Aurora Cannabis Inc.
Shares dropped 7.6% on concerns over intensifying pricing pressure in international markets and the planned exit from lower-margin Canadian consumer segments, signaling investor skepticism about near-term margin sustainability and strategic trade-offs.
Key takeaways
- Net revenue rose 11% to CAD 321 million, driven by double-digit growth in global medical cannabis and exceeding guidance by CAD 8 million.
- Adjusted gross margin improved to 64%, reflecting operational efficiencies and scientific investments, although industry-wide competitive pressures are increasing.
- Adjusted EBITDA grew 32% year-over-year, reaching CAD 54 million, supported by disciplined cost management.
- The company initiated a strategic exit from lower-margin Canadian consumer markets, generating one-time cash impacts, while focusing on higher-margin global medical cannabis.
- Acquisition of Safari Flower Company expands EU GMP capacity by 40%, expected to contribute positively to adjusted EBITDA from FY 2027 onward.