Investors Riding the High of Aurora Cannabis Inc. (TSX: ACB) (NASDAQ: ACB)

February 6, 2025 (Investorideas.com Newswire) Investorideas.com, a go-to platform for big investing ideas, including cannabis stocks reports on trading for Aurora Cannabis Inc. (TSX: ACB) (NASDAQ: ACB), a leading Canada-based global medical cannabis company.

Aurora Cannabis Inc. is taking the lead on the TSX top percentage gainers for the second day in a row following yesterday's record breaking earnings report. The stock was up over 50% yesterday at its peak and seems unstoppable in today's trading session.

Long time cannabis stock investors are getting high riding the wave of gains on this stock. Today the stock is trading at 6.42, up 1.05, gaining 19.57% on volume of over 16 Million shares on the NASDAQ as of this report. Aurora is trading at 9.27, up 1.62, gaining 21.18% on the TSX. .

Yesterday Aurora announced its financial and operational results for the third quarter fiscal 2025.

Third Quarter 2025 Highlights

(Unless otherwise stated, comparisons are made between fiscal Q3 2025, Q2 2025, and Q3 2024 results and are in Canadian dollars)

Consolidated Revenue and Adjusted Gross Profit:

Total net revenue1 was $88.2 million, as compared to $64.4 million in the prior year period. The 37% increase from the prior period was mainly due to 51% growth in our global medical cannabis business and 22% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business.

Consolidated adjusted gross margin before fair value adjustments1 was 65% in Q3 2025 and 53% in the prior year quarter. Adjusted gross profit before FV adjustments1 was $56.0 million in Q3 2025 vs $33.6 million in the prior year quarter, an increase of 67%.

Medical Cannabis:

Medical cannabis net revenue1 was $68.1 million, a 51% increase from the prior year quarter, delivering 77% of Aurora's Q3 2025 consolidated net revenue1 and 90% of adjusted gross profit before fair value adjustments1.

The increase in net revenue1 of $23.1 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients.

Adjusted gross margin before fair value adjustments1 on medical cannabis net revenue reached 74% for the three months ended December 31, 2024, compared to 63% in the prior year quarter. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.

Consumer Cannabis:

Aurora's consumer cannabis net revenue1 was $9.9 million, a 15% decrease compared to $11.6 million in the prior year quarter. The decrease was due to our decision to prioritize the supply of our GMP manufactured products to our high margin global medical cannabis business rather than the consumer business, which offers lower margins.

Adjusted gross margin before fair value adjustments1 on consumer cannabis net revenue1 was 26%, decreasing from 29% compared to the prior year quarter. The decrease from the prior year comparative quarter is primarily due to product sales with lower margins relative to the same period in the prior year.

Plant Propagation:

Plant propagation net revenue1 was wholly comprised of the Bevo business, and contributed $8.9 million of net revenue1, a 22% increase compared to $7.3 million in the prior year quarter. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity.

Adjusted gross margin before fair value adjustments1 on plant propagation revenue was 40% for Q3 2025 and 28% for the prior year quarter. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments is due is due to higher margin ornamental plant sales in the third quarters. Additionally, Bevo's greenhouses are producing at higher capacity.

Selling, General and Administrative ("SG&A"):

Adjusted SG&A1 was $31.3 million in Q3 2025, which excludes $4.9 million of business transformation costs. The increase compared to the three months ended December 31, 2023 relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia.

Net Income (Loss):

Net income from continuing operations for the three months ended December 31, 2024 was $31.2 million compared to net loss of $17.1 million for the prior year period. The increase in net income of $48.3 million compared to the three months ended December 31, 2023 primarily relates to the improvement in gross profit of $54.0 million, partially offset with a decrease in other income of $5.3 million. The increase in gross profit includes an increase in unrealized gain on changes in fair value of biological assets of $42.4 million, partially offset by an increase in changes in fair value of inventory and biological assets sold of $15.2 million.

Full news

https://ca.finance.yahoo.com/news/aurora-cannabis-announces-fiscal-2025-120000917.html

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