Aurora Cannabis (ACB) Q3 2026 earnings summary

Executive summary

• Net revenue increased 7% year-over-year to $94.2 million, driven by a 12% rise in global medical cannabis sales and strong international growth, with over half of revenue generated outside Canada.

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

• Strategic focus on high-margin global medical cannabis, exiting select lower-margin Canadian consumer cannabis markets, and restructuring/divesting the plant propagation business.

• Continued investment in science, genetics, and manufacturing to drive capacity, lower costs, and support innovation.

• Leadership in key markets: #1 in Canada and Poland, top positions in Germany, UK, and Australia.

Financial highlights

• Global medical cannabis net revenue rose 12% to $76.2 million, with international revenue up 17% and medical cannabis comprising 81% of net revenue and 95% of adjusted gross profit.

• Consumer cannabis net revenue declined 48% year-over-year to $5.2 million, reflecting a strategic shift.

• Plant propagation net revenue increased 27% to $11.3 million, but gross margin fell to 16% due to higher costs and inventory write-offs.

• Adjusted gross margin was 62%, up 100 basis points year-over-year.

• Adjusted SG&A increased 14.5% to $35.8 million, mainly from higher professional fees and labor costs in Europe and Australia.

Outlook and guidance

• Fiscal 2026 global medical cannabis net revenue expected between $269 million and $281 million, representing 10%-15% growth.

• Annual consolidated adjusted EBITDA projected at $52 million–$57 million, up 5%-10% year-over-year.

• Adjusted gross margins expected to remain strong, supported by favorable sales mix and operational efficiencies.

• Plant propagation revenue 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.