Tuesday, 02 January 2024 12:17 GMT

Cannabis Stock Aurora Cannabis Inc. (TSX: ACB) (NASDAQ:ACB) Makes TSX Top Gainers List On Record Breaking Quarter


(MENAFN- Investor Ideas) Investorideas , a go-to platform for big investing ideas, including cannabis Stocks reports on trading for Aurora Cannabis Inc. (TSX: ACB ) (NASDAQ:ACB ), a leading Canada-based global medical cannabis company.


The stock makes the TSX top gainer list in today' trading, currently at 76 2.48, gaining 46.97% on volume of over 2.6 Million as of this report. The stock is trading at $5.46, up 1.78 on the nasdaq on volume of over 62 Million shares.

Today Aurora announced its financial and operational results for the third quarter fiscal 2025.

"This quarter was record-breaking for Aurora, driven by all-time highs in global medical net revenue1, net income, adjusted EBITDA1, and free cash flow1. These achievements, along with our strong cash position and debt-free cannabis business, underscore Aurora's leadership in the global cannabis industry as we continue to set ourselves apart from our peers," said Miguel Martin, Executive Chairman and Chief Executive Officer for Aurora Cannabis.

"Our strong top-line performance and record adjusted EBITDA1 were mostly fueled by contributions from our global medical cannabis business. International net revenue1 grew 112% and accounted for 60% of global medical cannabis net revenue1. Additionally, our plant propagation segment increased 22%, driven by organic expansion and an enhanced product portfolio, further strengthening our operating model. Our stated goals of continued strategic growth, operational excellence, and long-term sustained profitability are unwavering and we are deeply appreciative of our team's efforts in helping us achieve these milestones," concluded Mr. Martin.

Third Quarter 2025 Highlights

(Unless otherwise stated, comparisons are made between fiscal Q3 2025, Q2 2025, and Q3 2024 results and are in Canadian dollars)

Consolidated Revenue and Adjusted Gross Profit:

Total net revenue1 was $88.2 million, as compared to $64.4 million in the prior year period. The 37% increase from the prior period was mainly due to 51% growth in our global medical cannabis business and 22% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business.

Consolidated adjusted gross margin before fair value adjustments1 was 65% in Q3 2025 and 53% in the prior year quarter. Adjusted gross profit before FV adjustments1 was $56.0 million in Q3 2025 vs $33.6 million in the prior year quarter, an increase of 67%.

Medical Cannabis:

Medical cannabis net revenue1 was $68.1 million, a 51% increase from the prior year quarter, delivering 77% of Aurora's Q3 2025 consolidated net revenue1 and 90% of adjusted gross profit before fair value adjustments1.

The increase in net revenue1 of $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.

Adjusted gross margin before fair value adjustments1 on medical cannabis net revenue reached 74% for the three months ended December 31, 2024, compared to 63% in the prior year quarter. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.

Consumer Cannabis:

Aurora's consumer cannabis net revenue1 was $9.9 million, a 15% decrease compared to $11.6 million in the prior year quarter. The decrease was due to our decision to prioritize the supply of our GMP manufactured products to our high margin global medical cannabis business rather than the consumer business, which offers lower margins.

Adjusted gross margin before fair value adjustments1 on consumer cannabis net revenue1 was 26%, decreasing from 29% compared to the prior year quarter. The decrease from the prior year comparative quarter is primarily due to product sales with lower margins relative to the same period in the prior year.

Plant Propagation:

Plant propagation net revenue1 was wholly comprised of the Bevo business, and contributed $8.9 million of net revenue1, a 22% increase compared to $7.3 million in the prior year quarter. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity.

Adjusted gross margin before fair value adjustments1 on plant propagation revenue was 40% for Q3 2025 and 28% for the prior year quarter. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments is due is due to higher margin ornamental plant sales in the third quarters. Additionally, Bevo's greenhouses are producing at higher capacity.

Selling, General and Administrative ("SG&A"):

Adjusted SG&A1 was $31.3 million in Q3 2025, which excludes $4.9 million of business transformation costs. The increase compared to the three months ended December 31, 2023 relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia.

Net Income (Loss):

Net income from continuing operations for the three months ended December 31, 2024 was $31.2 million compared to net loss of $17.1 million for the prior year period. The increase in net income of $48.3 million compared to the three months ended December 31, 2023 primarily relates to the improvement in gross profit of $54.0 million, partially offset with a decrease in other income of $5.3 million. The increase in gross profit includes an increase in unrealized gain on changes in fair value of biological assets of $42.4 million, partially offset by an increase in changes in fair value of inventory and biological assets sold of $15.2 million.

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