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Aurora Cannabis Falls 9% Despite Record Revenue and Profitability as Outlook Disappoints Investors

Aurora Cannabis (NASDAQ: ACB) shares fell roughly 9% despite reporting record annual revenue and adjusted EBITDA, as investors focused on weaker profitability trends and a softer outlook for fiscal 2027.

The medical cannabis producer delivered a strong fiscal 2026, with annual global medical cannabis revenue rising 18% to a record C$288.6 million and adjusted EBITDA increasing 32% to a record C$53.8 million. The company also maintained a debt-free balance sheet and ended the year with approximately C$165 million in cash, short-term investments, and cash equivalents.

Fourth-quarter results were mixed. Revenue increased 10% year-over-year to C$84.8 million, driven by strong medical cannabis growth in Germany, Poland, and Canada. However, adjusted EBITDA declined 34% to C$9.2 million, while adjusted net income fell 63% to C$5.6 million. Net loss widened to C$27.6 million from C$12.1 million a year earlier as operating costs increased and other income turned into expenses.

Investors appeared particularly concerned about management’s fiscal 2027 outlook. Aurora expects revenue to decline from fiscal 2026 levels and anticipates lower annual adjusted EBITDA as reduced government reimbursement pricing in Canada pressures margins. The company plans to increase investments in international expansion and EU-GMP production capacity, which could weigh on near-term profitability.

While Aurora continues to benefit from strong growth in global medical cannabis markets and recently strengthened its international footprint through the Safari Flower acquisition, the market reaction suggests investors were hoping for stronger earnings momentum and a more optimistic outlook for the coming year.
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Author
European Investor 06-11-26