Group 1: Aurora Cannabis Inc. (ACB) - Aurora Cannabis has a Zacks Rank of 1, indicating a strong buy recommendation [1] - The Zacks Consensus Estimate for its current year earnings has increased by 560% over the last 60 days [1] - The company's price-to-earnings ratio (P/E) is 12.59, significantly lower than the S&P's P/E of 22.21 [1] - Aurora Cannabis possesses a Value Score of B, reflecting its strong value characteristics [1] Group 2: Priority Technology Holdings, Inc. (PRTH) - Priority Technology Holdings also has a Zacks Rank of 1, suggesting a strong buy recommendation [2] - The Zacks Consensus Estimate for its next year earnings has increased by 4.1% over the last 60 days [2] - The company's price-to-earnings ratio (P/E) is 15.95, which is lower than the industry average of 24.93 [2] - Priority Technology Holdings has a Value Score of A, indicating strong value characteristics [2]

Core Viewpoint - Aurora Cannabis Inc. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Impact - The Zacks rating system focuses on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending March 2025, Aurora Cannabis is expected to earn $0.46 per share, reflecting a 243.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Aurora Cannabis has surged by 2400% [8]. Investment Implications - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Aurora Cannabis's underlying business, likely leading to higher stock prices as investors respond positively [5][10]. - The Zacks Rank system, which categorizes stocks based on earnings estimate revisions, has a strong track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7].

Industry Overview - The cannabis industry is experiencing uncertainty due to the lack of federal reform in the USA, despite individual states legalizing cannabis, leading to a complex legal landscape [1][2] - The public perception of cannabis is shifting towards acceptance, contributing to the industry's growth and potential for future success [2] Investment Opportunities - Current market conditions may present opportunities for investors to acquire marijuana stocks at lower prices, with the strategy of buying low and selling high being emphasized [3] - Several marijuana stocks are highlighted as potential investments, including Aurora Cannabis Inc., Tilray Brands, Inc., and Cronos Group Inc. [8] Company Highlights - **Aurora Cannabis Inc.**: Recently announced a three-year supply agreement with SNDL valued at $27 million, enhancing its product offerings [6] - **Tilray Brands, Inc.**: Partnered with Jet Blue to serve its Montauk Surf Beer Golden Ale on flights, expanding its market presence [9][10] - **Cronos Group Inc.**: Reported Q3 2024 earnings with net revenue of $34.3 million, an increase of $9.5 million from Q3 2023, while adjusted EBITDA improved by $9.2 million [12]

Financial Data and Key Metrics Changes - The company reported a record third quarter with net revenue of $88.2 million, representing a 37% year-over-year growth [23] - Adjusted EBITDA grew 316% to a record $23.1 million, marking the ninth consecutive quarter of positive adjusted EBITDA [24] - Net income reached $31.2 million, compared to a net loss of $17.1 million in the same period last year [24] - Cash and cash equivalents stood at $180.2 million, with no cannabis business debt [33] Business Line Data and Key Metrics Changes - Medical cannabis revenue increased by 51% to $68.1 million, with international revenue growing by 112% [25] - Medical cannabis accounted for 77% of total net revenue and 90% of adjusted gross profit, up from 70% and 84% respectively in the prior year [26] - Bevo's plant propagation segment saw a revenue increase of 22% year-over-year, reaching $8.9 million, with adjusted gross margins improving to 40% [29] Market Data and Key Metrics Changes - International revenue now comprises 60% of global medical cannabis net revenue, surpassing Canadian medical cannabis for the second consecutive quarter [10] - The company maintains a strong position in Germany, which has seen rapid growth since cannabis descheduling [15] - In Australia, the company holds the number two market share and is optimistic about expanded distribution [14] Company Strategy and Development Direction - The company focuses on a three-pronged strategy: leveraging manufacturing capabilities, sustaining medical cannabis margins, and achieving steady revenue and EBITDA growth [6][7] - The company aims to capitalize on global medical cannabis opportunities while maintaining a strong balance sheet [8] - The strategic pivot towards medical cannabis aligns with the regulatory environments in Europe and Australia, which are seen as more favorable than North America [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting supply demands despite regulatory complexities in international markets [46] - The company anticipates continued revenue growth driven by international markets and operational efficiencies [36] - Management believes the global medical cannabis market could exceed $5 billion in the coming years, positioning the company as a key beneficiary [40] Other Important Information - The company has made significant investments in production facilities to align with EU GMP standards [104] - The balance sheet is considered one of the strongest in the global cannabis industry, with a focus on maintaining no debt [33][60] Q&A Session Summary Question: Are there any supply constraints affecting sales growth? - Management feels confident about supply capabilities despite regulatory challenges in international markets [46] Question: Were there any unique items that positively impacted Q3 results? - Management indicated there were no unusual or one-time items affecting the quarter's performance [49] Question: How does competition in international markets affect pricing and margins? - Management noted that international markets are more consolidated, which benefits companies like Aurora with significant investments [56] Question: What are the capital allocation options now that the company is free cash flow positive? - Management emphasized a cautious and opportunistic approach to capital allocation, focusing on profitable growth opportunities [60] Question: Can you provide insights on the sustainability of the 74% gross margin in medical cannabis? - Management expects margins to remain favorable due to operational efficiencies and a shift towards higher-margin international markets [71] Question: What is the growth outlook in Germany post-descheduling? - Management reported continued patient growth in Germany, although precise sales growth figures are difficult to ascertain [74] Question: What is the breakdown of product types in international markets? - The majority of sales in international markets consist of flower and oil, with a growing presence of finished goods products [84] Question: How does the company view the consumer cannabis segment going forward? - Management remains active in the consumer segment but prioritizes higher-margin medical cannabis opportunities [98]

INVESTOR PRESENTATION Disclaimer CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information contained in this presentation constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements. Forward looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative ...

Earnings Performance - Aurora Cannabis reported quarterly earnings of $0 06 per share, beating the Zacks Consensus Estimate of $0 04 per share, representing a 50% earnings surprise [1] - The company posted revenues of $63 04 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 9 50% and showing an increase from year-ago revenues of $53 34 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Market Comparison - Aurora Cannabis shares have lost about 13 4% since the beginning of the year, underperforming the S&P 500's gain of 2 7% [3] - The stock's immediate price movement will depend on management's commentary on the earnings call [3] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate is $0 15 on $59 38 million in revenues for the coming quarter and -$0 10 on $220 99 million in revenues for the current fiscal year [7] - The estimate revisions trend for Aurora Cannabis is mixed, translating into a Zacks Rank 3 (Hold), indicating the shares are expected to perform in line with the market in the near future [6] Industry Context - Aurora Cannabis belongs to the Zacks Medical - Products industry, which is currently in the bottom 46% of the 250 plus Zacks industries [8] - The top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Curaleaf Holdings, Inc (CURLF), another stock in the same industry, is expected to post a quarterly loss of $0 07 per share, representing a year-over-year change of -600% [9] - Curaleaf Holdings, Inc's revenues are expected to be $331 87 million, down 3 9% from the year-ago quarter [10]

Core Viewpoint - Aurora Cannabis Inc. has launched its first domestically produced medical cannabis product in Germany, under the brand IndiMed, marking a significant step in the company's expansion in the German market following the country's cannabis decriminalization earlier this year [1][2]. Group 1: Product Launch - The new product, Island Sweet Skunk, is a dried flower sativa with 20% THC and less than 1% CBD, expected to be available on January 27 [2]. - IndiMed is cultivated under GACP and EU-GMP guidelines to ensure pharmaceutical-grade quality, with flowers harvested by hand and tested for purity and active ingredient content [2]. Group 2: Market Positioning - Aurora is one of three facilities licensed to cultivate cannabis in Germany, positioning the company uniquely to offer domestic products from its EU-GMP facility in Leuna [2][4]. - The company emphasizes its expertise in navigating complex European regulatory frameworks and its commitment to innovation, reinforcing its status as a leader in the global medical cannabis industry [3][4]. Group 3: Company Overview - Aurora Cannabis Inc. operates in multiple markets including Canada, Europe, Australia, and South America, with a diverse brand portfolio catering to both medical and consumer markets [5]. - The company is recognized as the world's largest medical cannabis company operating in nationally legal markets, continually setting new global benchmarks [4].

Core Points - Aurora Cannabis Inc. has scheduled a conference call to discuss its third quarter 2025 financial results on February 5, 2025, at 8:00 a.m. Eastern Time [1][2] - The company will report its financial results before the market opens on the same day [1] - Miguel Martin, Executive Chairman and CEO, and Simona King, CFO, will host the conference call [2] Company Overview - Aurora Cannabis is a leading global medical cannabis company based in Edmonton, Alberta, serving medical and consumer markets across Canada, Europe, Australia, and South America [3] - The company offers a diverse portfolio of adult-use brands, including Drift, San Rafael '71, Daily Special, Tasty's, Being, and Greybeard, as well as medical cannabis brands like MedReleaf, CanniMed, Aurora, and Whistler Medical Marijuana Co [3] - Aurora holds a controlling interest in Bevo Farms Ltd., a major supplier of propagated agricultural plants in North America [3] - The company emphasizes science and innovation, focusing on high-quality cannabis products to lead in the medical, wellness, and adult recreational markets [3][4]

Core Viewpoint - Aurora Cannabis Inc. is launching an internship program at its EU-GMP facility in Leuna, Germany, aimed at cultivating future leaders in the medical cannabis industry through hands-on experience and collaboration with industry experts [1][2]. Group 1: Internship Program Details - The internship program will last six months and will cover all phases of medical cannabis cultivation, including cloning, care, harvesting, packaging, and cleaning, along with participation in special research and development projects [3]. - The program is in partnership with Erfurt University of Applied Sciences, specifically targeting students from the Horticultural Crop Production course [1][2]. Group 2: Company Position and Commitment - Aurora Cannabis is recognized as the largest global medical cannabis company operating in nationally legal markets, maintaining its leadership through expertise in both product development and talent cultivation [4]. - The company emphasizes its commitment to nurturing talent and fostering a collaborative environment for interns, ensuring they gain a solid foundation for their professional journeys [2]. Group 3: Facility and Standards - The Leuna facility is one of the few sites in Germany authorized to grow medical cannabis and adheres to the highest operational standards, utilizing innovative and sustainable cultivation methods [2]. - This state-of-the-art indoor facility is deemed an ideal learning environment for students to understand best practices in medical cannabis cultivation [2]. Group 4: Company Overview - Aurora Cannabis serves both medical and consumer markets across Canada, Europe, Australia, and South America, with a diverse brand portfolio that includes both adult-use and medical cannabis brands [5]. - The company is headquartered in Edmonton, Alberta, and is dedicated to improving lives through cannabis, driven by science and innovation [5].

Core Viewpoint - Aurora Cannabis Inc. has announced a distribution partnership with The Entourage Effect and MedReleaf Australia to enhance access to premium medical cannabis products for Australian patients [1][2]. Group 1: Partnership Details - The collaboration will allow The Entourage Effect to serve as a wholesaler for MedReleaf Australia's product portfolio, which includes brands such as CraftPlant, Aurora, and IndiMed [1]. - This partnership aims to expand the distribution network in Australia, reinforcing Aurora's commitment to patient care and access to high-quality medical cannabis [2]. Group 2: Company Commitment - Aurora Cannabis is dedicated to supporting the growth of the Australian medical cannabis market and ensuring that patients have access to its products [2]. - MedReleaf Australia, a subsidiary of Aurora, adheres to TGA-GMP standards, emphasizing quality and consistency in its offerings [2]. Group 3: Company Overview - Aurora Cannabis operates in multiple markets, including Canada, Europe, Australia, and South America, with a diverse portfolio of both medical and consumer cannabis brands [4]. - The company is recognized for its focus on science and innovation, aiming to lead in the medical, wellness, and adult recreational cannabis sectors [4].