Aurora Cannabis Inc.

Hello, and thank you for joining us. With me on the line are Miguel Martin, Executive Chairman and CEO of

It's Mona King, CFO. Earlier this morning, we filed our financials for the fiscal third quarter 2025, period ending December 31st, 2024, and issued a news release containing our quarterly results. This news release, along with our financial statements and MD&A, are available on our IR website and also be accessed via CDAR Plus and ACAR. For our discussion today, this is a reminder that certain matters could constitute forward-looking statements that are subject to risks and uncertainties related to our future financial or business performance. Actual results could differ materially from those anticipated in those forward-looking statements. The risk factors that may affect actual results are detailed in our annual information form and other periodic filings and registration statements. These documents may similarly be accessed via CDAR Plus and EDGAR. All prepared remarks by Miguel and Simona will conduct a question and answer session with our covering analysts. With that, I'll turn the call over to Miguel. Please go ahead.

Thanks, Kevin. We're pleased to report a record third quarter for medical cannabis revenue, net income, adjusted EBITDA, and free cash flow, and sincerely thank our team for making these results possible. Our three-pronged strategy serves as our foundation and guides us forward as we seek to further strengthen Aurora Cannabis over the coming years. First, as the world's largest medical cannabis company, we will continue to leverage our EUGMP and TGA GMP manufacturing facilities, unparalleled scientific knowledge, genetics, and regulatory expertise on rapidly evolving global medical cannabis opportunities. Today, we proudly serve patients across multiple countries, including Canada, Australia, Germany, Poland, and the UK, with an eye on future opportunities as they emerge. Second, we will work to sustain our medical cannabis margins through operational excellence and our continued focus on this space. And third, we'll look to achieve a steady stream of revenue and adjusted EBITDA contributions and build a track record of positive free cash flow, all while maintaining a strong balance sheet. Our successful execution of the points I just made has enabled us to differentiate ourselves from our peers and achieve the results that we reported today. Here are some highlights from the quarter. Overall net revenue grew 37%, driven by 51% year-over-year growth in global medical cannabis. Within global medical cannabis, international revenue increased 112%. For the second consecutive quarter, international revenue surpassed Canadian medical cannabis, comprising 60% of global medical cannabis net revenue, up 300 basis points sequentially from last quarter. This intentional shift in our business validates how we have capitalized on opportunities across the globe while still maintaining a stable foundation in Canada. Medical cannabis, our flagship business segment, generated 77% of total net revenue and 90% of adjusted gross profit. And while the majority of growth was sourced internationally, Canadian medical increased 6% and we held on to our significant leadership positions. Briefly on Bevo, our plant propagation business segment, we generated a revenue increase of 22% year-over-year through organic growth and enhanced facility utilization. In terms of profitability, net income, and adjusted EBITDA, both reached all-time highs, and we generated $27 million in positive pre-cash flow, another record. Let's now discuss our cannabis business in greater detail. Our Canadian medical business, which is known for its scientific knowledge and approach to innovation, provides our patients access to a broad selection of superior offerings. Through Aurora Coast, our world-class research and genetics facility, we can harness solutions to provide patients the very best medical cannabis. On that note, we recently announced a series of new cultivars developed at Aurora Coast and grown across our EU GMP and TGA GMP certified facilities. We also partner with several other Canadian licensed producers who grow our cultivars, enabling us to create more value. Internationally, our largest market after Canada is Australia. We currently have the number two share in this highly regulated market, and we are optimistic about our expanded distribution and broadened product portfolio. Turning to Europe, let's start with Germany, a country that we've been operating in since 2018 and where we continue to maintain a leadership position. Germany has experienced rapid growth since the onset of cannabis descheduling last year, as more patients register and pharmacies are in turn expanding to support higher prescription volumes. We are determined to maintain a consistent and reliable supply of our high-quality EU GMP manufactured products to our pharmacy partners, and we're doing that through our EU GMP facilities in Canada and in Germany. We also recently announced the launch of our first German cultivated medical cannabis product under the brand Indomed, manufactured locally, further cementing our commitment to growth in this dynamic market. We strongly believe that the changes in Germany will ultimately reverberate across Europe through expanded acceptance of medical cannabis. Our intention is therefore to gain a strong foothold in these emerging countries through our agility and unique capabilities, including regulatory and cultivation expertise. Let's now discuss two of these markets, Poland and the UK, which both generated record revenue this quarter. Poland is our second largest European market, benefiting from patients seeking high-quality medical cannabis. In the UK, revenue increased as a result of our latest product innovations and widened distribution channels. Similar to last quarter, and across all international markets, we saw an increase in demand for EU and TGA GMP manufactured flours. This aligns well with 90% of our internal manufacturing capacity being EU and TGA GMP certified. The expansion of our latest genetics offer higher yields and a lower cost per gram to produce, which has given us the ability to significantly increase our output capacity, especially as these new cultivars begin to establish themselves. Now, in Canadian REC, while we did see a decline in revenue, this is still an important segment for us as it is where we gain a lot of consumer insights about products, preferences, pricing, among other things, by maintaining an active presence. We also see interactions between recreational sales and medical sales in our home market. Internationally, at some point, environments could evolve from medical to rec, and if so, this would offer us another advantage. We recently announced our latest innovations from our Greybeard, San Rafael 71, and Tasty's brands, with a continued focus on premium, science-driven offerings This expanded lineup represents our commitment to delivering exceptional, high-quality, cutting-edge, and diverse options to consumers so they can enjoy unforgettable cannabis experiences. So to sum up, with only one quarter left to go in the fiscal year, we are pleased to be executing at a high level and intend to finish the year strong through profitable growth. I would now like to turn the call over to Simona for a detailed financial overview.

Thank you, Miguel. we had an exceptionally strong quarter where we reached all time highs across several key financial metrics. First net revenue of 88.2 million represented 37% growth supported by record net revenue of 68.1 million from our global medical cannabis segment. Second, Quarterly profitability consisted of record consolidated adjusted gross margin at 65%, 130 basis points higher than last year, resulting in record adjusted gross profit at $56 million. Third, adjusted EBITDA grew 316% to a record $23.1 million, and this was our ninth consecutive quarter of positive adjusted EBITDA. Fourth, net income was $31.2 million, another record outcome, compared to a net loss of $18.1 million in the year-ago period. And finally, we ended the quarter with $180.2 million in cash and cash equivalents and no cannabis business debt. Now let's go into greater detail. In medical cannabis, our key strategic focus, net revenue rose by 51% to $68.1 million, which consisted of 6% growth in Canada and 112% growth internationally. Medical cannabis comprised 77% of net revenue and 90% of adjusted growth profit during the quarter. This marked an increase from 70% of net revenue and 84% of adjusted gross profit from the year-ago period, the result of higher medical revenue and higher medical margins in the current year quarter. The increase in Canadian medical revenue was due to our continued focus on the Canadian patient experience. The commercial collaboration with Victoria Furtin announced earlier in the fiscal year also contributed to this growth. The increase in international medical cannabis revenue was primarily due to the full recognition of revenue in Australia after the acquisition of Medrelief Australia in February 2024 and the scheduling in Germany. We also experienced higher sales in other European countries. Adjusted gross margin for medical cannabis was 74%, up from 63% in the year-ago period. both of which far exceeded our 60% target. Several factors drove the year-over-year increase, including larger revenue contributions from high margin markets, sustainable cost reductions, and improved efficiency in our manufacturing operations with our shift to supplying the European markets from Canada. Consumer cannabis net revenue was 9.9 million, down from 11.6 million in the year-ago period, with adjusted gross margins of 26% compared to 29% due to sales of higher margin products. The year-over-year decline was the expected result of our decision to focus on the higher margin medical cannabis business. Beeble's plant propagation net revenue increased to 8.9 million, up from 7.3 million in the year-ago period, with adjusted gross margins of 40% up from 28%. This year-over-year improvement is due to a combination of increased plant propagation capacity and product offerings. Recall that Bevo historically delivers lower revenue in the summer and fall months with about 25% to 35% of plant propagation revenue and up to 20% of EBITDA earned in the second half of the calendar year. Consolidated adjusted SG&A increased by 12.6% to $31.3 million compared to the year-ago period and supported year-over-year net revenue growth of 37%. Adjusted EBITDA rose to $23.1 million from $5.5 million last year. The record improvement over the prior year period was due to a substantial increase in gross profit resulting from higher net revenue before fair value adjustments required under IFRS. Net income increased to 31.2 million compared to a net loss of 17.1 million for the year-ago period. The increase relates to higher gross profit partially offset with the decrease in other income. The increase in gross profit includes an increase in unrealized gain on changes in fair value of biological assets. Please note that there may be quarter over quarter variability on this line item because of these inventory adjustments per IFRS. Our balance sheet remains one of the strongest in the global cannabis industry. We held $180.2 million in cash and cash equivalents as of December 31st. And our cannabis operations are completely debt-free. However, our Bevo business holds $57.9 million in non-recourse debt that is secured by a significant fixed asset base held at Bevo. Cash provided by operating activities was $28.8 million compared to cash used of $5.3 million in the year-ago period. Excluding changes in non-cash working capital and discontinued operations, cash provided by operating activities improved by $25.2 million to deliver $13.8 million in operating cash compared to cash used of $11.4 million in the prior year period. This improvement reflects a combination of increased net revenue and improved profit margins. Free cash flow was positive $27.4 million compared to a negative free cash flow of $4.7 million in the year-ago period. The $32.1 million increase is due to higher net revenue and contribution margin, along with an increase in working capital of $8.2 million. Let me now provide some thoughts on what we expect for next quarter. Continued revenue growth across our cannabis business, supported by year-over-year growth in Europe and Australia. Seasonally higher revenues for Bevo in our plant propagation segment, in line with historical seasonal trends. Margins to hold strong and positive adjusted EBITDA to continue, while continued spend discipline on CapEx and expected revenue growth will support improved operating cash use. positive free cash flow based upon the following. First, continued increases in global medical cannabis driven in part by the full recognition of revenue in Australia and growth in our key European markets. Second, operating expenditure and adjusted growth margins in line with previous results. And third, disciplined working capital management. Thank you for your time. I'll now turn the call back to Miguel.

Thanks, Simona. By any measure, it was a record-breaking quarter, and we think Aurora's future is incredibly bright. I say that based on a few important points. First, several years ago, we made an intentional pivot to align our resources behind a medical cannabis-first growth strategy and concentrate on high-margin opportunities outside of North America. Our viewpoint is that the regulatory environments in Europe and Australia are a better fit for us, given our core strengths in regulatory affairs and that these countries would be more accepting of medical cannabis in the near term, especially as U.S. federal legalization is taking longer to materialize. Second, patient access to medical cannabis continues to grow around the world, creating a stronger secular trend where Aurora is a key beneficiary. In our view, the market could easily exceed $5 billion in the next few years, and we have an important role to play in that opportunity. Third, we are well-positioned versus many of our peers through our first mover advantage and key capabilities, which gives us a material advantage in existing and new markets. And finally, our focus on profitable business segments and opportunities is maxed by our financial flexibility and balance sheet strength. This combination gives us an advantage and allows us to be opportunistic and generate returns that position us to drive long-term shareholder value. And with that, we'd be happy to take your questions, operator, Please open the lines.

Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Bill Kirk with Roth Capital Partners. Please proceed with your questions.

Good morning, everybody. Miguel, I had a question. Given the inflection in sales here, are you running into any supply constraints in any way, or do you still have some room to continue to meet these opportunities and find more growth from here?

Yeah, Bill, good morning, and thanks for the thoughtful question. I think you raised sort of two points, and first is we feel good about where we are from a supply standpoint. Now, supplying these international markets is a bit complicated because of the variety of different regulatory challenges in there. It's not just the certifications, EU GMP and TGA GMP. TGA is the Australian designation that causes some complexities. The other part is the registration process and the testing process. So all of that has to work together and able to consistently supply those four key markets, which are Poland, Germany, Australia, and the UK. But we feel really good about where we're at in terms of being able to meet that needs. And, you know, we think it's a real core competitive advantage for Aurora.

And then if I can follow up. You know, were there any, like, unique or opportunistic items maybe loaded in a particular country that benefited 3Q that just aren't as repeatable 4Q going forward? Is there any way, you know, maybe you could quantify if things like that impacted 4Q or 3Q in a positive way?

Yeah, no, Bill, we didn't see anything that was sort of, you know, out of the norm. Now, I will say the international markets, because of permitting, they do go a little hot and cold. And I think, you know, over a fiscal year, you'll see that smooth out. But there was nothing specific in the quarter that we're reporting that was sort of a one time or that, you know, was sort of out of the norm in terms of what we would, you know, see, you know, over a broader time period.

Wonderful. I'll pass it along. Thank you. Thank you, Bill. Appreciate the questions.

Thank you. Our next question comes from the line of Federico Gomez with ATB Capital Markets. Please proceed with your question.

Hi, good morning. Thanks for taking my questions. Congrats on the great quarter. First question, just on competition in these international medical cannabis markets, we've seen a lot of other LPs trying to enter those markets and export from Canada. How do you see that competition impacting those markets this year? Could it impact prices and margins? or not? These markets are growing really fast. So, you know, how do you look at competition at this point?

Yeah, Fred, good morning. And thanks for the question. I think, you know, if you compare and contrast North America, where you're competing against hundreds of companies, you know, particularly in Canada, in the rack business, we don't see that internationally that doesn't mean they're not some very strong and decent number of competitors but it is a more consolidated business and let me sort of take them you know sort of in order um obviously germany has garnered a lot of attention but because of the requirements of the eu gmp plus the testing plus the registration process you do see more consolidation so as an example as you well know in canada the top five REC companies don't even represent 50 percent of the business. And what we see is in most of the big European markets, you know, the top five companies will represent two-thirds or three-quarters of the total business. So, it's a more consolidated piece of business. It advantages those companies like Aurora that have made significant investments both in, you know, product innovation and registration and on-the-ground infrastructure And it is a, you know, it is portable. In many cases, what you have to do in Germany, while be a little bit different in Poland, it's the same thing. And so I would say the competition is, you know, no less competitive, but it is from a smaller group of competitors because it is a different skill set than maybe what you would find, say, in Canada.

Perfect. Thanks for that. Second question is on capital allocation. You know, now that you've reached a free cash flow positive, obviously, and generating a substantial amount of free cash flow. How are you looking at the balance sheet here, your capital allocation options in terms of growth internationally or maybe in Canada, capacity expansion, et cetera? Just how do you look at the different options that you have in terms of allocating that capital? Thanks.

Great. I mean, listen, it's a great question. We've worked incredibly hard to have no debt on our cannabis business And as Simona, you know, detailed having, you know, what we think is one of the strongest balance sheets out there. As you well know, it's a very fluid environment and valuations, you know, continue, I think, to get more reasonable. We, you know, expect to be able to use that to be opportunistic as the right, you know, things, you know, come to bear. Now, we've also been very cautious and patient, which I think has incredibly benefited us in this environment. And so anything that we would do, we would look to be accretive from a profitability standpoint and be additive to our core competency roots is really medical cannabis. And so, you know, I think if you look at our overall path of the way we, you know, leverage the balance sheet and what we've done over the last couple of years, I think you'd see, you know, more of the same. And we're proud that that's resulted in the results that we're reporting today.

Thank you. Thanks. Thank you, Fred.

Thank you. Our next question comes from the line of Derek Lessard with TD Cowan. Please proceed with your question.

Good morning, everybody, and congrats on a great quarter. I just wanted to hit on the margin side of the business in maybe two parts, starting with the medical. Maybe just add some color around that 74% gross margin performance and then kind of get a sense of what your thoughts are on the sustainability of that margin. And then secondly, on the plant propagation side. Again, strong results there, so I just wanted to get some additional color on the growth.

Eric, let me talk a little just broadly about margin, and then I'll turn it over to Simona, who can give you some more details on both of your questions. I think unlike, say, Canadian REC, what you see in Europe, which was obviously a huge part of, you know, the revenue increase that we had, plus the impact on the margin, is you don't see as much compression in the medical cannabis space. The wholesale list price or the price in which we sell to our wholesalers dictates the margin downstream, both from them, from a tax standpoint, and for our pharmacies, which some would describe as our retailers. So you don't see a lot of sort of intrinsic compression in baseline pricing. And because it's in a pharmaceutical system, While these margins are high for cannabis, they're not particularly high for pharmaceutical. So I don't think you have that structural piece. Secondly, when you have both, you know, an insured NSL patient part, you also have a little more consistency in that. And since we operate mostly in premium and core sections, you're going to see higher margins than you might see, say, in the value segment. But I don't know, Simona, if you want to pick up on that and maybe talk a little bit about Bevo.

Yeah, so we generally do see higher margins in our medical and especially the international markets. So as more and more of our revenue has shifted or has grown in those sectors, that overall contributes to the increased margins we're seeing, not only through the medical cannabis channel, but then implications total company as well. And we're also seeing operational efficiencies, which has an impact on our cost of goods sold. So that combination of favorable prices as well as managed costs is contributing to our margin here. And to one of your second part of your question, we do expect these margins to continue to stay favorable in the coming quarters. And then in terms of Bevo, what we've seen with Bevo, and keeping in mind that Bevo is a seasonal business, we've seen growth in Bevo from the prior year quarter. And we've also seen improved margins in the Bevo business due to increased capacity on the production side. So that's helped our overall total company margins go up as well.

Okay, that's super helpful, guys. And maybe just one more for me before I recue. In Germany, now that I guess we're about nine months into the de-scheduling, what are you seeing, I guess, in terms of patient and sales growth there? And maybe as a follow-up as well, you recently launched your first cultivar. Just wondering if you could speak to any of the potential cost savings in terms of transportation or anything else.

Yeah, I think, Sue, you're right. We're nine months into the descheduling. The biggest impact has been patient growth, and so their ability to get into the system. And we've seen that continue to grow. One of the problems we have in Germany is there's not strong syndicated data. I don't know, IRI, Nielsen, or maybe even some other stuff we see in some other markets. So it's hard to give you an exact percentage of what we're seeing in overall growth. I think, you know, it's double digit. We see it still growing. I think one of the questions connected to that we get is, given where the elections may go in Germany, do we see a real change? We don't. Most of what they've talked about has been on the rec side or the descheduling there. So we see Germany, you know, without giving you precision on the growth, continuing to grow, and we see a small subset of companies being able to take advantage of it. Now, as it pertains to the growing in country, we're one of only three manufacturers that have facilities in the country of Germany, and our facility is in Leuna. And we are launching our first cultivar there, and we'll be launching many more that will be some of the best in the world from there. I think, you know, people are excited about a German-grown cultivar being available in that market in other areas. In terms of overall efficiencies, while you do pick up, you know, some because of where it's at and from shipping, it is offset a bit by higher energy costs and some of the other COGS costs that we have there. So it's early days for that facility. It's a very small and what I would say sort of emerging facility as it pertains to our global you know, production footprint. And so more to follow on LOINA, but we're really excited about having something in Europe that is GMP that can service both Germany and the rest of the GMP markets.

Thanks for that, Miguel.

Thanks, everybody. You're very welcome, Derek. Thank you.

Thank you. Ladies and gentlemen, as a reminder, if you'd like to join the question queue, please press star one on your telephone keypad. Our next question comes from the line of Matt Bottomley with Canaccord Genuity. Please proceed with your question.

Good morning, everyone. I wanted to stick on the sort of the international contribution. Obviously, you know, it's done very well for you guys. And it's something that, you know, more LPs and even some of the MSOs are starting to talk about with respect to those opportunities. So I guess first, and I know you've touched on this a little bit, but maybe sort of two ways to look at it. One is what's kind of the breakdown on average of sort of innovative products there versus maybe more bulk or You know, flour, I know you guys are more in the higher quality segment of the market, but just try to get an understanding of the types of products on average that make up your revenues. And then if you could also give any color as to what percentage of your customer patient base there or maybe just your revenues, you know, are attributable to patients that have coverage.

Matt, well, good morning, and thanks for the question. So let me try to break it down a little bit. You know, in Germany, it's all flour and oil, with the exception of a couple of other small products. Similar situation in Poland. The UK and Australia allow for a broader portfolio, so you do see edibles, you do see vape products, and a variety of others. But regardless of the ability to sell those products in Australia, And in the UK, the vast majority of the sales in all those international markets is flour. And from that, it's, again, the ability to get compliant products into those markets that can meet the registration, the stability, the testing, and all of it. And so I think as we look at that, you are starting to see some distinction between the value segment and more of where we operate on the top side. which is people willing to pay for that, for this. Now, in terms of segmentation, we lack syndicated data in a lot of those markets. The biggest market in Europe is the German market. We are seeing that the fastest growth is happening in the self-payer market, and probably today is the majority of sales. Now, whether that's 51% or 89%, we don't have that type of precision. But we are seeing, you know, expansion and all of that. That being said, you know, the insurance coverage continues to be there and is actually expanding as more and more insurers are getting comfortable with a broadened list of what we call indications. And so I think to be successful, you have to do both. Now, the good news is that a patient, whether they're a self-payer or in the insured segment, want the same things. And the experience that a company like Aurora has with almost a decade of experience in Canada, that really resonates because, you know, unlike other markets, this is a patient going to a doctor, getting a specific prescription for a specific item being, you know, serviced by a pharmacy. And so it really is a much more conservative medical framework than most people are accustomed to. And so a company like Aurora is, our history, our approach, our medical first, and everything that goes along with it resonates. And that's why, you know, you see why we're doing so well in many of these markets and why a smaller subset of companies we believe will be successful long-term in those markets. Awesome.

Appreciate that. And maybe to... To add to that, these are finished goods products, not bulk, and we do believe we have a strong brand reputation in these international markets.

Okay, got it. And then just a quick one on consumer cannabis, obviously not core to the strategy, so not a lot of color on it, but I'm just curious on how you look at that segment going forward in the more medium term. Sure. We're seeing more decreases in that segment as you put more supply into the GMP manufactured products as you put in your prepared statements. The 26% gross margin, does that flow down to like break even on a cash flow if you look at kind of at a four wall? And if it does, is there any sort of indication from a strategic standpoint if there's any more investment into that segment or is this just business as usual focusing on the higher margin international and focusing on Canada when maybe the regulations change from an adult use standpoint?

Yeah, let me take the first part, and I'll let Saman talk about the modeling on the cash flow piece. I think, listen, I give a lot of credit to the Canadian government. A lot of people are banging on them about, you know, advancements and the five-year plan and all these different things. Canada has done more on REC than anybody else. The problem right now is it is a real challenge to extract value for high-quality products in Canada. And while that would be a significant issue for any company, Since we have the opportunities to take those same finite high-quality inputs and sell them at a significant profit around the world, it makes the decision very easy for us to focus on that. Now, Canada is getting better. We are encouraged by some of the actions some of the provincial folks have taken, and it's going in the right direction. We've even seen some price increases, including some that we've taken. on some of our products. But again, when you've got these incredibly high value, you know, articulated finished goods, as Simona mentioned, products that you can sell around the world, you don't do there. Now it's important for us to stay in that market though, because you learn a lot and there's a lot of innovation and there is a lot of connectivity between the Canadian medical and Canadian rec market that will exist at some point in other parts of the world. And so that's why we stay there. I mean, Simone, any comments on the modeling of profitability?

Yes. I mean, as we mentioned, you know, we're supporting our growing global medical cannabis business and prioritizing supply towards that, which are the higher margins. But we're still active in the consumer segment, and we continue to focus on profitable growth opportunities. And I would say the change in margins from the prior year-ago period is primarily driven by the change in the sales mix and not related to pricing. You know, pricing compression has been slowing in the Canadian market, as we've seen. But, again, that's irrational behavior, so sometimes it's hard to predict.

Okay, got it. Thanks for all the details, guys.

Thank you.

Thank you. Our next question comes from the line of Doug Meeham with RBC Capital Markets. Please proceed with your question.

Thank you. Good morning. Miguel, you did talk about the potential for M&A given better pricing, but you're knitting with respect to the medical side of the business. Is there... part of your existing portfolio where you do see a need for a specific type of company, or are you talking more about incremental supply for the growth of the market in various countries as they come on?

Yeah, I mean, Doug, it's a great question. I think first and foremost, we look to invest internally, which we've done. You know, as Simona mentioned, our cost of production program continues to go down significantly. So we make a significant investment in what we consider to be one of the best genetics facilities in cannabis in the West Coast. We've made significant investments in our production facilities to not only align with the UGMP, but also the expansion of production. And we also invest in markets. Now, it's just almost a year that we made a significant acquisition to the rest of MedRelief Australia, one of the fastest growing markets in the world. And that, you know, I think is sort of, you know, indicative of what we like. We've been with that business in Australia since 2017. So we knew a lot about it. We knew a lot about the team down there and we did that. I think, you know, we've worked incredibly hard to have no debt on our cannabis business and have worked incredibly hard to be profitable. So as things come up, And, yes, we see things from a value standpoint getting more reasonable as time goes along. We have the ability to be opportunistic, and we will be. I think, you know, what I would say is what you've seen us do in the past is probably indicative of what we're going to do going forward, which is continue to be patient but opportunistic when it makes sense and continue to grow a profitable global medical cannabis business. which is really what we're best at. And I think that's been our playbook, and it's worked extremely well, and I think we'll continue with it.

Okay, perfect. And then as a follow-up, it's more housekeeping on that taking over of all MedRelief, but would you be able to delineate exactly what the contribution was from full consolidation in terms of absolute growth this latest quarter versus last year? Simone, you want to take that one?

Yeah, I guess one way to think about that is as we have in the prior quarter, so our fiscal year Q2 of 2025 and this quarter, we're able to record the full revenue recognition for the business. And as we've worked through the existing inventory earlier last year. And so that's probably a good way to think about it when you compare it to the prior quarters period. So in 2020, December of 2023, where that contribution comes in because of the full revenue recognition coming into play these last two quarters.

Okay, but you can be more specific than that in terms of a number.

Yeah, we don't break out the markets like that.

Yeah, okay. That's great. Thank you.

Thank you for your question.

Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Martin for any final comments.

Well, Aubrey, thank you very much. And listen, we want to thank everybody that was on the call today. We are incredibly proud of this quarter, but more importantly, excited about the bright future that Aurora has We thank everyone, best of all, and we really appreciate your interest and attention to Aurora. All the best.

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.