Core Insights - Aurora Cannabis Inc. reported a strong first quarter for fiscal 2026, with a 37% increase in global medical cannabis net revenue, driven by significant growth in international markets, particularly Germany and Poland [2][5][7] - The company achieved over 200% growth in adjusted EBITDA and a 42% increase in positive free cash flow, indicating robust operational performance [2][8][16] - The international medical cannabis segment now represents 57% of total net revenue, highlighting the company's competitive advantage in this high-margin area [3][7] Financial Performance - Total net revenue for Q1 2026 was $98.0 million, up 17% from $83.4 million in the prior year, primarily due to the growth in medical cannabis and plant propagation businesses [5][21] - Adjusted gross margin before fair value adjustments improved to 52% in Q1 2026 from 42% in the prior year, with adjusted gross profit increasing by 42% to $49.0 million [6][21] - Medical cannabis net revenue reached $64.8 million, a 37% increase year-over-year, contributing 66% of total consolidated net revenue [7][21] Segment Performance - International medical cannabis revenue surged by 85% to $37.1 million, driven by increased sales in Australia, Germany, Poland, and the UK [8][21] - Consumer cannabis net revenue decreased by 32% to $7.9 million, as the company prioritized high-margin medical cannabis products over lower-margin consumer offerings [10][21] - Plant propagation revenue from Bevo Farms increased by 4% to $23.9 million, supported by organic growth and expanded product offerings [12][21] Operational Efficiency - Adjusted SG&A expenses rose to $37.4 million, reflecting higher logistics costs associated with European sales and the acquisition of MedReleaf Australia [14][21] - The company maintained a strong balance sheet with approximately $186.0 million in cash and a debt-free cannabis business, with only non-recourse debt of $59.8 million related to Bevo Farms [4][21] Future Outlook - For Q2 2026, the company anticipates continued revenue growth, primarily driven by an 8% to 12% increase in the global medical cannabis segment [17][21] - Consolidated adjusted gross margins are expected to improve, with positive adjusted EBITDA projected to continue [18][21] - Free cash flow is expected to remain positive on an annual basis, despite anticipated cash outflows in Q2 2026 [19][21]
Aurora Cannabis Announces Fiscal 2026 First Quarter Results