Aurora Cannabis Q4 2025: Navigating Contradictions in Supply Chains, Margins, and Market Growth
Earnings DecryptWednesday, Jun 18, 2025 10:48 am ET
2min readSupply chain and market growth, gross margin sustainability, adjusted EBITDA trends, international market growth and demand, and supply constraints are the key contradictions discussed in Aurora Cannabis Inc.'s latest 2025Q4 earnings call.
Record Financial Performance:
- Aurora Cannabis Inc. reported record net revenue of $343 million for fiscal year 2025, up 27%, with global medical cannabis revenue increasing by 39%.
- The growth was driven by strong international revenue contributions, improved margins, and a debt-free cannabis business.
International Revenue Growth:
- International revenue generated over half of global medical cannabis revenue, up from 41% in fiscal year 2024.
- This was due to increased demand for EU and TGA GMP manufactured flower, particularly high potency THC cultivars, and strategic product launches in key markets.
Margin Improvement and Cost Reduction:
- Aurora's adjusted gross margin improved to 55% compared to 49% in the previous year.
- This was attributed to higher cannabis and plant propagation margins, cost efficiencies, and sustainable cost reductions in manufacturing operations.
Adjusted EBITDA and Cash Flow Growth:
- The company reported record adjusted EBITDA of almost $50 million and positive free cash flow of about $10 million.
- These improvements were result of increased revenue, an optimized cost structure, and improved operational efficiency.
Strategic International Market Position:
- Aurora maintained its top market share in Canada and continued to lead in Germany, Poland, and the U.K.
- The company's strategic focus on leading global medical cannabis markets, coupled with its scientific expertise and regulatory compliance, positions it well for future growth.
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Record Financial Performance:
- Aurora Cannabis Inc. reported record net revenue of $343 million for fiscal year 2025, up 27%, with global medical cannabis revenue increasing by 39%.
- The growth was driven by strong international revenue contributions, improved margins, and a debt-free cannabis business.
International Revenue Growth:
- International revenue generated over half of global medical cannabis revenue, up from 41% in fiscal year 2024.
- This was due to increased demand for EU and TGA GMP manufactured flower, particularly high potency THC cultivars, and strategic product launches in key markets.
Margin Improvement and Cost Reduction:
- Aurora's adjusted gross margin improved to 55% compared to 49% in the previous year.
- This was attributed to higher cannabis and plant propagation margins, cost efficiencies, and sustainable cost reductions in manufacturing operations.
Adjusted EBITDA and Cash Flow Growth:
- The company reported record adjusted EBITDA of almost $50 million and positive free cash flow of about $10 million.
- These improvements were result of increased revenue, an optimized cost structure, and improved operational efficiency.
Strategic International Market Position:
- Aurora maintained its top market share in Canada and continued to lead in Germany, Poland, and the U.K.
- The company's strategic focus on leading global medical cannabis markets, coupled with its scientific expertise and regulatory compliance, positions it well for future growth.
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