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Aurora Cannabis posts 1Q revenue drop on Canada reimbursement cut
International medical cannabis revenue rose 17% to C$43.3 million, helping adjusted gross margin reach 58% and supporting management expectations for higher 2Q revenue.
Aurora Cannabis reported net revenue of C$67.6 million for 1Q FY27 ended June 30, 2026, down 9% from C$74.1 million a year earlier and down 20% sequentially from C$84.8 million in 4Q FY26, according to Yahoo Finance.
The revenue decline was attributed primarily to the April 1 reduction in Canadian federal medical reimbursement rates and the planned wind-down of the consumer cannabis business, rather than weakening international demand, with medical cannabis broadly stable at C$64.0 million versus C$64.8 million year over year.
International medical cannabis increased 17% to C$43.3 million, driven by higher sales in Germany, where patient demand and proprietary cultivars supported results. International medical revenue accounted for 64% of total net revenue, up from about 50% in the prior-year period and 58% in 4Q FY26.
ACB said adjusted gross margin reached 58%, the high end of FY27 guidance, and Safari contributed positively to adjusted EBITDA in its first quarter. Management expects higher 2Q revenue and adjusted EBITDA, and the company highlighted a debt-free balance sheet and valuation metrics of 0.92x FY27E P/S and 4.95x FY27E EV/EBITDA.