Aurora Cannabis, Inc. Q2 FY2025 earnings call

• Miguel highlighted a strong Q2 with topline growth and higher profitability, leveraging prime positioning in nationally legal cannabis markets. - Key highlights include 29% net revenue growth, record adjusted EBITDA, and strong performance in global medical cannabis (41% YOY growth in net revenue), with international revenue growth outpacing Canadian. - Bevo saw 21% revenue growth in Q2 through organic growth and expanded product offerings. - Global Medical Cannabis is the flagship segment, generating 76% of total net revenue and 98% of adjusted gross profit. - International markets like Australia, Germany, Poland, and the UK showed strong performance with growth in revenue and market share.

Net revenue grew 29% in Q2. Global medical cannabis net revenue was $61.3 million, representing a 41% year-over-year growth. International revenue within global medical cannabis increased 93%, and high-margin international revenue accounted for 57% of total global medical cannabis revenue. Canadian medical cannabis grew 3%. Consumer cannabis net revenue was $10.4 million, down from $12 million in the year-ago period. Plant propagation net revenue increased to $8.6 million from $7.2 million in the year-ago period.

• Q3 is expected to have similar sequential net revenue and adjusted gross margins in global medical cannabis, supported by growth in Europe and Australia. - Plant propagation revenue is seasonally reduced. - Adjusted EBITDA is expected to continue positive, and Q3 free cash flow is anticipated to be positive due to continued global medical cannabis growth, operating expenditure and margins in line with targets, and disciplined working capital management.

• Potential regulatory changes in international markets could impact operations. - Market fluctuations in cannabis demand, especially in recreational segments, may affect financial performance. - Permitting processes in some regions could cause temporary disruptions to sales.

Q: Frederico Gomes asked about the sustainability of global medical cannabis revenue growth.

A: Miguel stated growth is sustainable with a broad model across multiple markets, and Simona noted full revenue recognition from Australian business post-acquisition.

Q: Pablo Zuanic asked about the impact of U.S. election on Aurora, comparison of Australian and German operations.

A: Miguel said U.S. election reinforces focus on medical cannabis, Australia involved acquisitions for control, Germany has a production facility and is expanding, with Poland already well-positioned.