Aurora Cannabis (TSX: ACB) swung to a small loss despite higher revenue in fiscal Q3 2026, as record medical sales and steady margins were offset by gross profit pressure and higher operating costs.
Total net revenue was $94.2 million, up 7% YoY from $88.2 million and up 4% QoQ from $90.4 million, driven mainly by medical growth and higher plant propagation, partially offset by weaker consumer cannabis.
Medical cannabis net revenue set a record at $76.2 million, up 12% from Q3 2025’s $68.1 million and up 8% from Q2 2026’s $70.5 million, representing 81% of consolidated net revenue and 95% of adjusted gross profit before fair value adjustments.
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Aurora attributed sustained 69% medical adjusted gross margin to cost reductions, higher selling prices, and improved production efficiencies, while plant propagation output scaled via increased capacity but absorbed higher labor and utility intensity to match production schedules.
Consumer cannabis net revenue fell to $5.2 million, down 48% YoY from $9.9 million and down 25% QoQ from $6.9 million. Plant propagation revenue was $11.3 million, up 27% from $8.9 million last year but down 2% from $11.6 million last quarter.
Adjusted gross margin before fair value adjustments was 62%, up 1 point YoY and QoQ from 61%, with adjusted gross profit before fair value adjustments at $55.6 million, up 6% YoY from $52.3 million.
Adjusted SG&A was $35.8 million, up 15% from $31.3 million last year and up 1% from $35.5 million last quarter.
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The bottomline swung to a net loss of $1.7 million, versus $28.1 million income in Q3 2025 but an improvement from a $53.2 million loss in Q2 2026. On adjusted basis, net income was $7.2 million, down 3% YoY from $7.4 million and up 2% QoQ from $7.1 million.
Adjusted EBITDA was $18.5 million, down 5% from $19.4 million last year but up 20% from $15.4 million last quarter.
Free cash flow was $15.5 million, improving from negative $42.3 million in the previous quarter but down 43% from $27.4 million last year. Net cash from operating activities was $17.0 million, versus negative $40.4 million last quarter and down from $29.6 million last year, supported by $10.9 million of favorable non-cash working capital changes. Maintenance capex was $1.5 million, lower than $1.9 million QoQ and $2.3 million YoY.
For fiscal 2026, Aurora expects annual global medical cannabis net revenue of $269.0 million to $281.0 million, implying 10% to 15% annual growth, and consolidated adjusted EBITDA of $52.0 million to $57.0 million, representing 5% to 10% annual growth. Plant propagation revenue is expected to follow seasonal trends, with 65% to 75% earned in the first half of the calendar year.
Aurora Cannabis last traded at $5.55 on the TSX.
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