 | 80,508 | ||||||||||
| Excise taxes | (3,010) | (3,422) | — | (6,432) | ||||||||||
Net revenue(1) | 64,768 | 7,875 | 1,433 | 74,076 | ||||||||||
| Cost of sales | (25,932) | (7,949) | (1,346) | (35,227) | ||||||||||
Gross profit before fair value FV adjustments (1) | 38,836 | (74) | 87 | 38,849 | ||||||||||
Gross margin before FV adjustments (2) | 60 | % | (1 | %) | 6 | % | 52 | % | ||||||
| Depreciation | 2,136 | 562 | 95 | 2,793 | ||||||||||
Inventory impairment included in cost of sales(3) | 3,658 | 2,086 | 353 | 6,097 | ||||||||||
Adjusted gross profit before fair value FV adjustments (4) | 44,630 | 2,574 | 535 | 47,739 | ||||||||||
Adjusted gross margin before FV adjustments (4) | 69 | % | 33 | % | 37 | % | 64 | % | ||||||
(1)As presented in the interim condensed consolidated statements of loss and comprehensive loss.
(2)Gross margin before fair value adjustments is calculated as gross profit before fair value adjustments divided by net revenue.
(3)Inventory impairment includes inventory write-downs due to lower of cost or net realizable value adjustments, obsolescence provision adjustments and inventory destruction.
(4)These terms are defined in the “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” section of this MD&A, including information on reconciliation to the most directly comparable IFRS measure.
Medical Cannabis Adjusted Gross Margin
Adjusted gross margin before fair value adjustments on medical cannabis net revenue was 61% for the three months ended June 30, 2026 compared to 69% for the three months ended June 30, 2025. The decrease is from changes to the federal reimbursement program effective April 1, 2026, which decreased reimbursement rates by approximately 30%.
Consumer Cannabis Adjusted Gross Margin
Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 20% for the three months ended June 30, 2026, compared to 33% for the three months ended June 30, 2025. During the three months ended June 30, 2026, the Company sold products at lower prices to reduce inventory impairments related to the wind down of the consumer channel.
6 | AURORA CANNABIS INC. | Q1 2027 MD&A | |||||||
Operating Expenses
| 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 development costs | 1,589 | 361 | ||||||
| Research and development | 941 | 829 | ||||||
| Depreciation and amortization | 937 | 767 | ||||||
| Share-based compensation | 693 | 2,186 | ||||||
| Total operating expenses | 44,353 | 45,470 | ||||||
General and administration (“G&A”)
G&A expenses decreased by $2.3 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was due to the reversal of a loss allowance related to a trade receivable.
Sales and marketing (“S&M”)
S&M expenses increased by $1.1 million for the three months ended June 30, 2026, primarily due to an increase in shipping and freight costs.
Research and development (“R&D”)
The Company’s investment in R&D and product innovation is partly opportunistic and the approach to R&D spend is targeted and gated. As such, these costs will vary quarter-over-quarter and year-over-year.
Business development costs
Business development costs increased by $1.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to transaction costs incurred in connection with the acquisition of Safari.
Depreciation and amortization
Depreciation and amortization for the three months ended June 30, 2026 was comparable to the three months ended June 30, 2025.
Share-based compensation
Share-based compensation expense decreased by $1.5 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The fluctuations experienced over the comparative period largely relate to cash settled share-based compensation, which is remeasured each period based on the Company’s share price. The decrease relates to the decline in the Company’s share price.
Adjusted Selling, General & Administration(2)
The table below outlines Adjusted SG&A for the periods ended:
| Three months ended | ||||||||
| ($ thousands) | June 30, 2026 | June 30, 2025 | ||||||
| General and administration | 24,602 | 26,872 | ||||||
| Sales and marketing | 15,591 | 14,455 | ||||||
Business transformation costs (1) | (5,109) | (5,232) | ||||||
Adjusted SG&A (2) | 35,084 | 36,095 | ||||||
(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 SG&A is defined in the “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” section of this MD&A, including information on reconciliation to the most directly comparable IFRS measure.
Adjusted SG&A for the three months ended June 30, 2026 was comparable to the three months ended June 30, 2025.
7 | AURORA CANNABIS INC. | Q1 2027 MD&A | |||||||
Other Income
| Three months ended | ||||||||
| ($ thousands) | June 30, 2026 | June 30, 2025 | ||||||
| Interest and other income | 1,241 | 1,823 | ||||||
| Finance and other costs | (464) | (486) | ||||||
| Foreign exchange gain (loss) | 2,881 | (86) | ||||||
| Other gains (losses) | 1,443 | 434 | ||||||
| Other income | 5,101 | 1,685 | ||||||
During the three months ended June 30, 2026, other income was $5.1 million compared to $1.7 million for the three months ended June 30, 2025. The increase of $3.4 million reflects foreign exchange gains recognized during the three months ended June 30, 2026, resulting from the appreciation of the Euro and Australian dollar relative to the Canadian dollar. This was partially offset by lower interest income due to reduced cash balances and short-term investments.
Net Loss
Net loss from continuing operations for the three months ended June 30, 2026 was $4.0 million compared to a net loss of $10.2 million for the three months ended June 30, 2025. The decrease in net loss of $6.2 million is mainly due to an increase in gross profit of $2.1 million, a decrease in operating expenses of $1.1 million and an increase in other income of $3.4 million. The increase in gross profit includes an increase in gain on changes in fair value of biological assets of $12.6 million, partially offset by a decrease in net revenue of $6.5 million.
Adjusted EBITDA(2)
The following is the Company’s adjusted EBITDA:
($ 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 this 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 EBITDA was $3.4 million for the three months ended June 30, 2026 compared to $10.8 million for the three months ended June 30, 2025. The decrease of $7.4 million is primarily due to a decrease of $8.3 million in adjusted gross profit before fair value adjustments partially offset by a decrease in adjusted SG&A of $1.0 million.
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Adjusted Net Income(2)
The following is the Company’s adjusted net income:
($ thousands) | Three months ended | |||||||
| June 30, 2026 | June 30, 2025 | |||||||
| Net 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 this MD&A, including information on reconciliation to the most directly comparable IFRS measure.
Adjusted net income was $3.8 million for the three months ended June 30, 2026 compared to adjusted net income of $6.6 million for the three months ended June 30, 2025. The decrease of $2.8 million is primarily due to a decrease in adjusted gross profit before fair value adjustments of $8.3 million, partially offset by a decrease in adjusted SG&A of $1.0 million and an increase in other income of $3.4 million.
Liquidity and Capital Resources
($ thousands) | June 30, 2026 | March 31, 2026 | ||||||
| Cash and cash equivalents | 69,307 | 64,690 | ||||||
| Restricted cash | 49,086 | 47,791 | ||||||
| Short-term investments | 30,722 | 52,213 | ||||||
Working capital (1) | 320,020 | 330,523 | ||||||
| Total assets | 620,877 | 601,087 | ||||||
| Total non-current liabilities | 20,317 | 22,325 | ||||||
| Capitalization | ||||||||
| Lease liabilities | 22,684 | 23,859 | ||||||
| Total debt | 22,684 | 23,859 | ||||||
| Total equity | 527,131 | 511,832 | ||||||
| Total capitalization | 549,815 | 535,691 | ||||||
(1)Working capital is defined as current assets less current liabilities as stated on the Company’s interim condensed consolidated statements of financial position.
During the three months ended June 30, 2026, the Company primarily financed its operations, capital expenditures and growth initiatives through the generation of net revenue, working capital and cash on hand, including short-term investments. For more information on key cash flows related to operations, investing and financing activities during this period, refer to the “Cash Flow Highlights” discussion below.
The Company’s objective when managing its liquidity and capital resources is to maintain sufficient liquidity to support financial obligations when they become due, while executing operating and strategic plans. The Company manages liquidity risk through the management of its capital structure and resources to ensure that it has sufficient liquidity to settle obligations and liabilities when they are due. The Company’s ability to fund our operating requirements depends on future operating performance and cash flows, which are subject to economic, financial, competitive, business and regulatory conditions, and other factors, some of which are beyond our control. The primary short-term liquidity needs are to fund net operating losses and capital expenditures to maintain existing facilities and lease payments. The medium-term liquidity needs primarily relate to lease payments and the long-term liquidity needs primarily relate to potential strategic plans.
While the Company has experienced, and may continue to experience, periods of negative cash flow and net losses, management has actioned several initiatives to improve cash generation, including focusing on growth in high-margin global medical cannabis markets and exit from the Canadian consumer market to prioritize resources. In addition, the Company has invested in operational upgrades at its facility in Leuna, Germany and the acquisition of Safari to add incremental EU-GMP flower to support profitable growth. In the meantime, the Company has sufficient liquidity supporting its going concern assumption.
As at June 30, 2026, the Company has access to the following capital resources available to fund operations and obligations:
•$69.3 million in cash and cash equivalents and $30.7 million in short-term investments.
•The Company's cross-border shelf prospectus filed on February 14, 2025 (the “2025 Shelf Prospectus”), which, together with a corresponding registration statement filed with the SEC, qualifies the issuance of up to U.S. $250 million of Common Shares, warrants, options, subscription receipts, debt securities and/or units during the 25-month period, ending March 2027, that it remains effective. Volatility in the cannabis industry, stock market and the Company’s share price may impact the amount and our ability to raise financing under the 2025 Shelf Prospectus.
•On February 4, 2026, the Company filed a prospectus supplement establishing the at-the-market (“ATM Program”) which allows the Company to issue and sell up to U.S. $100 million of Common Shares from treasury to the public, from time to time, at the
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Company's discretion, through ATM Program distributions, as defined in National Instrument 44-102, through Nasdaq or other marketplaces in the United States at the prevailing market price at the time of sale. The Company intends to use proceeds raised under the ATM Program for strategic and accretive purposes only, including for increased cultivation capacity and potential M&A. As at June 30, 2026, the Company has approximately U.S. $87.1 million of Common Shares that can be sold under the ATM Program.
Based on the aforementioned factors, the Company believes that its current liquidity position and access to the 2025 Shelf Prospectus and the ATM Program are adequate to fund operating activities and cash commitments for investing, financing and strategic activities for the foreseeable future.
Subsequent to June 30, 2026, the Board of Directors approved the wind-up of the Company's segregated cell program related to its self-insurance policy. Upon completion of the wind-up, approximately $46.4 million of restricted cash held within the segregated cell will become unrestricted and be reclassified to cash and cash equivalents. The wind-up is expected to be completed by the third quarter of fiscal 2027.
Cash Flow Highlights
The table below summarizes the Company’s cash flows:
| Three months ended | ||||||||
| June 30, 2026 | June 30, 2025 | |||||||
| Net cash provided by (used in) operating activities from continuing operations | (4,446) | 7,679 | ||||||
| Net cash provided by (used in) investing activities from continuing operations | 1,239 | (4,875) | ||||||
| Net cash provided by (used in) financing activities from continuing operations | 5,375 | (1,162) | ||||||
| Cash provided by discontinued operations | — | 123 | ||||||
| Effect of foreign exchange | 2,449 | 474 | ||||||
| Increase in cash and cash equivalents | 4,617 | 2,239 | ||||||
Net cash used in operating activities from continuing operations for the three months ended June 30, 2026 was $4.4 million compared to net cash provided by operating activities from continuing operations of $7.7 million for the three months ended June 30, 2025. The primary driver of the change was a decrease in gross profit before FV adjustments of $9.7 million.
Net cash provided by investing activities from continuing operations for the three months ended June 30, 2026 was $1.2 million compared to net cash used in investing activities from continuing operations of $4.9 million for the three months ended June 30, 2025. The increase was primarily driven by proceeds of $21.5 million from the sale of short-term investments, partially offset by cash consideration, net of cash acquired, of $14.8 million in connection with the acquisition of Safari. Capital expenditures of $5.4 million for the three months ended June 30, 2026 related to facility upgrades at the Company's Leuna, Germany facility and the Alpine facility in Pemberton, British Columbia, where improvements are underway to enhance cultivation capabilities and increase production capacity.
Net cash provided by financing activities from continuing operations for the three months ended June 30, 2026 was $5.4 million compared to net cash used in financing activities from continuing operations of $1.2 million for the three months ended June 30, 2025. The increase was primarily attributable to proceeds of $6.8 million from the issuance of Common Shares under the Company's ATM Program during the three months ended June 30, 2026.
Free Cash Flow(2)
The table below outlines free cash flow for the periods ended:
| Three months ended | ||||||||
| ($ 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 this MD&A, including information on reconciliation to the most directly comparable IFRS measure.
Free cash flow was an outflow of $5.8 million for the three months ended June 30, 2026 compared to an inflow of $6.8 million for the three months ended June 30, 2025. The decrease in free cash flow of $12.6 million is primarily due to a decrease in gross profit before fair value adjustments of $9.7 million.
Contractual Obligations, Commitments, Contingencies and Off-Balance Sheet Arrangements
In the normal course of business, the Company is obligated to make future payments, including contractual obligations and non-cancellable commitments. The Company is also subject to litigation and similar claims in the ordinary course of our business. A discussion of these items is included in the “Liquidity and Capital Resources” section of the Annual MD&A for the year ended March 31, 2026.
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As at June 30, 2026, the Company has recognized total legal provisions of $0.8 million (March 31, 2026 – $0.8 million) on the Company’s interim condensed consolidated statements of financial position.
As of the date of this MD&A, the Company has $0.5 million in letters of credit outstanding with the Bank of Montreal. There are no other material off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the financial performance or financial condition of the Company.
Accounting Policies and Critical Accounting Estimates
The preparation of the Financial Statements under IFRS requires management to make judgements, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The Company’s significant accounting policies and a summary of recently announced accounting standards are described in the Accounting Policies and Judgments in Note 2 of the 2026 Annual Financial Statements.
Critical accounting estimates are also those estimates that, where a different estimate could have been used or where changes in the estimate that are reasonably likely to occur, would have a material impact on the Company’s financial condition, changes in financial condition or financial performance. The estimates and underlying assumptions are reviewed on an ongoing basis. There were no changes in the Company’s critical accounting estimates policies during the three months ended June 30, 2026. For additional information on the Company’s accounting policies and key estimates, refer to the note disclosures in the 2026 Annual Financial Statements.
Adoption of New Accounting Pronouncements
On April 1, 2026, the Company adopted the amendments to IFRS 9, Financial Instruments, and IFRS 7, Financial Instruments: Disclosures, relating to the classification and measurement requirements of financial instruments recognized within those standards, were adopted April 1, 2026. These amendments include, among others:
•Clarify that a financial liability is to be derecognized on the 'settlement date' and introduces an accounting policy to derecognize financial liabilities settled through an electronic payment system before settlement date if certain conditions are met; and
•Require additional disclosures for financial assets and liabilities with contractual terms that reference a contingent event and equity instruments classified at fair value through other comprehensive income.
The Company uses the settlement date to derecognize financial liabilities for electronic payments. The other amendments did not have an impact upon adoption.
New Accounting Pronouncements Not Yet Adopted
IFRS 18, Presentation and Disclosures in Financial Statements, replaces IAS 1, Presentation of Financial Statements for reporting periods beginning on or after January 1, 2027, including for interim financial statements with retrospective application. IFRS 18 introduces a specified structure for the income statement by requiring income and expenses to be presented into the three defined categories of operating, investing and financing, and by specifying certain defined totals and subtotals.
Where company-specific measures related to the income statement are provided, IFRS 18 requires companies to disclose explanations around these measures, which are referred to as management defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation and disaggregation which apply to the primary financial statements and the notes. The Company intends to adopt IFRS 18 upon its mandatory effective date and is currently assessing the impact of the Standard on its consolidated financial statements. The Company expects that its consolidated statements of income and comprehensive income will require further disaggregation, including the addition of new subtotals not currently presented and the potential for additional categories of operating expenses requiring disclosure on the face of the consolidated statements of income and comprehensive income. The Company also expects its consolidated statements of cash flows will be impacted by the application of IFRS 18, since it applies the indirect method for presenting its consolidated statements of cash flows, whereby net income will no longer be the starting point, which is expected to be replaced by operating profit. Further, management will be required to disclose in the notes to the consolidated financial statements certain performance measures currently disclosed and reconciled in management’s discussion and analysis.
Financial Instruments Risk
The Company is exposed to a variety of financial instrument related risks. The Board mitigates these risks by assessing, monitoring and approving the Company’s risk management processes. Refer to Note 21 and Note 22 in the 2026 Annual Financial statements for additional information on the Company’s financial instruments and related fair value estimates and disclosures.
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Summary of Outstanding Share Data
The Company had the following securities issued and outstanding as at August 4, 2026:
Securities (1) | Units outstanding | ||||
| Issued and outstanding Common Shares | 64,861,819 | ||||
| Stock options | 2,335,919 | ||||
| Restricted share units | 1,597,396 | ||||
| Deferred share units | 28,555 | ||||
| Performance share units | 541,089 | ||||
(1)Refer to Note 12 “Share Capital” in the 2026 Annual Financial Statements for a detailed description of these securities.
Summary of Quarterly Results
| ($ thousands, except earnings per share and operational results) | June 30, 2026 | March 31, 2026 | December 31, 2025(1) | September 30, 2025(1) | ||||||||||
| Financial Results | ||||||||||||||
Revenue | 70,757 | 89,308 | 87,875 | 84,734 | ||||||||||
Net revenue (2) | 67,554 | 84,816 | 82,893 | 78,810 | ||||||||||
| Net (loss) income from continuing operations attributable to common shareholders | (4,033) | (27,566) | 6,317 | (27,181) | ||||||||||
| Net loss from discontinued operations attributable to common shareholders | — | (29,329) | (4,494) | (24,295) | ||||||||||
| Net (loss) income attributable to common shareholders | (4,033) | (56,895) | 1,823 | (51,476) | ||||||||||
| Basic (loss) income per share, continuing operations | (0.07) | (0.48) | 0.11 | (0.48) | ||||||||||
| Diluted (loss) income per share, continuing operations | (0.07) | (0.48) | 0.11 | (0.48) | ||||||||||
| Basic (loss) income per share | (0.07) | (0.99) | 0.03 | (0.91) | ||||||||||
| Diluted (loss) income per share | (0.07) | (0.99) | 0.03 | (0.91) | ||||||||||
| Balance Sheet | ||||||||||||||
| Current assets | 393,449 | 397,453 | 445,836 | 423,845 | ||||||||||
| Current liabilities | 73,429 | 66,930 | 145,935 | 124,116 | ||||||||||
June 30, 2025(1) | March 31, 2025 (1) | December 31, 2024(1)(3) | September 30, 2024(1)(3) | |||||||||||
| Financial Results | ||||||||||||||
Revenue | 80,508 | 83,522 | 87,081 | 80,299 | ||||||||||
Net revenue (2) | 74,076 | 76,768 | 79,301 | 72,488 | ||||||||||
| Net (loss) income from continuing operations attributable to common shareholders | (10,186) | (12,128) | 28,678 | 3,466 | ||||||||||
| Net loss from discontinued operations attributable to common shareholders | (5,023) | (7,007) | (125) | (15,745) | ||||||||||
| Net (loss) income attributable to common shareholders | (15,209) | (19,135) | 28,553 | (12,279) | ||||||||||
| Basic (loss) income per share, continuing operations | (0.18) | (0.22) | 0.52 | 0.06 | ||||||||||
| Diluted (loss) income per share, continuing operations | (0.18) | (0.22) | 0.51 | 0.06 | ||||||||||
| Basic (loss) income per share | (0.27) | (0.35) | 0.52 | (0.22) | ||||||||||
| Diluted (loss) income per share | (0.27) | (0.35) | 0.51 | (0.22) | ||||||||||
| Balance Sheet | ||||||||||||||
| Current assets | 465,301 | 478,328 | 488,548 | 416,071 | ||||||||||
| Current liabilities | 156,885 | 110,863 | 149,807 | 109,095 | ||||||||||
(1)Certain previously reported amounts have been adjusted to exclude the results related to discontinued operations.
(2)As presented in the interim condensed consolidated financial statements of loss and comprehensive loss.
(3)In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company noted that inventory and lease obligation were misstated, impacting the condensed consolidated interim statements filed during the 2025 fiscal year. Certain balances in the condensed consolidated interim financial statements as at and for the three months ended September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to the “Historical Quarterly Results” section of the 2025 Annual MD&A.
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Risk Factors
In addition to the other information included in this MD&A, readers should consider carefully the following factors, which describe the risks, uncertainties and other factors that may materially and adversely affect our business, products, financial condition and operating results. There are many factors that affect our business and our results of operations, some of which are beyond our control. The following is a description of important factors that may cause our actual results of operations in future periods to differ materially from those currently expected or discussed in the forward-looking statements (as defined below) set forth in this MD&A relating to our financial results, operations and business prospects. Except as required by law, we undertake no obligation to update any such forward-looking statements to reflect events or circumstances after the date of this MD&A.
These risks include, but are not limited to the following:
•We have a limited operating history and a history of losses in prior periods and there is no assurance that we will be able to achieve or maintain profitability.
•Our business is reliant on the good standing of our licenses.
•Our Canadian licenses are reliant on our established sites.
•We operate in a highly regulated business and any failure or significant delay in obtaining applicable regulatory approvals could adversely affect our ability to conduct our business.
•Changes in the laws, regulations, and guidelines that impact our business may cause adverse effects on our operations.
•Failure to comply with anti-money laundering laws and regulations could subject us to penalties and other adverse consequences.
•We compete for market share with a number of competitors and expect additional competitors to enter our market, and many of our current and future competitors may have longer operating histories, more financial resources, and lower costs than us.
•Selling prices and the cost of cannabis production may vary based on a number of factors outside of our control.
•We may not be able to realize our growth targets or successfully manage our growth.
•The continuance of our contractual relations with provincial and territorial governments cannot be guaranteed.
•Our continued growth may require additional financing, which may not be available on acceptable terms or at all.
•A default under any future debt that is not waived by the applicable lender(s) could materially adversely impact our results of operations and financial results and could have a material adverse effect on the trading price of our common shares.
•We may be subject to credit risk.
•We may not be able to successfully develop new products or find a market for their sale.
•As the cannabis market continues to mature, our products may become obsolete, less competitive, or less marketable.
•Restrictions on branding and advertising may negatively impact our ability to attract and retain customers.
•The cannabis business may be subject to unfavorable publicity or consumer perception.
•Third parties with whom we do business may perceive themselves as being exposed to reputational risk by virtue of their relationship with us and may ultimately elect to discontinue their relationships with us.
•There may be unknown health impacts associated with the use of cannabis and cannabis derivative products.
•We may enter into strategic alliances or expand the scope of currently existing relationships with third parties that we believe
complement our business, financial condition and results of operation and there are risks associated with such activities.
•Our success will depend on attracting and retaining key personnel.
•Our dependence on senior management.
•Certain of our directors and officers may have conflicts of interests due to other business relationships.
•Future execution efforts may not be successful.
•We have expanded and intend to further expand our business and operations into jurisdictions outside of Canada, and there are risks associated with doing so.
•Our business may be affected by political and economic instability, and a period of sustained inflation across the markets in which we operate could result in higher operating costs.
•We rely on international advisors and consultants in foreign jurisdictions.
•Failure to comply with the Corruption of Foreign Public Officials Act (Canada) (“CFPOA”) and the Foreign Corrupt Practices Act (U.S.) (“FCPA”), as well as the anti-bribery laws of the other nations in which we conduct business, could subject us to penalties and other adverse consequences.
•We may be subject to uninsured or uninsurable risks.
•We may be subject to product liability claims.
•Our cannabis products may be subject to recalls for a variety of reasons.
•We are and may become party to litigation, mediation, and/or arbitration from time to time.
•The transportation of our products is subject to security risks and disruptions.
•Our business is subject to the risks inherent in agricultural operations.
•We have in the past, and may in the future, record significant impairments or write-downs of our assets.
•Our operations are subject to various environmental and employee health and safety regulations.
•Climate change may have an adverse effect on demand for our products or on our operations.
•We may not be able to protect our intellectual property.
•We may experience breaches of security at our facilities or in respect of electronic documents and data storage and may face risks related to breaches of applicable privacy laws.
•We may be subject to risks related to our information technology systems, including cyber-attacks.
•We may not be able to successfully identify and execute future acquisitions or dispositions, or to successfully manage the impacts of such transactions on our operations.
•As a holding company, Aurora is dependent on its operating subsidiaries to pay dividends and other obligations.
•The price of our common shares has historically been volatile. This volatility may affect the value of your investment in Aurora, the price at which you could sell our common shares and the sale of substantial amounts of our common shares could adversely affect the price of our common shares.
•It is not anticipated that any dividend will be paid to holders of our common shares for the foreseeable future.
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•Future sales or issuances of equity securities could decrease the value of our common shares, dilute investors’ voting power, and reduce our earnings per common share.
•Our management will have substantial discretion concerning the use of proceeds from future share sales and financing transactions.
•The regulated nature of our business may impede or discourage a takeover, which could reduce the market price of our common shares and the value of any outstanding convertible debentures/notes.
•The financial reporting obligations of being a public company and maintaining a dual listing on the TSX and on Nasdaq requires significant Company resources and management attention.
•Failure to develop and maintain an effective system of internal controls increases the risk that we may not be able to accurately and reliably report our financial results or prevent fraud, which may harm our business, the trading price of our common shares and market value of other securities.
•We are a Canadian company and shareholder protections may differ from shareholder protections in the U.S. and elsewhere.
•We are a foreign private issuer within the meaning of the rules under the Securities Exchange Act of 1934 (the “U.S. Exchange Act”), as amended, and as such is exempt from certain provisions applicable to United States domestic issuers.
•Our employees and counterparties may be subject to potential U.S. entry restrictions as a result of their relationship with us.
•Participants in the cannabis industry may have difficulty accessing the service of banks and financial institutions, which may make it difficult for us to operate.
•The Company’s employees, independent contractors and consultants may engage in fraudulent or other illegal activities.
•The controversy surrounding vaporizers and vaporizer products may materially and adversely affect the market for vaporizer products and expose us to litigation and additional regulation.
•We must rely largely on our own market research and internal data to forecast sales and market demand and market prices which may differ from our forecasts.
•The Canadian excise duty framework affects profitability.
•We may hedge or enter into forward sales, which involves inherent risks.
•Our costs, including those for input materials, energy and transportation, could be negatively impacted by international conflicts.
Disclosure Controls and Procedures and Internal Controls over Financial Reporting
Disclosure Controls and Procedures
The Company maintains DC&P designed to provide reasonable assurance that information required to be disclosed in the Company’s annual filings, interim filings and other reports filed or submitted by it under securities laws is recorded, processed, summarized and reported accurately and in the time periods specified under such securities laws, and include controls and procedures designed to ensure such information is accumulated and communicated to the Company’s management, including its certifying officers, as appropriate to allow timely decisions regarding required disclosure. As at June 30, 2026, the CEO and CFO have concluded that the Company’s DC&P were not effective as at that date as a result of the material weakness identified as at March 31, 2026.
Changes to Internal Control over Financial Reporting
In fiscal 2026 and continuing into fiscal 2027, management implemented a number of business processes and control improvements to address known control deficiencies and continue to enhance the Company’s control environment, including:
•a comprehensive review of the Company’s key corporate business processes and controls to streamline manual review process steps and rationalize controls that reflect changes in the Company’s business and operating environment;
•continuing to deploy a common Enterprise Resource Planning (“ERP”) system across the company, including deployment of the Company’s ERP in the Australia business unit and enhancements at both Corporate and EU business units;
•modifying existing controls and implementing new controls that operate effectively to address known system limitations or third party data availability regarding assurance and segregation of duties;
•continued efforts to integrate the Australia business unit into the Company’s control environment; and
•continued efforts to harmonize and automate controls around biological assets and inventory data, operations and reporting.
Aside from these initiatives, no other changes to the Company’s Internal Control over Financial Reporting (“ICFR”) occurred during the quarter that have materially affected, or are likely to materially affect, the Company’s ICFR. Management has not concluded remediation or testing over the material weakness identified as at March 31, 2026 (as described in the Annual MD&A), and so continues to report a material weakness as at June 30, 2026 until remediation testing can be concluded.
Acquisition of Safari
The Company completed its acquisition of Safari on April 14, 2026 triggering the Company’s business combination controls over the transaction including purchase price accounting. While management has extended its oversight, governance and monitoring processes that also support the Company’s ICFR framework, we continue to integrate Safari, which may result in additions or changes to the Company’s ICFR or supporting consolidation processes.
Management’s Assessment on Internal Control over Financial Reporting
COSO Framework
In accordance with National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings and as required by Rule 13a-15(f) and 15d-15(f) of the U.S. Exchange Act, management is responsible for establishing and maintaining adequate ICFR. The Company’s management, including the CEO and CFO, has designed ICFR based on the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO Framework”) to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS.
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ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. ICFR has inherent limitations. ICFR is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. ICFR also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements will not be prevented or detected on a timely basis by ICFR. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design safeguards into the process to reduce, though not eliminate, this risk.
Management, under the supervision and with the participation of our CEO and CFO and oversight of the Board of Directors, evaluated the effectiveness of our ICFR as of March 31, 2026, against the COSO Framework. Based on this evaluation, management concluded that a material weakness existed as of March 31, 2026, as described below, and due to this material weakness, ICFR was not effective as of March 31, 2026.
Biological Assets and Inventory Valuation
The Company did not design or maintain effective controls over significant estimates, assumptions and formulas in biological asset and inventory valuation models. Specifically, controls were not designed and consistently executed over the completeness and accuracy of data inputs used in biological asset and inventory valuation models, including the precision of controls to detect errors in the calculation of gains and losses on changes in fair value, impairments and provisions to the Company’s biological assets and inventory consolidated balances, as well as cost of sales.
Material and immaterial errors were identified as a result of this material weakness which were corrected prior to release of the annual financial statements. This material weakness creates a reasonable possibility that material misstatements in interim or annual financial statements would not be prevented or detected on a timely basis.
Ernst & Young LLP, an independent registered public accounting firm, has audited the Company’s 2026 Annual Financial Statements and has issued an adverse opinion on the effectiveness of Internal Control over Financial Reporting.
Management has excluded the acquisition of Safari from its assessment of DC&P and ICFR as of June 30, 2026.
Remediation Plan
Following the identification of material weaknesses in the FY2026 period, management initiated a Company-wide remediation plan with the assistance of a top-tier professional services firm, which is designed to remediate known control deficiencies and address changes in risk based on business process growth. In FY2027 and continuing into FY2028, management continues to undertake the following:
•Harmonizing the IT environment through the Company’s ERP Transformation program in order to remove disparate IT applications and simplify the IT environment, resulting in fewer cases of manual data/information manipulation or compilation.
•Updating the Company’s key business processes and related controls to reflect changes in the Company’s business and operating environment, with a goal of streamlining the respective controls and reducing the reliance on or sensitivity of assumptions and estimates in key forecasts and valuation models.
•Enhancing the use of reliable, complete and accurate data in the performance of key controls, including the ongoing reduction of reliance on manual data and management review controls.
•Enhancing the tools and hands-on training available to staff and control owners to enable the timely and consistent execution of controls.
Management also acknowledges there is a base level of inherent complexity and risk of error with respect to subjective assumptions and the high level of sensitivity in the presentation of biological assets fair value, impairments and provisions, as well as cost of sales. This will continue to represent an area of complex management assumptions and estimates in the Company’s presentation of financial information as reported under International Financial Reporting Standard IAS 41, Agriculture. Notwithstanding this complexity, Management continues to implement stronger controls and enhance business processes to mitigate reporting risk and eliminate control deficiencies identified above in the Company’s material weakness.
We believe these measures, and others that may be implemented, will remediate the material weakness in ICFR described above.
Cautionary Statement Regarding Forward-Looking Statements
This MD&A contains certain statements which may constitute “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities law requirements (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this MD&A, and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The Company provides no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements in this MD&A include, but are not limited to, statements with respect to:
•pro forma measures including revenue, cash flow, adjusted gross margin before fair value adjustments, expected SG&A run-rates, and grams produced;
•expectations for gross profit margins following changes to the federal reimbursement program made effective April 1, 2026;
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•the Company’s ability to fund operating activities and cash commitments for investing and financing activities for the foreseeable future;
•expectations regarding production capacity, costs and yields;
•statements made with respect to the anticipated disposition of legal claims disclosed under the heading “Contractual Obligations, Commitments, Contingencies, and Off-Balance Sheet Arrangements” in our Annual MD&A;
•future strategic opportunities;
•future growth opportunities including the expansion into additional international markets;
•expectations related to the increased legalization of medical and consumer markets, including the United States;
•wind down of the Company’s consumer business;
•competitive advantages and strengths in Canadian and international medical cannabis, medical and regulatory expertise in a federal framework and scientific expertise, including genetics and breeding;
•the Company’s breeding program, product portfolio and innovation, and the expected impact on revenue and long-term success;
•critical success factors in the cannabis industry, including profitable growth, positive cash flow, smart capital allocation and balance sheet strength;
•the acquisition of Safari Flower Company, including the associated benefits to the Company’s business;
•the Company’s strategy and path to deliver sustained profitability and positive free cash flow;
•the availability of funds under the 2025 Shelf Prospectus and ability to raise funds under the ATM Program, and
•the creation of sustainable, long-term shareholder value.
The forward-looking statements contained in this document 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 Company’s 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 Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the availability of additional capital to complete construction projects and facilities improvements, the risk of successful integration of acquired business and operations, management’s estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises, and other risks as set out under “Risk Factors” contained herein. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements.
Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on the information available to the Company on the date hereof, no assurance can be given as to future results, approvals or achievements. Forward-looking statements contained in this MD&A and in the documents incorporated by reference herein are expressly qualified by this cautionary statement.
Cautionary Statement Regarding Certain Non-GAAP Performance Measures
This MD&A contains certain financial performance measures that are not recognized or defined under IFRS (“Non-GAAP Measures”). As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. For an explanation of these measures to related comparable financial information presented in the consolidated Financial Statements prepared in accordance with IFRS, refer to the discussion below. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company. The following are Non-GAAP measures contained in this MD&A:
•Adjusted gross profit before fair value adjustments (“FV adjustments”) represents cash gross profit on net revenue and is calculated by subtracting from total net revenue (i) cost of sales, before the effects of changes in FV of biological assets and inventory; and removing; (ii) depreciation in cost of sales; and (iii) cannabis inventory impairment. Adjusted gross margin before FV adjustments is calculated by dividing adjusted gross profit before FV adjustments by net revenue. Adjusted gross profit and gross margin before FV adjustments on cannabis net revenue is further broken down as follows:
◦Adjusted gross profit and gross margin before FV adjustments on medical cannabis net revenue represents gross profit and gross margin before FV adjustments on sales generated in the medical market only.
◦Adjusted gross profit and gross margin before FV adjustments on consumer cannabis net revenue represents gross profit and gross margin before FV adjustments on sales generated in the consumer market only.
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◦Adjusted gross profit and gross margin before FV adjustments on wholesale bulk cannabis net revenue represents gross profit and gross margin before FV adjustments on sales generated from wholesale bulk cannabis only.
Management believes that these measures provide useful information to assess the profitability of our operations as it represents the cash gross profit and margin generated from operations and excludes the effects of non-cash FV adjustments on inventory and biological assets, which are required by IFRS. This measure is derived from gross profit and gross margin, which are the most directly comparable GAAP measures.
•Adjusted EBITDA is calculated as net income (loss) from continuing operations excluding income tax expense (recovery), other income (expenses), share-based compensation, depreciation and amortization, business development costs, changes in fair value of inventory and biological assets sold, inventory impairment adjustments, changes in fair value of biological assets and costs related to our business transformation. Adjusted EBITDA is intended to provide a proxy for the Company’s operating cash flow and is widely used by industry analysts to compare Aurora to its competitors, and derive expectations of future financial performance for Aurora, and excludes adjustments that are not reflective of current operating results.
•Adjusted net income is calculated as net income (loss) from continuing operations excluding impairment charges related to property, plant and equipment, intangible assets and goodwill, business development costs, changes in fair value of inventory and biological assets sold, inventory impairment adjustments, changes in fair value of biological assets, costs related to our business transformation and valuation allowance on deferred tax assets. Management believes adjusted net income is a key financial measure to effectively evaluate our operating performance and compare results of our operations from period to period without the impact of certain non-cash and non-routine costs that we do not expect to continue at the same level in the future and items that are not core to our operations.
•Management believes that free cash flow presents meaningful information regarding the amount of cash flow required to maintain and organically grow the Company’s business and is an important liquidity measure. Free cash flow is defined as net cash provided by (used in) operating activities from continuing operations, less maintenance capital expenditures. This measure is derived from, and closely aligns with the most comparable GAAP measure, net cash provided by (used in) operating activities from continuing operations.
•Adjusted SG&A is defined as SG&A, less business transformation costs. Management believes this measure provides useful information to assess the recurring costs of our operations.
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 should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
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1 Form 52-109F2 Certification of Interim Filings Full Certificate I, Miguel Martin, Chief Executive Officer of Aurora Cannabis Inc., certify the following: 1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Aurora Cannabis Inc. (the “issuer”) for the interim period ended June 30, 2026. 2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings. 3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings. 4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer. 5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings (a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that (i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and (ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and (b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP. 5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (COSO Framework 2013) published by The Committee of Sponsoring Organization of the Treadway Commission (COSO). 5.2 ICFR – material weakness relating to design: The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the end of the interim period:
2 (a) a description of the material weakness; (b) the impact of the material weakness on the issuer’s financial reporting and its ICFR; and (c) the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness. 5.3 Limitation on scope of design: N/A 6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR. Date: August 05, 2026 /s/ Miguel Martin Miguel Martin Chief Executive Officer
1 Form 52-109F2 Certification of Interim Filings Full Certificate I, Simona King, Chief Financial Officer of Aurora Cannabis Inc., certify the following: 1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Aurora Cannabis Inc. (the “issuer”) for the interim period ended June 30, 2026. 2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings. 3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings. 4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer. 5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings (a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that (i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and (ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and (b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP. 5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (COSO Framework 2013) published by The Committee of Sponsoring Organization of the Treadway Commission (COSO). 5.2 ICFR – material weakness relating to design: The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the end of the interim period:
2 (a) a description of the material weakness; (b) the impact of the material weakness on the issuer’s financial reporting and its ICFR; and (c) the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness. 5.3 Limitation on scope of design: N/A 6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR. Date: August 05, 2026 /s/ Simona King Simona King Chief Financial Officer