Aurora Cannabis (ACB) Q4 2024 earnings summary

Executive summary

• Achieved record annual adjusted EBITDA of $12.8 million for FY2024, marking the first positive annual result and six consecutive quarters of positive adjusted EBITDA.

• Fiscal 2024 was the strongest year ever, driven by global medical cannabis leadership, disciplined financial management, and the MedReleaf Australia acquisition.

• Net revenue rose 21% year-over-year, with global medical cannabis revenue up 20% and international medical cannabis growing nearly 40% in Q4.

• Ended FY2024 with approximately $180 million in cash and a debt-free cannabis business after full repayment of convertible notes.

• Maintains target to achieve positive free cash flow by December 31, 2024.

Financial highlights

• Q4 2024 net revenue was $67.4 million, up 5% year-over-year; medical cannabis net revenue reached $45.6 million, up 20% year-over-year.

• Adjusted gross margin was 49% in Q4; medical cannabis segment margin reached a record 66%.

• Adjusted EBITDA was $1.9 million in Q4 and $12.8 million for FY2024, with six consecutive positive quarters.

• Bevo Farms contributed $10.4 million in Q4 revenue, with 65-75% of annual revenue typically in the first half of the year.

• Cash and equivalents were approximately $180 million as of March 31, 2024.

Outlook and guidance

• Q1 FY2025 consolidated net revenue expected to increase in the mid to high teens sequentially, driven by international medical cannabis and seasonal plant propagation strength.

• Positive adjusted EBITDA projected to be higher in Q1 FY2025, with improved operating cash flow.

• Target of positive free cash flow by end of calendar 2024 remains achievable, supported by revenue growth, margin discipline, and working capital management.

• Continued investment in science and innovation to drive product pipeline and market leadership.