- Generates record net income of $31.2 million, up 282% YoY, and record adjusted EBITDA1 of $23.1 million, up 316% YoY
- Achieves target of positive free cash flow1 in Q3, generating $27.4 million of free cash flow1
- Maintains strong balance sheet with $180 million of cash and debt-free cannabis business2
[PRESS RELEASE] – EDMONTON, Alberta, Feb. 5, 2025 – Aurora Cannabis Inc., a leading Canada-based global medical cannabis company, announced its financial and operational results for the third quarter of fiscal 2025.
"This quarter was record-breaking for Aurora, driven by all-time highs in global medical net revenue1, net income, adjusted EBITDA1, and free cash flow1. 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," Aurora Cannabis Executive Chairman and CEO Miguel Martin said.
"Our strong top-line performance and record adjusted EBITDA1 were mostly fueled by contributions from our global medical cannabis business,” he said. “International net revenue1 grew 112% and accounted for 60% of global medical cannabis net revenue1. Additionally, our plant propagation segment increased 22%, driven by organic expansion and an enhanced product portfolio, further strengthening our operating model. Our stated goals of continued strategic growth, operational excellence, and long-term sustained profitability are unwavering and we are deeply appreciative of our team's efforts in helping us achieve these milestones.”
1 This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See "Non-GAAP Measures" below for reconciliations of non-GAAP financial measures to GAAP financial measures.
2 Aurora's only remaining debt is a non-recourse debt of $57.9 million relating to Bevo Farms Ltd as detailed in the FY2025 Q3 Financial Statements.
Third Quarter 2025 Highlights
Unless otherwise stated, comparisons are made between fiscal Q3 2025, Q2 2025, and Q3 2024 results and are in Canadian dollars.
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue1 was $88.2 million, as compared to $64.4 million in the prior year period. The 37% increase from the prior period was mainly due to 51% growth in our global medical cannabis business and 22% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business.
Consolidated adjusted gross margin before fair value adjustments1 was 65% in Q3 2025 and 53% in the prior year quarter. Adjusted gross profit before FV adjustments1 was $56 million in Q3 2025 versus $33.6 million in the prior year quarter, an increase of 67%.
Medical Cannabis:
Medical cannabis net revenue1 was $68.1 million, a 51% increase from the prior year quarter, delivering 77% of Aurora's Q3 2025 consolidated net revenue1 and 90% of adjusted gross profit before fair value adjustments1.
The increase in net revenue1 of $23.1 million was primarily due to higher sales to Australia, Germany, Poland, and the U.K., as well as increased revenue in Canada to insurance-covered and self-paying patients.
Adjusted gross margin before fair value adjustments1 on medical cannabis net revenue reached 74% for the three months ended Dec. 31, 2024, compared to 63% in the prior year quarter. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.
Consumer Cannabis:
Aurora's consumer cannabis net revenue1 was $9.9 million, a 15% decrease from $11.6 million in the prior year quarter. The decrease was due to our decision to prioritize the supply of our GMP-manufactured products to our high-margin global medical cannabis business rather than the consumer business, which offers lower margins.
Adjusted gross margin before fair value adjustments1 on consumer cannabis net revenue1 was 26%, decreasing from 29% compared to the prior year quarter. The decrease from the prior year comparative quarter is primarily due to product sales with lower margins relative to the same period in the prior year.
Plant Propagation:
Plant propagation net revenue1 was wholly comprised of the Bevo business and contributed $8.9 million of net revenue1, a 22% increase compared to $7.3 million in the prior year quarter. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity.
Adjusted gross margin before fair value adjustments1 on plant propagation revenue was 40% for Q3 2025 and 28% for the prior year quarter. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments is due is due to higher margin ornamental plant sales in the third quarter. Additionally, Bevo's greenhouses are producing at a higher capacity.
Selling, General and Administrative ("SG&A"):
Adjusted SG&A1 was $31.3 million in Q3 2025, which excludes $4.9 million of business transformation costs. The increase compared to the three months ended Dec. 31, 2023, relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia.
Net Income (Loss):
Net income from continuing operations for the three months ended Dec. 31, 2024, was $31.2 million compared to a net loss of $17.1 million for the prior year period. The increase in net income of $48.3 million compared to the three months ended Dec. 31, 2023, primarily relates to the improvement in gross profit of $54 million, partially offset by a decrease in other income of $5.3 million. The increase in gross profit includes an increase in unrealized gain on changes in the fair value of biological assets of $42.4 million, partially offset by an increase in changes in the fair value of inventory and biological assets sold of $15.2 million.
Adjusted EBITDA:
Adjusted EBITDA1 increased 316% to $23.1 million for the three months ended Dec. 31, 2024, compared to $5.5 million for the prior year quarter.
Fiscal Q4 2025 Expectations:
- Continued revenue growth across our cannabis business, supported by year-over-year growth in international medical cannabis.
- Seasonally higher revenues for plant propagation, in line with historical seasonal trends.
- Margins to hold strong and positive adjusted EBITDA to continue.
- Improved operating cash use will be supported by continued spending discipline on capex and expected revenue growth.
- Free cash flow is projected to be modestly positive due to continued revenue growth and improved operating cash use.
Subsequent Events:
Concurrently with the filing of the Q3 financials, the company has filed a preliminary base shelf prospectus which, together with a corresponding registration statement to be filed with the U.S. Securities and Exchange Commission, when made final or effective, will replace the company's existing base shelf prospectus that is due to expire on May 27, 2025 and will qualify the issuance of U.S.$250 million of common shares, warrants, options, subscription receipts, debt securities and/or units of the company during the 25 months that it remains effective.
Key Quarterly Financial Results
Line-by-line financial results can be viewed here.
