Aurora Cannabis Inc (NASDAQ:ACB) stock plunges 20.41% (As on June 19, 8:00:00 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY25. Medical cannabis net revenue was $67.8 million, a 48% increase from the prior year period, delivering 75% of Aurora’s Q4 2025 consolidated net revenue and 88% of adjusted gross profit before fair value adjustments. The increase in medical cannabis net revenue of $22.1 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients. Aurora’s consumer cannabis net revenue was $8.2 million a 20% decrease compared to $10.2 million in the prior year period. The decrease was due to the continued decision to prioritize the supply of the GMP manufactured products to the high margin global medical cannabis business rather than the consumer business, which offers lower margins. Plant propagation net revenue was wholly comprised of the Bevo business, and contributed $13.8 million of net revenue, a 32% increase compared to $10.4 million in the prior year period. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity. Net loss from continuing operations for the three months ended March 31, 2025 was $17.2 million compared to a net loss of $20.3 million for the prior year period. Adjusted EBITDA increased 619% to $16.7 million for the three months ended March 31, 2025 compared to $2.3 million for the prior year period.

ACB in the fourth quarter of FY25 has reported the adjusted earnings per share of 7 cents, missing the analysts’ estimates for the adjusted earnings per share of 11 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 34 percent to $63.07 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue by 1.65%. The increase from the prior year period was mainly due to 48% growth in the global medical cannabis business and 32% growth in the plant propagation business, slightly offset by lower quarterly revenue in the consumer cannabis business. Adjusted gross profit before FV adjustments was $54.2 million in Q4 2025 compared to $33.4 million in the prior year period, an increase of 62%.

For the first fiscal 2026, margins are expected to hold strong and the company expects positive adjusted EBITDA to continue, with a decline versus Q4 FY25 due to lower revenue contributions from the higher margin international markets and Free cash flow is projected to remain positive.