Breaking Down Aurora Cannabis Inc. (ACB) Financial Health: Key Insights for Investors

Are you keeping a close watch on the cannabis industry and wondering if Aurora Cannabis Inc. (ACB) is a healthy investment? With the ever-changing market, it's crucial to understand the financial standing of key players. Did you know that in fiscal year 2024, Aurora Cannabis achieved a record $12.8 million in adjusted EBITDA? Or that they ended the year with a strong cash position of approximately $180 million? Let's dive into the details and uncover the insights that can help you make informed decisions about ACB.

Aurora Cannabis Inc. (ACB) Revenue Analysis

Understanding Aurora Cannabis Inc.'s revenue streams involves examining several key components. These include the breakdown of revenue by products, services, and geographical regions, historical revenue growth rates, the contribution of different business segments, and any significant changes in these areas over time. Analyzing these elements provides a comprehensive view of the company's financial health and operational performance. For a broader perspective, you might find this resource helpful: Breaking Down Aurora Cannabis Inc. (ACB) Financial Health: Key Insights for Investors.

To fully understand Aurora Cannabis Inc. (ACB)'s financial position, a detailed look into their revenue streams is essential. This includes:

• Breakdown of primary revenue sources (e.g., products, services, regions)
• Year-over-year revenue growth rate (historical trends, percentage increase/decrease)
• Contribution of different business segments to overall revenue
• Analysis of any significant changes in revenue streams

Aurora Cannabis Inc. operates in various geographical regions, including Canada and other international markets. Revenue can be broken down by these regions to understand where the company's sales are most concentrated. Understanding the geographical distribution of revenue helps in assessing market penetration and growth opportunities.

Analyzing revenue by product category provides insights into which products are driving sales. These may include dried cannabis, oils, edibles, and other derivative products. The breakdown helps in understanding consumer preferences and the effectiveness of product offerings.

Here is a table to illustrate potential revenue contributions from different business segments:

Examining the year-over-year revenue growth rate is crucial for assessing the company's performance. A positive growth rate indicates expansion, while a negative rate may signal challenges. Analyzing these trends over several years provides a clearer picture of the company's growth trajectory.

Significant changes in revenue streams, such as the introduction of new products, expansion into new markets, or shifts in consumer behavior, should be closely analyzed. These changes can have a significant impact on future revenue and profitability.

Aurora Cannabis Inc. (ACB) Profitability Metrics

Understanding Aurora Cannabis Inc.'s (ACB) profitability is crucial for investors. A look at key financial metrics provides insights into the company's financial health. For additional details, you can refer to Breaking Down Aurora Cannabis Inc. (ACB) Financial Health: Key Insights for Investors.

Here's a breakdown of Aurora Cannabis Inc.'s profitability:

• Gross Profit:
• In Q3 2025, the adjusted gross profit before fair value adjustments was $56.0 million, a 67% increase compared to $33.6 million in the prior year quarter.
• For the quarter ending December 31, 2024, Aurora Cannabis reported a gross profit of $55.4 million CAD.
• The gross profit for the fiscal year ending March 31, 2024, was $131.46 million.
• For the year 2024, Aurora Cannabis's TTM (trailing twelve months) revenue is C$0.32 Billion.
• Gross Margin:

Gross margin is a key indicator of profitability, representing the percentage of revenue remaining after deducting the cost of goods sold.

• In Q3 2025, the consolidated adjusted gross margin before fair value adjustments was 65%, compared to 53% in the prior year quarter.
• Adjusted gross margin on medical cannabis net revenue reached 74% for the three months ended December 31, 2024, compared to 63% in the prior year quarter.
• For consumer cannabis, the adjusted gross margin was 16% in Q4 2024, a decrease from 25% in the prior year quarter.
• For the quarter that ended in Dec. 2024, Aurora Cannabis had a gross margin of 89.57%.
• For the fiscal year that ended in Mar. 2024, Aurora Cannabis's gross margin was 48.64%.
• Operating Income/Loss:
• For the three months ended March 31, 2024, the net loss from continuing operations was $20.8 million, compared to a net loss of $76.2 million for the prior year period.
• The operating income for the year 2024 was $45.65 million.
• Operating Margin:
• Aurora Cannabis's Operating Margin % for the quarter that ended in Dec. 2024 was 42.72%.
• Simply Wall St. reported a Gross Margin of 66.01% and Net Profit Margin of 5.54%.
• Yahoo Finance reported an operating income of $38.887 million.
• Net Profit Margin:
• Yahoo Finance reported a Net Income Common Stockholders of $1.279 million.
• For the three months ended September 30, 2024, net income from continuing operations was $1.7 million, compared to $0.4 million for the prior year period.
• Adjusted EBITDA:
• Aurora Cannabis reported a record adjusted EBITDA of $23.1 million for the three months ended December 31, 2024, which is a 316% increase compared to $5.5 million for the prior year quarter.
• For the three months ended September 30, 2024, adjusted EBITDA increased 210% to $10.1 million, compared to $3.3 million for the prior year quarter.
• Aurora Cannabis delivered record annual adjusted EBITDA of $12.8 million in fiscal year 2024.

In summary, Aurora Cannabis Inc. has shown improvements in key profitability metrics, particularly in adjusted gross profit, adjusted gross margin, and adjusted EBITDA. The company's focus on medical cannabis and cost optimization has contributed to these positive trends. However, it is important to monitor consumer cannabis margins and overall operational efficiency for a comprehensive understanding of the company's financial health.

Aurora Cannabis Inc. (ACB) Debt vs. Equity Structure

Aurora Cannabis Inc. (ACB) employs a mix of debt and equity to fuel its operations and expansion. Understanding the nuances of this financial structure is crucial for investors. Let's delve into the specifics of Aurora's debt levels, ratios, and financing strategies.

As of November 14, 2024, Aurora Cannabis's total debt stands at $341.7 million. This includes both short-term and long-term liabilities. Breaking it down:

• Short-Term Debt: $29.1 million
• Long-Term Debt: $312.6 million

These figures provide a snapshot of Aurora's obligations, reflecting the financial commitments the company has undertaken to support its strategic initiatives.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. For Aurora Cannabis, the most recent data indicates a debt-to-equity ratio of 0.71. This ratio suggests that for every dollar of equity, Aurora has $0.71 of debt. When compared to industry standards, it’s important to consider the unique capital-intensive nature of the cannabis sector.

Recent activities in debt markets can provide insights into Aurora's financial management. For example, in February 2024, Aurora closed an offering of convertible notes, raising approximately $172.5 million. These notes, which bear an interest rate of 5.50% per year, are due in February 2029. The company intends to use the net proceeds for general corporate purposes, which may include strategic acquisitions.

Balancing debt and equity is a strategic decision for Aurora. While debt can provide capital for growth, excessive debt can strain the company's financials. Equity financing, on the other hand, dilutes ownership but strengthens the balance sheet. Aurora Cannabis strategically uses both, as highlighted by their recent financial activities:

• Convertible Notes: Issuance of convertible notes allows Aurora to raise capital while providing investors with the option to convert their debt into equity under certain conditions.
• Credit Ratings: Monitoring credit ratings from agencies like S&P and Moody's provides an external assessment of Aurora's creditworthiness, influencing borrowing costs and investor confidence.
• Refinancing Activities: Refinancing debt to take advantage of lower interest rates or more favorable terms can improve Aurora's financial flexibility.

Below is a table summarizing key aspects of Aurora Cannabis's debt profile:

Understanding how Aurora Cannabis manages its debt and equity is vital for assessing its financial health and investment potential. For a deeper dive into investor behavior, check out: Exploring Aurora Cannabis Inc. (ACB) Investor Profile: Who’s Buying and Why?

Aurora Cannabis Inc. (ACB) Liquidity and Solvency

Understanding Aurora Cannabis Inc.'s (ACB) financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its capacity to meet long-term liabilities. These are critical indicators for investors to gauge the company's financial stability and risk profile.

Assessing Aurora Cannabis Inc.'s (ACB) Liquidity:

To evaluate Aurora Cannabis Inc.'s (ACB) liquidity, we delve into key financial ratios and statements:

• Current and Quick Ratios: These ratios provide insights into the company's ability to cover its short-term liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to offer a more conservative view.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps in understanding the company's operational efficiency and short-term financial health.
• Cash Flow Statements Overview: Examining the cash flow statements, particularly the operating, investing, and financing activities, is crucial to understanding how Aurora Cannabis Inc. (ACB) generates and uses cash.

A review of Aurora Cannabis Inc.'s (ACB) financial statements and related news indicates the following:

Cash Flow:

• For the third quarter of fiscal year 2024, Aurora Cannabis Inc. (ACB) reported positive cash flow from operations of $9.2 million.
• The company has been focused on reducing costs and improving operational efficiency.

Balance Sheet:

• As of February 8, 2024, Aurora Cannabis Inc. (ACB) had a strong balance sheet with approximately $206.5 million in cash and cash equivalents.
• The company's inventory was valued at $46.359 million.

Key Financial Data:

Here's a snapshot of some key financial data for Aurora Cannabis Inc. (ACB):

Potential Liquidity Concerns or Strengths:

While Aurora Cannabis Inc. (ACB) has shown positive cash flow from operations and maintains a solid cash reserve, investors should monitor the following:

• Cash Burn Rate: It's essential to keep an eye on how quickly the company is using its cash reserves.
• Debt Levels: Monitoring the company's debt obligations is crucial to ensure long-term solvency.
• Operational Efficiency: Continued efforts to improve operational efficiency and reduce costs will be vital for sustained financial health.

For more in-depth insights, you can explore: Breaking Down Aurora Cannabis Inc. (ACB) Financial Health: Key Insights for Investors

Aurora Cannabis Inc. (ACB) Valuation Analysis

Assessing whether Aurora Cannabis Inc. (ACB) is overvalued or undervalued requires examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield (if applicable), and analyst consensus.

Currently, up-to-date specific P/E and P/B ratios for Aurora Cannabis Inc. might be less relevant due to the company's past financial performance, including periods without consistent profitability. The EV/EBITDA ratio can provide a more useful valuation perspective, especially when compared to industry peers. However, real-time data is essential for accurate analysis.

Analyzing Aurora Cannabis Inc.’s stock price trends over the last 12 months (or longer) provides insight into market sentiment and company performance. Significant price fluctuations can reflect broader market trends, company-specific news, and investor expectations. For the most accurate stock trend data, refer to financial charting tools and resources.

As of now, Aurora Cannabis Inc. does not offer a dividend yield, so dividend payout ratios are not applicable. Companies often reinvest earnings to fuel growth, particularly in emerging industries like cannabis.

Analyst consensus on Aurora Cannabis Inc.’s stock valuation offers a consolidated view of various financial experts' opinions. These ratings typically range from 'buy' to 'sell,' reflecting different perspectives on the stock's potential. For the latest analyst ratings, refer to financial news outlets and investment research platforms.

Keep in mind that valuation metrics are just one component of investment analysis. A comprehensive assessment should also consider Aurora Cannabis Inc.'s financial health, competitive positioning, and growth prospects. For a deeper understanding of Aurora Cannabis Inc.'s investors, consider reading Exploring Aurora Cannabis Inc. (ACB) Investor Profile: Who’s Buying and Why?

Aurora Cannabis Inc. (ACB) Risk Factors

Investing in Aurora Cannabis Inc. (ACB) involves navigating a complex landscape of risks that can significantly impact its financial health. These risks span internal operational challenges, external market pressures, and regulatory uncertainties. Understanding these factors is crucial for investors aiming to make informed decisions. For further insights, see: Breaking Down Aurora Cannabis Inc. (ACB) Financial Health: Key Insights for Investors

Here's an overview of the key risks:

• Industry Competition: The cannabis industry is intensely competitive. Numerous companies are vying for market share, which can pressure prices and margins. This competition includes both established players and new entrants, making it difficult for Aurora to maintain its market position.
• Regulatory Changes: Cannabis regulations are constantly evolving, varying significantly by jurisdiction. Changes in laws regarding cultivation, distribution, and sale can impact Aurora's operations and financial performance. For example, stricter regulations could increase compliance costs or limit market access.
• Market Conditions: The cannabis market is subject to fluctuations in supply and demand, which can affect pricing and profitability. Overproduction, changing consumer preferences, and economic downturns can all impact Aurora's revenue and earnings.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: These include challenges in scaling production efficiently, managing inventory, and maintaining product quality. Any disruptions in these areas can lead to increased costs and reduced revenue.
• Financial Risks: Aurora faces risks related to its capital structure, including debt obligations and the need for additional financing. The company's ability to generate positive cash flow and manage its debt is critical to its long-term financial stability.
• Strategic Risks: Strategic risks involve decisions related to market expansion, product development, and partnerships. Poor strategic choices can lead to wasted resources and missed opportunities.

Mitigation strategies are crucial for addressing these risks. While specific plans can vary, common strategies include:

• Diversification: Expanding into new markets and product categories can reduce reliance on any single area, mitigating the impact of adverse changes.
• Cost Management: Implementing strict cost controls and improving operational efficiency can help maintain profitability even in challenging market conditions.
• Compliance: Staying ahead of regulatory changes and ensuring full compliance can minimize the risk of penalties and disruptions.

Below is a table summarizing potential risk mitigation strategies:

By understanding and addressing these risks, Aurora Cannabis Inc. (ACB) can improve its financial health and create more value for investors.

Aurora Cannabis Inc. (ACB) Growth Opportunities

Aurora Cannabis Inc. (ACB) faces a dynamic landscape with several growth drivers and strategic initiatives shaping its future.

Key Growth Drivers:

• Product Innovation: Aurora has been actively involved in product development, introducing new cannabis strains, formats, and delivery methods.
• Market Expansion: Expansion into new geographical markets, both domestic and international, presents a significant growth opportunity.
• Acquisitions: Strategic acquisitions can broaden Aurora's product portfolio, increase market share, and provide access to new technologies or expertise.

To get more insights, check this out: Exploring Aurora Cannabis Inc. (ACB) Investor Profile: Who’s Buying and Why?

Future Revenue Growth Projections and Earnings Estimates:

Predicting future revenue and earnings for cannabis companies involves inherent uncertainty due to evolving regulations, market dynamics, and consumer preferences. However, analysts' estimates and company guidance provide insights into potential growth trajectories. Keep in mind that these are estimates and not guarantees.

Strategic Initiatives and Partnerships:

Strategic initiatives and partnerships can significantly impact Aurora's growth prospects:

• Research and Development: Investing in R&D to develop innovative products and improve cultivation techniques.
• Brand Building: Strengthening brand recognition and loyalty through marketing and consumer engagement.
• Strategic Partnerships: Collaborating with other companies to expand market reach, access new technologies, or develop new products.

Competitive Advantages:

Aurora possesses certain competitive advantages that could position it for future growth:

• Production Capacity: Aurora has invested in large-scale production facilities, which could provide a cost advantage as demand increases.
• Brand Portfolio: A diverse portfolio of brands targeting different consumer segments.
• International Presence: Existing operations and partnerships in key international markets.

Here's a general overview of potential factors influencing Aurora Cannabis's financial outlook: