Canada-based global medical cannabis company Aurora Cannabis Inc (NASDAQ:ACB) reported a third-quarter fiscal 2025 net revenue of CA$88.2 million, compared to CA$64.4 million a year ago.
The 37% increase from the prior period was mainly due to 51% growth in the global medical cannabis business and 22% in the plant propagation business, slightly offset by lower quarterly revenue in the consumer cannabis business.
Consolidated adjusted gross margin was 65% in the third quarter and 53% in the prior-year quarter. Adjusted gross profit was CA$56.0 million in the third quarter vs. CA$33.6 million in the prior year quarter, an increase of 67%.
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Medical cannabis net revenue was CA$68.1 million, a 51% increase from the prior-year quarter, driven by CA$23.1 million was primarily due to higher sales to Australia, Germany, Poland and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients.
The adjusted gross margin reached 74%, compared to 63% in the prior year quarter, through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.
Aurora’s consumer cannabis net revenue was CA$9.9 million, a 15% decrease compared to $11.6 million in the prior year quarter, mainly due to the decision to prioritize the supply of GMP manufactured products to high-margin global medical cannabis business rather than the consumer business, which offers lower margins.
Plant propagation net revenue contributed $8.9 million, a 22% increase compared to $7.3 million a year ago, due to organic growth and expanded product offerings arising from increased capacity.
Adjusted EBITDA increased 316% to CA$23.1 million compared to CA$5.5 million a year ago.
“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,” said Miguel Martin, executive chairman and CEO for Aurora Cannabis.
Fiscal Q4 2025 Expectations:
- Revenue is expected to grow, driven by international medical cannabis sales.
- Seasonal increase in plant propagation revenue, following usual trends.
- Strong profit margins and continued positive adjusted EBITDA.
- Lower operating cash use due to disciplined spending and revenue growth.
- Free cash flow should be slightly positive as cash use improves.
Price Action: ACB stock is up 31.3% at $4.83 during the premarket session at last check Wednesday.
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