Aurora(ACB) - 2026 Q3 - Quarterly Report

Revenue and Profitability - Revenue for the three months ended December 31, 2025, was CAD 99,173 thousand, an increase of 3% compared to CAD 95,978 thousand in the same period of 2024[4] - Net revenue for the nine months ended December 31, 2025, reached CAD 282,580 thousand, up 11.8% from CAD 252,755 thousand in 2024[4] - The company reported a net loss of CAD 1,903 thousand for the three months ended December 31, 2025, compared to a net income of CAD 28,225 thousand in the same period of 2024[5] - The loss from continuing operations for the nine months ended December 31, 2025, was CAD 74,289 thousand, compared to a profit of CAD 32,995 thousand in 2024[5] - The net income (loss) per share for total operations was CAD 0.03 for the three months ended December 31, 2025, compared to CAD 0.52 in the same period of 2024[5] - Net income (loss) from continuing operations for the nine months ended December 31, 2025, was $(74.3) million, compared to $33.0 million in 2024[8] - Total net revenue for the three months ended December 31, 2025, was CAD 94.191 million, a 6.3% increase from CAD 88.198 million in the same period of 2024[62] - For the nine months ended December 31, 2025, total net revenue reached CAD 282.580 million, up 11.8% from CAD 252.755 million in the prior year[63] - Gross profit before fair value adjustments for the three months ended December 31, 2025, was CAD 46.168 million, compared to CAD 43.322 million in the same period of 2024, reflecting a 6.4% increase[63] - The company reported a gross profit before fair value adjustments of CAD 117.765 million for the nine months ended December 31, 2025, an increase from CAD 111.036 million in the same period of 2024[64] Assets and Liabilities - Total assets decreased to CAD 775,292 thousand as of December 31, 2025, down from CAD 852,666 thousand as of March 31, 2025, representing a decline of 9%[2] - Current liabilities increased to CAD 145,935 thousand as of December 31, 2025, compared to CAD 110,863 thousand as of March 31, 2025, an increase of 31.6%[2] - Cash and cash equivalents decreased to CAD 56,363 thousand as of December 31, 2025, down from CAD 137,921 thousand as of March 31, 2025, a decline of 59%[2] - The company’s total shareholders' equity decreased to CAD 567,826 thousand as of December 31, 2025, from CAD 608,591 thousand as of March 31, 2025, a decrease of 6.7%[2] - As of December 31, 2025, total non-current assets were CAD 325.222 million, down from CAD 364.863 million as of March 31, 2025[64] Cash Flow and Investments - Cash used in operating activities from continuing operations was $(13.2) million for the nine months ended December 31, 2025, compared to $14.2 million in 2024[8] - Cash used in investing activities from continuing operations was $(67.3) million for the nine months ended December 31, 2025, compared to $(11.8) million in 2024[8] - Total cash and cash equivalents at the end of the period decreased to $56.4 million from $132.6 million in the previous year[8] Inventory and Production - Biological assets decreased to $46.7 million as of December 31, 2025, from $51.2 million as of March 31, 2025[19] - Inventory expensed to cost of sales was $74.8 million for the three months ended December 31, 2025, compared to $72.8 million in 2024[23] - The company produced 16,269 kilograms of dried cannabis during the three months ended December 31, 2025, an increase from 11,551 kilograms in 2024[20] - The average selling price per gram of dried cannabis was $6.62 as of December 31, 2025, slightly up from $6.61 in March 2025[21] - The Company recognized inventory provisions of $8.5 million and $47.9 million for the three and nine months ended December 31, 2025, compared to $14.8 million and $45.6 million for the same periods in 2024[24] - A revision in the estimate for aging inventory resulted in a decrease of $6.6 million in the inventory provision as of December 31, 2025[25] Impairments and Goodwill - Goodwill of $25.6 million was allocated to the Cannabis segment, with an impairment of $18.7 million recognized in the Plant Propagation segment during the nine months ended December 31, 2025[27][33] - The carrying value of the Plant Propagation CGU exceeded its recoverable amount, leading to an impairment of $18.7 million recognized during the nine months ended December 31, 2025[33] - The Australian Cannabis CGU experienced lower than expected revenue due to increasing competition, with forecasted EBITDA margins ranging from negative 10.3% to positive 1.7%[30] Financing and Shareholder Information - As of December 31, 2025, the outstanding balance of Term Facility 1 was $40.5 million, with an average borrowing rate of 5.76%[38] - The total amount drawn from the revolver was $17.6 million as of December 31, 2025, with a borrowing rate of approximately 5.67%[40] - Total interest expense for loans and borrowings was $1.4 million and $3.9 million for the three and nine months ended December 31, 2025, respectively[44] - The Company issued 56,709,424 Common Shares as of December 31, 2025, an increase from 56,234,231 shares as of March 31, 2025[45] - The Company advanced additional funds of $4.7 million during the nine months ended December 31, 2025, with total advances amounting to $7.6 million including accrued interest[42] - As of December 31, 2025, Aurora Cannabis had 2,060,468 stock options outstanding, with a weighted average exercise price of $50.36[49] - The company recognized stock option expenses of $0.5 million and $1.8 million for the three and nine months ended December 31, 2025, respectively[49] - The balance of Restricted Share Units (RSUs) increased to 1,044,526 as of December 31, 2025, after issuing 753,398 RSUs during the period[51] - RSU expenses amounted to $0.8 million and $2.8 million for the three and nine months ended December 31, 2025, respectively[51] - The balance of Performance Share Units (PSUs) outstanding was 1,794,060 as of December 31, 2025, following the grant of 803,003 PSUs during the period[55] - Total PSU recovery and expense were both $1.3 million for the three and nine months ended December 31, 2025[55] Strategic Initiatives - Aurora Cannabis plans to exit certain lower-margin consumer markets in Canada to focus on higher-margin global medical cannabis business[73] - The company has established a new at-the-market equity program allowing the issuance of up to USD 100 million in common shares for strategic purposes, including increased cultivation capacity and potential M&A[72] Bevo Transaction - Aurora Cannabis entered into a definitive agreement to exchange its common shares of Bevo for preferred shares, subject to certain conditions[74] - Aurora will receive an annual 5% dividend on the value of the Bevo Preferred Shares[75] - Aurora is entitled to 30% of eligible Bevo cash flow, increasing to 40% after 15 years[75] - Bevo's assets and liabilities will be classified as held-for-sale and remeasured at fair value[75] - Any impairment losses upon initial classification will be recognized in the consolidated statements of income[75] - Bevo's financial results will be presented as a discontinued operation, separate from continuing operations[75] - Aurora will transfer shareholder loans from Bevo Farms for $5.5 million in cash[75] - Aurora retains entitlement to earnouts of up to $25 million and $15 million related to specific facilities[75] - Aurora-nominated directors will resign from Bevo's board upon closing of the Bevo Transaction[75] - The financial results of Bevo will no longer be consolidated in Aurora's financial statements after the transaction[75] - Aurora will have veto rights on the issuance of shares ranking equal to or senior to the Bevo Preferred Shares[75]