The chart below shows how ACB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACB sees a -1.59% change in stock price 10 days leading up to the earnings, and a -3.72% change 10 days following the report. On the earnings day itself, the stock moves by +4.72%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Surprise: Reported EPS of $0.58, significantly exceeding expectations of $-0.09.
Net Revenue Surge: Overall net revenue grew 37% to $88.2 million, driven by a 51% increase in global medical cannabis revenue.
International Cannabis Revenue Surge: International medical cannabis revenue surged 112%, now comprising 60% of global medical cannabis net revenue, up 300 basis points sequentially.
Record Adjusted EBITDA Growth: Adjusted EBITDA reached a record $23.1 million, reflecting a 316% increase year-over-year, marking the ninth consecutive quarter of positive adjusted EBITDA.
Free Cash Flow Improvement: Generated $27 million in positive free cash flow, a significant improvement from a negative free cash flow of $4.7 million in the prior year.
Negative
Cannabis Revenue Decline: Consumer cannabis net revenue decreased to $9.9 million, down from $11.6 million in the year ago period, reflecting a strategic shift towards higher-margin medical cannabis.
Consumer Cannabis Margin Decline: Adjusted gross margins for consumer cannabis fell to 26% from 29% year-over-year, indicating a decline in profitability for this segment.
SG&A Expense Increase: Consolidated adjusted SG&A expenses increased by 12.6% to $31.3 million compared to the year ago period, which may pressure overall profitability despite revenue growth.
Seasonal Revenue Volatility: The Bevo plant propagation segment historically delivers lower revenue in the summer and fall months, with 25% to 35% of its revenue earned in the second half of the calendar year, suggesting potential seasonal volatility.
Cash Position and Debt Risks: Despite a strong cash position of $180.2 million, the Bevo business carries $57.9 million in nonrecourse debt, which could pose risks to financial stability if not managed properly.
Aurora Cannabis Inc. (NASDAQ:ACB) Q3 2025 Earnings Call Transcript
ACB.O
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