Summary of Aurora Cannabis FY Conference Call - August 13, 2025 Company Overview - **Company**: Aurora Cannabis (ACB) - **Industry**: Medical Cannabis - **Market Position**: Leading global medical cannabis producer with significant presence in Canada, Europe, and Australia [2][3] Core Insights and Arguments - **Record Performance**: Fiscal 2025 was a record-setting year for Aurora across multiple financial metrics, with a strong outlook for fiscal 2026 [4] - **Strategic Focus**: The company has strategically focused on medical cannabis, particularly in international markets, leading to higher margins compared to the recreational segment [5][7] - **Market Growth**: The global medical cannabis market is estimated to exceed $5 billion, with significant growth expected from Europe and Australia [5][12] - **Operational Excellence**: Aurora has developed strong operational and commercial capabilities, differentiating itself from competitors [6][12] - **Regulatory Expertise**: The company has built substantial regulatory knowledge, crucial for navigating the tightly regulated medical cannabis markets in Europe and Australia [14][21] Market Insights - **Canada**: The Canadian market is stabilizing, with insights from the recreational segment informing medical product development [9][18] - **Australia**: Aurora holds the number two position in Australia, having acquired a local partner to enhance market access. The market is highly regulated, requiring TGA GMP manufactured products [20][21] - **Germany**: Following recent regulatory changes, patient access is expected to increase, with a growing self-payer segment. Aurora's GMP products maintain high margins in this market [23][25] - **Poland**: Regulatory changes have impacted prescription volumes, but demand remains strong. Aurora has launched high-potency products that are well-received [27][29] - **United Kingdom**: The UK market is expanding with diverse product offerings, including innovative inhalable cannabis extracts [31] - **Switzerland and Austria**: These markets are growing more slowly, but Aurora is focused on partnerships to increase volume and product offerings [33] Investment and Growth Strategy - **Capital Allocation**: Aurora emphasizes profitable growth, positive free cash flow, and strategic M&A opportunities. The company has a strong cash position of $186 million [38][39] - **Market Entry Criteria**: The company evaluates new markets based on regulatory environments, potential for long-term presence, and partnerships with existing distributors [36][37] - **U.S. Market Monitoring**: Aurora does not currently operate in the U.S. but is closely monitoring regulatory developments for potential future entry [41][42] Additional Important Points - **High Margins**: Medical cannabis margins are significantly higher than recreational cannabis, driven by patient willingness to pay for quality products [7][10] - **Patient Demand**: There is a growing acceptance and demand for medical cannabis as a treatment option, particularly in underpenetrated markets [12][24] - **Operational Efficiency**: Aurora's operational efficiencies contribute to its strong cash flow and profitability [10][39]

Financial Data and Key Metrics Changes - The company reported a record net revenue of $343 million, representing a 27% increase year-over-year, with global medical cannabis revenue increasing by 39% [30][31] - Adjusted gross margin improved to 55% from 49%, benefiting from higher cannabis and plant propagation margins [31] - The company generated record adjusted EBITDA of nearly $50 million and positive free cash flow of about $10 million [30][31] Business Line Data and Key Metrics Changes - International revenue generation surpassed Canadian medical contributions, comprising over 50% of total global medical cannabis revenue, up from 41% in fiscal 2024 [30][31] - The company is positioned as a leader in global medical cannabis, focusing on high-margin segments and operational efficiencies [31][32] Market Data and Key Metrics Changes - The company holds leading market positions in Canada, Australia, Germany, Poland, and the UK, with plans to capitalize on emerging medical cannabis opportunities in underpenetrated markets [32][33] - The global medical cannabis market is estimated to exceed $5 billion, indicating significant growth potential, particularly in Europe and Australia [33][42] Company Strategy and Development Direction - The company’s strategy focuses on a medical cannabis-first approach, aiming for sustainable profitable growth in fiscal 2026 and beyond [33] - Investments in new cultivation technology and strong third-party partnerships are intended to optimize production planning and meet demand [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to deliver sustainable profitable growth, highlighting a 200% year-over-year growth in adjusted EBITDA for Q1 of fiscal 2026 [36] - The company is committed to maintaining positive free cash flow and operational discipline, with expectations for continued growth in international medical revenue [40][42] Other Important Information - The company has a strong balance sheet with a cash balance of $185 million and operates a debt-free cannabis business, providing a competitive advantage [30] - The company’s operational execution and industry leadership are seen as key factors for future growth [39] Q&A Session Summary Question: What can we expect from adjusted EBITDA patterns moving forward? - Management indicated that fiscal 2025 was a record year for adjusted EBITDA and expressed optimism for continued growth, noting over 200% year-on-year growth in Q1 of fiscal 2026 [36] Question: Why should shareholders continue to invest in the company? - The company has consistently identified and delivered on strategic priorities, focusing on profitable growth and maintaining a strong balance sheet without needing dilutive capital raises [38][39] Question: What can we expect from free cash flow moving forward? - The company expects to remain free cash flow positive, with a 42% increase in free cash flow reported in Q1 of fiscal 2026 compared to the previous year [40][41] Question: Are there still headwinds in international medical revenue? - Management reported strong performance in international medical cannabis, with revenue increasing by 85% year-over-year, and indicated that previous headwinds have subsided [42]

Core Viewpoint - Tilray Brands Inc. (TLRY) experienced a significant drop of nearly 20% following the release of its adjusted EBITDA guidance for 2026, which is projected to reach between $62 million and $72 million [1] Group 1: Financial Performance - The adjusted EBITDA forecast is based on strong growth in the company's international cannabis business and strategic adjustments in its beverage segment [1] - The international cannabis division achieved record revenue, maintaining a leading position across multiple product categories in Canada [1] Group 2: Strategic Initiatives - The strategic transformation of the beverage segment is expected to result in significant cost savings [1]