EDMONTON, AB – Aurora Cannabis Inc., a leading Canadian medical cannabis company, released its financial and operational results for the third quarter of fiscal 2025.
“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,” said Miguel Martin, executive chairman and chief executive officer. “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.
“Our strong top-line performance and record adjusted EBITDA were mostly fueled by contributions from our global medical cannabis business,” he continued. “International net revenue grew 112% and accounted for 60% of global medical cannabis net revenue. Additionally, our plant propagation segment increased 22%, driven by organic expansion and an enhanced product portfolio, further strengthening our operating model. Our stated goals of continued strategic growth, operational excellence, and long-term sustained profitability are unwavering and we are deeply appreciative of our team’s efforts in helping us achieve these milestones.”
Third Quarter 2025 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q3 2025, Q2 2025, and Q3 2024 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit
Total net revenue was $88.2 million, as compared to $64.4 million in the prior year period. The 37% increase from the prior period was mainly due to 51% growth in our global medical cannabis business and 22% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business.
Consolidated adjusted gross margin before fair value adjustments was 65% in Q3 2025 and 53% in the prior year quarter. Adjusted gross profit before FV adjustments was $56.0 million in Q3 2025 vs $33.6 million in the prior year quarter, an increase of 67%.
Medical Cannabis
Medical cannabis net revenue was $68.1 million, a 51% increase from the prior year quarter, delivering 77% of Aurora’s Q3 2025 consolidated net revenue and 90% of adjusted gross profit before fair value adjustments.
The increase in net revenue of $23.1 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients.
Adjusted gross margin before fair value adjustments on medical cannabis net revenue reached 74% for the three months ended December 31, 2024, compared to 63% in the prior year quarter. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.
Consumer Cannabis
Aurora’s consumer cannabis net revenue was $9.9 million, a 15% decrease compared to $11.6 million in the prior year quarter. The decrease was due to our decision to prioritize the supply of our GMP manufactured products to our high margin global medical cannabis business rather than the consumer business, which offers lower margins.
Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 26%, decreasing from 29% compared to the prior year quarter. The decrease from the prior year comparative quarter is primarily due to product sales with lower margins relative to the same period in the prior year.
Plant Propagation
Plant propagation net revenue was wholly comprised of the Bevo business, and contributed $8.9 million of net revenue, a 22% increase compared to $7.3 million in the prior year quarter. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity.
Adjusted gross margin before fair value adjustments on plant propagation revenue was 40% for Q3 2025 and 28% for the prior year quarter. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments is due is due to higher margin ornamental plant sales in the third quarters. Additionally, Bevo’s greenhouses are producing at higher capacity.
Selling, General, and Administrative
Adjusted SG&A was $31.3 million in Q3 2025, which excludes $4.9 million of business transformation costs. The increase compared to the three months ended December 31, 2023 relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia.
Net Income (Loss)
Net income from continuing operations for the three months ended December 31, 2024 was $31.2 million compared to net loss of $17.1 million for the prior year period. The increase in net income of $48.3 million compared to the three months ended December 31, 2023 primarily relates to the improvement in gross profit of $54.0 million, partially offset with a decrease in other income of $5.3 million. The increase in gross profit includes an increase in unrealized gain on changes in fair value of biological assets of $42.4 million, partially offset by an increase in changes in fair value of inventory and biological assets sold of $15.2 million.
Adjusted EBITDA
Adjusted EBITDA increased 316% to $23.1 million for the three months ended December 31, 2024 compared to $5.5 million for the prior year quarter.
Fiscal Q4 2025 Expectations
- Continued revenue growth across our cannabis business, supported by year over year growth in international medical cannabis.
- Seasonally higher revenues for plant propagation, in line with historical seasonal trends.
- Margins to hold strong and positive adjusted EBITDA to continue.
- Improved operating cash use will be supported by continued spend discipline on capex and expected revenue growth.
- Free cash flow is projected to be modestly positive due to continued revenue growth and improved operating cash use.
Subsequent Events
Concurrently with filing of the Q3 Financials, the Company has filed a preliminary base shelf prospectus which, together with a corresponding registration statement to be filed with the United States Securities and Exchange Commission, when made final or effective, will replace the Company’s existing base shelf prospectus that is due to expire on May 27, 2025 and will qualify the issuance of U.S.$250 million of common shares, warrants, options, subscription receipts, debt securities and/or units of the Company during the 25-month period that it remains effective.
About Aurora Cannabis
Aurora is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and South America. 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., a leading North American 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.
