Q1 2026 Aurora Cannabis Inc Earnings Call Transcript
Key Points
- Aurora Cannabis Inc (ACB) reported a 17% increase in net revenue to $98 million, with global medical cannabis revenue rising by 37% and international revenue growing by 85%.
- The company achieved an adjusted gross margin improvement of 1,000 basis points to 52%, benefiting from higher cannabis margins.
- Aurora Cannabis Inc (ACB) generated positive free cash flow of $9 million and reported an adjusted EBITDA more than doubling to $11 million.
- The company holds a strong cash position with $186 million in cash and cash equivalents and operates its cannabis business debt-free.
- Aurora Cannabis Inc (ACB) is a leader in global medical cannabis, with significant market positions in Canada, Australia, Germany, Poland, and the UK, and is well-positioned to capitalize on new market opportunities.
- Consumer cannabis net revenue decreased to $7.9 million from $11.5 million, reflecting a strategic focus on higher-margin medical cannabis sales.
- Adjusted SG&A expenses increased by 19% to $37.4 million, driven by higher selling and distribution costs and incremental costs from the acquisition of MedReleaf Australia.
- Bevo's plant propagation net revenue saw a decrease in adjusted gross margin from 18% to 6% due to inventory write-offs and surplus crops not sold.
- The company faces potential regulatory changes in Germany, which could impact its operations, although it remains confident in navigating these changes.
- Aurora Cannabis Inc (ACB) anticipates significant cash outflows in Q2 2026, which may impact free cash flow results despite expectations of positive annual free cash flow.
Greetings, and welcome to Aurora Cannabis Inc. Fiscal First Quarter 2026 Results Conference Call.
(Operator Instructions) The conference is being recorded today, Wednesday, August 6, 2025. I would now like to turn the conference over to your host, Kevin Niland, Senior Director of Strategic Finance and Investor Relations. Please go ahead, sir.
Hello, and thank you for joining us. With me are Miguel Martin, Executive Chairman and CEO; and Simona King, CFO. Earlier this morning, we filed our financials for the first quarter 2026 period ending June 30, 2025, and issued a news release containing these results. This news release, along with our financial statements and MD&A are available on our IR website as well as via SEDAR+ and EDGAR.
Our discussion today gives a reminder that certain matters could constitute forward-looking statements that are subject to risks and uncertainties relating to our future financial or business performance. Actual results
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