Cannabis Company's Mixed Outlook
Aurora Cannabis Posts Record Fiscal 2026, Projects Lower Fiscal 2027 Amid Canadian Medical Pricing Changes
Key Points
For the fourth quarter ended March 31, 2026, Aurora reported a net loss from continuing operations of $27.6 million, compared with a $12.1 million net loss a year earlier—alongside the adjusted EBITDA decline to $9.2 million from $14.1 million.
Aurora said medical cannabis remained the core of its quarterly results: medical cannabis net revenue was $77.1 million, representing about 91% of consolidated net revenue for the quarter (total net revenue $84.8 million).
The April acquisition of Safari Flower added a specific capacity detail: a 59,000-square-foot EU-GMP certified indoor cultivation and manufacturing facility (acquired for total consideration of $26.5 million).
In its fiscal 2027 outlook, Aurora projected adjusted gross margins “in the mid-to-high fifties” and said adjusted EBITDA would be lower year over year, citing revised reimbursed pricing that would affect both net revenue and gross profit contributions.
Aurora Cannabis posted record annual results for fiscal 2026, with global medical cannabis net revenue hitting $288.6 million — up 18% year over year — and adjusted EBITDA reaching $53.8 million, a 32% gain, according to MarketWatch. But the celebration came with a warning: the company expects fiscal 2027 revenue and EBITDA to fall, as Canadian pricing changes are set to squeeze margins.
The full-year records masked a rough finish. In the fourth quarter ended March 31, 2026, Aurora's net loss from continuing operations widened to $27.6 million from $12.1 million a year earlier. Adjusted EBITDA for the quarter dropped 35%, from $14.1 million to $9.2 million, per MarketWatch.
Medical Cannabis Carries Almost All of Aurora's Revenue
Medical cannabis is now Aurora's near-exclusive business. In Q4, medical cannabis net revenue was $77.1 million — about 91% of the company's total net revenue of $84.8 million, according to MarketScreener. Aurora said growth was led by Europe, with Germany and Poland cited as the primary drivers of international momentum.
For the full year, Aurora said its regulatory expertise and expanded supply network helped it maintain that international edge. The company exited its low-margin Canadian consumer and plant propagation businesses — moves it says freed resources to chase higher-margin medical export markets, MarketScreener reported.
Safari Flower Deal Adds EU-Certified Capacity for Europe Push
In April 2026, Aurora completed the $26.5 million acquisition of Safari Flower Company. The deal added a 59,000-square-foot indoor cultivation facility that holds EU-GMP certification — the quality stamp required to export pharmaceutical-grade cannabis to European markets. The facility is based in Niagara, Canada, and is built for export-focused medical flower production.
Aurora also divested its 50.1% stake in Bevo Agtech, a plant propagation company, in February 2026. That sale completed Aurora's exit from non-core agricultural assets. CEO Miguel Martin said the company's "zero-debt balance sheet and EU-GMP infrastructure position us as the partner of choice in Germany and Poland."
Canadian Pricing Changes Drive Cautious FY2027 Guidance
Aurora's fiscal 2027 outlook is cautious. The company projected adjusted gross margins in the "mid-to-high fifties" — meaning roughly 55% to 59% — and warned that adjusted EBITDA would be lower than FY2026's record $53.8 million. The culprit is revised reimbursement pricing in Canada, which will hit both net revenue and gross profit, per MarketScreener.
Analyst Owen Bennett of Jefferies said Aurora has "successfully navigated the survival phase of the cannabis industry," but added that the FY2027 guidance suggests "the Canadian medical market is reaching a pricing ceiling due to government intervention." Aurora ended the fiscal year with $164.7 million in cash and no debt — giving it room to absorb the expected headwinds.
Strong Cash Position Sets Up Potential European Acquisitions
With $164.7 million in cash and zero debt, Aurora enters FY2027 in a rare position for a Canadian cannabis company: financial strength. Analysts expect the company to pursue additional EU-GMP certified assets in markets like the UK or Australia, according to Watchlist News. Aurora beat Q4 earnings estimates, reporting a loss of $0.04 per share versus a consensus estimate of -$0.07.
The bear case remains the widening GAAP net loss. Aurora lost $27.6 million in Q4 alone on a continuing-operations basis — a figure critics say "Adjusted EBITDA" obscures. Still, with Germany's medical market expanding and Poland emerging as a growth market, Aurora is betting that European demand will eventually outpace the Canadian pricing drag.
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