Aurora Cannabis Inc. (ACB) FY2026 Earnings: Revenue CAD 321M (+11.0%)
ACB — FY2026 (Year to March 2026) Financial Report Analysis
Full Year · Fiscal year 2026 · Published by Pham Hop
Aurora Cannabis grew FY2026 net revenue 11% to C$320.6M on European medical sales, but swung to a C$58.6M IFRS loss from continuing operations and negative free cash flow, and guides FY2027 lower after a Canadian reimbursement cut.
Revenue
CAD 321M
+11.0% YoY
Net income
-CAD 59M
Diluted EPS
CAD -1.03
Operating margin
-14.6%
This period vs a year ago
Same period last year
This period
Revenue▲+11.0%
≈CAD 289M
CAD 321M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Aurora Cannabis's fiscal year ended March 31, 2026 (its "FY2026") produced two very different pictures. On the company's preferred measures, it was its best year in a while: net revenue rose 11% to C$320.6 million and adjusted EBITDA rose 32% to C$53.8 million, driven by medical cannabis sales in Germany and Poland. Under IFRS accounting (the audited, rule-based figures), Aurora swung from a C$27.1 million profit from continuing operations to a C$58.6 million loss, and cash moved the wrong way. The gap comes mostly from paper revaluations of plants and inventory and from write-downs, but the cash numbers show the underlying business did not fund itself this year either. All figures are in Canadian dollars (C$).
At a glance
International medical revenue: C$176.5 million, up 29%. Europe, especially Germany and Poland, is now more than half of Aurora's sales and the main source of growth.
Net loss from continuing operations: C$58.6 million, against a C$27.1 million profit a year earlier. Most of the C$85.7 million swing is accounting for plant and inventory values plus a C$13.2 million Australian write-down, not a collapse in sales.
Free cash flow: minus C$14.3 million, against plus C$10.9 million. Even the company's own cash measure turned negative, and management expects FY2027 revenue and adjusted EBITDA to fall after a roughly 30% cut to Canadian medical reimbursement from April 1, 2026.
Results in one table
"Net revenue" is sales after Canadian excise (cannabis sales) tax. Aurora reports under IFRS, which has no operating-income line, so operating margin below is gross profit minus operating expenses, divided by net revenue, computed from the filing's income statement.
Metric (C$, year to March 31)
FY2026
FY2025
YoY Change
Net revenue
320.6M
288.9M
+11.0%
Read 0 community reports on Aurora Cannabis Inc., or write your own.Write a report
Medical cannabis net revenue
288.6M
244.4M
+18.1%
– International medical
176.5M
137.0M
+28.8%
– Canadian medical
112.1M
107.4M
+4.4%
Consumer cannabis net revenue
23.5M
40.0M
−41.2%
Operating margin (gross profit less operating expenses)
−14.6%
3.6%
−18.2 pts
Net income (loss) from continuing operations
−58.6M
27.1M
n/m (swing to loss)
Diluted EPS, continuing operations
−C$1.03
C$0.49
n/m (swing to loss)
Net income (loss), including discontinued operations
−136.0M
1.6M
n/m
Adjusted EBITDA (company measure)
53.8M
40.9M
+31.7%
Adjusted gross margin before fair-value adjustments
64%
59%
+5 pts
Free cash flow (company measure)
−14.3M
10.9M
n/m
Including the discontinued Bevo and ICC businesses, diluted loss per share was C$2.14 (FY2025: C$0.04 profit).
What drove sales: Europe, not Canada
Medical cannabis is now 90% of Aurora's net revenue (C$288.6 million of C$320.6 million). The MD&A attributes the C$39.5 million rise in international medical revenue "primarily" to "higher sales in Europe, notably Germany, partially offset by lower sales in Australia." Aurora is one of three companies producing medical cannabis inside Germany, at its Leuna facility.
Canadian medical revenue grew only 4.4%, helped by "higher product sales and an additional quarter of the commercialization fee" from a partnership with Cogent International Manufacturing. Canadian medical is sold straight to patients, many with insurance or government coverage, and has historically carried Aurora's best margins, which is why the April 2026 reimbursement cut matters (see outlook).
Consumer (recreational) revenue fell 41% to C$23.5 million because Aurora is deliberately leaving that market. The filing says it has "very limited activity in the Canadian consumer market and expects to be fully wound down in the coming months." Consumer sales carried an adjusted gross margin of only 28% versus 68% for medical, so shrinking it lifts the blended margin even as it takes revenue away.
Why a better year on adjusted numbers became a loss under IFRS
Cannabis companies under IFRS must value growing plants ("biological assets") at an estimated fair value and book the change as income. That makes reported gross profit swing with growers' price and yield assumptions, which is why Aurora and its peers point investors to figures "before fair value adjustments."
In FY2026 that line turned against Aurora: the gain on changes in fair value of biological assets fell to C$116.1 million from C$168.1 million, a C$52.0 million drop, and IFRS gross profit fell to C$136.7 million from C$181.0 million even though gross profit before fair-value adjustments rose to C$158.8 million from C$144.8 million. On top of that:
Operating expenses rose C$12.8 million to C$183.3 million. General and administration rose to C$106.6 million from C$91.3 million, which the MD&A puts down to "increased headcount," "higher contract labour in Europe and Australia," public-company professional fees, and a C$1.9 million expected credit loss "due to the insolvency of two customers."
Other income flipped to a C$9.9 million expense from C$20.9 million income. The biggest items: a C$13.2 million impairment of Australian intangible assets, blamed on "increasing competition and price compression in the Australian marketplace"; foreign-exchange gains shrinking to C$1.3 million from C$11.7 million; and interest income falling to C$5.8 million from C$10.3 million on lower cash and lower rates.
Below that, the discontinued-operations loss grew to C$77.3 million from C$25.5 million. That line holds the former ICC Labs operations and Bevo, the plant-propagation business Aurora owned 50.1% of and gave up control of on February 17, 2026 in exchange for preferred shares. Bevo's assets were written down, with impairment losses recognized when it was classified as held for sale. C$14.2 million of that loss belongs to Bevo's minority owners, not Aurora shareholders.
What the headline numbers hide
The adjusted-to-IFRS gap is large and is mostly add-backs, not just non-cash items. Adjusted EBITDA of C$53.8 million adds back C$50.4 million of inventory and biological-asset fair-value and impairment adjustments (a year earlier this line reduced adjusted EBITDA by C$21.0 million) plus C$24.6 million of "business transformation costs" (IT projects, severance, the consumer exit, legal provisions and "costs associated with the retention of certain medical aggregators"). Transformation costs were C$19.6 million the year before too, so they are closer to a recurring cost than a one-off.
Inventory write-downs are real money spent on product that couldn't be sold at cost. Aurora recognized C$65.1 million of inventory provisions and net-realizable-value adjustments, including C$25.3 million charged to cost of sales (up from C$15.5 million). The MD&A cites "aging inventory from excess inventory coupled with lower sales compared to forecast," plus C$5.5 million tied to the consumer exit.
Cash conversion was poor. Adjusted net income was C$39.3 million, but operating cash flow from continuing operations was negative C$7.8 million (FY2025: positive C$19.0 million), including a C$9.2 million build-up in working capital (cash tied up in inventory, receivables and payables). After maintenance capital spending, free cash flow was minus C$14.3 million. Total cash spent on property, plant and equipment was C$22.5 million, much of it the Leuna expansion.
The fourth quarter was the weakest of the year. Q4 adjusted EBITDA was C$9.2 million, down 34% from C$14.1 million a year earlier, and gross margin before fair-value adjustments dropped to 41% from 52%. Wholesale bulk sales of leftover consumer material posted an C$8.7 million gross loss in the quarter, and medical adjusted margin slipped to 66% from 71%, partly on "strategic price reductions in place to preserve market share in light of increased competition."
The balance sheet is smaller but debt is lower. Cash and equivalents fell to C$64.7 million from C$137.9 million, but C$52.2 million went into short-term investments. Counting restricted cash of C$47.8 million (mainly backing a self-insurance policy), the total was C$164.7 million versus C$185.3 million a year earlier. Loans and borrowings went to nil from C$61.7 million, and total debt including leases fell to C$23.9 million from C$104.6 million.
Share count is rising again. Aurora raised C$10.9 million net through a new US$100 million "at-the-market" program (selling new shares gradually on the exchange) in Q4, and after year-end it paid for the Safari Flower Company acquisition partly with 2,417,180 new shares.
Takeaway: Aurora's growth is now almost entirely European medical cannabis, and on that business the year was good: international medical revenue up 29% at a medical adjusted gross margin of 68%. But the company still did not generate cash (free cash flow −C$14.3 million), and management guides to lower revenue and lower adjusted EBITDA in FY2027 as a roughly 30% cut to Canadian medical reimbursement takes effect. FY2026 is likely a near-term high point rather than a new base.
Outlook and what to watch
Management's FY2027 guidance, from the MD&A:
Total net revenue "is expected to decline and be more in line with our Cannabis net revenue results in fiscal year 2025," as the Canadian medical changes are only partly offset by growth in Germany and Poland.
Adjusted gross margin before fair-value adjustments "in the mid to high fifties," down from 64% in FY2026.
Adjusted SG&A (selling, general and administrative costs excluding transformation items) "broadly in line" with FY2026's C$146.1 million.
Adjusted EBITDA "lower" than FY2026's C$53.8 million, varying quarter to quarter.
Aurora is spending to replace lost Canadian margin with European supply: the Leuna expansion (about C$6 million spent in FY2026, about C$3 million to go) is meant to "double the site's annual flower output," with completion expected in the first half of FY2027, and on April 15, 2026 it bought Safari Flower Company for C$26.5 million to add an EU-GMP-certified (European pharmaceutical-grade) indoor facility and cut reliance on third-party product.
Since the year ended, the bigger story is a takeover fight. On August 18, 2026, Curaleaf Holdings launched an unsolicited bid offering, per Aurora share, US$0.75 in cash plus 0.3463 of a Curaleaf share, capped at a combined US$5.00. The offer is open until December 1, 2026 unless extended or withdrawn. In its directors' circular dated September 1, 2026, Aurora's board called it an "opportunistic" hostile bid and unanimously recommended shareholders reject it and not tender their shares. Aurora has also since published results for its first fiscal-2027 quarter (to June 30, 2026), the first period with the lower Canadian reimbursement; those are not covered here.
Our read: the numbers to watch over FY2027 are whether European growth keeps the medical adjusted margin near the mid-to-high-fifties guidance once the Canadian cut is in, whether free cash flow turns positive without leaning on working-capital swings, and how the Curaleaf bid is resolved. With guidance already pointing lower, a better-than-guided margin would be the main sign that the European shift is working.