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On Wednesday, Aurora Cannabis (ACB) announced its financial and operational results for the first quarter (Q1) 2025, as follows:
 

Q1 Financial Highlights

The information below compares Q1 2025 ended June 30th, 2024 with Q4 2024; all figures are in Canadian dollars. Go here to convert into another currency.

• Net Revenue: UP 31.2% to $83.4M
  • • Adj. Gross Margin: DOWN to 43% from 49%
  • Medical: UP 3.5% to $47.2M
    • Adj. Gross Margin: UP to 69% from 66%
    • As a % of Net Revenue: DOWN to 56.6% from 67.7%
  • Recreational: UP 12.7% to $11.5M
    • Adj. Gross Margin: UP to 24% from 16%
    • As a % of Net Revenue: DOWN to 13.8% from 15.1%
  • Plant Propagation: UP 122.1% to $23.1M
    • Adj. Gross Margin: DOWN to 18% from 25%
    • As a % of Net Revenue: UP to 27.7% from 15.4%
• SG&A Exp.: DOWN 2.8% to $31.4M
  • As a % of Net Revenue: DOWN to 37.6% from 47.9%
• Adj. EBITDA: UP 113.0% to $4.9M 
  • As a % of Net Revenue: UP to 5.9% from 3.4%
• Net Loss: DOWN 76.9% to $(4.8)M
   

Management Commentary

Miguel Martin, Chief Executive Officer, said:

• "This was a milestone quarter for Aurora, as we delivered:
  • strong net revenue growth,
  • a substantial increase in adjusted EBITDA,
  • and positive free cash flow...
• driven by:
  • record net revenue in the rapidly growing global medical cannabis segment...
  • and a record contribution from our Bevo plant propagation business...
• The progress we made during the quarter sets a strong foundation for the rest of the fiscal year, and with our continued commitment to operational excellence and strategic growth, we are well-positioned to sustain this positive momentum.
• Our growth in global medical, the highest margin cannabis segment, alongside our strong balance sheet and ongoing fiscal discipline, are pivotal as we build on our achievement with respect to positive free cash flow,"
   

Fiscal Q2 2025 Expectations

The Company expects:

• to see continued strong net revenue and adjusted gross margins across our cannabis business, supported by net revenue growth in Europe and Australia;
• to see seasonally reduced revenues and gross profit in Q2 2025 for plant propagation that will be in line with historical performance as 25% – 35% of revenues are normally earned in the second half of a calendar year;
• to see a continuation of positive adjusted EBITDA; and
• to see free cash flow be negatively impacted by several significant annual and one-time cash payments that typically occur in Q2 of an FY.
   

Stock Performance

Aurora's (ACB) stock price went UP 5.2% during Q1 (April 1st to June 30th), UP another 27.3% between then and yesterday, and UP 6.3% today on the release of the impressive Q1 financial report, and is now UP 27.0% YTD.

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