Aurora Cannabis Announces Fiscal 2025 Second Quarter Results

• Record adjusted EBITDA¹ of $10.1 million, a year-over-year increase of 210%
• Quarterly net revenue¹ up 29% year-over-year to $81.1 million, with 41% growth in global medical cannabis
• Reaffirms target of positive free cash flow¹ in the quarter ending Dec. 31, 2024
• Maintains strong balance sheet with ~$152 million of cash and a debt-free cannabis business²

EDMONTON, Alberta, Nov. 6, 2024 – PRESS RELEASE – Aurora Cannabis Inc., a leading Canada-based global medical cannabis company, announced its financial and operational results for the second quarter fiscal 2025.

“Our strong quarterly results demonstrate Aurora’s leadership in global medical cannabis and ability to capitalize on opportunities within rapidly growing markets such as Australia, Germany, Poland, and the U.K.,” Chairman and CEO Miguel Martin said. “International revenue increased 93% to $35 million, exceeding Canadian medical revenue for the first time, and contributing 57% to total global medical cannabis revenue. The Bevo plant propagation segment also grew a robust 21% during its seasonally lowest quarter, proving the efficacy of our diversified operating model.

“With two quarters remaining in the fiscal year, we are proud to have delivered record adjusted EBITDA¹ and believe fiscal 2025 is anchored by our commitment to strategic growth, operational excellence, and the continued strength of our balance sheet.”

Second Quarter 2025 Highlights

Unless otherwise stated, comparisons are made between fiscal Q2 2025, Q1 2025, and Q2 2024 results and are in Canadian dollars.

Consolidated Revenue and Adjusted Gross Profit: Total net revenue¹ was $81.1 million, as compared to $63.1 million in the prior year period. The 29% increase from the prior period was mainly due to 41% growth in our global medical cannabis business and 21% 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 54% in Q2 2025 and 51% in the prior year quarter. Adjusted gross profit before FV adjustments¹ was $42.6 million in Q2 2025 vs. $32 million in the prior year quarter, an increase of 33%.

Medical Cannabis: Medical cannabis net revenue¹ was $61.3 million, a 41% increase from the prior year quarter, delivering 76% of Aurora’s Q2 2025 consolidated net revenue¹ and 98% of adjusted gross profit before fair value adjustments¹.

The increase in net revenue1 of $17.8 million was primarily due to higher sales to Australia, Germany, Poland, and the U.K., and stabilized sales in Canada.

Adjusted gross margin before fair value adjustments¹ on medical cannabis net revenue reached 68% for the three months ended Sept. 30, 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 in Australia, and improved efficiency in production operations, including sourcing for Europe from Canada.

Consumer Cannabis: Aurora’s consumer cannabis net revenue¹ was $10.4 million, a 13% decrease compared to $12 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 international business rather than the consumer business, which offers lower margins.

Adjusted gross margin before fair value adjustments¹ on consumer cannabis net revenue¹ was 14%, decreasing from 27% compared to the prior year quarter. The decrease from the prior year comparative quarter is largely due to higher fixed overhead costs allocated to the consumer channel as a result of lower volumes manufactured for products sold by the channel. The company strategically decided to allocate less internally produced cannabis for the consumer channel in favor of increasing its overall cannabis allocation for both its domestic and international medical channels.

Plant Propagation: Plant propagation net revenue¹ was wholly comprised of the Bevo business, and contributed $8.6 million of net revenue¹, a 21% increase compared to $7.2 million in the prior year quarter. The increase was a result of organic growth and increased product offerings, both arising from increased capacity.

Adjusted gross margin before fair value adjustments¹ on plant propagation revenue was 19% for Q2 2025 and 22% for the prior year quarter. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments is due to the seasonal timing of lower margin product revenue and ramp up of the orchid business.

Selling, General and Administrative (SG&A): Adjusted SG&A¹ was $31.7 million in Q2 2025, which excludes $4 million of business transformation costs. The increase compared to the three months ended Sept. 30, 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 Sept. 30, 2024, was $1.7 million compared to net income of $0.4 million for the prior year period. The increase in net income of $1.2 million compared to the three months ended Sept. 30, 2023, primarily relates to a decrease in other income of $8.4 million and decrease of operating expenses of $0.7 million, offset by an increase in gross profit of $7.8 million.

Adjusted EBITDA:  Adjusted EBITDA¹ increased 210% to $10.1 million for the three months ended Sept. 30, 2024, compared to $3.3 million for the prior year quarter.

Fiscal Q3 2025 Expectations: In Q3 2025, we expect to see continued strong net revenue¹ and adjusted gross margins¹ across our global medical cannabis business, supported by net revenue¹ growth in Europe and Australia.

For plant propagation, we expect to see seasonally reduced net revenues¹ and adjusted gross profit¹ that will be in line with historical seasonal trends as 25% – 35% of revenues are normally earned in the second half of a calendar year.

Positive adjusted EBITDA¹ is expected to continue, while free cash flow¹ is projected to be positive due to strong net revenue¹ and continued spend discipline, resulting in strong adjusted gross margins.

¹ This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See “Non-GAAP Measures” below for reconciliations of non-GAAP financial measures to GAAP financial measures.

² Aurora’s only remaining debt is non-recourse debt of $57.5 million relating to Bevo Farms Ltd as detailed in the FY2025 Q2 Financial Statements