Aurora Cannabis Q3 Earnings Call Highlights

Core Insights - Aurora Cannabis reported a consolidated adjusted gross margin of 62%, an increase of 100 basis points year over year, with adjusted gross profit rising 6% to CAD 55.6 million [1] - The company’s total net revenue reached CAD 94.2 million, with medical cannabis contributing 81% of this revenue, up from 77% the previous year [2] - CEO Miguel Martin highlighted a 7% year-over-year increase in net revenue, driven by a 12% rise in medical cannabis revenue to CAD 76.2 million, including a 17% growth in international markets [3][4] Financial Performance - For fiscal Q3 2026, net revenue increased 7% year over year to CAD 94.2 million, with adjusted EBITDA at CAD 18.5 million, down from CAD 19.4 million in the prior year [7] - The company generated positive free cash flow of CAD 15.5 million, a decrease from CAD 27.4 million in the previous year, ending the quarter with CAD 154 million in cash and no cannabis-related debt [8] - Adjusted net income was CAD 7.2 million compared to CAD 7.4 million a year earlier [7] Strategic Initiatives - Aurora is exiting select low-margin Canadian consumer markets and plans to divest its controlling stake in Bevo, a plant propagation business, to focus on higher-margin global medical cannabis [6][9] - The company filed a prospectus supplement for a new at-the-market (ATM) equity program to raise up to $100 million for strategic purposes, including increased cultivation capacity and potential M&A [14] - Management anticipates one-time costs in Q4 due to these strategic changes but expects improved adjusted SG&A and margins thereafter [10] Market Expansion - Aurora projects FY2026 global medical cannabis revenue between CAD 269 million and CAD 281 million, representing a growth of 10% to 15% [5][20] - The company is focusing on expanding its presence in Germany, which is described as Europe's largest medical cannabis market, and is doubling production at its German manufacturing site [15][16] - In Poland, Aurora gained market share and held the number one position in 2025, successfully navigating regulatory shifts [18] Future Outlook - Management expects annual consolidated adjusted EBITDA to rise to a range of CAD 52 million to CAD 57 million, indicating 5% to 10% annual growth [21] - The company aims to leverage its regulatory capabilities and manufacturing efficiencies to capitalize on the evolving global medical cannabis market [22]