Aurora Cannabis (NASDAQ: ACB) saw its shares surge after releasing fiscal Q3 2025 results, with total net revenue jumping to $88.2 million, a 37% increase from the prior-year period and a 9% gain over last quarter.

The company attributed its robust performance primarily to medical cannabis sales in both international and Canadian markets, as well as strong results in its plant propagation business. Medical cannabis net revenue reached $68.1 million, up 51% year over year and 11% quarter over quarter. International markets contributed 60% of global medical net revenue.

Consumer cannabis declined to $9.9 million in net revenue, a 15% decrease versus the prior-year period. Management cited its strategic priority of allocating limited GMP-manufactured products to higher-margin medical channels rather than the lower-margin consumer segment.

Consolidated adjusted gross margin reached 65%, compared with 53% a year ago. Operating expenses came in higher compared to the same period last year, largely due to higher freight and logistics costs and the impact of recent acquisitions. Adjusted SG&A expenses reached $31.3 million, increasing from $27.8 million a year earlier when factoring out business transformation costs. 

The bottom line also swung strongly into positive territory, with net income of $31.2 million versus a net loss of $17.1 million last year. While changes in the estimated value of biological assets boosted the earnings figure, management emphasized that revenue gains and cost reductions also played roles in the boost.

Adjusted EBITDA came in at $23.1 million, still a 128% jump from Q2 2025’s $10.1 million and a 316% increase from last year’s $5.5 million.

Aurora posted free cash flow of $27.4 million, a dramatic shift from an outflow of $4.7 million a year ago.

Working capital rose 12% from last year to $344.4 million. Cannabis inventory and biological assets surged 88% year over year to $212.1 million. Total assets reached $866.5 million, up 5% from last year and 7% sequentially. Management confirmed that the cannabis business remains debt-free.

Following the financials release, the firm’s shares surged over 45% on the trading day. The equity is uo 67% over the last five days, closing Friday’s session at $8.63 on the TSX.

Guidance for the next quarter calls for continued growth in the cannabis business, particularly international medical cannabis, and a seasonal upswing in plant propagation revenue. Aurora also expects margins to remain solid, helping to maintain positive adjusted EBITDA. Free cash flow is projected to remain modestly positive.

The company simultaneously filed a preliminary base shelf prospectus for the issuance of up to US$250 million in equity and debt, effectively replacing an expiring shelf to ensure long-term strategic flexibility.

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