Canada-based medical marijuana company Aurora Cannabis Inc.’s stock is trading lower after it released its fourth quarter 2025 earnings.

Aurora Cannabis ( ACB ) reported a quarterly loss of 24 cents per share (equivalent to CA 35 cents) compared to the analysts’ estimate of 11 cents earnings per share.

Sales were $63.07 million (around CA 90.54 million), beating the consensus of $62.04 million.

Also Read: Germany Has Become The World’s Largest Cannabis Importer: Here Are The Stocks Benefiting

Sales increased by 34% year over year, mainly due to 48% growth in the global medical cannabis business and 32% in the plant propagation business, slightly offset by lower quarterly revenue in the consumer cannabis business.

Consolidated adjusted gross margin before fair value adjustments was 62% in the fourth quarter of 2025. Adjusted gross profit before FV adjustments was CA 54.2 million, an increase of 62%.

Medical cannabis net revenue was CA 67.8 million, a 48% increase from the prior year period, delivering 75% of Aurora’s fourth quarter consolidated net revenue and 88% of adjusted gross profit before fair value adjustments.

The increase in medical marijuana net revenue of CA 22.1 million was primarily due to higher sales to Australia, Germany, Poland, and the U.K., and increased revenue in Canada to insurance-covered and self-paying patients.

Aurora’s consumer cannabis net revenue was CA 8.2 million, down 20% year over year, due to the continued decision to prioritize the supply of GMP-manufactured products to our high-margin global medical cannabis business rather than the consumer business, which offers lower margins.

Plant propagation net revenue comprised the Bevo business, contributing $13.8 million of net revenue, up 32% year over year, due to organic growth and expanded product offerings arising from increased capacity.

Adjusted EBITDA increased 619% to CA 16.7 million for the quarter.

First Quarter 2026 Expectations

Aurora Cannabis ( ACB ) expects global marijuana revenue to remain strong, with better results in Canadian medical sales and steady performance in the consumer segment. However, there may be temporary drops in some international markets. Overall, global cannabis revenue may be slightly lower than in the fourth quarter, but it should improve in future quarters as distribution expands and new products are introduced.

Seasonally higher revenues for plant propagation as they complete their peak quarter, in line with historical seasonal trends.

Margins hold strong, and we expect positive adjusted EBITDA to continue, with a decline compared to the fourth quarter of 2025 due to lower revenue contributions from the higher-margin international markets.

Free cash flow is projected to remain positive due to continued strong performance and improved operating cash flow.

Price Action: At the last check on Wednesday, ACB stock was down 11.2% at $5.22 during the premarket session.

Read Next:

Organigram CEO To Retire After Building Canada’s Largest Cannabis Brand: Here’s What’s Next