Introduction
Today’s newsletter, The Dales Report, reports that “Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) just delivered a blockbuster third quarter for fiscal 2025, leaving many in the sector wondering if they stashed away a secret growth formula.
Why Is Aurora Riding High?
According to Executive Chairman and CEO Miguel Martin, Aurora is riding high on record global medical net revenue, net income, adjusted EBITDA, and free cash flow—metrics that traditional businesses (and some competitors) might be eyeing with envy.
- Leading the charge was the company’s global medical cannabis unit, which grew net revenue by a hefty 51% year-over-year, hitting $68.1 million and accounting for a whopping 77% of Aurora’s total Q3 net revenue. You read that right: the medical side is bringing in the lion’s share of the bacon.
- Even more impressive, the international market soared 112% and now comprises 60% of overall medical cannabis net revenue.
- Meanwhile, consumer cannabis clocked in at $9.9 million, down from $11.6 million the previous year, reflecting Aurora’s clear preference for higher-margin ventures.
- Aurora’s plant propagation segment, propelled by Bevo, contributed $8.9 million in net revenue, up 22% from the previous year, thanks to (you guessed it) organic growth and expanded offerings. That segment’s 40% adjusted gross margin before fair value adjustments in Q3 dwarfed last year’s 28%.
What’s Ahead For Aurora?
Looking ahead, Aurora expects:
- continued expansion in its medical cannabis business,
- historically higher revenue in plant propagation,
- stable margins,
- positive adjusted EBITDA,
- modestly positive free cash flow on the back of stronger revenue,
- disciplined spending and
- on the capital front, Aurora filed a preliminary base shelf prospectus for up to U.S.$250 million in additional securities—potentially fueling future moves.”
