Aurora Cannabis Reports Q1 Fiscal 2025 Financial Results

LOS ANGELES- Aurora Cannabis has announced its financial results for the first quarter of fiscal 2025, ending June 30, 2024. The company reported positive free cash flow, increased revenue, and substantial growth in its global medical cannabis segment.

Key Financial Highlights

Aurora Cannabis achieved positive free cash flow of $6.5 million for the quarter. Total net revenue reached $83.4 million, marking a 12% year-over-year increase. This growth was driven by strong performance in the global medical cannabis and plant propagation businesses. The company reported an adjusted EBITDA of $4.9 million, an 87% increase year-over-year. Additionally, Aurora ended the quarter with a debt-free cannabis business and a cash position of approximately $182 million.

Consolidated Revenue and Adjusted Gross Profit

Total net revenue for the quarter was $83.4 million, compared to $74.7 million in the previous year, a 12% increase. This growth was primarily due to a 13% increase in global medical cannabis revenue and a 16% increase in plant propagation revenue, partially offset by a decline in consumer cannabis revenue. The adjusted gross margin before fair value adjustments was 43%, slightly down from 44% in the prior year quarter. Adjusted gross profit before fair value adjustments was $36.0 million, a 10% increase from $32.6 million in the previous year.

Segment Performance

• Medical Cannabis: Net revenue for medical cannabis was $47.2 million, up 13% from the prior year, accounting for 57% of Aurora’s total revenue and 91% of the adjusted gross profit before fair value adjustments. The increase was driven by higher sales in Australia and Canada, particularly to insurance-covered patients. Adjusted gross margin for medical cannabis was 69%, up from 61% in the prior year, due to sustainable cost reductions, higher selling prices in Australia, and improved production efficiency.
• Consumer Cannabis: Consumer cannabis net revenue decreased by 10% to $11.5 million, attributed to the strategic decision to prioritize higher-margin international sales over lower-margin domestic consumer sales. Adjusted gross margin for consumer cannabis was 24%, down from 26% in the previous year.
• Plant Propagation: The Bevo business contributed $23.1 million in net revenue, a 16% increase from the prior year. The adjusted gross margin for plant propagation was 18%, down from 22% due to changes in product mix and a prolonged Spring season.

Operational and Administrative Costs

Adjusted selling, general, and administrative (SG&A) expenses were $31.4 million, excluding $4.9 million in business transformation costs. These expenses are expected to remain slightly above the $30 million target due to the acquisition of MedReleaf Australia. Adjusted research and development (R&D) expenses were $1.0 million, consistent with the prior year. The company continues to invest in product innovation, with costs varying quarter to quarter.

Net Income and Adjusted EBITDA

Aurora reported a net income of $4.8 million from continuing operations, compared to a net loss of $20.2 million in the prior year period. The adjusted EBITDA increased by 87% to $4.9 million, up from $2.6 million in the previous year.

Outlook for Q2 Fiscal 2025

Aurora expects continued strong revenue and adjusted gross margins in its cannabis business, particularly in Europe and Australia. However, plant propagation revenue is anticipated to decrease seasonally in Q2, aligning with historical performance trends. Positive adjusted EBITDA is expected to continue, although free cash flow may be negatively impacted by significant annual and one-time cash payments typically occurring in the second fiscal quarter.

Aurora remains focused on maintaining a robust financial position while pursuing growth opportunities in the global cannabis market.