Aurora Cannabis Inc. (NASDAQ: ACB, TSX: ACB) reported its fiscal third-quarter results on Thursday that showed modest year-over-year revenue growth led by record global medical cannabis sales, but the stock fell slightly as investor focus remained on profit trends and segment performance.
For the quarter ended Dec. 31, 2025, Aurora said total net revenue was $94.2 million, up about 7% from $88.2 million in the same period a year earlier. Adjusted EBITDA was $18.5 million, and adjusted net income was $7.2 million. The company also generated $15.5 million in free cash flow and ended the period with $154.4 million in cash and short-term investments. Aurora said its core cannabis business remained debt-free, aside from a non-recourse liability related to its Bevo Farms unit.
Medical segment drives growth
Aurora’s global medical cannabis division delivered a record $76.2 million in net revenue, a 12% increase from the prior year and accounting for roughly 81% of total revenue. The company said international markets, particularly Germany and Poland, were primary contributors to the segment’s growth, and Canadian medical sales also rose. Consumer cannabis revenue fell sharply, down 48% to $5.2 million, as Aurora continued to shift focus away from lower-margin adult-use products. Plant propagation revenue increased 27% to $11.3 million.
Aurora reported an adjusted gross margin before fair-value adjustments of about 62%, compared with 61% a year earlier, supported by a higher-margin sales mix toward medical products.
Balance sheet and cash flow
The company generated positive free cash flow in the quarter, though it noted that the pace of working-capital recovery was slower than in the year-ago period. Inventories and biological assets declined modestly compared with Dec. 31, 2024. With a strong cash position and no debt in its core cannabis business, Aurora said it was well positioned to support ongoing growth investments.
Outlook and guidance
Aurora reiterated its full fiscal 2026 guidance, maintaining expectations for global medical cannabis revenue of $269 million to $281 million and adjusted EBITDA of $52 million to $57 million for the year. Management emphasized its strategic focus on higher-margin medical markets and operational efficiency, aiming to enhance profitability and cash flow.
Executive Chairman Miguel Martin underscored the company’s commitment to expanding its footprint in global medical markets while de-emphasizing lower-margin segments, saying the results validated Aurora’s strategic direction.
Market reaction and context
Following the results, Aurora’s shares traded modestly lower. Public historical pricing data show the stock trading around the $3.7–$4.4 range in the days surrounding the earnings release, reflecting investor caution amid broader industry headwinds such as pricing pressure in adult-use markets and regulatory complexity. Aurora’s results come as cannabis producers globally grapple with competitive pricing and shifting demand, with many market participants increasingly prioritizing medical cannabis and international growth opportunities over domestic recreational segments.
