EDMONTON, Alberta – Aurora Cannabis Inc., a leading Canada-based global medical cannabis company, reported its financial and operational results for the first quarter 2026 period ending June 30, 2025.
“We delivered another strong quarter of sustained, profitable growth, driven by disciplined execution of our strategy. Global medical cannabis net revenue rose 37%, supported by 85% growth in international markets, most notably Germany and Poland, alongside growth in Canadian medical cannabis and record contributions from our plant propagation business. These top-line gains were supported by more than 200% growth in adjusted EBITDA, and 42% growth in positive free cash flow,” said Executive Chairman and Chief Executive Officer Miguel Martin.
“Our performance highlights the competitive distinction of our platform. International medical cannabis our highest-margin segment now accounts for 57% of our global medical cannabis net revenue. Bevo, our plant propagation business, which diversifies our revenue streams beyond cannabis, added further momentum through seasonal strength and continued organic expansion. And for the second consecutive year, we expect to generate positive annual free cash flow, reinforcing our operational execution and differentiation from peers,” concluded Mr. Martin.
First Quarter 2026 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q1 2026 and Q1 2025 results and are in Canadian dollars.)
Consolidated Revenue and Adjusted Gross Profit
Total net revenue was $98.0 million, as compared to $83.4 million in the prior year period. The 17% increase from the prior year period was mainly due to 37% growth in our global medical cannabis business and 4% 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 52% in Q1 2026 and 42% in the prior year period. Adjusted gross profit before FV adjustments was $49.0 million in Q1 2026 compared to $34.6 million in the prior year period, an increase of 42%.
Medical Cannabis
Medical cannabis net revenue was $64.8 million, a 37% increase from the prior year period, delivering 66% of Aurora’s Q1 2026 consolidated net revenue and 91% of adjusted gross profit before fair value adjustments.
The increase in medical cannabis net revenue of $17.6 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 69% for the three months ended June 30, 2025, compared to 67% 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 $7.9 million a 32% decrease compared to $11.5 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 33%, an increase from 20% 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 $23.9 million of net revenue, a 4% increase compared to $23.1 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 6% for Q1 2026 and 18% for the prior year period. During the quarter, Bevo incurred costs of $1.6 million related to inventory write-offs caused by a non-recurring quality issue, as well as some surplus crops that were not sold. Excluding these costs, adjusted gross margin before fair value adjustments was 14% for the three months ended June 30, 2025.
Adjusted Selling, General and Administrative (“Adjusted SG&A”)
Adjusted SG&A was $37.4 million in Q1 2026, compared to $31.4 million in the prior year period. 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 June 30, 2025 was $19.4 million compared to a net income of $3.5 million for the prior year period. The increase in net loss from continuing operations of $22.8 million compared to the three months ended June 30, 2024 is comprised of a decrease in gross profit of $15.0 million, an increase in operating expenses of $4.3 million and a decrease in other income of $6.0 million.
Adjusted EBITDA
Adjusted EBITDA increased 209% to $10.8 million for the three months ended June 30, 2025 compared to $3.5 million for the prior year period.
Fiscal Q2 2026 Expectations
For Q2 2026, we expect to see consolidated net revenue increase year over year, driven primarily by 8% to 12% growth in our Global Medical Cannabis segment.
Plant propagation net revenue is expected perform in line with traditional seasonal trends, as 25% to 35% of revenues are normally earned in the second half of a calendar year.
Consolidated adjusted gross margins are expected to increase, driven primarily by 250 to 475 basis points growth in our cannabis business, with plant propagation adjusted gross margins expected to mostly perform in line with historical trends. Improvements in our adjusted gross margins and higher global medical cannabis revenue, should lead to continued strong positive adjusted EBITDA.
While free cash flow is expected to be positive on an annual basis for the second consecutive year, there will be several significant cash outflows, in line with historical trends, that will impact free cash flow results in Q2 2026.
About Aurora Cannabis
Aurora serves both the medical and consumer markets across Canada, Europe, Australia and New Zealand. Headquartered in Edmonton, Alberta, 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.
