Aurora Posts $67.6M Quarter as International Medical Cannabis Grows 17%

Aurora Cannabis Inc. (ACB ) reported net revenue of $67.6 million for its fiscal 2027 first quarter ended June 30, 2026, a 9% decline from a year earlier, as a federal reimbursement rate cut in Canada and a deliberate wind-down of its consumer business offset a 17% jump in international medical cannabis sales, the company announced August 5, 2026.

International medical cannabis net revenue rose to $43.3 million from $37.1 million in the prior-year period, driven by higher sales in Germany on increased patient demand. That growth could not cover the two shrinking legs of the business: Canadian medical cannabis net revenue fell 25% to $20.7 million after changes to the federal reimbursement program effective April 1, 2026 lowered reimbursement rates by approximately 30%, and consumer cannabis net revenue dropped to $2.1 million from $7.9 million as the Edmonton-based company exits the recreational channel.

Net loss from continuing operations narrowed to $4.0 million from $10.2 million a year earlier. Adjusted EBITDA came in at $3.4 million, down from $10.8 million, with the decrease attributed mainly to an $8.3 million drop in adjusted gross profit before fair value adjustments. Free cash flow swung to an outflow of $5.8 million from an inflow of $6.8 million. The balance sheet remains the company’s clearest buffer: $149.1 million in cash, cash equivalents and short-term investments, with no debt.

“We remain confident in our commercial execution, supported by our genetics program and regulatory and operational expertise which underpin our leadership in Canada, Germany, Poland, Australia, and New Zealand,” said Miguel Martin, Aurora’s Executive Chairman and Chief Executive Officer, in the company’s results announcement.

The Canadian reimbursement cut hit exactly where Aurora warned it would

The quarter is the first full read on the pricing reset Aurora flagged when it laid out its fiscal 2027 outlook on June 11, 2026. In its fiscal 2026 year-end release, the company told investors the reduction in government-reimbursed pricing, effective April 1, 2026, would compress margins in its Canadian medical business, and it guided total net revenue lower with adjusted EBITDA expected to vary quarter over quarter and land below the prior fiscal year.

The Q1 numbers track that guidance. Adjusted gross margin before fair value adjustments on medical cannabis net revenue fell to 61% from 69% a year earlier, a decline the company attributed to the roughly 30% reimbursement rate reduction. Consolidated adjusted gross margin before fair value adjustments was 58%, down from 64%. The same dynamic has put pressure across the Canadian producer landscape: SNDL, a Canadian cannabis and liquor retailer, cleared an EU-GMP audit at its Atholville facility as it builds out the export channel, while High Tide (HITI ) has guided toward a record quarter on the strength of its retail model rather than Canadian medical reimbursement.

Safari Flower Company adds certified EU-GMP capacity

The quarter also consolidated Safari Flower Company, the Niagara-region cultivator Aurora acquired in April 2026 for total consideration of $26.5 million — $15 million in cash and 2,417,180 common shares — a total that includes $2 million in contingent consideration payable on satisfying certain GMP certifications, terms disclosed in the year-end filing. The 59,000-square-foot indoor cultivation and manufacturing facility adds EU-GMP certified capacity aimed squarely at the international medical markets now carrying Aurora’s growth.

On July 23, 2026, Safari received EU-GMP certification for its Ontario facility, granted for a three-year term. EU-GMP is the manufacturing standard regulators in markets such as Germany, Poland and the UK require before imported medical cannabis can enter their supply chains, which makes the certification the operative license behind Aurora’s export strategy. Aurora plans to invest approximately $3.5 million in growth capital improvements at the site over the next three years to lift cultivation output and cut manufacturing costs, and says the added capacity should reduce its reliance on third-party suppliers.

Aurora’s fiscal 2027 first quarter by the numbers

• Total net revenue: $67.6 million, versus $74.1 million in the prior-year quarter (down 9%)
• International medical cannabis net revenue: $43.3 million, up 17% year over year
• Canadian medical cannabis net revenue: $20.7 million, down 25% year over year
• Consumer cannabis net revenue: $2.1 million, versus $7.9 million a year earlier
• Adjusted EBITDA: $3.4 million, versus $10.8 million a year earlier
• Net loss from continuing operations: $4.0 million, versus $10.2 million a year earlier
• Free cash flow: outflow of $5.8 million, versus an inflow of $6.8 million a year earlier
• Cash, cash equivalents and short-term investments: $149.1 million, with no debt

What Aurora expects next

Management held its full-year outlook unchanged and told investors to expect sequential improvement from here: revenue and adjusted EBITDA in the fiscal second quarter are both expected to come in higher than the fiscal first quarter, on increasing global patient demand for medical cannabis. Miguel Martin and Chief Financial Officer Simona King were set to walk through the quarter on an investor call at 8:00 a.m. Eastern on August 5, 2026, per the company’s conference call notice filed with the SEC.

The next scheduled markers are operational rather than financial: the planned $3.5 million in capital improvements at Safari over the next three years, and a full-year adjusted gross margin the company continues to project in the mid-to-high fifties as European revenue takes up a larger share of the mix. Whether international growth can fully replace the roughly $7 million in quarterly Canadian medical revenue lost to the reimbursement cut is the question the next two quarters answer.