Aurora Cannabis Reports Strong Q2 Growth Driven By International Medical Marijuana Sales

Canadian medical marijuana giant Aurora Cannabis Inc. ACB ACB reported its financial results Wednesday for the second quarter of fiscal 2025, showing revenue of CA$81.1 million ($58.3 million), up from CA$63.1 million in the same period last year.

The company attributed the 29% increase from the prior period to 41% growth in its global medical cannabis business and 21% growth in its plant propagation business, slightly offset by lower quarterly revenue in its consumer cannabis business.

“Our strong quarterly results demonstrate Aurora’s leadership in global medical cannabis and ability to capitalize on opportunities within rapidly growing markets such as Australia, Germany, Poland, and the UK," stated chairman and chief executive officer Miguel Martin. "International revenue increased 93% to $35 million, exceeding Canadian Medical revenue for the first time, and contributing 57% to total global medical cannabis revenue. The Bevo plant propagation segment also grew a robust 21% during its seasonally lowest quarter, proving the efficacy of our diversified operating model,”

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Q2 Financial Highlights

• Adjusted gross profit before was CA$42.6 million in Q2 2025 vs CA$32.0 million in the prior-year quarter, an increase of 33%.
• Adjusted gross margin before fair value adjustments was 54%, compared to 51% in the prior-year quarter.
• Net income was CA$1.7 million, compared to net income of CA$400,000 for the prior-year period. The increase in net income primarily relates to a decrease in other income of CA$8.4 million and decrease of operating expenses of $700,000, offset by an increase in gross profit of CA$7.8 million.
• Adjusted EBITDA increased 210% to CA$10.1 million, compared to CA$3.3 million in the same period of 2023.
• Adjusted SG&A was CA$31.7 million in Q2 2025, which excludes CA$4.0 million of business transformation costs. The increase 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.
• Medical cannabis net revenue was CA$61.3 million, a 41% increase from the prior-year quarter, delivering 76% of Aurora’s Q2 2025 consolidated net revenue and 98% of adjusted gross profit before fair value adjustments.The increase in net revenue of $17.8 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, and stabilized sales in Canada.
• Consumer cannabis net revenue was CA$10.4 million, a 13% decrease compared to CA$12 million in the prior-year quarter. The decrease was due to the company's decision to prioritize the supply of its GMP-manufactured products to its high-margin international business rather than the consumer business, which offers lower margins.
• Plant propagation net revenue was wholly comprised of the Bevo business, and contributed CA$8.6 million of net revenue, a 21% increase compared to CA$7.2 million in the prior-year quarter.

Fiscal Q3 2025 Expectations

In the next quarter, the company expects continued strong net revenue and adjusted gross margins across its global medical cannabis business, supported by revenue growth in Europe and Australia.

For plant propagation, Aurora projects seasonally reduced net revenues and adjusted gross profit that will be in line with historical seasonal trends as 25% – 35% of revenues are normally earned in the second half of a calendar year.

Positive adjusted EBITDA is expected to continue, while free cash flow is projected to be positive due to strong net revenue and continued spend discipline, resulting in strong adjusted gross margins.

“With two quarters remaining in the fiscal year, we are proud to have delivered record adjusted EBITDA and believe fiscal 2025 is anchored by our commitment to strategic growth, operational excellence, and the continued strength of our balance sheet," Martin concluded.

Price Action

Aurora Cannabis shares traded 10.31% lower at $5.48 during Wednesday's pre-market session.

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