Aurora Reports Record Medical Marijuana Revenue in Q3, Shifts Further Away From Consumer Market to Expand Global Medical Footprint
- Aurora Cannabis reported a 7% increase in total net revenue to $94.2 million in Q3, driven by a 12% rise in its global medical marijuana division to a record $76.2 million, which accounted for 81% of total revenue.
- Adjusted EBITDA was $18.5 million with adjusted net income of $7.2 million, and the company generated $15.5 million in free cash flow while maintaining a strong balance sheet with $154.4 million in cash and short-term investments and no debt in its core cannabis business.
- The consumer marijuana segment shrank 48% to $5.2 million as Aurora prioritized higher-margin medical products and plans to exit certain Canadian consumer markets to focus resources on the global medical business, expecting improved margins and adjusted EBITDA despite some one-time Q4 costs.
- Aurora is restructuring its plant propagation partnership with Bevo Agtech, filed a $100 million equity program for strategic growth, and projects full-year 2024 medical marijuana revenue of $269-$281 million with adjusted EBITDA between $52-$57 million, reaffirming its long-term focus on global medical marijuana leadership.
In its fiscal third quarter, Aurora Cannabis Inc. posted record medical marijuana revenue, strong cash flow, and rising margins while signaling an even deeper retreat from Canada’s adult-use market in favor of expanding its global medical footprint. For the three months ending December 31, the company generated $94.2 million in total net revenue, a 7% increase from the same period last year. That growth was driven almost entirely by its global medical marijuana division, which brought in a record $76.2 million, up 12% year-over-year and accounting for 81% of Aurora’s total revenue and 95% of its adjusted gross profit.
The company said the increase was fueled primarily by expanding sales in Germany and Poland, along with higher insurance-covered patient sales in Canada.
Adjusted EBITDA reached $18.5 million for the quarter, while adjusted net income came in at $7.2 million. Aurora also reported $15.5 million in free cash flow and said it maintains a strong balance sheet with $154.4 million in cash and short-term investments, with its core cannabis business carrying no debt.
In contrast, Aurora’s consumer marijuana segment continued to shrink. Consumer revenue fell 48% year-over-year to $5.2 million. The company attributed the decline to its ongoing decision to prioritize supplying high-margin GMP medical products instead of lower-margin consumer sales.
Aurora announced that beginning in the fourth quarter it will exit certain Canadian consumer markets altogether, reallocating product, staff, and resources to the global medical side of the business. Executives said the move is expected to reduce selling and marketing costs, improve margins, and increase adjusted EBITDA in coming quarters, though some one-time costs will impact cash flow in Q4.
The company is also restructuring its involvement in plant propagation through a new agreement involving Bevo Agtech and Bevo Farms. Under the deal, Aurora will exchange its common shares for preferred shares, entitling it to annual dividends and a share of future cash flow, while removing the need to consolidate Bevo’s financials into its own statements.
Aurora also filed a new at-the-market equity program allowing it to sell up to $100 million in shares on the NASDAQ. The company said any funds raised would be used strictly for strategic and accretive purposes, including expanded cultivation capacity and potential mergers and acquisitions tied to medical marijuana growth.
Looking ahead, Aurora expects full-year medical marijuana revenue to reach between $269 million and $281 million, driven by projected 10% to 15% annual growth in the global medical market. The company anticipates full-year adjusted EBITDA between $52 million and $57 million.
Executives framed the quarter as further validation of Aurora’s long-term strategy to position itself as a global leader in medical marijuana, even as it continues pulling back from the adult-use market in Canada.