Aurora Cannabis grow room
(Source: Aurora Cannabis)
  • Aurora Cannabis (TSX:ACB) released its financial and operational results for Q3 fiscal 2025, showing growth and profitability improvements across its business segments
  • The global cannabis stock reported total net revenue of C$88.2 million, a 37 per cent increase from the prior year’s C$64.4 million
  • Aurora anticipates continued revenue growth across its cannabis business, supported by year-over-year growth in international medical cannabis
  • Aurora Cannabis stock (TSX:ACB) opened trading at C$6.65

Aurora Cannabis (TSX:ACB) released its financial and operational results for Q3 fiscal 2025, showing growth and profitability improvements across its business segments.

Revenue

The global cannabis stock reported total net revenue of C$88.2 million, a 37 per cent increase from the prior year’s C$64.4 million. This growth was driven by a 51 per cent rise in the global medical cannabis business and a 22 per cent increase in the plant propagation business, partially offset by a decline in consumer cannabis revenue. The consolidated adjusted gross margin before fair value adjustments improved to 65 per cent, up from 53 per cent in the prior year quarter, resulting in an adjusted gross profit of C$56.0 million, a 67 per cent increase from C$33.6 million.

Adjusted EBITDA increased by 316 per cent to C$23.1 million, up from C$5.5 million in the prior year quarter.

Medical cannabis 

The medical cannabis segment saw net revenue of C$68.1 million, a 51 per cent increase from the prior year quarter, contributing 77 per cent of Aurora’s consolidated net revenue and 90 per cent of adjusted gross profit before fair value adjustments. The growth was attributed to higher sales in Australia, Germany, Poland, the U.K., and increased revenue in Canada. The adjusted gross margin before fair value adjustments for medical cannabis reached 74 per cent, up from 63 per cent in the prior year quarter, driven by cost reductions, higher selling prices, and improved production efficiency.

Consumer cannabis

Aurora’s consumer cannabis net revenue decreased by 15 per cent to C$9.9 million, down from C$11.6 million in the prior year quarter. This decline was due to the company’s strategic decision to prioritize its high-margin global medical cannabis business. The adjusted gross margin before fair value adjustments for consumer cannabis also decreased to 26 per cent from 29 per cent in the prior year quarter, primarily due to lower-margin product sales.

The plant propagation segment, represented by the Bevo business, reported net revenue of C$8.9 million, a 22 per cent increase from C$7.3 million in the prior year quarter. This growth was driven by organic expansion and increased capacity. The adjusted gross margin before fair value adjustments for plant propagation improved to 40 per cent, up from 28 per cent in the prior year quarter, due to higher-margin ornamental plant sales and increased greenhouse production capacity.

Net income

Aurora reported a net income of C$31.2 million for the three months ended December 31st, 2024, compared to a net loss of $17.1 million in the prior year period. The C$48.3 million improvement in net income was mostly due to a C$54.0 million increase in gross profit, partially offset by a C$5.3 million decrease in other income.

Leadership insights

“This quarter was record-breaking for Aurora, driven by all-time highs in global medical net revenue, net income, adjusted EBITDA, and free cash flow,” Miguel Martin, Aurora’s executive chairman and CEO said in a news release. “These achievements, along with our strong cash position and debt-free cannabis business, underscore Aurora’s leadership in the global cannabis industry as we continue to set ourselves apart from our peers.”

Q4 2025 expectations

Aurora anticipates continued revenue growth across its cannabis business, supported by year-over-year growth in international medical cannabis. The company expects seasonally higher revenues for plant propagation, strong margins, and positive adjusted EBITDA to continue. Improved operating cash use and disciplined capital expenditure are expected to support modestly positive free cash flow.

About Aurora Cannabis

Aurora is a global cannabis company serving both the medical and consumer markets across Canada, Europe, Australia and South America. Its brand portfolio includes Drift, San Rafael ’71, Daily Special, Tasty’s, Being, Greybeard, MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Co., Pedanios, IndiMed and CraftPlant.

Aurora Cannabis stock (TSX:ACB) opened trading 40 per cent higher at C$6.65.

Join the discussion: Find out what everybody’s saying about this cannabis stock’s expansion in Germany on the Aurora Cannabis Inc. Bullboard and check out Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top photo of an Aurora Cannabis grow room: Aurora Cannabis)


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