Aurora Cannabis Inc.

Greetings and welcome to Aurora Cannabis Incorporated's fiscal second quarter 2026 results conference call. All participants will be in a listen-only mode. A question and answer session will follow the formal presentation. The conference is being recorded today, Wednesday, November 5th, 2025. I would now like to turn the conference over to your host, Mona King, Chief Financial Officer of Aurora Cannabis. Please go ahead.

Hello, and thank you for joining us. With me is Miguel Martin, Executive Chairman and CEO. Earlier this morning, we filed our financials for the fiscal second quarter 2026 period, ending September 30th, 2025, and issued a news release containing these results. This news release, along with our financial statements and MD&A, is available on our IR website, as well as via CEDAR and EDGAR. We have also posted an investor presentation to our IR website for reference purposes. Our discussion today serves as a reminder that certain matters could constitute forward-looking statements that are subject to risks and uncertainties relating to our future financial or business performance. Actual results could differ materially from those anticipated in those forward-looking statements. 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 CEDAR and EDGAR. Following your prepared remarks, we'll conduct a question and answer session with our covering analysts. With that, I'll turn the call over to Miguel. Please go ahead.

Thanks, Simona. Aurora's sustained strategic focus on global medical cannabis, the highest margin segment of the industry, combined with exceptional operational execution, has once again delivered standout financial results. This performance is further reinforced by a strong cash position and the absence of cannabis business-related debt. In our view, Aurora is highly differentiated for the following reasons. First, we are Canada's largest medical cannabis company. Second, we are Canada's leading exporter of medical cannabis with world-class GMP facilities in Canada and Germany that enable us to supply global markets with high-quality premium products. Third, we are market leaders in Germany, Australia, Poland, and the UK, the four biggest nationally legal medical cannabis markets outside of Canada. And fourth, we are best positioned to gain a strong foothold in emerging markets as they develop, drawing on our proven successful commercial execution and global regulatory expertise. We will explore these themes in greater detail momentarily, but first, here are key highlights from Q2 2026 compared to Q2 2025. Net revenue rose 11% to $90 million, which included record global medical cannabis revenue, increasing 15%, and record international revenue increasing 22 percent. Consolidated adjusted gross margin improved 700 basis points to 61 percent as we benefited from higher cannabis margins due to increased international revenue. Note that we had originally set a 60 percent adjusted gross margin target for our medical cannabis business and have consistently exceeded that target over the last three years, reaching 69 percent during the second quarter. And finally, adjusted EBITDA rose more than 52% to $15 million, exceeding our top-line growth by a factor of five. Stepping back from the quarter, we have grown our net revenue over the last five years from $68 million to $90 million, with adjusted EBITDA increasing $73 million from negative $58 million to a positive $15 million. These results illustrate our continued focus on profitable and sustainable growth. Over the past decade, we've built a competitive moat that continues to fuel international revenue gains and adjusted gross margin expansion, momentum we expect to sustain well into the future. Traction in global medical cannabis is a long-term proposition, and through our investment in science, technology, and people, coupled with supporting patient access and physician engagement, we have built the foundation for continued success. The capital we've invested in our European and Australian GMP certified manufacturing and distribution facilities positions us to lead amongst the select few cannabis companies with both regulatory certifications that most markets require. 90% of our annual manufacturing capacity is within multiple GMP certified facilities and our products comply with these increasingly stringent international standards. Beyond manufacturing our own products, we are also able to distribute them compliantly and profitably around the world. We view vertical integration as a structural advantage for us, primarily for two reasons. First, we sell medical products, and consistency of supply is critical. Being out of stock or substituting cultivars due to fragmented sourcing is neither optimal for prescribers nor patients. Longevity with cultivars, quality, and reliability build confidence with both constituencies. Second, we have lower production costs than others, made possible by our focus on yield, potency improvement, and operational efficiencies. At our manufacturing site in Germany, we're doubling production as we prepare for further growth in the market and adjacent countries. This investment will allow us to significantly increase capacity while also targeting yields and operational efficiencies to more closely align that facility with our Canadian sites. The bar for recertification keeps rising, especially in Germany, and we are pleased to have recently been GMP certified for another three years. Having EU GMP production in Central Europe provides regulators and stakeholders the ability to depend on the same genetics and product consistency that we have in Canada. Let's now dive into a discussion on individual medical cannabis markets. Australia is our largest medical cannabis market outside of Canada, where we currently hold the second largest share. The Australian market offers one of the broadest ranges of product formats beyond North America, allowing us to fully leverage our diverse portfolio. Over the past two years, it has experienced rapid expansion, now representing a $1 billion market opportunity, according to the Pennington Institute. Turning to Europe, Germany is the largest market and growing, with expanding mainstream acceptance. We increased our revenue during the second quarter, supported by a broad set of core and premium products, and are gaining share based upon our strong reputation amongst wholesalers, distributors, and pharmacists. Imports, as reported by the German regulators, has increased rapidly, from 8 metric tons in 2018 to 72 metric tons in 2024, and is currently on track to more than double in 2025. The new German government is exploring changes to the de-scheduling of cannabis first enacted about 18 months ago with the potential for modifications to the current telehealth framework. We support reasonable access to high-quality medical cannabis and await further details of the proposal. We are confident in our ability to adapt to potential changes in the telehealth framework, drawing on our successful experience in Poland, However, modifications to home delivery regulations could present greater challenges, particularly for patients in rural areas. Ultimately, we believe that established operators with a proven track record like Aurora will be able to successfully navigate any potential regulatory changes. Germany is also carefully observed across Europe, and its potential impact on neighbor European countries is significant. Let's now discuss Poland. where we are already the established leader in advancing medical cannabis. This market size has more than doubled from a little over two tons annually in 2023 to approximately five tons in 2025. Further growth is expected following the increase in annual import limits. We generated robust revenue growth during the second quarter as we benefited from our launch of two proprietary cultivars a few months ago. To our knowledge, these are the highest potency medical cannabis products available in the country. We look forward to continuing to deliver a sustained pipeline of innovative, high-quality, and premium products for the Polish market, all manufactured in our GMP-certified Canadian facilities. Poland's regulatory standards include a lengthy registration process, which has concentrated 80% to 90% of the market share in four cannabis companies, including Aurora. We have a dedicated commercial and regulatory team on the ground there focused on executing on our growth strategies while also maintaining solid relationships with the regulatory authorities, which has enabled us to navigate the shift in prescriptions from telehealth platforms to clinics. Our experience and expertise in the market have benefited us compared to others, as we were better prepared to succeed in this evolving marketplace. Success in both Germany and Poland will influence surrounding countries, and as medical cannabis succeeds, more countries will establish their own frameworks. Our facility in Lorna, Germany, and our regulator engagement across the EU represent differentiated advantages for us to capitalize on these opportunities. The UK is an exciting and growing market where we are expanding our distribution and clinic relationships through new partnerships and successfully launched proprietary cultivar-specific inhalable cannabis extracts, also known as vapes, that are performing well. The UK permits products other than dried flower and oil, which has enabled us to expand the variety of high-quality medical cannabis available. There is also a strong subset of prescribing physicians and lighter competition in the premium and super premium segments where we operate. Let me now talk about other opportunities across Europe where there is already broad support for legalization of medical cannabis. In Spain, applications are very restricted but slowly opening up, which we view positively. In France, we have partnered with the government since the start of its tender. A permanent medical framework is expected to take shape in 2026, and we stand ready to serve patients from day one. Both Switzerland and Austria are now online, while Turkey and Ukraine are showing positive developments for medical cannabis as well. Interestingly, more than half of EU member countries are integrating medical cannabis into healthcare, including reimbursement, so the momentum is promising. These developments are leading towards greater international alignment on regulatory approaches, an obvious advantage for compliant EU GMP certified companies like Aurora. Physicians and patients increasingly recognize and appreciate our medicinal quality, and our Loina facility in Germany has provided us with the opportunity to host regulatory and governmental visits. Turning to Canada, we are number one in medical cannabis and the largest provider to Canadian veterans. Net revenue grew year over year as we benefited from higher revenue from both insurance-covered and self-paying patients. While the overall market is relatively steady, we have grown market share as we have benefited from investments in world-class talent, facilities, and experience. Our priorities remain enhancing our online marketplace, product innovation, and increased product assortment, operational excellence, and, of course, ensuring a high-quality patient experience, especially for our veteran communities. To sum up, we are pleased to have reported yet another great quarter at Aurora that illustrates our steadfast execution of our strategic priorities. We feel confident about our future because we believe we are ideally positioned for profitable growth as the leader in global medical cannabis. Let me now turn the call over to Simona for a detailed financial overview of fiscal Q2, followed by a discussion of our fiscal Q3 outlook.