Aurora Cannabis Inc., a leading Canadian-based global medical cannabis company, has reported its financial and operational results for the third quarter of fiscal 2025, ending December 31, 2024.
The company achieved “record-breaking” figures in several key areas, underscoring its strong position in the global cannabis industry.
Financial Highlights:
- Total Net Revenue: $88.2 million, a 37% increase from the same quarter in the previous year.
- Global Medical Cannabis Net Revenue: $68.1 million, up 51% year-over-year, accounting for 77% of Aurora’s total net revenue.
- Net Income: $31.2 million, a significant rise from a net loss of $17.1 million in the prior year period.
- Adjusted EBITDA: $23.1 million, marking a 316% increase compared to the previous year.
- Free Cash Flow: Positive free cash flow of $27.4 million achieved in Q3.
Miguel Martin, Executive Chairman and Chief Executive Officer of Aurora Cannabis, stated, “This quarter was record-breaking for Aurora, driven by all-time highs in global medical net revenue, net income, adjusted EBITDA, and free cash flow. These achievements, along with our strong cash position and debt-free cannabis business, underscore Aurora’s leadership in the global cannabis industry as we continue to set ourselves apart from our peers.”
Segment Performance:
- Medical Cannabis: The substantial growth in medical cannabis revenue was primarily due to increased sales in Australia, Germany, Poland, and the UK, as well as higher revenue in Canada from both insurance-covered and self-paying patients. The adjusted gross margin before fair value adjustments for medical cannabis reached 74%, up from 63% in the prior year quarter.
- Consumer Cannabis: Net revenue for consumer cannabis was $9.9 million, a 15% decrease from the previous year. This decline resulted from the company’s strategic decision to prioritize supplying GMP-manufactured products to the higher-margin global medical cannabis market over the consumer segment.
- Plant Propagation: The plant propagation segment, represented by the Bevo business, contributed $8.9 million in net revenue, a 22% increase from the prior year. This growth was driven by organic expansion and an enhanced product portfolio.
Operational Efficiency:
Aurora reported an adjusted gross margin before fair value adjustments of 65% in Q3 2025, up from 53% in the same quarter the previous year. This improvement reflects sustainable cost reductions, higher selling prices, and increased efficiency in production operations.
Outlook:
Looking ahead to the fourth quarter of fiscal 2025, Aurora anticipates continued revenue growth across its cannabis business, supported by year-over-year increases in international medical cannabis sales. The company also expects seasonally higher revenues for plant propagation, maintaining strong margins, and sustaining positive adjusted EBITDA. Improved operating cash use is projected, supported by disciplined capital expenditure and expected revenue growth, leading to modestly positive free cash flow.
Aurora maintains a strong balance sheet with $180 million in cash and a debt-free cannabis business, positioning the company well for future growth and strategic initiatives.
