Aurora Cannabis (ACB) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 results with net revenue of $81.1M (up 29%) and record global medical cannabis net revenue of $61.3M (up 41%), driven by strong international expansion in Australia, Germany, Poland, and the UK.

• International medical cannabis revenue surged 93% year-over-year, surpassing Canadian medical revenue for the first time and contributing 57% to total global medical cannabis revenue.

• Achieved record adjusted EBITDA of $10.1M, up 210% year-over-year, and positive free cash flow for the first time in Q1 FY25.

• Maintained a strong, debt-free balance sheet in cannabis operations, with ~$152M in cash and only $57.5M non-recourse debt at Bevo Farms.

• Completed acquisition of MedReleaf Australia, expanding product portfolio and market share in Australia and New Zealand.

Financial highlights

• Net revenue reached $81.1M, up 29% year-over-year; medical cannabis net revenue rose 41% to $61.3M.

• Adjusted gross margin was 54%, up 300 basis points from last year; adjusted gross profit hit a record $42.6M.

• Adjusted EBITDA grew 210% to $10.1M, marking the eighth consecutive quarter of positive adjusted EBITDA.

• Bevo Farms contributed $8.6M in Q2 revenue, up 21% year-over-year, with margin fluctuations reflecting seasonality.

• Cash and cash equivalents stood at ~$152M at the end of Q2 FY25.

Outlook and guidance

• Expects continued strong net revenue and adjusted gross margins in global medical cannabis, with growth in Europe and Australia.

• Anticipates positive adjusted EBITDA and free cash flow in Q3, supported by disciplined working capital management.

• Plant propagation segment to see seasonally reduced revenue and profit in Q3, consistent with historical trends.

• Ongoing investment in science and innovation to drive new product launches and improve yields.