Aurora Cannabis Q1 FY26 slides: International medical sales surge 85%, EBITDA up 209%

Aurora Cannabis (TSX:ACB) Inc. (NASDAQ:ACB) released its first quarter fiscal year 2026 investor presentation on August 6, 2025, highlighting substantial growth in its international medical cannabis business and improved financial metrics. Despite the positive results, the company’s shares were down 4.35% in premarket trading to $4.40.

Executive Summary

Aurora’s Q1 FY26 presentation emphasized its diversified global business model with a strategic focus on high-margin medical cannabis markets. The company reported a 209% year-over-year increase in adjusted EBITDA to $10.8 million and achieved positive free cash flow of $9.2 million, representing 42% growth compared to the prior year period.

The company’s international medical cannabis segment was the standout performer, with revenue increasing 85% year-over-year, while global medical cannabis net revenue reached $64.8 million, up 37% compared to the same period last year. Aurora maintained strong gross margins in its medical cannabis business at 69%, exceeding its 60% target.

As shown in the following slide detailing the company’s diversified global business model:

Quarterly Performance Highlights

Aurora’s Q1 FY26 results demonstrated continued momentum across multiple business segments:

• International medical cannabis revenue increased 85% year-over-year
• Canadian medical cannabis revenue grew 2% compared to the prior year period
• Plant propagation business through Bevo Farms contributed record revenues of $23.9 million, up 4% year-over-year
• Adjusted gross margins for medical cannabis reached 69%, consistently exceeding the 60% target
• Positive free cash flow of $9.2 million, up 42% year-over-year
• Positive adjusted EBITDA of $10.8 million, representing 209% growth compared to Q1 FY25

These results align with the company’s performance trend from the previous quarter (Q2 FY25), when Aurora reported a 29% increase in net revenue to $81.1 million and a 210% growth in adjusted EBITDA to $10.1 million.

The following key takeaways slide summarizes Aurora’s financial achievements and strategic positioning:

Global Market Expansion

Aurora has established a strong presence in key global cannabis markets, positioning itself to capitalize on the estimated $9.5 billion international market opportunity by 2027. The company has operations in multiple countries including the United Kingdom (TADAWUL:4280), Poland, Canada, France, Switzerland, Germany, Australia, and New Zealand.

The company’s global footprint is illustrated in this comprehensive market overview:

In Europe, Aurora has secured leadership positions in Germany, Poland, and the UK, offering a range of medical cannabis products with varying THC and CBD concentrations. The company launched several new products in Q1 FY26, including live resin cartridges in the UK and new flower varieties across European markets.

In Australia and New Zealand, Aurora holds approximately 16% market share by revenue and pharmacy dispensed volumes, making it the second-largest player in these markets. The company launched four new SKUs in Australia during Q1 FY26, addressing diverse patient needs.

Strategic Initiatives

Aurora’s strategy centers on three key pillars: global medical cannabis leadership, operational efficiency, and innovation through science.

The company’s science and innovation program, based at a state-of-the-art breeding facility in Vancouver Island’s Comox Valley, has developed 28 new proprietary cultivars since 2021. Notably, Aurora has discovered a novel source of genetic resistance against powdery mildew, providing strong protection for cannabis plants.

As shown in this slide detailing the company’s science and innovation program:

Aurora’s plant propagation business through Bevo Farms continues to deliver steady growth, with record revenues of $23.9 million in Q1 FY26. The company expects this segment to drive further revenue and adjusted EBITDA growth over the next 2-3 years as Bevo’s business plan accelerates.

The plant propagation facilities are showcased in this overview:

Forward-Looking Statements

Aurora’s presentation indicates confidence in continued growth, particularly in international medical cannabis markets. The company’s focus on high-margin medical products appears to be yielding results, with consistent improvement in adjusted EBITDA and free cash flow.

The international medical cannabis market is projected to reach $9.5 billion by 2027, providing significant growth potential for Aurora given its established presence in key markets. The company’s product innovation pipeline, including new cultivars and extraction products, positions it to maintain its competitive advantage.

However, investors should note that while Aurora’s medical cannabis business is thriving, its consumer cannabis segment has faced challenges. In the previous quarter (Q2 FY25), consumer cannabis net revenue declined to $10.4 million from $12 million, with adjusted gross margins falling to 14% from 27%.

Aurora’s continued focus on operational efficiency and its strong balance sheet, which included $152 million in cash and no cannabis-related debt as of the previous quarter, provide a foundation for executing its global growth strategy in the evolving cannabis market.

Full presentation:

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