Investing.com -- Shares of Aurora Cannabis (TSX:ACB) Inc. (NASDAQ: NASDAQ:ACB) (TSX: ACB) soared 40% following the announcement of its fiscal 2025 third-quarter results. The Edmonton-based company reported a significant increase in revenue and profitability, attributing the success to its global medical cannabis business and operational efficiencies.
Aurora Cannabis reported total net revenue of $88.2 million for the quarter, marking a 37% increase compared to the same quarter last year. The company’s global medical cannabis business was a major contributor to this growth, with net revenue up 51% year-over-year (YoY) to $68.1 million. This segment alone accounted for 77% of the company’s consolidated net revenue and 90% of its adjusted gross profit.
The company also achieved a record net income of $31.2 million, a substantial 282% increase YoY, and a record adjusted EBITDA of $23.1 million, up 316% YoY. Aurora Cannabis highlighted its achievement of positive free cash flow in the third quarter, generating $27.4 million.
Aurora’s Executive Chairman and Chief Executive Officer, Miguel Martin, credited the company’s strong performance to high sales in key international markets such as Australia, Germany, Poland, and the UK, as well as robust revenue from Canadian insurance-covered and self-paying patients. He noted the company’s focus on strategic growth, operational excellence, and sustained profitability, emphasizing the importance of the team’s efforts in reaching these milestones.
The company also reported a strong balance sheet, with $180 million in cash and a debt-free cannabis business, excluding non-recourse debt related to Bevo Farms Ltd.
Looking ahead to the fourth quarter of fiscal 2025, Aurora Cannabis expects continued revenue growth across its cannabis business, supported by growth in international medical cannabis sales. The company also anticipates higher seasonal revenues for its plant propagation business and projects margins to remain strong with continued positive adjusted EBITDA.
The stock’s surge reflects investor confidence in Aurora Cannabis’s financial health and its ability to maintain profitability and growth in the competitive cannabis market.
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