AURORA CANNABIS INC. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Aurora Cannabis performed this year. Instead of digging through dense legal filings, I’ve broken down the key takeaways into plain English to help you decide if this company fits your investment goals.

1. What does this company do?

Aurora Cannabis is a global medical cannabis company. They grow, produce, and sell pharmaceutical-grade cannabis in Canada, Germany, the UK, Poland, and Australia.

The company is currently shifting its strategy to focus exclusively on medical cannabis. They are selling off non-core assets, such as Bevo Agtech, and exiting the low-profit Canadian consumer market to focus their resources on high-profit medical cannabis and international sales.

2. The Big Picture: Financial Health

As of March 31, 2026, the company held $112.5 million in cash.

For fiscal year 2026, Aurora reported $320.6 million in total revenue, up from $288.9 million in 2025. Despite this growth, the company is not yet profitable, reporting a loss of $135.96 million for the year. This loss includes costs associated with shutting down their consumer cannabis and plant propagation businesses.

A major heads-up for investors: On April 1, 2026, the Canadian government cut medical reimbursement rates by about 30%. Since Canada is a key market, Aurora expects this change to shrink their profit margins in the coming year.

3. Major Wins and Challenges

• Wins: The medical cannabis segment is growing, generating $77.1 million in the most recent quarter—a 14% increase from last year. To stay competitive, Aurora is investing in research at its Aurora Coast facility to create unique cannabis strains.
• Challenges: The company continues to record "inventory provisions," which are non-cash charges taken when stored cannabis loses value or becomes outdated. Additionally, the adjusted gross margin dropped to 60% in the final quarter, down from 65% last year, reflecting the Canadian pricing cuts and increased market competition.

4. Who is running the show?

Aurora uses a board of directors with independent committees to oversee the company. The Audit Committee includes two financial experts, Chitwant Kohli and Michael Singer, who ensure financial reports are accurate. For the 2026 fiscal year, the company paid $4,782,558 in total audit fees.

5. Key Risks

• Regulatory Hurdles: The business is highly sensitive to government policy. The 30% cut in Canadian medical reimbursements demonstrates how quickly legislative changes can impact the company’s bottom line.
• Financing: Aurora has a program to raise up to $100 million USD by selling more shares. If they utilize this, it will result in more shares being issued, which dilutes existing ownership. Market volatility could also make it difficult or expensive to raise this capital.
• Currency Risk: Because they operate in Europe and Australia, fluctuations in the value of the Euro and the Australian Dollar can directly affect their reported revenue and costs.

6. Future Outlook

Aurora is in a "prove it" phase as they move away from low-profit lines to focus on international medical markets. For fiscal year 2027, the company expects:

• A slight drop in total revenue as they finalize their exit from the consumer market.
• Adjusted gross margins to stabilize in the "mid to high fifties" percentage range.
• A shift in focus toward generating "sustainable positive free cash flow" rather than prioritizing sales growth.

Investor Takeaway: As you evaluate this opportunity, watch closely to see if international growth in Germany and Poland can successfully offset the lower profits caused by the Canadian reimbursement changes. The company's ability to reach sustainable cash flow will be the primary indicator of their success in this new, leaner strategy.