Aurora Cannabis Inc.

Greetings and welcome to the Aurora Cannabis Inc. Fiscal Year and Fourth Quarter 2026 Results Conference Call. All participants will be in a listen-only mode, and a question-and-answer session will follow the formal presentation. This conference call is being recorded today, Thursday, June 11, 2026. I would now like to turn the conference over to your host, Kevin Nyland, Senior Director of Strategic Finance and Investor Relations. Please go ahead, Seth.

Hello, and thank you for joining us. With me is Miguel Martin, Executive Chairman and CEO, and Sonia King, CFO. Earlier this morning, we followed our fiscal year of fourth quarter 2026 financials for the period ending March 31st, 2026, and issued a news release containing both our annual and quarterly results. Our financial statements, MD&A, and news release are available on our IR website and can also be accessed via CDAR Plus and ECAR. In addition, you will find a supplemental information deck on our IR website. 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 CDAR Plus and EDGAR. Following our prepared remarks, we'll conduct a question and answer session that are covering outlets. With that, I'll turn the call over to Miguel. Please go ahead.

Thanks, Kevin. Fiscal 2026 was a strong year for Aurora. Net revenue meaningfully exceeded our outlook, adjusted even it was above the midpoint of our guided range, and we improved adjusted net income by more than $12 million. I'll walk through the key financial metrics in a moment, but it's important to underscore that our performance is driven by two strategic pillars. First, we are anchored by our leadership in medical cannabis across nationally legal markets. More than a decade ago, we anticipated that medical cannabis was poised to be the most attractive and durable segment of this industry, and we invested accordingly, building the science, infrastructure, and regulatory capabilities that allow us to serve patients with consistency, quality, and scale. Today, Aurora is one of Canada's largest global medical cannabis companies. a leading exporter of medical cannabis and a trusted supplier to international markets through our world-class GMP certified facilities. We are a market leader in Canada, Germany, Australia, and Poland, the four largest nationally legal medical cannabis markets. The majority of our manufacturing capacity is produced within our EU GMP and TGA GMP certified facilities, operating under strict international standards. and only a small group of producers, Aurora among them, hold the certifications required to ship directly into European and Australian medical markets. Our integrated model of manufacturing and distribution also drives lower production costs through higher yields, potency improvements, and ongoing operational efficiencies. Second, we remain highly disciplined in our financial management. Cost efficiencies enabled us to expand our annualized adjusted gross margin and increase adjusted EBITDA while maintaining a strong balance sheet. This discipline positions Aurora well for the future as we continue to navigate evolving industry dynamics that we will discuss in greater detail shortly. Here are some highlights from fiscal year 2026. First, net revenue rose 11% to 321 million, driven by double-digit growth in global medical cannabis. This exceeded the top end of our guided range by $8 million. Notably, about 55% of our net revenue was generated outside of Canada. Second, adjusted gross margin rose to 64%. This reflects the benefits of our investments in the value chain, science, and plant genetics, as well as operational efficiencies and capacity improvements. Third, adjusted EBITDA grew 32% year over year, reaching $54 million. And finally, we ended the year with one of the strongest balance sheets in the industry, with $165 million of cash and cash equivalents with no debt. As the industry evolves, maintaining our leadership in global medical cannabis requires even greater focus, especially as competition and pricing intensify. In the fiscal fourth quarter, we took deliberate steps to sharpen that focus by initiating our exit from certain markets within the lower-margin Canadian consumer segment, which we expect to complete by the end of September. While this transition carried one-time cash impacts during the quarter itself, it positions us to reprioritize resources, allowing us to maximize the opportunities in the more profitable global medical cannabis space. We also divested our lower margin plant propagation business by selling our controlling stake in Bevo. Together, these actions allow us to deploy capital more effectively and enhance profitability over time. In April, we acquired Safari Flower Company, an established Canadian-based EU GMP certified cannabis cultivator and manufacturer for approximately $26.5 million. This acquisition marks an important milestone as we continue to purposefully invest in expanding our EU GMP capacity to help fuel growth by supplying flower and expanding international markets. In our view, Canada remains the best place to grow high-quality premium GMP flour in the world. Safari Flour's 59,000 square foot indoor cultivation and manufacturing facility in Ontario is closely aligned with our existing cultivation and manufacturing sites, strengthening our position as one of the largest Canadian exporters. We intend to leverage our extensive plant science and operational expertise to increase the supply of high quality EU GMP manufactured flour, which further enhances our leadership in these expanding high margin and highly regulated markets. Our investments in plant science will provide us with new disease resistant cultivars that deliver higher yields per square foot and consistently achieve high potency results, driving a 40% increase in EU GMP capacity over the last five years. This enhanced supply chain that we control and manage will enable us to capture greater international market share while delivering superior value to our most respected patients worldwide. We expect Safari to deliver positive adjusted EBITDA contributions in fiscal year 2027 with incremental benefits in fiscal year 2028 and beyond. Last month, we announced the expansion of our medical cannabis portfolio across Canada, Europe, Australia, and New Zealand. reinforcing our medical-first strategy and our leadership in regulated international markets. These launches span dried flour, pre-rolls, and edibles, and are all designed to meet clear patient and prescriber demand for high-quality, consistent, and reliable products. What's important here is that these innovation launches are not one-off events. They reflect the strength of our global GMP supply network and our ability to deliver at scale. From the broadened offerings in Canada, Germany, and Poland to expanded formats in Australia and New Zealand, we're deepening our presence in the markets that matter most. Now let's discuss the dynamics of our individual medical cannabis markets. Germany was the biggest contributor to our double-digit international revenue growth in fiscal 2026 as we benefited from strong commercial execution and a well-established reputation with wholesalers, distributors, and pharmacists. While we continue to offer a broad mix of core and premium products, we've also expanded our lineup to include more value-focused options without compromising on quality. As new competitors enter the market, we are seeing increased price pressure, though so far it is largely concentrated in the value segment. Because the core and premium categories represent most of our volume, we have held our leading market share, but we continue to monitor conditions closely and have adjusted pricing where appropriate. Our diversified product portfolio, strong brand equity, and disciplined pricing strategy position us well to maintain leadership, even as competition evolves. This is best evidenced by two of our proprietary cultivars ranking number one and number three by sales this quarter. We are one of three active in-country producers of medical cannabis, carrying a production and R&D license under the German cannabis law. Because of this, we are in a strong position to serve all medical markets in Europe. To drive more EU GMP production and gain incremental share in this rapidly growing market, we undertook a major expansion at our facility in Loina, which will increase capacity, improve product quality, and drive cost efficiency. Our intention is for this site to mirror the performance of our Canadian sites based on the same industry-leading genetics and product standards. Loina's expansion will be completed in the first half of fiscal year 2027, and combined with the introduction of our proprietary cultivars, is expected to double its annual flower output. In Australia, we continue to hold a key leadership position. We are actively working to shift our sales mix towards core and premium products in response to the growing interest by both prescribing positions and patients for a variety of premium products. Australia already offers one of the broadest product format ranges outside of North America, providing us with the ability to fully leverage our diverse portfolio beyond flour and oils. In Poland, we hold the number one market share position, supported by strong commercial execution and our ability to having successfully navigated the shift from telehealth-driven prescribing to clinic-based prescribing. After Germany, Poland was the second largest contributor to our growth in international markets in fiscal year 2026. We've maintained strong relationships with regulators throughout this transition, and recent increases in the annual import limits further strengthen our growth outlook. We are confident in our ability to sustain this leadership position. Our highly skilled local team continues to engage effectively with key stakeholders, and our expanding portfolio of high-quality medical cannabis product ensures we can meet evolving patient and prescriber needs. Across other parts of Europe, we're encouraged by the potential developments in markets such as France, Ukraine, Switzerland, Spain, and Austria. Our success in entering new jurisdictions stems from the stringent and ever-increasing regulatory standards woven into our operations, coupled with the strength of our GMP-certified product portfolio, which positions us to move quickly and compliantly as new markets come online. I do want to briefly address the recent cannabis rescheduling developments in the United States. If enacted, this would represent a meaningful step towards modernizing U.S. cannabis policy and aligning it more closely with international regulatory frameworks. We are encouraged by the direction of the process and are considering reevaluating our U.S. strategy. As one of Canada's largest exporters of GMP manufactured medical cannabis, we believe that with our operational, commercial, and regulatory expertise, we are uniquely positioned to react and benefit from the opportunities of further medical cannabis market expansion at the federal level in the United States. That said, due to the current regulatory uncertainty that remains, we have nothing definitive to announce at this time and look forward to further updates from the U.S. administration in the coming months. Finally, turning to Canada, medical cannabis net revenue grew annually due to higher sales from insured patients who benefited from a broader portfolio assortment. For many years, our medical platform in Canada has been characterized by dependable market share, high barriers to entry, the regulatory expertise, investment in technology and distribution, and an unwavering commitment to science, testing, and compliance. Historically, our direct-to-patient model, which does not rely on provincial wholesalers or private retailers, has allowed Aurora to achieve sustainable gross profit margins. However, with changes to the federal reimbursement program, effective April 1st, We expect that this external regulatory change will both impact our top line and adjusted gross margins beginning in fiscal year 2027. We recognize the near-term impact of the shift in pricing and believe that we have the capabilities, financial resources, and resilience to successfully navigate this change while continuing to invest in growing international opportunities. Let me now turn the call over to Simona.