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Aurora Cannabis 2025 Q4 Earnings Misses Targets as Net Loss Widens 5.6%
Generated by AI AgentAinvest Earnings Report Digest
Thursday, Jun 19, 2025 5:02 am ET2min read
Aurora Cannabis (ACB) reported its fiscal 2025 Q4 earnings on Jun 18th, 2025. saw a 34.3% increase in revenue reaching $90.54 million, up from $67.41 million in 2024 Q4. However, the company missed earnings expectations, with losses deepening to $0.42 per share from $0.39 per share in the previous year. Aurora's guidance for Q1 2026 anticipates slightly lower revenue due to seasonal trends and temporary international market declines, maintaining strong margins and positive free cash flow.
Revenue
Aurora Cannabis reported a substantial rise in revenue to $90.54 million in Q4 2025, marking a 34.3% increase compared to the same quarter last year. This growth was primarily fueled by gains in the global medical cannabis business and plant propagation activities, although consumer cannabis revenues experienced a decline.
Earnings/Net Income
Aurora Cannabis's losses increased to $0.42 per share in 2025 Q4 from $0.39 per share in 2024 Q4. The company’s net loss widened to $21.93 million in 2025 Q4, a 5.6% increase from the previous year. The EPS indicates a challenging performance amidst revenue growth.
Price Action
The stock price of Cannabis declined by 9.13% during the latest trading day, plummeted 22.52% over the full trading week, and fell 8.77% month-to-date, reflecting investor concerns over the company's widening losses.
Post-Earnings Price Action Review
The strategy of purchasing Aurora Cannabis shares when the company misses revenue expectations and holding them for 30 days resulted in significant underperformance. This approach generated an excess return of -137.21% and a compound annual growth rate (CAGR) of -52.58%. The maximum drawdown reached -97.57%, and the Sharpe ratio stood at -0.69. These metrics indicate that the strategy not only failed to yield positive returns but also subjected investors to substantial risk, highlighting the volatility and challenges in predicting the stock's post-earnings trajectory.
CEO Commentary
Miguel Martin, CEO & Executive Chairman, emphasized Aurora's record-setting performance in fiscal 2025, noting a 27% increase in net revenue to $343 million, driven by a 39% rise in global medical cannabis revenue. He highlighted Aurora's robust balance sheet, with a $185 million cash balance and no debt, positioning the company advantageously. Martin expressed optimism about growth in international markets like Germany, Australia, and Poland, despite regulatory challenges, and reaffirmed commitment to the medical cannabis strategy for sustainable growth.
Guidance
For Q1 2026, Aurora anticipates slightly lower global cannabis revenue compared to Q4 2025, due to expected seasonal trends and temporary declines in certain international markets. However, the company projects adjusted EBITDA to be sequentially below the Q4 fiscal 2025, maintaining strong margins. Free cash flow is expected to remain positive due to solid performance and improved operating cash use.
Additional News
Aurora Cannabis has been navigating regulatory headwinds as it aims for profitability in 2025. The company has focused on medical cannabis, operational efficiency, and geographic diversification, positioning itself for its first profitable year. In Germany, Aurora's EU GMP-certified facility in Leuna secured a dominant position under the Medical Cannabis Act. By Q3 2025, Germany contributed nearly 30% of Aurora's global medical cannabis revenue, with Poland and Australia adding 25%. This strategic focus has resulted in 51% year-over-year revenue growth in the medical cannabis segment, underscoring its success in navigating complex compliance frameworks and leveraging high-margin opportunities. Aurora's disciplined approach highlights its potential as a key player in the evolving global cannabis industry.
Revenue
Aurora Cannabis reported a substantial rise in revenue to $90.54 million in Q4 2025, marking a 34.3% increase compared to the same quarter last year. This growth was primarily fueled by gains in the global medical cannabis business and plant propagation activities, although consumer cannabis revenues experienced a decline.
Earnings/Net Income
Aurora Cannabis's losses increased to $0.42 per share in 2025 Q4 from $0.39 per share in 2024 Q4. The company’s net loss widened to $21.93 million in 2025 Q4, a 5.6% increase from the previous year. The EPS indicates a challenging performance amidst revenue growth.
Price Action
The stock price of Cannabis declined by 9.13% during the latest trading day, plummeted 22.52% over the full trading week, and fell 8.77% month-to-date, reflecting investor concerns over the company's widening losses.
Post-Earnings Price Action Review
The strategy of purchasing Aurora Cannabis shares when the company misses revenue expectations and holding them for 30 days resulted in significant underperformance. This approach generated an excess return of -137.21% and a compound annual growth rate (CAGR) of -52.58%. The maximum drawdown reached -97.57%, and the Sharpe ratio stood at -0.69. These metrics indicate that the strategy not only failed to yield positive returns but also subjected investors to substantial risk, highlighting the volatility and challenges in predicting the stock's post-earnings trajectory.
CEO Commentary
Miguel Martin, CEO & Executive Chairman, emphasized Aurora's record-setting performance in fiscal 2025, noting a 27% increase in net revenue to $343 million, driven by a 39% rise in global medical cannabis revenue. He highlighted Aurora's robust balance sheet, with a $185 million cash balance and no debt, positioning the company advantageously. Martin expressed optimism about growth in international markets like Germany, Australia, and Poland, despite regulatory challenges, and reaffirmed commitment to the medical cannabis strategy for sustainable growth.
Guidance
For Q1 2026, Aurora anticipates slightly lower global cannabis revenue compared to Q4 2025, due to expected seasonal trends and temporary declines in certain international markets. However, the company projects adjusted EBITDA to be sequentially below the Q4 fiscal 2025, maintaining strong margins. Free cash flow is expected to remain positive due to solid performance and improved operating cash use.
Additional News
Aurora Cannabis has been navigating regulatory headwinds as it aims for profitability in 2025. The company has focused on medical cannabis, operational efficiency, and geographic diversification, positioning itself for its first profitable year. In Germany, Aurora's EU GMP-certified facility in Leuna secured a dominant position under the Medical Cannabis Act. By Q3 2025, Germany contributed nearly 30% of Aurora's global medical cannabis revenue, with Poland and Australia adding 25%. This strategic focus has resulted in 51% year-over-year revenue growth in the medical cannabis segment, underscoring its success in navigating complex compliance frameworks and leveraging high-margin opportunities. Aurora's disciplined approach highlights its potential as a key player in the evolving global cannabis industry.
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