Aurora Cannabis Keeps On Pushing In The Right Direction
Aurora Cannabis Inc. has just unveiled its second-quarter fiscal 2025 results, and they’re not just blowing smoke. The Canadian cannabis heavyweight is flexing its global muscles, proving that when it comes to medical marijuana, they’re the dealer to beat—legally speaking, of cours.
International revenue didn’t just grow; it sprouted—up a staggering 93% to $35 million. For the first time ever, international sales surpassed Canadian medical revenue, contributing 57% to the total global medical cannabis revenue. It’s as if Australia, Germany, Poland, and the UK all collectively decided to say, “We’ll have what they’re having.”
Total net revenue blossomed to $81.1 million, marking a 29% increase from last year’s $63.1 million. The medical cannabis segment stole the show with net revenue soaring 41% to $61.3 million, making up 76% of Aurora’s total net revenue and a whopping 98% of adjusted gross profit.
Adjusted gross margin before fair value adjustments climbed to 54% from last year’s 51%. Adjusted gross profit before those pesky fair value tweaks was $42.6 million, a 33% uptick. It’s clear that Aurora isn’t just growing plants; they’re cultivating profits.
But not all is rosy in the garden. Consumer cannabis net revenue took a 13% dip to $10.4 million. However, this seems more like strategic pruning than withering. Aurora chose to allocate more of its premium buds to the higher-margin international medical markets rather than the lower-margin consumer market.
The Bevo plant propagation segment also had a growth spurt, increasing revenue by 21% to $8.6 million during what’s typically its slowest season. Adjusted gross margin for this segment was a solid 19%, slightly down from 22% the previous year.
Operating expenses saw a bump due to higher freight and logistics costs—thank you, global expansion! The acquisition of MedReleaf Australia also added some weight to the expense report. But considering the international gains, it’s a small price to pay for a larger slice of the global pie.
Net income from continuing operations was $1.7 million, up from $0.4 million in the prior year. Adjusted EBITDA soared 210% to $10.1 million. If EBITDA were a plant, it’d be an overachieving sunflower reaching for the sky.
Looking ahead to Q3 2025, Aurora expects the good times to keep rolling, especially in the global medical cannabis arena. They’re bracing for the usual seasonal slowdown in the plant propagation segment, but with positive adjusted EBITDA and projected positive free cash flow, they’re not losing any sleep over it.
Aurora Cannabis is proving that a focus on high-margin international medical markets can pay off handsomely. By prioritizing quality over quantity and making strategic decisions that favor profitability, they’re establishing themselves as a global leader in the medical cannabis industry. Investors might find this growth—a breath of fresh air in a market that’s often hazy—particularly invigorating.
