Aurora Cannabis Inc.
- Open
- 4.00
- Day high
- 4.09
- Day low
- 3.97
- Prev close
- 4.01
- Volume
- 869K
- Mkt cap
- $256M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.7
- P/S
- 1.2
- Yield
- —
- Per share
- —
Aurora Cannabis Inc. (ACB) is a Healthcare company listed on NASDAQ. The stock is down 21% over the past year. Drillr has 1 published research article covering ACB.
Aurora Cannabis Inc. (ACB) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ACB earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $-0.13 | $-0.05 | +64.6% | $48M | +0.2% |
| Jun 11, 2026 | $-0.07 | $0.07 | +200.0% | $61M | +12.0% |
| Feb 4, 2026 | $0.10 | $0.09 | -7.4% | $69M | -13.2% |
| Nov 5, 2025 | $0.03 | $0.09 | +200.0% | $63M | -28.4% |
| Jun 18, 2025 | $0.11 | $0.07 | -36.4% | $63M | -28.8% |
| Feb 5, 2025 | $-0.09 | $0.06 | +166.7% | $61M | -31.0% |
| Jun 20, 2024 | $-0.18 | $0.11 | +161.1% | $50M | -3.4% |
| Feb 8, 2024 | $-0.10 | $-0.20 | -100.0% | $48M | -6.8% |
| Nov 9, 2023 | $-0.25 | $-0.50 | -100.0% | $47M | -1.0% |
| Aug 10, 2023 | $-0.80 | $-0.40 | +50.0% | $56M | +18.1% |
| Jun 14, 2023 | $-0.40 | $-1.50 | -275.0% | — | — |
| Feb 9, 2023 | $-0.70 | $-1.40 | -100.0% | $46M | -4.1% |
Aurora Cannabis Inc. company profile
Overview
Aurora Cannabis Inc. (NASDAQ:ACB) is a Canadian cannabis company founded in 2006 and publicly traded since 2014. Originally established as a medical cannabis producer, Aurora has evolved into one of the world's largest cannabis companies with operations spanning cultivation, production, and distribution across multiple international markets. The company is headquartered in Edmonton, Alberta, and has undergone significant strategic transformation over the past few years, pivoting from a growth-at-all-costs model to a focused, profitability-driven approach centered on high-margin medical cannabis markets globally.
Business
Aurora Cannabis operates in the global cannabis industry, which encompasses both medical and recreational cannabis markets. The company's business is structured around three primary segments that collectively generated approximately $245 million in revenue for fiscal 2025. Medical Cannabis represents Aurora's core business, accounting for approximately 77% of net revenue and 90% of adjusted gross profit. This segment includes both Canadian medical cannabis operations and rapidly growing international medical cannabis sales. Medical cannabis refers to cannabis products prescribed by healthcare professionals to treat various medical conditions, including chronic pain, epilepsy, and cancer-related symptoms. Aurora produces EU GMP (European Good Manufacturing Practice) and TGA GMP (Therapeutic Goods Administration Good Manufacturing Practice) certified cannabis products, which are pharmaceutical-grade standards required for medical cannabis in international markets. The company serves patients in Canada, Germany, Australia, Poland, the United Kingdom, and New Zealand through various product formats including dried flower, oils, capsules, and specialized formulations. Consumer Cannabis comprises approximately 12% of net revenue, focusing on the Canadian recreational cannabis market. This segment includes branded cannabis products sold through provincial retail channels under brand names such as Aurora, San Rafael '71, Daily Special, and AltaVie. Consumer cannabis products include dried flower, pre-rolls, vaporizer cartridges, edibles, and concentrates sold to adult consumers for recreational use. Plant Propagation through the Bevo subsidiary accounts for approximately 11% of net revenue. This segment operates agricultural propagation services, producing seedlings and young plants for commercial growers in the ornamental horticulture industry. Bevo utilizes Aurora's repurposed cultivation facilities to grow orchids, vegetables, and other agricultural products, providing a diversified revenue stream outside of cannabis.
Revenue model
Aurora Cannabis generates revenue through direct product sales across its three business segments, with distinct customer bases and margin profiles for each. The Medical Cannabis segment operates on a B2B2C model, selling products to licensed distributors, pharmacies, and healthcare providers who then serve patients. Revenue is generated through wholesale pricing to these intermediaries, with gross margins typically ranging from 65-70% due to the premium nature of medical-grade products and limited competition in regulated markets. International medical cannabis sales command higher margins due to Aurora's EU GMP certification and first-mover advantages in emerging markets. The company benefits from long-term supply agreements and recurring patient demand, creating relatively predictable revenue streams. The Consumer Cannabis segment follows a B2B model, selling products to provincial cannabis retailers and distributors at wholesale prices. This segment operates with significantly lower margins (14-24%) due to intense price competition, commoditization of basic cannabis products, and high excise taxes. Revenue fluctuates based on market share, product mix, and competitive dynamics in the Canadian recreational market. The Plant Propagation business operates on a B2B model serving commercial agricultural growers, generating revenue through sales of seedlings and young plants with margins around 18-25%. Several factors influence Aurora's profitability. Positive margin drivers include international market expansion, particularly in medical cannabis where regulatory barriers limit competition and support premium pricing. The company's EU GMP certification provides significant competitive advantages in European markets. Operational efficiency improvements, higher-yielding cannabis cultivars, and economies of scale from increased production volumes also support margin expansion. Negative margin pressures come from intense price competition in Canadian recreational markets, regulatory changes that could increase compliance costs, currency fluctuations affecting international sales, and potential oversupply in various cannabis markets. Rising input costs for energy, labor, and raw materials also pressure margins, particularly in the lower-margin consumer cannabis segment.
Competitive moat
Aurora Cannabis possesses a moderate competitive moat primarily built around regulatory advantages and operational scale, though this moat faces ongoing challenges from market maturation and increased competition. The company's strongest competitive advantage lies in its regulatory compliance capabilities, particularly its EU GMP and TGA GMP certifications for medical cannabis production. These pharmaceutical-grade manufacturing standards create significant barriers to entry in international medical cannabis markets, as obtaining such certifications requires substantial capital investment, expertise, and time. Aurora's early investment in these capabilities has provided first-mover advantages in key markets like Germany, Australia, and Poland. Operational scale and infrastructure represent another moat element. Aurora operates multiple large-scale cultivation facilities with significant production capacity, allowing for economies of scale in production and distribution. The company's genetic library, breeding programs, and cultivation expertise accumulated over years of operation create some differentiation, particularly in developing high-yielding, consistent cannabis cultivars. However, Aurora's moat is under pressure from several factors. The cannabis industry is rapidly maturing with increasing competition from both established players and new entrants. In recreational markets, cannabis is becoming increasingly commoditized, reducing differentiation opportunities. Regulatory changes could potentially level the playing field by making certifications more accessible to competitors or changing market structures. Competitive threats include large pharmaceutical companies potentially entering medical cannabis markets with superior resources and regulatory expertise, continued price compression in recreational markets, and potential oversupply as global cannabis production capacity expands. Additionally, changes in cannabis scheduling or legalization could dramatically alter competitive dynamics, potentially favoring companies with different strategic positions. The sustainability of Aurora's moat depends largely on its ability to maintain technological and operational advantages while continuing to expand into new regulated markets ahead of competitors.
Risks & safety
Aurora Cannabis demonstrates a strong financial safety profile with improving fundamentals and low financial risk. Liquidity and Solvency: - Cash position of $75.5 million with additional short-term investments - Current ratio of 3.30, indicating strong short-term liquidity - Quick ratio of 1.60, showing adequate liquid assets coverage - Positive free cash flow of $16.7 million in Q3 2025, marking a significant turnaround - No cannabis-related debt, having reduced total debt by over $540 million in recent years - Debt-to-equity ratio of 0.18, indicating minimal leverage Valuation Metrics: - Price-to-earnings ratio of 2.65, suggesting attractive valuation relative to earnings - Price-to-book ratio of 0.59, indicating trading below book value - EV/EBITDA of 2.08, representing reasonable valuation relative to cash generation - Graham number of 11.64 compared to current price around $4.25, suggesting potential undervaluation Other Considerations: - Strong working capital position with current assets significantly exceeding current liabilities - Diversified revenue streams reducing dependence on any single market - Positive operating cash flow trends indicating improving operational efficiency - Conservative capital allocation approach maintaining financial flexibility
Recent development
Over the past few years, Aurora Cannabis has undergone a significant strategic transformation, pivoting from aggressive expansion to a focused, profitability-driven approach centered on medical cannabis markets. The company's most significant strategic shift has been its "medical cannabis first" strategy, concentrating resources on high-margin medical cannabis opportunities rather than competing in commoditized recreational markets. This pivot has involved substantial international expansion, particularly in European and Australian medical cannabis markets where Aurora leverages its EU GMP and TGA GMP certifications to capture premium pricing and market share. Operational restructuring has been a major focus, with Aurora implementing over $150-170 million in annual cost savings through facility consolidation, workforce optimization, and operational efficiency improvements. The company repurposed its large-scale Aurora Sky facility for the Bevo plant propagation business, demonstrating creative asset utilization to generate diversified revenue streams. Financial discipline has become a cornerstone of Aurora's strategy, with management achieving positive adjusted EBITDA for multiple consecutive quarters and recently achieving positive free cash flow. The company has aggressively reduced debt, eliminating over $540 million in obligations while maintaining a strong cash position. Product innovation and market expansion have accelerated, with Aurora launching new product formats including CBD lozenges, expanding its Australian product portfolio with gummies and oils, and introducing Canadian-grown cultivars to German markets. The company has also established or expanded operations in New Zealand, Poland, and the UK, positioning itself as a global medical cannabis leader. Strategic partnerships and acquisitions have been selective, including the acquisition of remaining stakes in MedReleaf Australia and partnerships for product development, such as the CBD lozenge collaboration with Vectura Fertin Pharma. Management has maintained an opportunistic approach to M&A while prioritizing internal investment and organic growth.
ACB company profile · for informational purposes only — not investment advice.
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