Debra BorchardtAurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) announced its financial results for the fiscal 2025 second quarter. Total revenue rose year-over-year and the company has a positive outlook for the fiscal third quarter.
Aurora Cannabis reported a total revenue of $81.1 million, a 29% increase over last year’s $63.1 million in the same period. However, the revenue fell from the previous quarter’s $83.4 million. The growth was attributed to a 41% growth in the company’s global medical cannabis business and a 21% growth in the plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business.
“Our strong quarterly results demonstrate Aurora’s leadership in global medical cannabis and ability to capitalize on opportunities within rapidly growing markets such as Australia, Germany, Poland, and the UK. International revenue increased 93% to $35 million, exceeding Canadian Medical revenue for the first time, and contributing 57% to total global medical cannabis revenue. The Bevo plant propagation segment also grew a robust 21% during its seasonally lowest quarter, proving the efficacy of our diversified operating model,” said Chairman and Chief Executive Officer Miguel Martin.
Net income in the quarter was $1.7 million compared to net income of $0.4 million for the prior year. The increase in net income of $1.2 million was due to a decrease in other income of $8.4 million and a decrease in operating expenses of $0.7 million, offset by an increase in gross profit of $7.8 million.
Breaking down the revenue
The big winner for Aurora was a 41% increase in medical cannabis revenue of $61.3 million, contributing 76% of Aurora’s quarterly revenue. The increase was attributed to higher sales to Australia, Germany, Poland, and the UK, and stabilized sales in Canada.
The consumer cannabis revenue fell by 13% to $10.4 million versus last year’s $12 million. The decrease was due to the company’s decision to prioritize the supply of its GMP-manufactured products to its high-margin international business rather than the consumer business, which offers lower margins.
Plant propagation revenue was mostly the Bevo business, which contributed $8.6 million of revenue, a 21% increase compared to $7.2 million in the prior year quarter. The company said the increase was the result of organic growth and increased product offerings, both arising from increased capacity.
Outlook
The company said in a statement, “In Q3 2025, we expect to see continued strong net revenue and adjusted gross margins across our global medical cannabis business, supported by net revenue1 growth in Europe and Australia. For plant propagation, we expect to see seasonally reduced net revenues and adjusted gross profit that will be in line with historical seasonal trends as 25% – 35% of revenues are normally earned in the second half of a calendar year.”
Aurora went on to say that it expects positive adjusted EBITDA to continue, while free cash flow is projected to be positive due to strong net revenue and continued spending discipline, resulting in strong adjusted gross margins.
“With two quarters remaining in the fiscal year, we are proud to have delivered record adjusted EBITDA and believe fiscal 2025 is anchored by our commitment to strategic growth, operational excellence, and the continued strength of our balance sheet,” Mr. Martin concluded.
