Aurora Cannabis Inc. ( ACB ) shares surged after the company reported fiscal second-quarter 2026 results, showing higher revenue and profitability, but a net loss compared to the prior year.

The company missed analyst earnings expectations but beat revenue expectations. Reported GAAP EPS was a loss of $0.19, missing the $0.02 consensus estimate, while sales totaled $65.64 million, topping the $63.79 million forecast.

Total net revenue rose 11% year over year to C$90.4 million from C$81.1 million, driven by growth in global medical cannabis and plant propagation.

Adjusted EBITDA increased 52% to C$15.4 million, and adjusted net income climbed to C$7.1 million, more than double the prior-year period.

Global medical marijuana net revenue grew 15% to a record C$70.5 million, accounting for 78% of consolidated sales.

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International medical cannabis revenue rose 22% to C$42.7 million, supported by stronger demand in Australia, Germany, Poland, and the U.K. Adjusted gross margin for medical marijuana improved to 69%, up from 68% a year earlier.

Consumer cannabis revenue declined 34% to C$6.9 million as Aurora continued to prioritize its higher-margin medical business. The segment's adjusted gross margin improved to 27% from 15% due to cost efficiencies.

Plant propagation revenue from the Bevo business increased 34% to C$11.6 million, while its adjusted gross margin declined to 10% due to one-time inventory write-offs and unsold crops.

Adjusted selling, general, and administrative expenses rose to C$35.5 million from C$31.7 million, reflecting higher logistics costs and fees tied to the MedReleaf Australia acquisition.

Aurora ended the quarter with a strong balance sheet, holding C$141.9 million in cash and a debt-free cannabis business.

Outlook:

Looking ahead, Aurora expects its third-quarter 2026 consolidated revenue to increase year over year, led by 8% to 12% growth in global medical cannabis sales. Management also projects continued strength in adjusted gross margins and positive free cash flow.

"Aurora's quarterly performance highlights our continued focus on profitable growth,” said executive chairman and CEO Miguel Martin. “We achieved record net revenue for global medical cannabis representing a 15% year-over-year increase, while adjusted EBITDA rose 52%. These strong results affirm our strategic prioritization of medical cannabis as the industry's most compelling growth area."

Price Action: ACB shares are trading 9.44% higher at $4.97 premarket at the last check on Wednesday.

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