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ACB Stock Down as Q1 Earnings Miss Estimates, Revenues Up Y/Y

By Zacks Equity Research | August 06, 2025, 1:11 PM

Aurora Cannabis ACB reported first-quarter fiscal 2026loss per share from continuing operations of 26 cents against the earnings per share (EPS) of 9 cents in the prior-year quarter. The metric missed the Zacks Consensus Estimate of earnings of 18 cents per share.

Shares of this company lost nearly 6.1% in today’s pre-market hours. The company’s shares have gained 8.2% in the year-to-date period compared with the industry’s growth of 4.6%. The broader S&P 500 Index has increased 6.9% in the same time frame.

Aurora Cannabis Revenue Details

The company reported total net revenues of $98 million, up 17.5% year over year. The top line beat the Zacks Consensus Estimate by 38.3%.

Revenues were driven by strong momentum in international medical cannabis markets, with higher sales to Australia, Germany, Poland, and the United Kingdom. The company also saw increased revenues in Canada, supported by insurance-covered and self-paying patients. This strategic emphasis on high-margin medical sales helped offset continued declines in the consumer cannabis segment, while modest gains in the plant propagation business added further support.

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Segmental Details

Global Medical Cannabis

Aurora Cannabis’ Global Medical Cannabis segment delivered $64.8 million in revenues, up 37% year over year, and continued to be the company’s strongest contributor. This growth was fueled by rising demand across both international and domestic markets.

International Medical Cannabis

International Medical Cannabis revenues surged 84.7% year over year to $37.1 million, driven by higher sales in Australia, Germany, Poland, and the UK. Aurora Cannabis leveraged its regulatory expertise, GMP-certified facilities, and global supply chain to meet increasing patient needs in these key export markets.

Canadian Medical Cannabis

The Canadian sub-segment generated $27.7 million in revenues, up 2.1% year over year. Growth was supported by increased purchasing from insurance-covered and self-paying patients. The steady domestic demand, combined with operational efficiency, contributed to maintaining the segment’s strong margin profile.

Consumer Cannabis

Consumer cannabis revenue declined 32% year over year to $7.9 million.

The decrease was due to the company’s continued decision to prioritize the supply of its GMP-manufactured products to the high-margin global medical cannabis business, rather than the lower-margin consumer segment.

The Wholesale Bulk Cannabis segment recorded $1.43 million in net revenue, up from $0.83 million in the year-ago period.

Plant Propagation

Plant propagation net revenue was wholly comprised of the Bevo business, contributing $23.9 million, up 3.8% from the prior-year period. The increase was a result of organic growth and expanded product offerings, both driven by increased production capacity.

Aurora Cannabis Inc. Price, Consensus and EPS Surprise

Aurora Cannabis Inc. Price, Consensus and EPS Surprise

Aurora Cannabis Inc. price-consensus-eps-surprise-chart | Aurora Cannabis Inc. Quote

ACB’s Margin Trend

In the quarter under review, Aurora Cannabis’ gross profit declined 34.9% year over year to $27.9 million. However, the adjusted gross margin expanded 1000 basis points to 52%.

Selling and marketing expenses increased 3.1% year over year to $14.5 million. General and administration expenses increased 25.8% year over year to $28.6 million. Research and development expenses declined 16% year over year to $0.8 million. Total operating expenses of $48.2 million increased 9.7% year over year.

Operating loss for the quarter under review totaled $20.2 million compared with $0.9 million in the prior-year quarter.

Financial Position

ACB exited the first quarter of fiscal 2026 with cash and cash equivalents of $140.2 million compared with $137.9 million at the fiscal 2025-end.

Net cash provided by operating activities at the end of the first quarter was $10.1 million compared with $8.3 million a year ago.

Guidance Update

Aurora Cannabis expects consolidated net revenue to increase year over year in the fiscal second quarter of 2026, with the primary growth driver anticipated to increase in the range of 8%-12% in Global Medical Cannabis revenue.

The Plant Propagation segment is expected to perform in line with traditional seasonal trends, with the company reiterating that 25% to 35% of its annual propagation revenue is typically earned in the second half of the calendar year.

ACB’s free cash flow is expected to remain positive on a full-year basis.

Zacks Rank and Stocks to Consider

ACB carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX.

Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).

Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.

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Boston Scientific Corporation (BSX): Free Stock Analysis Report
 
West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report
 
Medpace Holdings, Inc. (MEDP): Free Stock Analysis Report
 
Aurora Cannabis Inc. (ACB): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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