Aurora Cannabis Reaffirms Q2 Guidance as Safari Adds EU-GMP Capacity

Aurora Cannabis (ACB ) reaffirmed its fiscal 2027 second-quarter guidance for sequential growth in quarterly net revenue and adjusted EBITDA in a business update issued September 16, 2026, stating that Safari Flower Company, the Ontario cultivator it acquired in April, is expected to contribute incremental net revenue and adjusted EBITDA following the facility’s receipt of European Union Good Manufacturing Practice (EU-GMP) certification in July.

The Edmonton-based company said the outlook reflects the strategic steps it has taken to focus exclusively on global medical cannabis. Aurora cited what it described as continued strong performance in Germany and Poland, claiming leadership positions in the two largest EU markets, including the No. 1 market share by revenue in Poland. The company also said expansion in the United Kingdom is underway, with its recently announced acquisition of Internode Pharma and HAP Pharma Limited expected to support further market share growth.

Executive Chairman and Chief Executive Officer Miguel Martin said the company remains focused on executing a global growth strategy built on what he described as Aurora’s leadership position as one of the world’s largest indoor EU-GMP certified producers. Martin claimed leading market share in Canada, Europe, Australia and New Zealand and said the company is prepared to export to additional countries as regulatory environments continue to open.

“The accretive acquisition of Safari Flower Company is adding critical EU-GMP capacity and together with our established internal supply network, and the recent acquisitions in the UK, we have built a consistent and reliable availability of high-quality medical cannabis products to meet growing patient demand in the estimated $9 billion market for global medical cannabis,” Martin said.

Aurora reported a cash position of $149 million as of June 30, 2026, a figure it defines as cash, restricted cash, short-term investments and cash equivalents, and said it carries no debt. The company stated that its ATM program will only be used when the board determines doing so is in the company’s best interest.

Safari Acquisition and EU-GMP Certification

Aurora announced the Safari acquisition on April 15, 2026, valuing aggregate consideration at $26.5 million, subject to customary adjustments and inclusive of a $2 million cash payment contingent on the satisfaction of certain conditions. Through a wholly-owned subsidiary, the company indirectly purchased 100 percent of the shares of 9869247 Canada Limited, which operates as Safari Flower Company, issuing the selling shareholder 2,417,180 common shares and paying $15 million in cash at closing, subject to customary post-closing adjustments. The transaction closed on April 14, 2026.

Safari operates a 59,000-square-foot, purpose-built EU-GMP certified indoor cultivation and manufacturing facility in Ontario’s Niagara Region. When it announced the transaction, Aurora said the added capacity would supply EU-GMP flower to its key international markets, including Germany, Australia, Poland and the United Kingdom, and said the deal was expected to deliver positive adjusted EBITDA contributions in fiscal 2027, with incremental benefits in fiscal 2028 and beyond.

Aurora has said it intends to invest approximately $3.5 million over three years in growth capital improvements at Safari, targeting operational efficiencies, maximized cultivation output, reduced manufacturing costs and higher margins. On July 23, 2026, Safari announced receipt of EU-GMP certification for the facility, granted for a three-year term. The site has a history of EU-GMP accreditations and exporting operations.

“We are incredibly proud to achieve the highest level of EU-GMP certification, which reinforces our position as a trusted cultivator and manufacturer of high-quality medical cannabis for international markets,” said Brigitte Simons, chief executive officer of Safari Flower Company.

First-Quarter Results and German Demand

The reaffirmed guidance follows Aurora’s fiscal first-quarter results, reported August 5, 2026, covering the three months ended June 30, 2026, with figures in Canadian dollars. The company reported total net revenue of $67.6 million, compared with $74.1 million in the prior-year period, a 9 percent decrease it attributed mainly to lower quarterly net revenue in Canadian medical cannabis and the wind-down in consumer cannabis, offset by higher net revenue in international medical cannabis and wholesale bulk cannabis. Adjusted EBITDA was $3.4 million, down from $10.8 million a year earlier.

International medical cannabis net revenue increased 17 percent to $43.3 million from $37.1 million in the prior-year period, growth Aurora attributed mainly to higher sales in Germany driven by increased patient demand. Canadian medical cannabis net revenue fell 25 percent to $20.7 million from $27.7 million, a decline the company tied to changes in the federal reimbursement program effective April 1, 2026, which lowered reimbursement rates by approximately 30 percent. Consumer cannabis net revenue declined to $2.1 million from $7.9 million as Aurora winds down that business. The first-quarter figures exclude Bevo Agtech Inc., after Aurora completed the divestiture of its 50.1 percent ownership interest on February 17, 2026, with Bevo classified as a discontinued operation.

When it released those results, Aurora said it expected fiscal second-quarter revenue and adjusted EBITDA to be sequentially higher than in the first quarter, the outlook reaffirmed in the September 16 update. The company said the Safari acquisition and its European performance are expected to fuel international growth in the fiscal 2027 second quarter and beyond, and that it will continue to invest over the next several quarters in its international business to support growth in key markets and position itself to create greater shareholder value.