Aurora Cannabis Inc.

and Edgar. On prepared remarks by Miguel and Simona, we'll conduct a question-answer session with our covering analysts. With that, I'll turn the call over to Miguel. Please go ahead.

Thanks, Kevin. We're delighted to share Aurora's results today, showcasing a record-setting year in global medical net revenue, adjusted EBITDA, and positive free cash flow. This performance is anchored by a strong and flexible balance sheet exemplified by a sizable cash balance of $185 million and a debt-free cannabis business. We believe that's a significant advantage relative to the industry. Here are some key highlights from fiscal 2025. First, net revenue rose 27% to a record $343 million, which included global medical cannabis revenue increasing 39%. International revenue generation eclipsed the strong contribution from Canadian medical and comprised over half of total global medical cannabis, up from 41% in fiscal 2024. Second, adjusted gross margin improved to 55% compared to 49% as we benefited from both higher cannabis and plant propagation margins. And finally, we generated record adjusted EBITDA of almost $50 million with record positive free cash flow of about $10 million. Aurora is already the largest company in the world focused on medical cannabis, the highest margin segment of the industry. And we have scientific knowledge, genetics, breeding, and regulatory expertise that are second to none. Notably, we are one of the select few cannabis companies with two manufacturing facilities certified under both Australian TGA good manufacturing practice and EU GMP standards. These facilities represent 90% of our annual manufacturing capacity, allowing us to be the largest Canadian exporter of medical cannabis. And through our leading market positions in Canada, Australia, Germany, Poland, and the UK, we are best able to capitalize on global medical cannabis opportunities in other countries as they emerge. Let's now dive into our global cannabis business, beginning with updates to our international operations. where we are experiencing an increase in demand for EU and TGA GMP manufactured flour, and particularly high-potency THC cultivars with intensely aromatic profiles. Our second largest market after Canada is Australia, where we currently have the number two share. Although Australia is a highly regulated market for medical cannabis, it is rapidly growing and attracting new entrants. We remain optimistic with our positioning and ability to grow through expanded patient accessibility and our broad product line. We expanded our product portfolio with three new medical pastilles and two new cultivars. Medical pastilles offer patients several key benefits, including long-lasting and extended relief and easy oral intake that is discreet, portable, and convenient. Our new cultivars add to our comprehensive flower offerings offering patients a greater range of potency and treatment options. And to further support prescribers in Australia and facilitate more seamless and simplified prescribing options, we expanded access to our diverse range of high-quality IndiMed products, enabling greater access for Australian patients. Turning to our European markets, where we have a long-standing presence and leadership position, looking to Germany first, the continent's largest market, It has now just been over a year since cannabis descheduling, and since then, the German market has experienced rapid growth, from which we have benefited greatly, as more patients register and pharmacies work to support higher prescription volumes. To fully capitalize on this long-term opportunity, our high-quality EU GMP manufactured products must remain consistently in stock, a commitment we uphold through reliable supply from our Canadian and German facilities. This includes our recently launched IndiMed products, which are our first medical cannabis products cultivated in Germany, further cementing our commitment to growth in that country. Positive developments in Germany also have far-reaching effects across Europe, and we anticipate they will ultimately pave the way for legalization of medical cannabis in neighboring countries where there is already broad acceptance. Leveraging our agility and unique strengths, such as regulatory and cultivation expertise, We are confident in our ability to establish a strong foothold as favorable conditions develop in these markets. Let's now discuss Poland and the UK. In Poland, we have experienced some headwinds following a change in regulations that impacted the volume of prescriptions being issued. We believe this to be a temporary issue and continue to be optimistic about this market due to its longer production registration timelines, limited competition, and continues strong demand for Aurora's high-quality product offerings. In the UK, we broadened our distribution and launched medical cannabis concentrates beginning in April. Following the success of these formats in Canada and Australia, we leveraged our operational and regulatory expertise to bring these proprietary cultivar-specific inhalable cannabis extracts to British patients. This new product category represents another step forward and expanding the variety of high-quality medical cannabis available in this growing market. Turning to Canadian operations, Canadian medical grew 4% annually, and we continue to lead this market with the number one market share. This strong performance is a result of our continued investment in innovation, operational excellence, and high-quality patient experience. As we continue to invest and prioritize growing our high-margin global medical cannabis business We remain active in the Canadian recreational market by delivering exceptional, high-quality, cutting-edge, and diverse options to consumers. There are clear interactions between recreational sales and medical sales in our home market, which, if international environments evolve from medical to recreational, would provide us with another advantage over our peers. In addition to signing new strategic external supply agreements, we continue to invest in our world-class manufacturing facilities to maximize production efficiency and increase annual manufacturing capacity. It is these initiatives, along with our continued investment in science and innovation through our dedicated research and development facility, Aurora Coast, that enable us to benefit from both international and domestic growth opportunities. We had an incredible year with record global medical net revenue, adjusted EBITDA, and positive free cash flow, and are excited for what lies ahead. Let me now turn the call over to Simona for a detailed financial review of Q4 2025, followed by a discussion of our outlook for Q1 2026.

Thank you, Miguel. We are very pleased with our performance in fiscal 2025, characterized by record annual results in global medical cannabis revenue of $244.4 million, combined with adjusted EBITDA of $49.7 million and free cash flow of $9.9 million. I would like to thank our team for their many contributions to these excellent results. Our plan for fiscal 2026 is to continue executing on our global medical-first cannabis strategy, deliver sustainable improvements in our financial performance, and create more value for our shareholders. Let's now delve deeper into Q4 2025 results before discussing our outlook for Q1 2026. Net revenue of $90.5 million represented 34% growth, supported by record net revenue from both our global medical cannabis and plant propagation segments. Second, quarterly profitability consisted of consolidated adjusted growth margin at 62%, 1,200 basis points higher than the year-ago period, resulting in record adjusted growth profit of $54.2 million. all segments generated higher margins than the year-ago period. Third, adjusted EBITDA grew 619% to a record $16.7 million from $2.3 million in the year-ago period. And fourth, we ended the quarter and fiscal year with $185.3 million in cash and cash equivalents and no cannabis business debt. Medical cannabis, our key strategic focus, net revenue rose 48% to $67.8 million due to 114% growth internationally, combined with continued strong contributions from Canadian medical. Medical cannabis comprised 75% of net revenue compared to 68% in the year-ago period and approximately 90% of adjusted gross profit in both periods. Adjusted gross margin for medical cannabis was 70%, up from 66% in the year-ago period. Several factors drove the year-over-year increase, including larger revenue contributions from higher margin markets, sustainable cost reductions, and improved efficiency in our manufacturing operations. Consumer cannabis net revenue was $8.2 million, down from $10.2 million in the year-ago period. The year-over-year decline was the expected result of our continued decision to focus on portfolio optimization and prioritization of sales to our higher-margin medical cannabis business. Adjusted gross margins for consumer cannabis was 27% compared to 16% in the year-ago period. The margin increase was due to sales of higher-margin products and cost improvements through spend efficiencies. FEVO's plant propagation net revenue increased to $13.8 million, up 32% from $10.4 million in the year-ago period. This year-over-year improvement is due to a combination of increased plant propagation capacity and product offerings. Bevo historically delivers higher revenue in the winter and spring months with about 65% to 75% of plant propagation revenue and up to 80% of EBITDA earned in the first half of the calendar year. Adjusted gross margin for plant propagation revenue was 37% compared to 25% in the year-ago period. The increase was related to favorable product mix and higher capacity at Bevo's greenhouses. Consolidated adjusted SG&A increased 17% to $36.7 million compared to the year-ago period and supported year-over-year net revenue growth of 34%. The increase compared to the prior year period relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada, and incremental costs following the acquisition of MedRelief Australia. Adjusted EBITDA increased to $16.7 million from $2.3 million last year. The meaningful improvement from the year-ago period was due to a substantial increase in gross profit resulting from higher net revenue before fair value adjustments required under IFRS. Our balance sheet remains one of the strongest in the global cannabis industry. We held $185.3 million in cash and crash equivalents as of March 31st, and our cannabis operations are completely debt-free. Our plant propagation business holds non-recourse debt that is secured by a significant fixed asset base held at Bebel. Free cash flow was positive, $2.5 million, compared to a negative free cash flow of $21.9 million in the year-ago period. The $24.4 million increase is due to higher net revenue and contribution margin, along with an increase in working capital of $17.3 million. Let me now provide some thoughts on what we expect for Q1, 2026, which ends on June 30th. First, continued strong global cannabis revenue driven by improved performance in Canadian medical, consistent performance in consumer, offset by temporary declines in some of our international markets. Taken together, global cannabis should be slightly lower compared to Q4 2025 and is expected to improve further in later quarters due to increased distribution and further innovation. Second, seasonally higher revenues for plant propagation as they complete their peak quarter in line with historical seasonal trends. Third, margins should hold strong and adjusted EBITDA is projected to be sequentially below Q4 fiscal 2025 due to lower revenue contributions from the higher margin international market. And finally, free cash flow is expected to remain positive due to continued strong performance and improved operating cash use. Thank you for your time. I'll now turn the call back to Miguel.