Aurora Cannabis (ACB) Q3 2026 earnings summary

Executive summary

• Achieved 7% year-over-year net revenue growth in Q3 FY26 to $94.2 million, led by a 12% increase in global medical cannabis revenue to $76.2 million and 17% international growth.

• Adjusted EBITDA reached $18.5 million, adjusted net income was $7.2 million, and free cash flow was $15.5 million, supported by a strong cash position of $154.4 million and no cannabis business debt.

• Over half of net revenue was generated outside Canada, reflecting global market leadership in medical cannabis, with top positions in Canada, Germany, Poland, the UK, and Australia.

• Strategic focus is shifting to high-margin global medical cannabis, with exits from lower-margin consumer markets and restructuring of the plant propagation business.

• Continued investment in science, genetics, and manufacturing to drive capacity, lower costs, and margin expansion.

Financial highlights

• Q3 FY26 net revenue: $94.2 million, up 7% year-over-year; medical cannabis net revenue: $76.2 million, up 12%; international medical cannabis net revenue: $48 million, up 17%.

• Consumer cannabis net revenue: $5.2 million, down 48% year-over-year; plant propagation net revenue: $11.3 million, up 27%.

• Adjusted gross margin: 62% consolidated, with medical cannabis at 69% and consumer cannabis at 28%.

• Adjusted EBITDA: $18.5 million, up 6% year-over-year; free cash flow: $15.5 million.

• Cash and short-term investments: $154.4 million; no cannabis business debt, only non-recourse debt related to Bevo Farms.

Outlook and guidance

• FY2026 global medical cannabis net revenue expected between $269 million and $281 million, driven by 10%-15% segment growth.

• Annual consolidated adjusted EBITDA projected at $52–57 million, representing 5%-10% growth.

• Adjusted gross margins expected to remain strong due to favorable sales mix and operational efficiencies.

• Plant propagation revenue expected to follow seasonal trends, with most revenue in the first half of the year.

• Continued focus on global medical cannabis leadership and expansion in emerging markets.