- Aurora Cannabis (TSX/NASDAQ:ACB) earned record annual revenue and adjusted EBITDA in fiscal 2026, ending on March 31, substantiating its recent shift in focus into the medical cannabis space.
- The global medical cannabis company serves markets in Canada, Europe, Australia and New Zealand.
- Aurora Cannabis stock has given back 49.21 per cent year-over-year and 96.49 per cent since 2021.
Aurora Cannabis (TSX/NASDAQ:ACB) earned record annual revenue and adjusted EBITDA in fiscal 2026, ending on March 31, substantiating its recent shift in focus into the medical cannabis space.
Financials
Revenue reached C$320.5 million in fiscal 2026, up from C$288.9 million year-over-year (YoY), while Q4 revenue hit C$84.8 million, up from C$76.8 million YoY, reflecting 14 per cent YoY growth in global medical cannabis sales and higher wholesale bulk cannabis net revenue, offset by lower consumer revenue.
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Medical cannabis revenue was C$77.1 million, up by 14 per cent YoY, encompassing 91 per cent of Aurora’s Q4 2026 revenue and 101 per cent of adjusted gross profit before fair value adjustments.
The C$9.3 million increase was mostly driven by higher sales in Germany, growth in Poland and higher Canadian revenue to insured patients thanks to a broader portfolio offering.
Adjusted gross margin before fair value adjustments on medical cannabis revenue was 66 per cent in Q4, down from 71 per cent YoY, stemming from a combination of higher sales, lower margins and strategic price reductions.
Consumer cannabis revenue was C$3.6 million, down from C$8.2 million YoY, due to a strategic shift in focus towards Canadian and international medical cannabis.
Adjusted gross margin before fair value adjustments on consumer cannabis revenue was 22 per cent, down from 27 per cent YoY, due to higher input costs related to third-party sourcing.
Consolidated adjusted gross margin before fair value adjustments was 60 per cent (C$50.5 million) in Q4, down from 65 per cent (C$50.2 million) YoY.
Adjusted SG&A was C$40.3 million in Q4, up from C$35.4 million YoY, relating to increased headcount, higher contract labour in Europe and Australia, and an expected credit loss of C$1.9 million because of the insolvency of two customers, in addition to professional fees relating to public company costs.
Net loss from continuing operations in Q4 came to C$27.6 million, up from C$12.1 million YoY.
However, adjusted net income reached a positive C$5.6 million in Q4, down from C$15.3 million YoY, reflecting an increase in adjusted SG&A of C$4.9 million, and decreases in foreign exchange gains and interest income of C$10.3 million and C$4.5 million, respectively.
Adjusted EBITDA hit C$53.8 million for the year, representing 32 per cent YoY growth and its third consecutive annual improvement under the metric, with the company pulling in C$9.2 million in Q4, down from C$14.1 million YoY.
Free cash flow was C$0.3 million, down from C$5.2 million YoY, primarily due to a decrease in gross profit before fair value adjustments.
Aurora ended the year with cash, short-term investments and cash equivalents of ~C$164.7 million with no debt on the balance sheet.
Operations
Aurora paired its strong financial showing with numerous operational milestones, including the C$26.5 million acquisition of Safari Flower Company, which includes a 59,000-square-foot EU-GMP certified indoor cultivation and manufacturing facility that will bolster the company’s ability to supply cannabis to strategic international markets.
Aurora’s 2027 outlook
As Aurora continues to exit its low-margin Canadian consumer and plant propagation businesses, freeing up resources to create value in the higher-potential medical cannabis space, the company plans to make numerous investments to optimize operations for profitability.
Total revenue is expected to decline, in line with 2025 results, following a reduction in Canadian government reimbursed pricing for medical cannabis effective April 1, 2026.
Adjusted gross margin before fair value adjustments is expected to be in the mid-to-high fifties, driven by higher revenue from Europe and exiting lower-margin businesses, with adjusted SG&A expected to remain steady YoY.
Leadership expects adjusted EBITDA to vary quarter over quarter, resulting in lower annual adjusted EBITDA, because of revisions in reimbursed pricing driving lower revenue and adjusted gross profits.
Leadership commentary
“During fiscal year 2026, we exceeded our projection for global medical cannabis net revenue led by double-digit growth in Europe and delivered on our expectation for adjusted EBITDA with both at record outcomes. Our performance validates Aurora’s global medical cannabis strategy which has positioned us as a leading provider in Canada, Europe, Australia and New Zealand,” Miguel Martin, Executive Chairman and Chief Executive Officer of Aurora Cannabis, said in a statement.
“We believe Aurora’s leadership in medical cannabis is built upon our regulatory expertise, extensive and recently expanded supply network of EU-GMP certified facilities, and proven commercial execution. We are confident that these attributes create a competitive advantage as we navigate the evolving industry dynamics to maintain and expand global market share, while driving international growth,” Martin concluded.
About Aurora Cannabis
Aurora is a global medical cannabis company serving markets in Canada, Europe, Australia and New Zealand. Its brand portfolio includes MedReleaf, Pedanios, IndiMed, San Raf and Whistler Medical Marijuana Corporation.
Aurora Cannabis stock (TSX:ACB) is down by 8.71 per cent on the news trading at C$4.19 as of 12:59 pm ET. The stock has given back 49.21 per cent year-over-year and 96.49 per cent since 2021.
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