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Aurora Cannabis (ACB)
NASDAQ:ACB
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Positive Factors
Financial Stability
The company's balance sheet offers optionality even in tough conditions.
Market Potential
A federal re-scheduling in the U.S. should provide benefits including increased research, lower stigma, improve access to capital, and unlock the world's biggest addressable cannabis market.
Strategic Shift
ACB has turned over a proverbial new leaf following the reset in the cannabis industry, now with a focus on responsible growth.
Negative Factors
Industry Risks
There are lingering risks in the emerging cannabis industry including rampant illicit markets, limited insurance coverage, and unpredictable path to further de-regulation.
Operational Challenges
There are administration delays in settlement payments.
Aurora Cannabis (ACB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$313.31M
Dividend YieldN/A
Average Volume (3M)819.57K
Price to Earnings (P/E)36.3
Beta (1Y)1.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,073
SectorHealthcare
Sector Strength42
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.42
Shares Outstanding54,884,052
10 Day Avg. Volume575,805
30 Day Avg. Volume819,574
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.62
Price to Sales (P/S)0.00
P/FCF Ratio-5.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.36Price Target Upside28.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Aurora Cannabis Business Overview & Revenue Model
Company DescriptionAurora Cannabis Inc. produces, distributes, and sells cannabis and cannabis derivative products in Canada and internationally. It also engages in facility engineering and design, cannabis breeding, research, production, derivatives, product development, wholesale, and retail distribution activities. The company produces various strains of dried cannabis, cannabis oil and capsules, and topical kits for medical patients. It also sells vaporizers; consumable vaporizer accessories; and herb mills for using CanniMed herbal cannabis products, as well as grinders and vaporizer lockable containers. In addition, the company engages in the development of medical cannabis products at various stages of development, including oral, topical, edible, and inhalable products; and operation of CanvasRX, a network of cannabis counseling and outreach centers. Further, it provides patient counselling services; design and construction services; and cannabis analytical product testing services. The company's brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, Woodstock, and WMMC. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.
How the Company Makes Money
Aurora Cannabis Earnings Call Summary
Earnings Call Date:Feb 05, 2025
(Q3-2025)
| % Change Since: 55.43%|
Next Earnings Date:Jun 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, particularly in international market growth and record-breaking profitability. Despite a decline in Canadian recreational revenue and increased SG&A expenses, the company's robust financial position and operational efficiency improvements suggest a positive outlook.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Profitability
The company reported a record third quarter for medical cannabis revenue, net income, adjusted EBITDA, and free cash flow. Overall net revenue grew 37%, with international medical cannabis revenue increasing 112% year-over-year.
Strong International Performance
International revenue surpassed Canadian medical cannabis revenue for the second consecutive quarter, comprising 60% of global medical cannabis net revenue. Revenue in Australia and the UK reached record levels this quarter.
All-time High in Adjusted EBITDA
Adjusted EBITDA grew 316% to a record $23.1 million, marking the ninth consecutive quarter of positive adjusted EBITDA.
Robust Financial Position
The company ended the quarter with $180.2 million in cash and cash equivalents and no cannabis business debt.
Operational Efficiency and Margin Improvement
Adjusted gross margin for medical cannabis increased to 74% from 63% in the year-ago period, driven by sustainable cost reductions and improved manufacturing efficiency.
Negative Updates
Decline in Canadian Recreational Revenue
Canadian recreational cannabis net revenue decreased to $9.9 million from $11.6 million in the year-ago period, with adjusted gross margins declining from 29% to 26%.
Increased SG&A Expenses
Consolidated adjusted SG&A increased by 12.6% to $31.3 million compared to the year-ago period, although this supported a 37% year-over-year net revenue growth.
Company Guidance
During the Aurora Cannabis Inc. third quarter 2025 conference call, significant guidance and metrics were provided, highlighting a record-breaking quarter. Aurora reported a 37% increase in net revenue, reaching $88.2 million, driven by 51% year-over-year growth in global medical cannabis revenue, with international revenue increasing by 112%. Medical cannabis comprised 77% of total net revenue, contributing 90% of the adjusted gross profit, while the adjusted gross margin hit a record 65%. The company achieved an all-time high in adjusted EBITDA, growing 316% to $23.1 million. Moreover, net income reached $31.2 million, reversing a loss from the previous year, and the company generated $27.4 million in positive free cash flow. Aurora's balance sheet remains strong with $180.2 million in cash and cash equivalents and no cannabis business debt, positioning it well for future growth opportunities in international medical cannabis markets.Aurora Cannabis Financial Statement Overview
Summary
Aurora Cannabis is facing significant financial challenges. Despite a positive gross profit and revenue growth, the company continues to operate at a net loss with negative cash flow, highlighting ongoing operational inefficiencies. The balance sheet shows conservative leverage but poor return metrics.Income Statement
Aurora Cannabis has been facing significant challenges in its income statement. Although there was a positive gross profit in the latest year, the company continues to operate at a net loss with a negative net profit margin. The revenue growth rate was positive, indicating some recovery, but the EBIT and EBITDA margins remain negative, reflecting ongoing operational inefficiencies.20
Very Negative
Balance Sheet
The balance sheet shows a moderately stable capital structure with a low debt-to-equity ratio, indicating conservative leverage use. However, the return on equity is negative due to persistent losses, which undermines shareholder value. The equity ratio remains strong, suggesting an asset-heavy structure, which may provide some stability.30
Negative
Cash Flow
Aurora's cash flow situation is concerning, with negative free cash flow indicating more cash is leaving the business than is being generated. The operating cash flow to net income ratio suggests inefficiencies in cash generation relative to reported earnings. Despite this, the company has shown some improvement in free cash flow growth, albeit from a low base.25
Negative
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 270.28M | 231.58M | 221.34M | 245.25M | 278.91M | Gross Profit |
| 131.46M | -60.45M | 21.23M | -21.56M | -33.54M | EBIT |
| -46.45M | -245.50M | -231.45M | -282.82M | -490.96M | EBITDA |
| 20.47M | -203.32M | -143.09M | -137.20M | -393.23M | Net Income Common Stockholders |
| -69.33M | -263.79M | -1.72B | -693.63M | -3.31B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 117.47M | 300.84M | 439.14M | 425.21M | 169.25M | Total Assets |
| 838.67M | 926.32M | 1.08B | 2.60B | 2.78B | Total Debt |
| 104.79M | 227.52M | 269.49M | 399.55M | 531.25M | Net Debt |
| -8.65M | -73.32M | -168.32M | -21.91M | 369.07M | Total Liabilities |
| 236.80M | 404.62M | 422.00M | 567.03M | 657.25M | Stockholders Equity |
| 559.77M | 490.64M | 661.84M | 2.04B | 2.15B |
| Cash Flow | Free Cash Flow | |||
| -85.46M | -125.13M | -142.05M | -263.66M | -692.96M | Operating Cash Flow |
| -68.51M | -115.81M | -109.84M | -210.58M | -337.95M | Investing Cash Flow |
| -5.49M | -27.31M | -36.60M | -26.91M | -249.48M | Financing Cash Flow |
| -47.92M | -56.48M | 147.78M | 521.95M | 582.56M |
Aurora Cannabis Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $313.31M | 36.29 | 4.78% | ― | ― | ― | ||
54 Neutral | $5.31B | 3.28 | -45.10% | 2.80% | 16.76% | 0.02% | |
| $350.64M | ― | -122.10% | ― | ― | ― | ||
| $181.34M | 19.85 | 4.76% | ― | ― | ― | ||
| $244.58M | ― | -17.34% | ― | ― | ― | ||
48 Neutral | C$137.07M | ― | -38.89% | ― | -6.80% | 11.94% | |
| $166.50M | ― | -554.70% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
ACB
Aurora Cannabis
5.72
-0.17
-2.89%
CGC
Canopy Growth
1.70
-5.58
-76.65%
OGI
OrganiGram Holdings
1.35
-0.24
-15.09%
CRLBF
Cresco Labs
0.54
-1.20
-68.97%
TSE:TSND
TerrAscend Corp
0.38
-1.63
-81.09%
CBSTF
Cannabist Company Holdings
0.05
-0.16
-76.19%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.