Aurora Cannabis (ACB) Q1 2026 earnings summary

Executive summary

• Global medical cannabis net revenue grew 37% year-over-year to $64.8 million, with international medical cannabis up 85%, and total net revenue rising 17% to $98 million.

• Adjusted EBITDA more than doubled to $10.8 million, up 209% year-over-year, and positive free cash flow reached $9.2 million, up 42% year-over-year.

• Maintained leading market positions in Canada, Australia, Germany, Poland, and the UK, supported by a robust, debt-free balance sheet and $186 million in cash at quarter end.

• Completed final repayment of $465 million in convertible debt, leaving the cannabis business debt-free except for $59.8 million in non-recourse debt related to Bevo Farms.

• Focused on science-driven innovation, including proprietary genetics, new product launches, and expansion in key markets.

Financial highlights

• Net revenue of $98 million, up 17% year-over-year, driven by medical cannabis and plant propagation.

• Adjusted gross margin improved 1,000 basis points to 52%; adjusted gross profit rose 42% to $49 million.

• Adjusted EBITDA increased 209% to $10.8 million; free cash flow of $9.2 million, up 42% year-over-year.

• Working capital at quarter-end was $308.4 million.

• Net loss from continuing operations was $19.4 million, compared to net income of $3.5 million in the prior year.

Outlook and guidance

• Q2 2026 consolidated net revenue expected to increase year-over-year, led by 8–12% growth in global medical cannabis.

• Plant propagation revenue to follow seasonal trends; adjusted gross margins to rise by 250–475 basis points in cannabis business.

• Continued strong positive adjusted EBITDA expected; annual free cash flow to remain positive, though Q2 will see significant cash outflows.

• Targeting annual positive free cash flow for a second consecutive year in FY26.

• Adjusted EBITDA for Q2 expected to grow versus Q1.