Aurora Cannabis Inc. (ACB): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, actionable breakdown of Aurora Cannabis Inc.'s business model, and honestly, the core strategy is simple: dominate the high-margin global medical cannabis market while driving down production costs to achieve consistent profitability. This focus is paying off, with the company's full fiscal year 2025 net revenue hitting a record $343 million, driven by $244.4 million in global medical cannabis sales alone, which is the segment delivering a phenomenal 70% adjusted gross margin. Aurora Cannabis is now a high-quality, EU-GMP certified exporter, not a domestic recreational play, and that disciplined shift is why they generated $9.9 million in positive free cash flow for the year. The canvas below shows exactly how they pull that off.

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Key Partnerships

The core of Aurora Cannabis's strategy in late 2025 is its highly selective network of partnerships, which drive its high-margin global medical cannabis business. These collaborations are not about chasing volume; they are about securing specialized supply chains, validating product science, and ensuring market access in strictly regulated jurisdictions like Germany and Australia, which collectively delivered record annual global medical net revenue of $244.4 million in fiscal year 2025.

Strategic supply agreements with German pharmacies and distributors

Aurora's partnerships in the German medical cannabis market are defintely a critical pillar, especially following the regulatory shifts that have boosted prescription numbers. The company operates one of only three licensed domestic cultivation facilities in the country, the Aurora Leuna facility, which is EU-Good Manufacturing Practice (EU-GMP) certified.

This local presence, combined with distribution agreements, allows them to supply both imported Canadian product and locally-grown flower under the IndiMed brand. The company announced in September 2025 a multi-year investment into operational upgrades at the Leuna facility to increase flower growth capacity, a clear move to solidify its long-term supply position in Europe. This market focus is paying off: international revenue more than doubled in the fourth quarter of fiscal 2025, accounting for 61% of global medical cannabis net revenue.

Distribution network partners in international medical markets

The entire business model hinges on a sophisticated distribution network that can navigate the complex regulatory landscapes of multiple countries (pharmaceutical distribution is tough). This is a high-barrier-to-entry moat. Aurora leverages partners to ensure TGA-GMP compliance in Australia and EU-GMP compliance across Europe, allowing it to maintain a high adjusted gross margin on medical cannabis of 70% in Q4 2025.

Here's the quick math on how critical these partnerships are: the international medical segment alone brought in $42.651 million CAD in Q2 2026 (ending September 30, 2025), representing a 25% year-over-year increase from Q2 2025. That's a powerful growth engine that domestic sales can't match.

Key International Market	FY2025 Strategic Role	Q3 2025 Revenue Contribution (Approx.)
Germany	Domestic cultivation (Leuna) and distribution; key EU hub.	$26.3 million (EU market total)
Australia	Strong sell-through revenue following the acquisition of MedReleaf Australia.	$14.5 million
Poland & UK	Expanding European distribution channels.	Included in the total international growth figures.

Research collaborations with universities for clinical trials

To maintain its pharmaceutical-grade positioning, Aurora actively partners with academic institutions to validate its products and genetics. This is how they build clinical evidence (the gold standard for medical markets). While a multi-year project with McGill University on CBD for chronic pain dates back to 2018, the commitment to science continues with current partnerships.

A more recent example is the collaboration on a Genome BC-Funded Project (announced in late 2024) focused on addressing distinct cannabis aromas and their genetic markers, which directly feeds into the company's breeding program and intellectual property development. Also, the company maintains a partnership with Erfurt University in Germany, offering internships at the Leuna facility to cultivate the next generation of cannabis cultivation leaders.

Exclusive genetics licensing agreements for premium strains

Aurora's genetics licensing business, Occo, is a distinct partnership model where they license their proprietary cultivars (strains) to other licensed producers. This allows them to monetize their extensive genetics library-developed at the Aurora Coast R&D facility-without having to grow all the product themselves.

This strategy ensures a supply of unique, high-potency products that command a premium in both medical and adult-use markets, which is crucial for maintaining those high margins. The latest commercialized proprietary strains from their breeding program include:

• Ultra Grape Kush: An indica cultivar with 20-26% THC.
• Electric Honeydew: A hybrid cultivar with 24-30% THC.
• Organic BC White Grape OG: A unique proprietary strain.

Partnerships with patient advocacy groups for market access

Partnerships with patient groups are a direct line to the consumer, offering invaluable feedback and securing brand loyalty in the medical space. Aurora's MedReleaf brand's 'Strains For Heroes' initiative is a concrete example, where product development is informed by direct feedback from Veteran patients. This approach not only serves a critical patient demographic but also creates a strong, defensible position in the Canadian medical market, which generated $27.879 million CAD in Q2 2026.

Next Step: Finance should model the expected Q3 2026 revenue contribution from the German Leuna facility upgrades by the end of the month, using the announced investment timeline as a guide.

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Key Activities

You're looking for the engine room of Aurora Cannabis Inc., and honestly, it boils down to five critical activities. The direct takeaway is this: Aurora's focus has aggressively shifted from maximizing raw capacity to maximizing high-margin, international medical sales, plus a relentless drive to cut overhead. This is a survival-to-profitability pivot.

High-quality, indoor and greenhouse cannabis cultivation and processing

The core activity is still growing and processing cannabis, but the strategy is now all about quality and cost-efficiency, not just volume. Aurora has rationalized its facility footprint, moving away from massive, inefficient sites. For the 2025 fiscal year, the focus is on their flagship facilities like Aurora Sky and River, which are purpose-built for high-quality, consistent indoor and greenhouse production.

This activity must deliver the consistent quality needed for the highly regulated medical markets in places like Germany and Australia. Here's the quick math: if their cost of goods sold (COGS) per gram doesn't continue to fall, their gross margin on international sales-their primary growth driver-gets squeezed. They defintely need to keep driving down that cost.

The operational efficiency is now measured by specific cultivation metrics:

• Yield per square foot: Maximizing output in a smaller, more focused footprint.
• COGS per gram: Targeting a sub-[2025 FY COGS per gram target] CAD per gram to maintain competitiveness.
• Product consistency: Essential for medical certifications and patient trust.

Global regulatory compliance and securing international export permits

This is a non-negotiable activity that separates Aurora from most Canadian peers. Selling medical cannabis internationally is a complex regulatory maze, so navigating it and securing permits is a core competency, not a side task. Aurora treats its international export business as a key competitive advantage.

Their success hinges on maintaining Good Manufacturing Practice (GMP) certification, the standard for pharmaceuticals, which is required for markets like Germany. This activity directly enables their highest-margin revenue stream. For the 2025 fiscal year, their international medical net revenue is a crucial metric, projected to be in the range of [2025 FY International Medical Net Revenue] CAD, making up a significant portion of their total revenue.

What this estimate hides is the constant legal and logistical work involved in maintaining market access across multiple jurisdictions. It's a full-time compliance machine.

Medical patient acquisition and retention programs

Unlike the volatile recreational market, the medical segment provides stable, higher-margin revenue. Aurora's key activity here is building and maintaining a strong relationship with patients and, critically, with prescribers (doctors). This involves specialized education, patient support services, and direct-to-patient fulfillment.

The activity focuses on two main channels:

• Direct-to-Patient (Canada): Managing the Aurora Medical platform, which requires robust e-commerce and logistics.
• Wholesale Medical (International): Building deep relationships with pharmaceutical distributors and pharmacies in key markets.

The stability of this activity is reflected in their patient count and repeat prescription rates. For the 2025 fiscal year, patient retention rates in the Canadian medical market are a key performance indicator, ideally staying above [2025 FY Patient Retention Rate] percent, demonstrating loyalty and predictable cash flow.

Research and development of new cannabis-based products

To stay ahead, Aurora needs to move beyond dried flower and basic oils. R&D is a key activity focused on developing proprietary cultivars (strains) with specific cannabinoid and terpene profiles, plus advanced formulations like softgels, edibles, and vapes. This is how they capture premium pricing and address specific medical needs.

A significant portion of their R&D spend is directed toward clinical trials and data collection to substantiate the efficacy of their products, which is vital for gaining traction with the medical community. The annual R&D investment for the 2025 fiscal year is projected to be approximately [2025 FY R&D Investment Amount] CAD, a focused spend aimed at high-value product differentiation.

Relentless focus on operational efficiency and cost reduction

This activity has been paramount since 2023 and remains critical through 2025. It's not just about cutting costs; it's about transforming the entire cost structure to achieve sustained profitability (positive Adjusted EBITDA). This involves major cuts in Selling, General, and Administrative (SG&A) expenses and streamlining their supply chain.

The goal is to run a much leaner, more focused organization. This activity is visible in their SG&A figures, which they have aggressively reduced from historical highs. The targeted annualized run-rate for SG&A by the end of the 2025 fiscal year is a critical metric, aiming for a figure around [2025 FY SG&A Run-Rate Target] million CAD. This is a huge shift.

The table below summarizes the financial impact of these key activities, based on the latest available 2025 fiscal year targets:

Key Activity Metric	2025 Fiscal Year Target/Projection	Impact on Business Model
International Medical Net Revenue	[2025 FY International Medical Net Revenue] CAD	Primary source of high-margin, stable growth.
Adjusted SG&A Run-Rate	[2025 FY SG&A Run-Rate Target] million CAD	Directly drives sustained positive Adjusted EBITDA.
Cost of Goods Sold (COGS) per Gram	Sub-[2025 FY COGS per gram target] CAD	Improves gross margin, especially in competitive markets.
R&D Investment	[2025 FY R&D Investment Amount] CAD	Enables premium product pricing and medical differentiation.

Finance: draft the 13-week cash view by Friday, assuming the SG&A target is met.

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Key Resources

EU-GMP Certified Production Facilities

The physical backbone of Aurora Cannabis Inc.'s success lies in its network of pharmaceutical-grade production sites, which are key to accessing high-margin international medical markets. This isn't just about growing capacity; it's about having the right certifications. As of mid-2025, the company has a total of four EU-Good Manufacturing Practice (EU-GMP) certified facilities, which is a major competitive advantage.

This certification, which is the gold standard for pharmaceutical products in Europe, allows for the export of medical cannabis to over a dozen global markets. A key asset is the facility in Leuna, Germany, which is one of only three licensed cannabis production sites in the country, cultivating approximately 1,000 kg of cannabis flower annually. Plus, the Brampton, Ontario, distribution center received EU-GMP certification in July 2025, centralizing and optimizing international distribution.

• Total EU-GMP Certified Sites: 4 (including manufacturing and distribution).
• German Cultivation Capacity: Approximately 1,000 kg of flower per year at Leuna.
• Recent Investment: Five-year operational upgrade plan announced for the Leuna facility in September 2025.

Proprietary Cannabis Genetics Library for Medical Strains

The intellectual property here-the proprietary genetics (cultivars)-is what drives product differentiation and premium pricing in the medical market. Aurora's dedicated research and development facility, Aurora Coast, is the engine for this, constantly developing new, high-potency strains tailored for patient needs.

This focus on science lets Aurora launch market-leading products. For example, in June 2025, they launched two new proprietary cultivars in Poland, Farm Gas and Sourdough, which are the highest potency medical cannabis products available in that country. This is defintely a high-value asset, since a unique, high-THC strain can command a premium price.

Proprietary Cultivar (Example)	Potency (THC)	Key Market Launch
Sourdough	Up to 29% THC	Poland (June 2025)
Farm Gas	Up to 27% THC	Poland (June 2025)
MedReleaf Noculus	Up to 31% THC	Canada/International

Global Distribution Infrastructure and Supply Chain

The physical and logistical network is a key resource, enabling Aurora to pivot quickly to high-growth markets. The company operates across Canada, Europe, Australia, and New Zealand. This geographic diversification is a deliberate strategy to reduce regulatory risk and access markets with higher barriers to entry and better pricing.

The strategy is clearly working. In the fourth quarter of fiscal year 2025, international revenue more than doubled year-over-year, accounting for a significant 61% of their total global medical cannabis net revenue. This robust supply chain, anchored by the EU-GMP certified distribution center, ensures consistent product flow to their global patient base.

• International Revenue Share (Q4 FY2025): 61% of global medical cannabis net revenue.
• German Market Contribution (Q3 FY2025): Nearly 30% of global medical cannabis revenue.
• Key International Markets: Germany, Poland, Australia, and the UK.

Strong Balance Sheet and Cash Position for Strategic Growth

Financial resources are the lifeblood for strategic expansion, especially in a capital-intensive industry like cannabis. Aurora's fiscal year 2025 results show a deliberate shift to financial resilience. They ended the fiscal year on March 31, 2025, with a strong cash position of approximately $185.3 million in cash and cash equivalents.

Here's the quick math: they achieved a critical milestone by generating annual positive free cash flow of $9.9 million for the full fiscal year 2025, a rare feat among their peers. This financial discipline means they have the capital to fund organic growth, like the Leuna facility upgrades, without relying on dilutive equity raises. The core cannabis business is also virtually debt-free, with only $61.7 million of non-recourse debt remaining, tied to the Bevo Farms Ltd. plant propagation segment.

Experienced Medical and Regulatory Affairs Teams

The human capital, particularly the regulatory and medical affairs teams, is an intangible but crucial resource. Their deep expertise in navigating complex, fragmented international medical cannabis regulations is what opens doors in markets like Germany and Poland. This team is responsible for securing the EU-GMP certifications and early regulatory approvals that are the foundation of their global market access.

The regulatory team's influence extends to policy advocacy, with the Senior Vice President of Global Government Relations speaking at major events like the Global Cannabis Regulatory Summit in March 2025. This proactive engagement helps shape the regulatory landscape in their favor, which is a powerful strategic asset. Their focus on the pharmaceutical-grade medical market requires a team that understands not just cannabis, but also global drug regulatory standards, setting them apart from recreational-focused competitors.

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Value Propositions

Aurora Cannabis Inc.'s core value proposition is simple: a relentless focus on high-margin, high-quality global medical cannabis, which drives their superior financial performance compared to the recreational market. This strategy delivered a record annual global medical net revenue of $244.4 million in fiscal year 2025, a 39% year-over-year growth, showing that quality and compliance pay a premium.

You're not just buying cannabis; you're buying pharmaceutical-grade consistency and international supply chain reliability. That is the defintely the key differentiator in this highly regulated space.

Highest quality, EU-GMP certified medical cannabis products

The company's most powerful value proposition is its commitment to pharmaceutical quality, validated by its European Union Good Manufacturing Practice (EU-GMP) certification. This certification is a critical barrier to entry for competitors, especially in lucrative European markets like Germany, Poland, and the UK. Aurora is one of the few global cannabis companies with two manufacturing facilities certified under both EU-GMP and Australian TGA Good Manufacturing Practice standards, which account for 90% of its annual manufacturing capacity.

In July 2025, they further cemented this by securing the first-ever EU-GMP certification for their dedicated distribution center, ensuring product integrity all the way to the pharmacy. This quality focus allows them to maintain a high-margin business, with medical cannabis adjusted gross margin reaching an impressive 70% in the fourth quarter of fiscal 2025.

Consistent supply and diverse product formats (flower, oils, softgels)

Aurora offers a comprehensive portfolio of medical formats to meet diverse patient needs and prescriber preferences. This diversity ensures they capture a wider market share, from patients preferring traditional flower to those requiring discreet, metered-dose options.

• Flower: Launch of proprietary, high-potency cultivars like Farm Gas (27% THC) and Sourdough (29% THC) in Poland in mid-2025, positioning them as the highest potency products in that market.
• Extracts/Concentrates: Introduction of medical cannabis concentrates in the UK in April 2025, following success in Australia and Canada.
• Oils and Softgels: Continued focus on formats that offer long-lasting, extended relief and easy oral intake, such as the Aurora Pastilles brand in Australia.

Clinical evidence supporting product efficacy for doctors

To win over prescribers-the true gatekeepers in medical markets-Aurora provides evidence-based guidance, not just marketing. In September 2025, they launched the English-language version of the Physician Experience Platform (PEP) in partnership with the German health-tech firm Copeia.

This peer-to-peer resource is crucial for physician education, offering access to clinical insights and more than 130 anonymized, real-world case studies on cannabis-based therapies. This moves the conversation from anecdotal to clinical, which is vital for long-term prescription growth.

Global brand recognition and trust in medical markets

Aurora has successfully established itself as a global leader by focusing on international expansion, which now drives the majority of their medical revenue. International revenue more than doubled in Q4 2025, contributing 61% of their total global medical cannabis net revenue.

This global footprint translates directly into brand trust for patients and regulators, especially in markets where supply consistency is a major concern. Here's the quick math on their key markets:

Metric	Fiscal Year 2025 Data	Context
Annual Global Medical Net Revenue	$244.4 million	Record high, up 39% YoY.
Q4 2025 International Revenue Contribution	61% of Global Medical Net Revenue	Represents a doubling of international revenue.
Q4 2025 Medical Adjusted Gross Margin	70%	Driven by higher-margin international markets.
Key International Markets	Australia, Germany, Poland, UK	Primary drivers of the Q4 2025 medical sales increase.

Patient-centric support and educational resources

Beyond the product, Aurora's value proposition includes making medical cannabis accessible. In June 2025, they expanded their Canadian compassionate pricing program, increasing the yearly income eligibility from $40,000 CAD to $60,000 CAD.

This change makes their program the most inclusive in Canada, potentially benefiting over 50% of the country's adult population. They also provide specialized support and educational resources tailored to specific patient demographics, including veterans, seniors, and pediatric patients. This empathetic approach builds patient loyalty and social license to operate, which is a long-term strategic asset.

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Customer Relationships

Aurora Cannabis Inc. (ACB) builds its customer relationships on a high-touch, medically-focused model, which is defintely a smart move given the higher margins in that segment. They focus on personalized support and education for patients and healthcare professionals, not just transactional sales. This strategy is paying off, with global medical net revenue hitting a record of $244.4 million CAD in fiscal year 2025, representing a strong 39% year-over-year growth. That's a clear signal that the relationship model is working.

Dedicated medical sales teams and patient care specialists

The company maintains a distinct separation between its medical and consumer segments, dedicating resources to a specialized medical sales and patient care structure. This team is crucial for navigating the complex international regulatory landscape and building trust with prescribing physicians and pharmacists. For example, the medical segment's adjusted gross margin reached 70% in Q4 2025, up from 66% in the prior year period, showing the value of this focused approach.

Their Client Care team acts as a high-touch point, offering help with medical documents, registration, and ordering online. They are available via phone and chat, which is essential for a product that still carries a degree of stigma and requires clinical guidance. This personalized assistance helps drive revenue from Canadian insurance-covered and self-paying patients.

Direct-to-patient online portals and subscription services

Aurora's primary direct-to-patient channel is the AuroraMedical.com portal, which provides a convenient, self-service option for registered patients. They recently launched a newly redesigned medical website to make the experience simpler and quicker. They also use financial incentives to build loyalty and retention, which is a key part of the relationship strategy.

Here's the quick math on patient support: they expanded their compassionate pricing program in June 2025, increasing the yearly income eligibility from $40,000 to $60,000 CAD. This move directly addresses a major pain point-affordability-for a significant portion of their patient base, including seniors and veterans.

• Offer special savings for seniors, veterans, first responders, and younger patients.
• Provide fast, free shipping on most orders over $99 CAD.
• Use a simple survey on the medical site to guide new patients to the right product preferences.

Long-term supply contracts with government and institutional buyers

A substantial part of Aurora's medical revenue comes from international markets, which are heavily reliant on long-term supply contracts with institutional buyers, distributors, and government entities. International revenue more than doubled in Q4 2025, representing 61% of global medical cannabis net revenue, a clear indicator of successful institutional relationship management.

The acquisition of MedReleaf Australia was a strategic move to solidify these institutional relationships, helping boost sales in key markets. These contracts provide predictable, high-margin revenue streams, unlike the volatile consumer market.

Market Focus	Q4 2025 Medical Net Revenue Contribution	Relationship Mechanism
International (Australia, Germany, Poland, UK)	$41.0 million CAD (61% of medical net revenue)	Institutional/Distributor Supply Contracts, Regulatory Engagement
Canada (Insurance/Self-Pay Patients)	$26.8 million CAD (39% of medical net revenue)	Direct-to-Patient Portal, Client Care Team, Compassionate Pricing

High-touch, personalized service for medical customers

The relationship extends beyond the patient to the prescribing physician, which is a high-touch, consultative sales model. In September 2025, Aurora launched the English-language Physician Experience Platform (PEP) in collaboration with Copeia, a German healthcare technology leader. This platform is a peer-to-peer educational tool for doctors to share clinical insights.

This is a smart way to scale personalized service. The PEP platform provides access to more than 130 anonymized case studies, offering real-world data on treated symptoms and therapeutic outcomes. This educational support helps physicians feel more confident prescribing medical cannabis, which in turn drives patient acquisition and retention for Aurora Cannabis Inc. It's all about becoming the trusted clinical partner.

Continuous patient feedback loops for product improvement

While formal subscription services aren't explicitly detailed as a feedback loop, the company uses several mechanisms to gather patient and physician data to inform its product development, which is a form of continuous feedback. The PEP platform, for instance, provides a structured feedback loop from prescribers, ensuring product formulations and availability meet clinical needs.

The focus on high-margin medical products and the associated 70% gross margin for that segment in Q4 2025 suggests they are successfully meeting a specific, high-value customer need. If onboarding takes 14+ days, churn risk rises, so the redesigned website and responsive Client Care team are direct attempts to shorten the feedback and fulfillment cycle. The simple patient survey on their medical site also serves as a direct, if minor, feedback mechanism for product preference and guidance.

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Channels

Aurora Cannabis Inc.'s channel strategy is laser-focused on high-margin, pharmaceutical-grade medical distribution, which is why international sales now drive the majority of their medical revenue. You see this shift clearly in the fiscal year 2025 data: the international segment's revenue more than doubled in Q4 2025, cementing its role as the primary channel for growth.

The company's channels are structured to navigate the highly regulated global medical cannabis market, prioritizing compliance and direct access to healthcare systems over the lower-margin consumer retail space.

Direct-to-patient e-commerce platforms (e.g., Aurora Medical)

In the Canadian market, the primary channel remains a direct-to-patient model, largely facilitated through the company's proprietary e-commerce platform, AuroraMedical.com, and patient services. This channel allows for a direct relationship with the end-user-the patient-and provides a higher-margin sales environment compared to provincial wholesale. These Canadian medical sales, which include insurance-covered and self-paying patients, generated $26.8 million in net revenue in the fourth quarter of fiscal year 2025 (Q4 2025).

The platform is a digital storefront offering a comprehensive portfolio of medical cannabis brands like MedReleaf, CanniMed, and Aurora itself, ensuring product availability and direct fulfillment under Canada's medical regulations.

Licensed pharmaceutical wholesalers and distributors globally

This is the most critical channel for Aurora's growth, especially in Europe and Australia, where medical cannabis is integrated into the pharmaceutical supply chain. The international segment's strength is a clear indicator of this channel's success, with international medical cannabis net revenue reaching $41 million in Q4 2025. This figure represented 61% of the total global medical cannabis net revenue for the quarter.

Here's the quick math on how the medical revenue breaks down, showing where the channel priority lies:

Channel Segment	Q4 Fiscal Year 2025 Net Revenue (USD)	% of Global Medical Cannabis Net Revenue
International Medical (Wholesale/Pharmacies)	$41.0 million	61%
Canadian Medical (Direct-to-Patient/Insurance)	$26.8 million	39%
Total Global Medical Cannabis Net Revenue	$67.8 million	100%

The distribution network is supported by an EU-GMP certified supply chain, including a dedicated distribution center, which is non-negotiable for selling into regulated European markets like Germany and the UK.

Government-approved medical cannabis pharmacies (e.g., Germany)

Aurora directly supplies products to government-approved pharmacies, often through local pharmaceutical wholesalers, in key international markets. Germany is a prime example, being Europe's largest importer of medical cannabis, where Aurora is one of only three active in-country producers. The launch of locally cultivated products, such as the IndiMed brand manufactured at their EU-GMP facility in Leuna, Germany, strengthens the supply chain and local market presence.

The company's focus on these regulated channels is evident in its expansion into high-potency products in markets like Poland, where they launched proprietary cultivars like Farm Gas (27% THC) and Sourdough (29% THC) in mid-2025, directly supplying the pharmacy channel. This is a high-barrier-to-entry channel, but it offers better pricing stability.

Strategic bulk sales to other licensed producers

While the focus is on branded, finished medical products, Aurora still uses strategic bulk sales as a channel to monetize excess or specific-use cannabis, primarily for other licensed producers (LPs) in Canada and internationally. This B2B wholesale channel is a smaller, but still active, revenue stream. Honestly, it's a way to manage inventory and capacity efficiently.

In Q4 2025, wholesale sales of bulk cannabis brought in $826,000 in net revenue. This is a significant decrease from the $2.4 million reported in Q4 2024, which shows a clear strategic shift to prioritize their own higher-margin medical product manufacturing over bulk commodity sales.

Clinical research organizations for product trials

Aurora maintains a channel for supplying pharmaceutical-grade cannabis products and proprietary genetics to clinical research organizations (CROs) and academic institutions. This supports product development and clinical validation-a necessary step for long-term pharmaceutical positioning. The subsidiary CanniMed Ltd., for instance, specializes in pharmaceutical-grade extraction and oil-based formulations, which are often the formats required for clinical trials.

The company uses its Aurora Coast facility for developing new cultivars, which are then grown across its EU-GMP and TGA-GMP certified facilities, ensuring the quality required for clinical trials and subsequent medical distribution. This channel doesn't generate massive revenue now, but it is defintely a strategic investment in future product pipelines.

• Supply pharmaceutical-grade products for clinical trials.
• Provide proprietary genetics to research partners.
• Support regulatory submissions with clinical data.

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Customer Segments

Global medical patients (chronic pain, neurological disorders, etc.)

Aurora Cannabis Inc.'s primary and most stable customer base remains the global medical patient population. This segment is defintely a core focus, driving the company's premium pricing and international expansion strategy. You see this in the sustained revenue from their global medical cannabis business, which is highly resilient compared to the volatile Canadian recreational market.

The company targets patients with specific, chronic conditions like multiple sclerosis, epilepsy, and chronic pain, where cannabis is prescribed as a therapeutic option. This is a high-value, high-retention segment because patients are often on long-term treatment plans.

Here's the quick math: Aurora has consistently reported that its global medical cannabis revenue is its largest and most profitable segment. For the latest available fiscal period, this segment accounted for a significant portion of the total net revenue, demonstrating its strategic importance.

• Patient Needs: Consistent supply, pharmaceutical-grade quality, strain variety, and physician support.
• Geographic Focus: Germany, Poland, Australia, and the UK are key international markets.

Licensed pharmaceutical wholesalers and distributors

This segment acts as the critical bridge between Aurora's production facilities and the end-user medical patients and pharmacies in regulated international markets, especially in Europe. In countries like Germany, a wholesaler is often a mandatory step for market access. Aurora sells large volumes of finished medical cannabis products-dried flower, oils, and capsules-to these licensed partners.

This relationship is crucial for scaling. Selling to a handful of large distributors simplifies logistics and compliance, but it also concentrates customer risk. The distributors handle the complex, country-specific regulatory hurdles, so Aurora can focus on production and quality assurance.

What this estimate hides is the margin pressure; wholesalers negotiate bulk discounts, but the trade-off is predictable, large-volume orders.

Government health ministries and institutional buyers

Aurora engages directly with government entities and institutional buyers, particularly in emerging medical cannabis markets where the state controls distribution or procurement. This segment includes national health services or state-owned pharmaceutical agencies in countries that have recently legalized medical cannabis and are establishing initial supply chains.

These are typically large, but infrequent, tender-based contracts. Winning a government tender provides a strong, long-term anchor for market entry, offering a stamp of regulatory approval that helps in securing other commercial contracts. For example, a successful tender in a new European jurisdiction can open doors to private wholesalers there.

• Buyer Focus: Long-term supply agreements, strict quality compliance (EU-GMP), and competitive pricing for national distribution.

Academic and clinical research institutions

While not a major revenue driver, this segment is a critical part of Aurora's long-term strategy and brand credibility. Supplying cannabis for academic and clinical trials positions the company as a leader in evidence-based medicine. The company provides research-grade cannabis products for studies focused on efficacy, dosing, and new therapeutic applications.

The value here is not in the direct sales volume, but in the future intellectual property and the clinical data generated. This research helps validate their products, which in turn strengthens the value proposition to physicians and patients globally. It's an investment in future market share, honestly.

Other licensed producers requiring high-quality bulk supply

Aurora also operates as a business-to-business (B2B) supplier, selling bulk cannabis and derivative materials to other licensed producers (LPs) globally. This is often high-quality, excess production that another LP needs for their own product formulation, or an international partner requires for local packaging and distribution.

This segment provides a useful outlet for optimizing capacity utilization, turning surplus inventory into cash flow. It's a lower-margin business than direct-to-patient medical sales, but it keeps the production lines running efficiently. Still, Aurora has been strategically reducing its reliance on low-margin bulk sales to focus on higher-margin branded medical products.

To be fair, the bulk market is highly commoditized, so pricing power is low.

Here is a simplified view of the customer segment focus, based on the company's strategic emphasis:

Customer Segment	Primary Offering	Strategic Importance	Typical Transaction Size
Global Medical Patients	Branded finished medical products (oils, flower)	Highest profit margin, stable revenue base	Small (Patient-level prescription)
Licensed Wholesalers/Distributors	Bulk finished medical products	Essential for international market access and scale	Medium to Large (Distribution contract)
Government Health Ministries	Large-volume supply for national programs	Market entry anchor, regulatory validation	Large (Tender-based contract)
Academic/Clinical Research	Research-grade cannabis supply	Future IP, product validation, credibility	Small (Research grant-based)
Other Licensed Producers (B2B)	Bulk flower, trim, or concentrates	Capacity utilization, cash flow generation	Medium to Large (Commodity supply contract)

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Cost Structure

You can see Aurora Cannabis Inc.'s cost structure shifting dramatically, moving from a capital-intensive, high-fixed-cost model to one focused on maximizing high-margin medical sales and operational efficiency. The direct takeaway is that a disciplined focus on cost optimization and high-margin product lines resulted in a record Adjusted EBITDA of $49.7 million for fiscal year 2025, a massive 261% year-over-year increase.

Significant fixed costs from operating large-scale, EU-GMP certified facilities

The company maintains a significant fixed cost base related to its specialized, high-standard cultivation and manufacturing network. Operating facilities that meet European Union Good Manufacturing Practice (EU-GMP) standards is a non-negotiable fixed cost for their profitable global medical strategy. Aurora has four EU-GMP certified facilities within its global network, including its cultivation site in Leuna, Germany, and its Brampton, Ontario distribution center, which received its certification in July 2025. This infrastructure is expensive to maintain, but it's the cost of entry for the high-margin European market.

To be fair, the company is actively working to optimize these fixed assets. For instance, in September 2025, Aurora announced a five-year investment plan to upgrade its Leuna, Germany facility to increase flower growth capacity and drive cost efficiency by adopting best practices from its Canadian facilities.

High regulatory compliance and international export costs

Compliance is a major expense, especially in the fragmented international medical cannabis market. The cost of navigating complex regulatory frameworks and maintaining EU-GMP certification across multiple jurisdictions is substantial. This is a variable cost that scales with international sales volume, plus still carries a high fixed component for quality assurance teams and audits.

This is where you see the friction in the near-term. Adjusted Selling, General, and Administrative (SG&A) costs in Q4 2025 were impacted by higher freight and logistics costs, specifically from sales to Europe, and incremental costs following the acquisition of MedReleaf Australia. You also saw regulatory issues in markets like Poland contribute to lower profitability in Q4 2025, showing that international expansion carries real-time regulatory risk and associated costs.

Research and development expenses for clinical trials

Aurora's R&D spend is targeted and gated, meaning it's focused on specific, high-potential areas like clinical trials and product innovation, rather than broad, massive spending. This targeted approach is a key part of their shift toward profitability. While the specific full-year fiscal 2025 R&D expense is not publicly detailed in the same way as SG&A, the company maintains a dedicated R&D facility, Aurora Coast, to support its science and innovation-led growth strategy, particularly for its medical portfolio.

Selling, General, and Administrative (SG&A) costs, defintely focused on efficiency

The company's turnaround is rooted in ruthless cost management, particularly a focus on reducing its historically bloated SG&A. They slashed adjusted SG&A expenses by 13% in Q3 2025 compared to the prior year period. Here's the quick math on the quarterly figures for fiscal 2025:

Metric	Q1 2025 (in millions)	Q2 2025 (in millions)	Q3 2025 (in millions)	Q4 2025 (in millions)
Adjusted SG&A	$31.4	$31.7	$31.3	$36.7
Business Transformation Costs (Excluded)	$4.9	$4.0	$4.9	$5.8
Total SG&A (Adjusted + Transformation)	$36.3	$35.7	$36.2	$42.5

The total adjusted SG&A for the full fiscal year 2025 was approximately $131.1 million, which shows a significant, sustained effort to run lean.

Costs of goods sold (COGS) trending down due to optimization efforts

The biggest positive trend is the dramatic improvement in adjusted gross margin, which directly reflects a lower effective Cost of Goods Sold (COGS). This optimization is a direct result of prioritizing higher-margin medical products and improving production efficiency.

• Consolidated adjusted gross margin before fair value adjustments reached 62% in Q4 2025, a sharp increase from 50% in the prior year period.
• The medical cannabis segment, the company's core focus, achieved an adjusted gross margin of 70% in Q4 2025, up from 66% a year earlier.
• The increase is due to sustainable cost reductions, higher average selling prices in their medical segment, and improved efficiency in production operations, including sourcing for Europe from Canadian facilities.

This margin expansion is the clearest sign that their asset-light strategy is working, translating cost discipline into profitability. Adjusted gross profit before fair value adjustments was a record $54.2 million in Q4 2025.

Aurora Cannabis Inc. (ACB) - Canvas Business Model: Revenue Streams

The core takeaway for Aurora Cannabis Inc.'s revenue streams in Fiscal Year (FY) 2025 is simple: the company has successfully pivoted to a high-margin, global medical cannabis model, with international sales now the primary growth engine. This focus delivered a record annual global medical cannabis net revenue of $244.4 million (CAD) for the fiscal year ending March 31, 2025.

International medical cannabis sales (highest margin segment)

This is defintely the most critical revenue stream, and it's where the high-margin strategy pays off. For the fourth quarter of FY 2025, international sales brought in $41 million (CAD), representing a massive 114% year-over-year growth and accounting for 61% of their total global medical cannabis net revenue. This segment's success is a direct result of prioritizing markets like Australia, Germany, Poland, and the UK, where pricing power and margins are significantly better than in the Canadian consumer market. The adjusted gross margin for the entire medical cannabis segment hit a strong 70% in Q4 2025. That's a powerful number that funds their entire operation.

Canadian medical cannabis sales (stable, core revenue)

The Canadian medical market provides a stable, foundational revenue stream, though it's now eclipsed by the international segment. In Q4 2025, net revenue from Canadian medical cannabis was $26.8 million (CAD). This revenue comes from two main customer groups: patients covered by insurance and self-paying patients, and it benefits from higher average basket sizes. It's a reliable base, but the growth story is elsewhere.

Revenue from cannabis extracts, oils, and derivative products

While the company doesn't break out extracts/oils/derivatives separately from dry flower within the medical segment, these high-value products are a key part of the total medical revenue of $67.8 million in Q4 2025. The consumer (non-medical) segment, which includes some derivative products, is intentionally de-emphasized due to lower margins. Consumer cannabis net revenue for Q4 2025 was only $8.2 million (CAD), a 20% decrease year-over-year, as management prioritizes GMP-certified product supply to the higher-margin global medical business. That's a clear strategic choice: margin over volume.

Here's the quick math on the primary cannabis revenue segments for Q4 2025:

Revenue Stream Segment	Q4 2025 Net Revenue (CAD)	Commentary
International Medical Cannabis	$41.0 million	Highest margin, primary growth driver.
Canadian Medical Cannabis	$26.8 million	Stable, core revenue base.
Consumer Cannabis (Non-Medical)	$8.2 million	Lower-margin, de-prioritized segment.
Bulk Wholesale Sales	$0.826 million	Minimal, opportunistic revenue.
Total Cannabis Net Revenue	$76.826 million	75% of total consolidated revenue.

Bulk wholesale sales of excess supply to other LPs

Bulk wholesale sales are a minor, opportunistic revenue stream, not a strategic focus. This revenue is essentially a way to monetize excess inventory or specific genetics without investing in full consumer packaging and distribution. In Q4 2025, this segment generated a minimal $826,000 (CAD). This is a low-margin activity and the company's focus is clearly on branded, finished medical products.

Strategic asset sales and non-core business divestitures

While there were no major, one-off asset sales reported in the immediate Q4 2025 period, the revenue stream model reflects a successful multi-year strategy of divestiture and focus. This strategy resulted in a debt-free cannabis business and a robust cash position of approximately $185.3 million (CAD) as of March 31, 2025. This financial strength is the long-term, non-operational 'revenue' benefit of shedding non-core assets.

Also, don't forget the non-cannabis revenue from the plant propagation business, Bevo Farms Ltd. This diversified segment is a significant non-core revenue stream, contributing $13.8 million (CAD) to Q4 2025 net revenue. This revenue stream helps stabilize the overall top line and provides a hedge against cannabis market volatility.

• Focus on high-margin medical cannabis, which hit 70% adjusted gross margin in Q4 2025.
• Prioritize international markets (Australia, Germany, UK) over Canadian consumer sales.
• Maintain a strong balance sheet with $185.3 million in cash and no cannabis-related debt.