Aurora Cannabis Inc., a leading Canadian medical marijuana company, announced its financial results for the second quarter of fiscal 2025. The company reported a revenue of CA$81.1 million ($58.3 million), marking a significant increase from CA$63.1 million recorded in the same period last year. This 29% growth is primarily driven by a 41% surge in its international medical cannabis sales, coupled with a 21% increase in its plant propagation business. These gains were marginally offset by a decline in the consumer cannabis sector. CEO Miguel Martin emphasized Aurora's robust presence in the global medical cannabis marketplace and the company’s ability to seize opportunities in burgeoning international markets such as Australia, Germany, Poland, and the UK. Notably, international revenues soared by 93% to reach $35 million, surpassing domestic Canadian medical sales for the first time and contributing 57% to the total global medical cannabis revenue.
The Bevo plant propagation segment also showcased a 21% growth, reflective of the company’s diverse operational model. In terms of financial highlights, the adjusted gross profit before fair value alterations stood at CA$42.6 million in Q2 2025, a notable 33% increase from CA$32.0 million in the preceding year. The adjusted gross margin improved to 54% from 51%. Furthermore, net income climbed to CA$1.7 million, a significant jump from CA$400,000 during the same period last year, due largely to improved gross profits and a reduction in operating expenses. Adjusted EBITDA experienced a remarkable rise of 210% to CA$10.1 million, up from CA$3.3 million in 2023. The adjusted SG&A costs were reported at CA$31.7 million, excluding CA$4 million for business transformation expenses.
This increase was attributed to heightened freight and logistics expenses, especially due to increased sales to Europe and costs following the acquisition of MedReleaf Australia. The company's medical cannabis net revenue reached CA$61.3 million, up by 41% compared to the previous year, representing 76% of Aurora's total net revenue for Q2 2025 and 98% of the adjusted gross profit prior to any fair value adjustments. This boost was driven by rising sales in countries like Australia, Germany, Poland, and the UK, alongside stabilized sales in Canada. However, consumer cannabis revenue decreased by 13% to CA$10.4 million, attributed to Aurora’s strategic shift towards prioritizing high-margin international sales over the lower-margin consumer market.
Conversely, the plant propagation segment solely led by Bevo, contributed CA$8.6 million, marking a 21% year-over-year increase. Looking ahead to fiscal Q3 2025, Aurora anticipates continued strength in net revenue and adjusted gross margins in its global medical cannabis sector, particularly from European and Australian markets. The plant propagation business is expected to experience seasonally lower revenue, aligning with historical patterns that see 25%-35% of the segment's annual revenue occurring in the latter half of the year. Positive adjusted EBITDA is projected to persist, with a positive cash flow outlook supported by robust net revenue growth and meticulous expense management, ensuring healthy adjusted gross margins.
"With two quarters left in our fiscal year, we are proud to have achieved record adjusted EBITDA and remain committed to strategic growth and operational excellence," Martin concluded. Despite these positive developments, Aurora Cannabis shares fell by 10.31% to $5.48 during the pre-market session.
