AURORA CANNABIS INC (ACB): Financial results for FY2027
AURORA CANNABIS INC (ACB) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 November 5, 2026 NASDAQ | TSX: ACB Aurora Cannabis Announces Fiscal 2027 Second Quarter Results · Delivers Net Revenue of $86.0 million, including Record International Medical Cannabis Net Revenue of $61.4 million, representing a 44% YoY Increase · Generated Adjusted
How this was made
The 30-second read
Why it matters
The earnings release provides the first public numbers for FY2027 Q2, showing revenue growth and a reduced net loss, while the acquisition terms set a clear exit price for shareholders.
Market read
The combination of earnings improvement and a pending acquisition creates a catalyst for ACB's stock, with potential short‑term upside and longer‑term sector consolidation implications.
What to watch
Regulatory changes to Canada's federal reimbursement program could further pressure Canadian medical cannabis revenues.
Aurora Cannabis reported $86.0 million of net revenue, record international medical cannabis net revenue of $61.4 million, $14.0 million of adjusted EBITDA and free cash flow outflow of $17.5 million for fiscal 2027 second quarter.
Net revenue increased 9%, led by a 44% increase in international medical cannabis net revenue, while adjusted gross margin before fair value adjustments declined to 61% from 65%, adjusted EBITDA declined to $14.0 million, and adjusted net income declined to $3.1 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 2027 total net revenuenon-GAAP | $86M | – | 9% increase |
| Q2 2027 medical cannabis net revenuenon-GAAP | $82.5M | – | 17% increase |
| Q2 2027 gross profitGAAP | $37.55M | – | – |
| Q2 2027 gross profit before fair value adjustmentsother | $43.90M | – | – |
| Q2 2027 gross marginGAAP | 44 % | – | – |
| Q2 2027 gross margin before fair value adjustmentsother | 51 % | – | – |
| Q2 2027 adjusted gross margin before fair value adjustments on total net revenuenon-GAAP | 61% | – | – |
| Q2 2027 adjusted gross margin before fair value adjustments on medical cannabis net revenuenon-GAAP | 62% | – | – |
| Q2 2027 operating expensesGAAP | $55.48M | – | – |
| Q2 2027 general and administration expenseGAAP | $30.27M | – | – |
| Q2 2027 sales and marketing expenseGAAP | $17.84M | – | – |
| Q2 2027 adjusted SG&Anon-GAAP | $37.4M | – | – |
| Q2 2027 other income (expenses)GAAP | −$1.56M | – | – |
| Q2 2027 net loss from continuing operationsGAAP | $21.1M | – | decrease in net loss of $6.1 million |
| Q2 2027 net loss from discontinued operations, net of taxGAAP | — | – | – |
| Q2 2027 net lossGAAP | −$21.05M | – | – |
| Q2 2027 adjusted EBITDAnon-GAAP | $14M | – | decrease of $1.4 million |
| Q2 2027 adjusted net incomenon-GAAP | $3.1M | – | decrease of $8.9 million |
| Q2 2027 net cash used in operating activities from continuing operationsGAAP | −$14.95M | – | – |
| Q2 2027 maintenance capital expendituresother | −$2.59M | – | – |
| Q2 2027 free cash flownon-GAAP | outflow of $17.5 million | – | decrease in free cash outflow of $22.4 million |
| Six months ended September 30, 2026 total net revenuenon-GAAP | $153.6M | – | – |
| Six months ended September 30, 2026 medical cannabis net revenuenon-GAAP | $146.6M | – | – |
| Six months ended September 30, 2026 gross profitGAAP | $73.17M | – | – |
| Six months ended September 30, 2026 gross profit before fair value adjustmentsother | $73.10M | – | – |
| Six months ended September 30, 2026 gross marginGAAP | 48 % | – | – |
| Six months ended September 30, 2026 gross margin before fair value adjustmentsother | 48 % | – | – |
| Six months ended September 30, 2026 adjusted gross margin before fair value adjustments on total net revenuenon-GAAP | 60 % | – | – |
| Six months ended September 30, 2026 adjusted gross margin before fair value adjustments on medical cannabis net revenuenon-GAAP | 62 % | – | – |
| Six months ended September 30, 2026 operating expensesGAAP | $99.83M | – | – |
| Six months ended September 30, 2026 general and administration expenseGAAP | $54.87M | – | – |
| Six months ended September 30, 2026 sales and marketing expenseGAAP | $33.43M | – | – |
| Six months ended September 30, 2026 adjusted SG&Anon-GAAP | $72.47M | – | – |
| Six months ended September 30, 2026 other income (expenses)GAAP | $3.54M | – | – |
| Six months ended September 30, 2026 net loss from continuing operationsGAAP | −$25.08M | – | – |
| Six months ended September 30, 2026 net loss from discontinued operations, net of taxGAAP | — | – | – |
| Six months ended September 30, 2026 net lossGAAP | −$25.08M | – | – |
| Six months ended September 30, 2026 adjusted EBITDAnon-GAAP | $17.44M | – | – |
| Six months ended September 30, 2026 adjusted net incomenon-GAAP | $6.92M | – | – |
| Six months ended September 30, 2026 net cash used in operating activities from continuing operationsGAAP | −$19.39M | – | – |
| Six months ended September 30, 2026 maintenance capital expendituresother | −$3.93M | – | – |
| Six months ended September 30, 2026 free cash flownon-GAAP | −$23.33M | – | – |
| Working capital as at September 30, 2026non-GAAP | $306.8M | – | – |
| Total current assets as at September 30, 2026GAAP | $383.4M | – | – |
| Total current liabilities as at September 30, 2026GAAP | −$76.64M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q2 2027 Canadian medical cannabisThe decrease was mainly due to changes in the federal reimbursement program effective April 1, 2026. | $21.2M | – | 24% decrease |
| Q2 2027 international medical cannabisHigher sales in Germany and Poland driven by increased patient demand. | $61.4M | – | 44% increase |
| Q2 2027 consumer cannabisThe decline reflected the strategic shift to focus on Canadian and international medical cannabis and the wind down of the consumer cannabis business. | $1.6M | – | – |
| Q2 2027 wholesale bulk cannabisHigher net revenue in wholesale bulk cannabis contributed to the increase in total net revenue. | $1.87M | – | – |
What drove it
- Total net revenue growth was driven by higher international medical cannabis and wholesale bulk cannabis net revenue, partly offset by lower Canadian medical cannabis revenue and the consumer-cannabis wind down.
- International medical cannabis sales increased in Germany and Poland due to increased patient demand.
- Prior-year impairment charges totalled $13.7 million, contributing to the reduction in net loss from continuing operations.
- Free cash flow outflow improved primarily because working capital investment was $12.6 million compared to $37.2 million in the prior-year period.
Concerns
- Canadian medical cannabis net revenue declined 24% following changes in the federal reimbursement program effective April 1, 2026.
- Adjusted gross margin before fair value adjustments on total net revenue declined to 61% from 65%, and medical cannabis adjusted gross margin declined to 62% from 69%, reflecting pricing compression and competitive market dynamics.
- Consumer cannabis net revenue declined as the Company winds down the channel; consumer cannabis adjusted gross margin before fair value adjustments was 23%, compared to 27%.
- Adjusted SG&A increased to $37.4 million from $34.9 million, while adjusted EBITDA declined to $14.0 million from $15.4 million.
- Adjusted net income declined to $3.1 million from $12.0 million, including unfavourable foreign exchange fluctuations of $4.7 million and a $0.8 million decrease in interest and other income.
What to watch
- The pending transaction under which Organigram will acquire Aurora is expected to be completed in January 2027, subject to shareholder, court and regulatory approvals and other customary closing conditions.
- The Special Meeting to approve the transaction is expected to be held in December 2026.
- Continued international medical cannabis demand in Germany and Poland.
- The effect of federal reimbursement program changes and competitive market dynamics on Canadian medical cannabis revenue and medical-cannabis margins.
- Execution of the consumer cannabis wind down and related business transformation costs.
Balance sheet and cash flow
- $133.0 million of cash, cash equivalents and short-term investments, with no debt.
- Q2 2027 net cash used in operating activities from continuing operations was (14,946 ) ($ thousands), compared to (38,008 ) ($ thousands) in the prior-year period.
- Q2 2027 free cash flow was an outflow of $17.5 million, compared to an outflow of $39.9 million in the prior-year period.
- Q2 2027 working capital investment was $12.6 million, compared to $37.2 million in the prior-year period.
- Working capital was 306,759 ($ thousands) as at September 30, 2026, compared to 299,729 ($ thousands) as at September 30, 2025.
Analysis
Aurora delivered $86.0 million of Q2 2027 total net revenue, up 9% from $78.8 million. Growth was concentrated in medical cannabis, where revenue increased 17% to $82.5 million. International medical cannabis was the principal contributor, increasing 44% to a record $61.4 million on higher sales in Germany and Poland driven by increased patient demand. This more than offset a 24% decline in Canadian medical cannabis revenue to $21.2 million and the ongoing consumer cannabis wind down.
The sales mix continued to move toward international medical cannabis, but profitability metrics weakened. Adjusted gross margin before fair value adjustments on total net revenue was 61%, compared with 65%, while the equivalent medical cannabis margin was 62%, compared with 69%. Aurora attributed the medical margin decline to pricing compression from changes to the federal reimbursement program effective April 1, 2026 and competitive market dynamics. Consumer cannabis margin was 23%, compared with 27%, as the Company sold product at reduced prices during the channel wind down.
Operating costs increased. Adjusted SG&A rose to $37.4 million from $34.9 million, and adjusted EBITDA declined to $14.0 million from $15.4 million despite the $1.1 million increase in adjusted gross profit before fair value adjustments. Adjusted net income declined to $3.1 million from $12.0 million, with the Company citing the increase in adjusted SG&A, unfavourable foreign exchange fluctuations of $4.7 million, and a $0.8 million decline in interest and other income. GAAP net loss from continuing operations improved to $21.1 million from $27.2 million, principally because the prior-year period included $13.7 million of impairment charges.
Cash conversion improved materially. Free cash flow was an outflow of $17.5 million, compared with an outflow of $39.9 million, primarily reflecting a $12.6 million working capital investment compared with $37.2 million in the prior-year period. The Company reported $133.0 million of cash, cash equivalents and short-term investments with no debt. No financial outlook was issued in the release.
The reported quarter is also framed by the definitive agreement for Organigram to acquire Aurora. The transaction is expected to be completed in January 2027, subject to shareholder, court and regulatory approvals and other customary closing conditions. Aurora cancelled the investor call that had been scheduled for November 12, 2026.
Not in the filing
stated, not guessed- Earnings per share, including IFRS and adjusted earnings per share.
- Forward financial guidance for revenue, margins, operating expenses, tax rate, adjusted EBITDA, net income or free cash flow.
- Prior-quarter comparisons for reported operating metrics.
- Dividend, share-repurchase or other capital-return information.
- A detailed debt balance other than the statement that the Company has no debt.
- Named executive quotations.
- A current-period income tax expense metric outside the adjusted EBITDA reconciliation. The reconciliation reports income tax expense of 1,553 ($ thousands) for Q2 2027 and 1,956 ($ thousands) for the six months ended September 30, 2026, but no income tax rate was reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Aurora Cannabis (NASDAQ: ACB) is a leading medical cannabis producer listed on NASDAQ and TSX. The company announced a definitive agreement for Organigram to acquire all outstanding shares.
Ticker impact
Aurora Cannabis released its FY2027 Q2 earnings with net revenue of $86M and a narrowed net loss, plus a definitive acquisition agreement with Organigram.
potential modest upside as the narrowed loss and acquisition news may lift the stock
First disclosure of earnings and deal terms provides fresh data; investors will price in the improved loss and acquisition premium.
Market effects
Highlights consolidation in the medical cannabis sector, may spur M&A activity among peers.
Canadian cannabis market sees increased foreign demand, especially in Germany and Poland.
Shows growing international appetite for medical cannabis, could influence global health‑care investors.
Counterpoint
The acquisition price may be too low if Organigram's share value declines, risking downside for ACB shareholders.
Key entities
- CompanyAurora Cannabis Inc.
Canadian medical cannabis producer reporting FY2027 Q2 results.
- CompanyOrganigram Global Inc.
Acquirer of Aurora Cannabis under a statutory arrangement.
