Editor’s note: This article has been updated to reflect the accurate percentage of the German population participating in the medical cannabis market.

Shares of Aurora Cannabis Inc ( ACB ) fell roughly 20% on Wednesday following the company's fiscal Q4 and full-year 2025 earnings report, even after reporting record-high medical cannabis revenue, adjusted EBITDA and positive free cash flow.

But CEO Miguel Martin isn't sweating the reaction.

"It was record earnings, record EBITDA, record free cash flow for the year," Martin told Benzinga. "Given the totality of the year and the quarter we put forth, I think it's a bit of an overreaction, but I understand it. I know people are sensitive."

A Temporary Dip, Not a Trend

The company forecasted a short-term dip in international cannabis sales for the current quarter. Some investors seized on that detail, sending the stock lower.

"All [the guidance] said was that Q1 was going to be a little bit less in revenue and EBITDA connected to international cannabis than Q4," Martin explained. "We expect it to come back in Q2. We expect to be free cash flow positive for Q1 and for the year."

That Q1 softness, he added, is tied to short-term challenges in two of Aurora's core international markets.

"In Poland, it's about the regulatory process for patients to get prescriptions. In the UK, we had a little bit of timing as we brought on some new distributors," Martin said. “We think both will normalize, and neither should have an impact outside of Q1.”

Focused On Medical, Not Chasing Recreational

Medical cannabis accounted for 75% of Aurora's Q4 revenue and nearly 90% of its gross profit.

"All of the profitability comes from medical cannabis and our investment in Bevo," Martin said, referring to the company's non-cannabis plant propagation business. "Our expertise and history is in medical cannabis."

Aurora still operates in Canada's adult-use market, but Martin made it clear that the segment is a small piece of the puzzle.

"Its purpose is to learn and innovate and get insights. We've right-sized it for us as we focus on profitability and growth. Right now, there are no plans to phase it out."

Aurora also exited its Uruguay operations last year. Martin said the decision came down to commercial reality, not regulatory disappointment.

Also read: Legal Cannabis, 10 Years Later: Real Data From The First Country To Do It

"We thought there'd be opportunities to produce in Uruguay and then sell in Brazil. Unfortunately, with THC, it became challenging to certify and sell those products. It just didn't work out for us."

Growing International Markets

More than 60% of Aurora's medical cannabis revenue now comes from outside Canada. Martin said that global growth will continue in familiar markets.

"Germany has roughly 0.4% of the adult population in the medical cannabis system. Canada's got 1%. So there's plenty of upside there," he told Benzinga. "In the next 12 months, it's going to be focused on increasing our market share in those locations."

While Aurora does operate a GMP-certified facility in Germany, Martin said most production remains centered in Canada.

"Because these are pharmaceutical products, we believe that the vast majority of our products sold globally will be produced in Canada."

The Bevo Bet

Aurora's Bevo Farms unit posted 32% year-over-year growth, and Martin highlighted a new revenue stream: orchids.

"We think Bevo will continue to be profitable and support what we're trying to do. It's a wonderful adjacency for us, even if it's not in the cannabis business," he said.

Martin emphasized that profitability—not brand synergy—is what drives investment decisions.

"If it wasn't profitable or accretive to our financials, we wouldn't have done it."

The Real Risk

"The biggest risk is perception," Martin said. "Five years ago, people had big expectations for cannabis and they didn't materialize. Now it's hard for people to differentiate companies. Today, there are only a handful of companies that are free cash flow positive, have no debt and have a real strong growth trajectory, and we're one of them."

He also pointed to timing and policy volatility as ongoing challenges.

"We’re not seeing markets close or places legalize and then undo that. We’re talking about big economies here. Medical cannabis is profitable and it’s growing. And if you believe in it, Aurora should be a pick," Martin concluded.