EDMONTON, AB – Aurora Cannabis Inc., a leading Canadian global medical cannabis company, reported its financial and operational results for the fourth quarter and fiscal year 2025 periods ending March 31, 2025.
“We are pleased to report an exceptional year to our shareholders, highlighted by record annual global medical net revenue, adjusted EBITDA, and positive free cash flow. These achievements underscore the thoughtful execution of our strategic plan, set us further apart from competitors, and strengthen our foundation for sustained and profitable growth,” said Executive Chairman and Chief Executive Officer for Aurora, Miguel Martin.
“Specific to Q4 2025, we ended our banner fiscal year by further strengthening our business model. International revenue more than doubled, representing 61% of global medical cannabis net revenue. Plant propagation also increased significantly as we benefited from peak seasonality along with organic expansion. These top-line gains were complemented by a sharp year over year increase in adjusted EBITDA profitability and the third quarter of positive free cash flow generation.” concluded Mr. Martin.
Fourth Quarter 2025 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q4 2025, Q3 2025, and Q4 2024 results and are in Canadian dollars.)
Consolidated Revenue and Adjusted Gross Profit
Total net revenue was $90.5 million, as compared to $67.4 million in the prior year period. The 34% increase from the prior year period was mainly due to 48% growth in our global medical cannabis business and 32% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business.
Consolidated adjusted gross margin before fair value adjustments was 62% in Q4 2025 and 50% in the prior year period. Adjusted gross profit before FV adjustments was $54.2 million in Q4 2025 compared to $33.4 million in the prior year period, an increase of 62%.
Medical Cannabis
Medical cannabis net revenue was $67.8 million, a 48% increase from the prior year period, delivering 75% of Aurora’s Q4 2025 consolidated net revenue and 88% of adjusted gross profit before fair value adjustments.
The increase in medical cannabis net revenue of $22.1 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients.
Adjusted gross margin before fair value adjustments on medical cannabis net revenue reached 70% for the three months ended March 31, 2025, compared to 66% in the prior year period. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.
Consumer Cannabis
Aurora’s consumer cannabis net revenue was $8.2 million a 20% decrease compared to $10.2 million in the prior year period. The decrease was due to our continued decision to prioritize the supply of our GMP manufactured products to our high margin global medical cannabis business rather than the consumer business, which offers lower margins.
Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 27%, an increase from 16% compared to the prior year period. The increase from the prior year period is primarily due to cost improvements resulting from spend efficiencies.
Plant Propagation
Plant propagation net revenue was wholly comprised of the Bevo business, and contributed $13.8 million of net revenue, a 32% increase compared to $10.4 million in the prior year period. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity.
Adjusted gross margin before fair value adjustments on plant propagation revenue was 37% for Q4 2025 and 25% for the prior year period. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments is due to product mix with higher margin sales.
Adjusted Selling, General and Administrative
Adjusted SG&A was $36.7 million in Q4 2025, which excludes $5.8 million of business transformation costs. The increase compared to the prior year period relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia.
Net Income (Loss)
Net loss from continuing operations for the three months ended March 31, 2025 was $17.2 million compared to a net loss of $20.3 million for the prior year period. The decrease in net loss of $3.0 million compared to the three months ended March 31, 2024 is comprised of a decrease in gross profit of $18.8 million and an increase in operating expenses of $3.0 million, offset with other income in the current period $10.5 million compared to other expenses of $18.7 million during the three months ended March 31, 2024.
Adjusted EBITDA
Adjusted EBITDA increased 619% to $16.7 million for the three months ended March 31, 2025 compared to $2.3 million for the prior year period.
Fiscal Q1 2026 Expectations
Expect continued strong global cannabis revenue driven by improved performance in Canadian medical, comparable performance in consumer, offset by temporary declines in some of our international markets. Taken together, global cannabis should be slightly lower compared to Q4 2025 and is expected to improve in later quarters due to increased distribution and further innovation.
Seasonally higher revenues for plant propagation as they complete their peak quarter, in line with historical seasonal trends.
Margins to hold strong and we expect positive adjusted EBITDA to continue, with a decline versus Q4 FY25 due to lower revenue contributions from the higher margin international markets.
Free cash flow is projected to remain positive, due to continued strong performance and improved operating cash use.
Historical Quarterly Results
In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company identified an error in inventory and cost of sales arising from intercompany profit eliminations, resulting in an overstatement of inventory and understatement of cost of sales. Additionally, the Company understated its lease liability during a period in which a rent concession was granted by the lessor. In respect of the Company’s presentation of cash and cash equivalents and restricted cash, the Company determined that certain previously reported restricted cash held within its captives was accessible to the Company and therefore not restricted. The unrestricted portion has been reclassified to cash and cash equivalents.
The Company has concluded that these errors are not material to any of the Company’s previously-issued audited consolidated financial statements and unaudited condensed consolidated interim financial statements. Accordingly, the Company has concluded that an amendment to its previously-filed audited consolidated financial statements and unaudited condensed consolidated interim financial statements is not required. The revisions will be reflected in the comparative period of the Company’s prospective condensed consolidated interim financial statements filings. There is no impact to the annual consolidated financial statements, however the comparative periods have been revised accordingly.
The core balances impacted in the consolidated financial position and cash flow are: cash and cash equivalents, restricted cash, inventory and property, plant and equipment. In the consolidated statement of income (loss) the core areas impacted are: cost of sales, gross profit and net income (loss).
About Aurora Cannabis
Aurora is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and New Zealand. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company’s adult-use brand portfolio includes Drift, San Rafael ’71, Daily Special, Tasty’s, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co., as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. Aurora also has a controlling interest in Bevo Farms Ltd., North America’s leading supplier of propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora’s brands continue to break through as industry leaders in the medical, wellness and adult recreational markets wherever they are launched.
