Aurora Cannabis Raises Net Revenue 11% to $321M, Exits Consumer Business, Foresees 30% Rate Cut
ACB•Aurora Cannabis’s fiscal 2026 net revenue rose 11% to $321 million—$8 million above guidance—while adjusted EBITDA grew 32% to $54 million and the company finished debt-free with $165 million cash. It forecasts a 30% cut in Canadian medical rates, will exit its low-margin consumer business and expects lower EBITDA next year.
1. Fiscal 2026 Financial Results
Aurora Cannabis’s net revenue for fiscal year 2026 rose 11% to $321 million, surpassing guidance by $8 million. Adjusted gross margin improved to 64% and adjusted EBITDA grew 32% year over year to $54 million, driven by stronger medical cannabis sales.
2. Balance Sheet and Liquidity
The company ended the year debt-free with $165 million in cash and equivalents. Free cash flow was $0.3 million, down from $5.2 million in the prior year due to higher SG&A expenses from credit loss provisions and inflation-driven labor costs.
3. 2027 Outlook and Guidance
For fiscal 2027, Aurora forecasts a 30% reduction in Canadian medical reimbursement rates and plans to exit its low-margin consumer business, resulting in a reset year of lower EBITDA. Management anticipates adjusted gross margins in the high 50% range despite these headwinds.
4. Strategic Expansion and Market Pressures
The acquisition of Safari Flower Co. is expected to boost the company’s EU GMP capacity and contribute to adjusted EBITDA in fiscal 2027. However, increased price pressure in Germany’s value segment may constrain profitability in its largest European market.
