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Aurora Cannabis
(TSX:ACB)
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Rating:58Neutral
Price Target:
C$5.50
▼(-0.72% Downside)
Action:Reiterated
Date:08/22/26
The score is held back primarily by weak financial performance (ongoing losses, declining TTM revenue, and negative free cash flow), partially offset by strong technical momentum and a supportive earnings-call outlook centered on international growth, high adjusted gross margin, and a strong cash/no-debt position. Valuation remains a risk due to negative earnings and no dividend support.
Positive Factors
International Medical Growth
International growth and greater geographic diversification reduce reliance on Canada and support Aurora’s position in regulated medical markets. Continued expansion in Germany and other countries could provide a durable foundation for revenue growth.
Negative Factors
Persistent Revenue and Profitability Weakness
Declining trailing revenue and continued losses show that Aurora has not yet established durable earnings power. Although gross margin has improved, volatile results and negative profitability increase uncertainty around the sustainability of its turnaround.
Read all positive and negative factors
Positive Factors
Negative Factors
International Medical Growth
International growth and greater geographic diversification reduce reliance on Canada and support Aurora’s position in regulated medical markets. Continued expansion in Germany and other countries could provide a durable foundation for revenue growth.
Read all positive factors
Aurora Cannabis (ACB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$353.39M
Dividend YieldN/A
Average Volume (3M)517.87K
Price to Earnings (P/E)―
Beta (1Y)1.60
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 Outstanding64,841,500
10 Day Avg. Volume343,838
30 Day Avg. Volume517,873
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$5.65Price Target Upside1.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.42
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 products through two main channels: (1) medical cannabis sales and (2) consumer (adult-use) cannabis sales. In its medical business, Aurora generates revenue by supplying cannabis products ...
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 | -180.64M | -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
4.45
Positive
4.55
Positive
5.04
Positive
Market Momentum
0.32
Positive
64.45
Neutral
42.36
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 above the 20-day moving average (MA) of 5.31, above the 50-day MA of 4.45, and above the 200-day MA of 5.04, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 42.36 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$1.66B | 17.31 | 6.46% | ― | 36.21% | 264.71% | |
65 Neutral | C$2.34B | 14.17 | 6.82% | ― | 3.81% | 344.13% | |
58 Neutral | C$353.39M | -2.83 | -21.00% | ― | -18.93% | -472.15% | |
53 Neutral | C$606.55M | -2.02 | -29.85% | ― | 6.81% | 85.26% | |
53 Neutral | C$3.63B | -72.30 | -4.47% | ― | 1.50% | 81.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Aurora Cannabis
5.45
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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.