Aurora Cannabis (ACB) Q2 2026 earnings summary

Executive summary

• Achieved record net revenue of $90.4M in Q2 FY26, up 11% year-over-year, driven by global medical cannabis and international sales.

• Global medical cannabis net revenue reached $70.5M, up 15% year-over-year, with international medical revenue up 22% to $42.7M.

• Adjusted EBITDA rose 52% to $15.4M, reflecting strong operational execution and margin expansion.

• Maintained a strong cash position of $141.9M and remain debt-free in cannabis operations, with only non-recourse debt at Bevo Farms.

• Strategic focus on high-margin global medical cannabis, with leadership in Canada, Germany, Australia, Poland, and the UK.

Financial highlights

• Net revenue increased 11% year-over-year to $90.4M, with medical cannabis revenue up 15% to $70.5M and plant propagation revenue up 34% to $11.6M.

• Adjusted gross margin improved to 61% consolidated, with medical cannabis at 69% and plant propagation at 10%.

• Adjusted EBITDA grew to $15.4M from $10.1M, and adjusted net income reached $7.1M.

• Free cash flow was negative at $(42.3)M, reflecting typical Q2 outflows, though one report noted $9M positive free cash flow.

• Net loss from continuing operations was $53.2M, compared to net income of $1.4M a year ago, due to higher operating and other expenses.

Outlook and guidance

• Q3 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, with 25–35% of annual revenue in the second half of the year.

• Adjusted gross margins expected to remain strong, supporting annual adjusted EBITDA growth and positive free cash flow in Q3 2026.

• Continued focus on profitable growth in global medical cannabis and plant propagation, with further momentum expected in Europe and internationally.

• Acceleration of Bevo Farms' business plan to drive revenue and EBITDA growth over the next 2–3 years.