Aurora Cannabis Q2 revenue misses estimates despite 15% medical cannabis growth

Aurora Cannabis

05/11/2025 12:11

Corrects revenue to C$90.4 mln from C$70.50 mln in Key Details table; corrects throughout to show revenue beat estimates, not missed

Overview

Aurora fiscal Q2 2026 revenue beats analyst expectations due to 15% growth in medical cannabis

Adjusted EBITDA for fiscal Q2 2026 grows 52% to C$15.4 mln

Company maintains strong balance sheet with C$141.9 mln cash, debt-free cannabis business

Outlook

Aurora expects Q3 2026 net revenue to grow, driven by 8%-12% increase in Global Medical Cannabis

Company anticipates positive free cash flow in Q3 2026 due to improved operating cash use

Aurora expects strong adjusted gross margins in cannabis business for Q3 2026

Result Drivers

MEDICAL CANNABIS GROWTH - 15% YoY increase in medical cannabis revenue driven by sales in Australia, Germany, Poland, and the UK

CONSUMER CANNABIS DECLINE - Decrease in consumer cannabis revenue due to focus on higher-margin medical products

PLANT PROPAGATION REVENUE - 34% increase in plant propagation revenue from organic growth and expanded offerings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$90.4 mln
C$87.32 mln (4 Analysts)
Q2 Adjusted EBITDA
C$15.40 mln
Q2 Adjusted Gross Margin
61%
Q2 Adjusted Gross Profit
C$51.80 mln
Q2 Net Income from Cont Ops
-C$53.20 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy."

Wall Street's median 12-month price target for Aurora Cannabis Inc is C$7.85, about 18.2% above its November 4 closing price of C$6.42

The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nCNWW4hXFa

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 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)