- Record adjusted EBITDA of $11.2 million and record net profit of $31.2 millions, both up by 282% year-over-year.1 The $23.1 billion figure is up 316% YoY
- Positive free cash flow target achieved1 In Q3, $27.4 Million of cash was generated as free cash flow1
- Cannabis business maintains a strong balance sheet, with cash of $180 Million and no debt.2
[PRESS RELEASE] – EDMONTON, Alberta, Feb. 5, 2025 – Aurora Cannabis Inc. (a Canadian-based medical cannabis leader) announced the financial and operational performance for the third fiscal quarter 2025.
This quarter, Aurora achieved record revenue levels in the global medical sector.1, net income, adjusted EBITDA1Cash flow and the freeing up of cash1. Aurora Cannabis CEO Miguel Martin stated that the company’s achievements and its debt-free cannabis operation, as well as our cash position, demonstrate Aurora’s leading role in global cannabis.
The record-breaking adjusted EBITDA and strong performance of our topline1 He said that the contributions of our medical cannabis global business were the main drivers. “International net revenues1 Medical cannabis revenue grew by 112% to 60% worldwide1. Our operating model was strengthened by the 22% growth in our Plant Propagation Segment, which is a result of organic expansion, and a broader product range. The stated objectives of strategic growth, operational efficiency, and sustained long-term profitability remain unwavering, and we appreciate the efforts of our entire team in achieving these milestones.
1 The non-GAAP figures in this release should not be substituted for comparable GAAP numbers. See “Non-GAAP Measures” below for reconciliations of non-GAAP financial measures to GAAP financial measures.
2 Aurora’s sole remaining debt, detailed in FY2025 Q3 financial statements is an non-recourse loan of $57.9M to Bevo Farms Ltd.
Third Quarter Highlights 2025
If not stated otherwise, all comparisons will be made in Canadian Dollars between Q3 fiscal 2025 and Q2 2025 and Q3 Q3 of 2024.
The Consolidated Revenue (and Adjusted Gross profit):
Gross revenue1 The $88.2 millions was a significant increase from the $64.4million in the previous year. This 37% growth was due primarily to a 51% increase in global medical cannabis sales and a 22% rise in plant propagation, which were slightly offset by lowered quarterly revenues in the consumer cannabis segment.
The adjusted Gross Margin before Fair Value Adjustments1 In Q3 2025, the adjusted gross profit was 66% and in the previous year’s quarter it was 53%. Gross profit adjusted before FV adjustments1 The increase in revenue was 67%, from $33.6 millions in the previous quarter to $56,000,000 in Q3 of 2025.
Medical Cannabis
Net revenue from medical cannabis1 The Q3 revenue for Aurora was $77.1 million. This represents a 77% increase over the previous year’s quarter.1 90% of gross adjusted profit before fair-value adjustments1.
Increase in Net Revenue1 The $23.1 million increase was due primarily to increased sales in Australia, Germany and Poland as well as an increase of revenue from Canada for both insurance-covered patients and those who pay out-of-pocket.
Gross margin adjusted before fair value adjustments1 Medical cannabis net revenues reached 74% in the quarter ended December 31, 2024 compared with 63% the previous year. Gross margins adjusted before fair value adjustment improved due to sustainable cost reductions and higher prices.
Consumer Cannabis:
Aurora’s net consumer cannabis revenue1 In the third quarter of 2016, revenue dropped 15% to $9.9million, from $11.6million in the same period last year. Our decision to prioritise the supply of GMP-manufactured product to our global medical marijuana business with high margins over the consumer market which has lower margins was the reason for the decrease.
Gross margin adjusted before fair value adjustments1 Net revenue from cannabis consumption1 The decrease from the previous year’s quarter was 29%. This decrease is due mainly to lower product margins compared to same-period sales in prior years.
Plant Propagation:
Plant propagation net revenue1 Bevo was the only business that contributed to $8.9 Million of net revenue.1This is a 22 percent increase over the $7.3 million reported in the quarter prior. Increased capacity and organic growth led to the increase.
Gross margin adjusted before fair value adjustments1 The revenue from plant propagation was 40 percent for Q3 of 2025, and 28 percent for the quarter prior. Plant propagation gross margins are fluctuating due to the higher margin ornamental plants sold in the third-quarter. Additionally, Bevo’s greenhouses are producing at a higher capacity.
Selling, General and Administrative (“SG&A”):
Adjusted SG&A1 In Q3 of 2025, the company’s revenue was $31.3M. This excludes $4.9M in costs for business transformation. The higher cost of freight and logistics compared to three-months ended Dec. 31 2023 is primarily due to sales in Europe and increased Canadian sourcing, as well as incremental costs after the acquisition MedReleaf Australia.
Net Income (Loss):
The net income for the period ending Dec. 31 2024 was $31.2m, compared with a loss of $17.1m for the same period in the previous year. The $48.3m increase in net profit compared to three months ending Dec. 31 2023 is primarily due to the $54m improvement in gross profits, partly offset by a $5.3m decrease in other earnings. The gross profit increase includes a $42.4 million increase on unrealized gains from changes in fair values of biological assets.
Adjusted EBITDA:
Adjusted EBITDA1 The three-month period ended December 31, 2024 saw a 316% increase to $23.1 millions, up from $5.5 million in the previous year’s quarter.
The Fiscal Q4 of 2025: Expectations
- Our cannabis business continues to grow, with a year-over-year increase in the international medical cannabis market.
- Plant propagation revenues are higher in seasonal accordance with historic trends.
- The margins will continue to be strong, and the positive EBITDA adjusted to remain.
- The expected growth in revenue and the continued disciplined use of capital expenditures will support an improved cash flow.
- Due to revenue growth, and better operating cash utilization, free cash flow should be positive.
Subsequent events:
The company filed a preliminary prospectus along with its Q3 financials. This prospectus, which will be replaced by a final prospectus or an effective one, filed at the U.S. Securities and Exchange Commission when it becomes effective on May 27th, 2025, and qualify for the issuance up to $250 million in common shares, warrants and options, subscription certificates, debt securities and/or unit of the firm during the remaining 25-month period.
Important Quarterly Financial Reports
Here you can view the financial performance line-by-line.