Aurora Cannabis, Inc. Q4 FY2025 earnings call

• Record-setting year in global medical net revenue, adjusted EBITDA, and positive free cash flow. • Net revenue rose 27% to $343 million, with global medical cannabis revenue up 39%. International revenue over half of total global medical cannabis. • Adjusted gross margin improved to 55%. • Largest company in global medical cannabis with 2 GMP-certified manufacturing facilities. • Strong performance in Canadian medical with #1 market share; growth in international markets like Australia, Germany, U.K.; temporary headwinds in Poland but optimistic about future.

Medical cannabis net revenue rose 48% to $67.8 million, comprising 75% of net revenue with an adjusted gross margin of 70%. Consumer cannabis net revenue was $8.2 million, down from prior year, with an adjusted gross margin of 27%. Bevo's plant propagation net revenue increased to $13.8 million, up 32%, with an adjusted gross margin of 37%.

• Q1 2026 expected global cannabis revenue slightly lower than Q4 2025 but to improve later quarters. • Seasonally higher plant propagation revenues. • Margins to hold strong but adjusted EBITDA sequentially below Q4 2025 due to lower revenue from higher-margin international markets. • Free cash flow expected to remain positive.

• Temporary headwinds in Poland due to regulatory changes affecting prescription volumes. • Competition in international markets entering high-margin regions like Australia and Europe.

Q: Derek Lessard asked about temporary declines in some international markets, specifically Poland, and competition in international space.

A: Miguel Martin stated Poland's headwinds are temporary, with new cultivar launches and positive regulator developments; competition in international markets faces barriers like GMP certification and requires infrastructure, which Aurora has.

Q: Bill Kirk asked about out of stocks in Germany and relation to capacity increase.

A: Miguel Martin said no out of stock issues, focusing on keeping products in stock as key for growth; capacity increase supports meeting demand.

Q: Frederico Gomes asked about supply constraints in international growth and new markets.

A: Miguel Martin said no supply constraints, with yield improvements and partnerships; short-term focus on expanding current markets like Germany, Australia, U.K., and watching new markets like New Zealand, Switzerland, etc.

Q: Matt Bottomley asked about adjusted EBITDA step back and Australia.

A: Simona King said increase in adjusted SG&A impacted EBITDA; Miguel Martin discussed Australia's growth with market share potential, new formats, and overlap in execution between self-payers and reimbursed models.

Q: Pablo Zuanic asked about structural impairments in Germany's demand and supply and sales force balance.

A: Miguel Martin cited education, doctor education time, and format limitations as structural factors; sales force handles both self-payers and reimbursed models with overlap and experience from Canada.