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Aurora Cannabis
(TSX:ACB)
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Rating:52Neutral
Price Target:
C$6.00
▲(8.30% Upside)
Action:Reiterated
Date:10/06/26
The score is held back primarily by weak financial performance (declining TTM revenue, ongoing losses, and negative operating/free cash flow), partially offset by a strong low-leverage balance sheet. Technicals are supportive with the stock trading above key moving averages and a positive MACD, though elevated RSI adds near-term pullback risk. Valuation is constrained by a negative P/E and no dividend support, while the earnings call adds moderate support due to reaffirmed guidance and strong international-margin momentum, tempered by reimbursement-driven headwinds and weaker year-over-year profitability and cash flow.
Positive Factors
International medical growth
International medical growth and a rising share of revenue generated outside Canada strengthen Aurora’s geographic diversification. This reduces reliance on the Canadian market, supports access to regulated demand, and provides a durable platform for expansion as additional international markets develop.
Negative Factors
Declining revenue and losses
Declining trailing revenue alongside negative operating profit and net income shows that Aurora has not yet established durable earnings power. Continued losses can limit internally funded growth and make the company’s strategic investments more dependent on balance-sheet resources.
Read all positive and negative factors
Positive Factors
Negative Factors
International medical growth
International medical growth and a rising share of revenue generated outside Canada strengthen Aurora’s geographic diversification. This reduces reliance on the Canadian market, supports access to regulated demand, and provides a durable platform for expansion as additional international markets develop.
Read all positive factors
Aurora Cannabis (ACB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$381.98M
Dividend YieldN/A
Average Volume (3M)323.70K
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth-18.93%
EPS Growth-472.15%
CountryCA
Employees1,028
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-1.93
Shares Outstanding65,744,810
10 Day Avg. Volume249,751
30 Day Avg. Volume323,701
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.51
Price to Sales (P/S)0.81
P/FCF Ratio-7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.00Price Target Upside8.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.17
Revenue Forecast (FY)C$293.75M
Aurora Cannabis Business Overview & Revenue Model
Company Description
Aurora Cannabis Inc. is a Canada-based firm specializing in the cultivation, processing, and global distribution of cannabis and its various derivative products. The company's operations encompass a broad spectrum of the cannabis industry, from fa...
How the Company Makes Money
Aurora Cannabis makes money primarily by selling cannabis and cannabis-derived products through regulated channels, with revenue generally coming from two main end markets: (1) medical cannabis and (2) adult-use (recreational) cannabis. Medical ca...
Aurora Cannabis Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: material short-term financial headwinds (notably a large year-over-year decline in adjusted EBITDA, lower adjusted net income, and negative free cash flow) driven largely by an external 30% reimbursement cut in Canadian medical. Offsetting these negatives are clear strategic strengths—17% international revenue growth to $43M, a 58% adjusted gross margin, strong cash position with no debt, an accretive EU GMP acquisition (Safari), genetics-driven production advantages (up to 40% yield improvement), and market leadership in several regulated international markets. Management frames FY2027 as a transitionary year with expected sequential improvement in Q2 and reiterated long-term targets (sustained double-digit growth and superior margins). Given the mix of significant near-term financial declines and pronounced strategic/operational positives, the overall tone is balanced.Positive Updates
International Revenue Growth
International medical cannabis net revenue increased 17% year-over-year to $43.0 million, driven primarily by strong performance in Germany; 64% of total net revenue was generated outside Canada (up from 50% a year ago).
Negative Updates
Significant Adjusted EBITDA Decline
Adjusted EBITDA fell to $3.4 million from $10.8 million year-over-year, a decline of approximately 68.5%, reflecting lower adjusted gross profit before fair value adjustments.
Read all updates
Q1-2027 Updates
Positive
Negative
International Revenue Growth
International medical cannabis net revenue increased 17% year-over-year to $43.0 million, driven primarily by strong performance in Germany; 64% of total net revenue was generated outside Canada (up from 50% a year ago).
Read all positive updates
Company Guidance
Management reaffirmed fiscal 2027 outlook while noting Q2 revenue and adjusted EBITDA are expected to be substantially higher than Q1; Q1 results included net revenue of $67.6M (international medical revenue +17% to $43M), ~64% of revenue generated outside Canada (vs. 50% a year ago), adjusted gross margin of 58% (at the high end of the annual range), adjusted EBITDA of $3.4M (vs. $10.8M prior year), adjusted net income of $3.8M (vs. $6.6M), consolidated adjusted SG&A of $35.1M (down from $36.1M), free cash flow outflow of $5.8M (vs. inflow $6.8M), nearly $150M in cash, cash equivalents and short-term investments with no debt, and an expected industry headwind from a 30% VAC reimbursement cut effective April 1; they also said the Safari acquisition (59,000 sq ft EU‑GMP facility) was accretive in Q1, genetics can drive up to a 40% yield improvement, and longer‑term targets remain sustained double‑digit revenue growth, superior margins and higher EBITDA contributions.Aurora Cannabis Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 287.96M | 320.59M | 343.29M | 270.28M | 233.29M | 221.34M |
| Gross Profit | 98.69M | 16.70M | 187.61M | 131.46M | -64.36M | 21.23M |
| EBITDA | -179.84M | -148.60M | 51.35M | -12.34M | -210.74M | -1.55B |
| Net Income | -27.44M | -121.76M | 1.59M | -69.33M | -265.33M | -1.72B |
Balance Sheet | ||||||
| Total Assets | 620.88M | 601.09M | 852.67M | 838.67M | 926.32M | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 149.12M | 164.69M | 138.47M | 117.47M | 300.84M | 439.14M |
| Total Debt | 22.68M | 23.86M | 104.58M | 104.79M | 227.52M | 269.49M |
| Total Liabilities | 93.75M | 89.25M | 244.07M | 236.80M | 409.19M | 422.00M |
| Stockholders Equity | 527.13M | 511.83M | 567.17M | 559.77M | 486.08M | 661.84M |
Cash Flow | ||||||
| Free Cash Flow | -50.99M | -36.06M | -2.85M | -85.46M | -127.95M | -142.48M |
| Operating Cash Flow | -28.08M | -13.51M | 16.00M | -68.51M | -115.82M | -110.27M |
| Investing Cash Flow | -67.15M | -73.43M | -14.33M | -5.49M | -27.29M | -36.17M |
| Financing Cash Flow | 18.46M | 9.76M | -116.00K | -47.92M | -56.48M | 147.78M |
Aurora Cannabis Technical Analysis
Positive
5.54
Price Trends
5.62
Positive
4.88
Positive
4.93
Positive
Market Momentum
>-0.01
Positive
53.34
Neutral
30.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACB, the sentiment is Positive. The current price of 5.54 is below the 20-day moving average (MA) of 5.85, below the 50-day MA of 5.62, and above the 200-day MA of 4.93, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ACB.
Aurora Cannabis Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$1.76B | 18.09 | 6.46% | ― | 36.21% | 264.71% | |
63 Neutral | C$1.97B | 11.73 | 6.82% | ― | 3.81% | 344.13% | |
53 Neutral | C$3.16B | -62.10 | -4.47% | ― | 1.50% | 81.84% | |
52 Neutral | C$381.98M | -3.01 | -21.00% | ― | -18.93% | -472.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | C$428.00M | -1.44 | -29.85% | ― | 6.81% | 85.26% |
* Healthcare Sector Average
TSE:ACB
Aurora Cannabis
5.71
-1.21
-17.49%
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37.32%
TSE:CURA
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11.91
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TSE:GTII
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-8.21%
Aurora Cannabis Corporate Events
Business Operations and StrategyLegal ProceedingsM&A TransactionsRegulatory Filings and Compliance
Aurora Cannabis Wins Securities Ruling as Board Urges Rejection of Curaleaf Hostile Bid
Positive
Oct 26, 2026
Aurora Cannabis said the Alberta Securities Commission has dismissed an application by Curaleaf Holdings to halt Aurora’s at-the-market equity program, confirming the program’s compliance with securities laws. The company noted the ATM...
Business Operations and StrategyM&A Transactions
Aurora Cannabis Board Urges Shareholders to Reject Curaleaf’s Revised Hostile Bid
Negative
Oct 14, 2026
Aurora Cannabis has urged shareholders to reject Curaleaf Holdings’ revised hostile takeover bid, arguing the offer still significantly undervalues the company and would force investors to surrender a debt-free, cash-rich position and future...
Business Operations and Strategy
Aurora Cannabis Doubles German Output With Expanded EU-GMP Facility
Positive
Oct 8, 2026
Aurora Cannabis has completed a major expansion of its EU-GMP manufacturing facility in Leuna, Germany, now renamed Aurora Horizon, more than doubling its expected annual medical cannabis flower output. The upgraded site integrates cultivation pra...
Business Operations and StrategyM&A Transactions
Aurora Tells Shareholders to Hold Off as Curaleaf Ups Hostile Bid
Neutral
Oct 6, 2026
Aurora Cannabis has urged its shareholders to take no action in response to Curaleaf Holdings’ revised hostile takeover bid, which now offers implied consideration of US$5.00 per share in a mix of stock and cash. A special committee of Auror...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Aurora Cannabis Urges Shareholders to Wait as Curaleaf Revises Hostile Bid
Neutral
Oct 5, 2026
Aurora Cannabis is a Canadian-based global medical cannabis company listed on the TSX and NASDAQ that serves patients worldwide and emphasizes regulatory compliance and shareholder protections. The firm operates in a consolidating cannabis market ...
Legal ProceedingsM&A TransactionsRegulatory Filings and Compliance
Aurora Cannabis Challenges Curaleaf Hostile Bid Over Disclosure Deficiencies
Negative
Sep 23, 2026
Aurora Cannabis has applied to the Alberta Securities Commission to compel Curaleaf Holdings to correct what it describes as serious deficiencies in Curaleaf’s hostile takeover bid for Aurora. The company argues that Curaleaf’s bid cir...
Business Operations and StrategyExecutive/Board Changes
Aurora Cannabis Taps Pharma Veteran to Drive Global Commercial Push
Positive
Sep 9, 2026
Aurora Cannabis has appointed biopharmaceutical veteran Faris El Refaie as Executive Vice President, Global Commercial, a newly created role effective September 28, 2026. He will lead Aurora’s global commercial operations, refining its medic...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Aurora Cannabis pushes back against Curaleaf’s hostile bid
Positive
Aug 24, 2026
Aurora Cannabis has challenged Curaleaf Holdings’ unsolicited hostile takeover bid, arguing that Curaleaf has misrepresented Aurora’s operational and financial performance to justify acquiring its global medical cannabis infrastructure...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.