Aurora Cannabis Inc (ACB) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Global Medical Cannabis Revenue: Rose 37% to $64.8 million.
International Revenue Growth: Increased 85%.
Adjusted Gross Margin: Improved by 1,000 basis points to 52%.
Adjusted EBITDA: More than doubled to $10.8 million, a 209% increase.
Free Cash Flow: Positive $9.2 million, a 42% increase from the previous year.
Cash and Cash Equivalents: $186 million with no cannabis business debt.
Consumer Cannabis Net Revenue: Decreased to $7.9 million from $11.5 million.
Bevo's Plant Propagation Revenue: Increased to $23.9 million, up 4%.
Consolidated Adjusted SG&A: Increased 19% to $37.4 million.
Warning! GuruFocus has detected 5 Warning Signs with ACB.
Release Date: August 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Aurora Cannabis Inc (NASDAQ:ACB) reported a 17% increase in net revenue to $98 million, with global medical cannabis revenue rising by 37% and international revenue growing by 85%.
The company achieved an adjusted gross margin improvement of 1,000 basis points to 52%, benefiting from higher cannabis margins.
Aurora Cannabis Inc (NASDAQ:ACB) generated positive free cash flow of $9 million and reported an adjusted EBITDA more than doubling to $11 million.
The company holds a strong cash position with $186 million in cash and cash equivalents and operates its cannabis business debt-free.
Aurora Cannabis Inc (NASDAQ:ACB) is a leader in global medical cannabis, with significant market positions in Canada, Australia, Germany, Poland, and the UK, and is well-positioned to capitalize on new market opportunities.
Negative Points
Consumer cannabis net revenue decreased to $7.9 million from $11.5 million, reflecting a strategic focus on higher-margin medical cannabis sales.
Adjusted SG&A expenses increased by 19% to $37.4 million, driven by higher selling and distribution costs and incremental costs from the acquisition of MedReleaf Australia.
Bevo's plant propagation net revenue saw a decrease in adjusted gross margin from 18% to 6% due to inventory write-offs and surplus crops not sold.
The company faces potential regulatory changes in Germany, which could impact its operations, although it remains confident in navigating these changes.
Aurora Cannabis Inc (NASDAQ:ACB) anticipates significant cash outflows in Q2 2026, which may impact free cash flow results despite expectations of positive annual free cash flow.
Q & A Highlights
Q: Can you provide more details on the higher SG&A expenses this quarter and how they might trend going forward? A: Miguel Martin, CEO, explained that the increase in SG&A is partly due to variable costs associated with higher revenue, such as shipping and logistics. Additionally, costs related to the integration of MedReleaf Australia have contributed. Simona King, CFO, added that these levels are appropriate, but costs may rise with increased revenue due to variable expenses.
Q: With increased competition in Europe, how do you see the margin structure evolving? A: Miguel Martin, CEO, noted that while competition is increasing, Aurora's established presence and certifications in key markets like Poland, the UK, and Germany provide a competitive edge. Each market has unique challenges, but Aurora's infrastructure and strategic positioning allow it to maintain strong margins.
Q: Regarding the Bevo liabilities moving to current due to a covenant breach, how will this be resolved? A: Simona King, CFO, clarified that this is an accounting treatment related to Bevo's loan facilities. The issue is being addressed, and they expect it to be resolved quickly without impacting Aurora's audit process.
Q: Can you provide guidance on adjusted EBITDA for Q2 2026? A: Simona King, CFO, stated that they expect adjusted EBITDA to remain positive and grow compared to Q1 2026.
Q: What potential regulatory changes do you anticipate in Germany, and how might they impact Aurora? A: Miguel Martin, CEO, mentioned that potential regulatory changes in Germany could be announced by the end of the year. While some changes may occur, Aurora's experience and infrastructure position it well to navigate any new regulations, similar to how they managed changes in Poland.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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– Vidofludimus Calcium Substantially Reduced 24-Week Confirmed Disability Worsening in Phase 2 CALLIPER Trial in Overall Progressive Multiple Sclerosis Study Population and Across Subtypes, Reinforcing the Drug's Neuroprotective Potential and Ability to Slow Disease Progression – – Completed Enrollment for Both Phase 3 ENSURE Trials of Vidofludimus Calcium in Relapsing Multiple Sclerosis; Top-Line Data Expected by End of 2026 – – New Long-Term Open-Label Extension Data From Phase 2 EMPhASIS Trial in Relapsing-Remitting Multiple Sclerosis Showed High Rates of Patients Remaining Free of 12-Week and 24-Week Confirmed Disability Worsening – – Strengthened Balance Sheet with Two Financings Totaling $70.1 Million in Gross Proceeds – NEW YORK, Aug. 7, 2025 /PRNewswire/ -- Immunic, Inc. (Nasdaq: IMUX), a biotechnology company developing a clinical pipeline of orally administered, small molecule therapies for chronic inflammatory and autoimmune diseases, today announced financial results for the second quarter and six months ended June 30, 2025, and provided a corporate update. "During the second quarter and more recently, we have made substantial clinical progress in advancing our potentially transformative lead asset, vidofludimus calcium (IMU-838), an orally available nuclear receptor-related 1 (Nurr1) activator," stated Daniel Vitt, Ph.D., Chief Executive Officer of Immunic. "Most notable was the on-time completion of enrollment of our twin phase 3 ENSURE trials, bringing us one step closer to delivering a novel treatment option for people living with relapsing multiple sclerosis (RMS). The unique neuroprotective effects observed to date also support the phase 3 ENSURE trials, where confirmed disability worsening will be analyzed. Top-line data from both trials, expected by the end of 2026, will allow for a synchronized readout and a pooled analysis of this clinical endpoint. The growing body of evidence we have amassed continues to strengthen our confidence that, if approved, vidofludimus calcium, with a distinct combination of neuroprotective, anti-inflammatory and anti-viral properties observed, as well as a well-established safety and tolerability profile, has the potential to emerge as a differentiated oral therapy that addresses the complex pathophysiology of multiple sclerosis (MS)." "We also reported strong results from our phase 2 CALLIPER trial in progressive multiple sclerosis (PMS), showing a 23.8% reduction in time to 24-week confirmed disability worsening (24wCDW) in the overall study population compared to placebo. In the high unmet need subgroup of primary progressive MS (PPMS), this effect was 31.3%, exceeding outcomes observed in previous PPMS trials. 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Management noted that, among the continued stream of positive data for vidofludimus calcium was the new readout from the long-term open-label extension (OLE) phase of the phase 2 EMPhASIS trial in relapsing-remitting multiple sclerosis (RRMS), which further reinforced the strong efficacy signals previously observed in this trial. Data showed that at week 144, 92.3% of patients remained free of 12-week confirmed disability worsening (12wCDW), and 92.7% were free of 24wCDW. This, and previously announced results across the MS program—including the top-line EMPhASIS and CALLIPER data—further support the potential of vidofludimus calcium to slow disease progression. These findings also continue to highlight its neuroprotective effects, which are believed to be mediated through activation of the Nurr1 target. Based on the strength of the data, a total of five abstracts have been selected for presentation at the 41st Congress of the European Committee for Treatment and Research in Multiple Sclerosis (ECTRIMS) in September, including one oral presentation and one late-breaking poster – a major achievement for the company. Dr. Vitt added, "Beyond vidofludimus calcium, compelling clinical and preclinical data for IMU-856, our orally available and systemically acting small molecule modulator that targets sirtuin 6 (SIRT6), indicates the drug's strong promise as a potential novel therapeutic for gastrointestinal disorders. Based on encouraging data available to date, we are preparing for further clinical testing while exploring potential financing, licensing, or partnership opportunities to advance the program. Additionally, IMU-856 has shown potential as an oral treatment option for weight management. More specifically, a post hoc analysis of our phase 1b clinical trial results showed up to a 250% increase in GLP-1 levels versus placebo in fasting celiac disease patients, mimicking natural post-meal responses and suggesting that IMU-856 may activate enteroendocrine pathways physiologically, offering a broader mechanism than current injectable incretin mimetics. If validated in future trials, this once-daily oral small molecule could become a convenient treatment alternative for weight management." Second Quarter 2025 and Subsequent Highlights April 2025: Announced positive data from the phase 2 CALLIPER trial of vidofludimus calcium in patients with PMS. The results demonstrated reduced relative risks of 24wCDW events in the overall study population as well as PMS subtypes compared to placebo. Notably, the drug showed a consistent reduction of disability worsening in subpopulations without inflammatory lesions at baseline and reduced 24wCDW in patients without gadolinium-enhancing lesions at baseline. Vidofludimus calcium substantially reduced the annualized rate of thalamic brain volume loss and the volume of new/enlarging T2 lesions compared to placebo. No new safety signals were identified, confirming the favorable safety and tolerability profile already observed in previous clinical trials. April 2025: Announced a $5.1 million registered direct offering led by Aberdeen Investments. May 2025: Announced an oversubscribed $65 million underwritten public offering. The company may receive up to an aggregate of $130 million of additional proceeds if the Series A Warrants and Series B Warrants are exercised in full for cash. The financing was co-led by BVF Partners and Coastlands Capital, and included participation from Aberdeen Investments, Adage Capital Partners LP, Janus Henderson Investors, and other institutional investors. June 2025: Announced additional data underlining the positive outcome of the phase 2 CALLIPER trial of vidofludimus calcium in patients with PMS. The data for the secondary endpoint of time to 24wCDW, based on the Expanded Disability Status Scale (EDSS), further reinforced the neuroprotective potential of vidofludimus calcium. Similarly, consistent with the top-line data, further analyses of subpopulations – both with and without inflammatory gadolinium-enhanced lesion activity at baseline – continued to demonstrate promising results. June 2025: Announced the on-time completion of enrollment for both phase 3 ENSURE trials of vidofludimus calcium in patients with RMS. In total, 1,121 patients in ENSURE-1 and 1,100 patients in ENSURE-2 have been randomized at more than 100 sites in 15 countries. June 2025: Reported new, long-term OLE data from the phase 2 EMPhASIS trial of vidofludimus calcium in patients with RRMS. At week 144, 92.3% of patients remained free of 12wCDW and 92.7% remaining free of 24wCDW. Vidofludimus calcium continued to demonstrate a favorable safety and tolerability profile with long-term data available up to 5.5 years. Anticipated Clinical Milestones Vidofludimus calcium in MS: Top-line data from the twin phase 3 ENSURE-1 and ENSURE-2 trials is expected by the end of 2026. IMU-856: The company is preparing for further clinical testing of IMU-856, contingent on financing, licensing or partnering. Financial and Operating Results Research and Development (R&D) Expenses were $21.4 million for the three months ended June 30, 2025, as compared to $18.3 million for the three months ended June 30, 2024. The $3.0 million increase reflects (i) a $2.6 million increase in external development costs related to the vidofludimus calcium programs and (ii) a $0.6 million increase in personnel expenses. The increase was offset by a $0.2 million decrease related costs across numerous the six months ended June 30, 2025, R&D expenses were $42.9 million, as compared to $37.1 million for the six months ended June 30, 2024. The $5.8 million increase reflects a $7.3 million increase in external development costs related to the vidofludimus calcium programs. The increase was offset by a $1.5 million decrease in external development costs related to IMU-856 due to the completion of the phase 1b clinical trial in celiac disease patients in 2024. General and Administrative (G&A) Expenses were $5.7 million for the three months ended June 30, 2025, as compared to $4.5 million for the same period ended June 30, 2024. 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The Change in Fair Value of the Tranche Rights of $4.8 million in the six months ended June 30, 2024, was a non-cash charge related to the change in value of the tranche rights associated with the January 2024 Financing from January 8, 2024 until March 4, 2024. These tranches were initially classified as a liability because the company did not have a sufficient number of authorized shares to issue in tranche 2 and tranche 3 of the offering. But these tranche rights were reclassified to equity on March 4, 2024, when stockholders approved the increase in authorized shares from 130 million to 500 million shares of common stock and therefore the tranche 2 and tranche 3 rights needed to be revalued to fair value upon the reclass to equity. There was no change in fair value of the tranche rights recognized in the six months ended June 30, 2025. 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About Immunic, Inc. (Nasdaq: IMUX) is a biotechnology company developing a clinical pipeline of orally administered, small molecule therapies for chronic inflammatory and autoimmune diseases. The company's lead development program, vidofludimus calcium (IMU-838), is currently in phase 3 clinical trials for the treatment of relapsing multiple sclerosis, for which top-line data is expected to be available by the end of 2026. It has already shown therapeutic activity in phase 2 clinical trials in patients suffering from relapsing-remitting multiple sclerosis and progressive multiple sclerosis. Vidofludimus calcium combines neuroprotective effects, through its mechanism as a first-in-class nuclear receptor related 1 (Nurr1) activator, with additional anti-inflammatory and anti-viral effects, by selectively inhibiting the enzyme dihydroorotate dehydrogenase (DHODH). IMU-856, which targets the protein Sirtuin 6 (SIRT6), is intended to restore intestinal barrier function and regenerate bowel epithelium, which could potentially be applicable in numerous gastrointestinal diseases, such as celiac disease as well as inflammatory bowel disease, Graft-versus-Host-Disease and weight management. IMU-381, which currently is in preclinical testing, is a next generation molecule being developed to specifically address the needs of gastrointestinal diseases. For further information, please visit: Cautionary Statement Regarding Forward-Looking StatementsThis press release contains "forward-looking statements" that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, sufficiency of cash and cash runway, expected timing, development and results of clinical trials, prospects, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements relating to Immunic's development programs and the targeted diseases; the potential for Immunic's development programs to safely and effectively target diseases; preclinical and clinical data for Immunic's development programs; the feasibility of advancing vidofludimus calcium to a confirmatory phase 3 clinical trial in progressive multiple sclerosis; the timing of current and future clinical trials and anticipated clinical milestones; the nature, strategy and focus of the company and further updates with respect thereto; and the development and commercial potential of any product candidates of the company. Immunic may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Such statements are based on management's current expectations and involve substantial risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, increasing inflation, tariffs and macroeconomics trends, impacts of the Ukraine – Russia conflict and the conflict in the Middle East on planned and ongoing clinical trials, risks and uncertainties associated with the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient financial and other resources to meet business objectives and operational requirements, and the ability to raise sufficient capital to continue as a going concern, the fact that the results of earlier preclinical studies and clinical trials may not be predictive of future clinical trial results, any changes to the size of the target markets for the company's products or product candidates, the protection and market exclusivity provided by Immunic's intellectual property, risks related to the drug development and the regulatory approval process and the impact of competitive products and technological changes. A further list and descriptions of these risks, uncertainties and other factors can be found in the section captioned "Risk Factors," in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 31, 2025, and in the company's subsequent filings with the SEC. Copies of these filings are available online at or Any forward-looking statement made in this release speaks only as of the date of this release. Immunic disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances that exist after the date on which they were made. Immunic expressly disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this press release. Contact Information Immunic, BreuVice President Investor Relations and Communications+49 89 2080 477 US IR ContactRx Communications GroupPaula Schwartz+1 917 633 7790immunic@ US Media ContactKCSA Strategic CommunicationsCaitlin Kasunich+1 212 896 1241ckasunich@ Financials Immunic, Consolidated Statements of Operations(In thousands, except share and per share amounts)(Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2025202420252024 Operating expenses: Research and development$ 21,369$ 18,323$ 42,902$ 37,059 General and administrative5,7144,49111,0069,636 Total operating expenses27,08322,81453,90846,695 Loss from operations(27,083)(22,814)(53,908)(46,695) Other income (expense): Interest income2419984242,185 Change in fair value of the tranche rights———(4,796) Other income (expense), net224361,191(1,658) Total other income (expense)2631,4341,615(4,269) Net loss$ (26,820)$ (21,380)$ (52,293)$ (50,964)Net loss per share, basic and diluted$ (0.20)$ (0.21)$ (0.45)$ (0.51)Weighted-average common shares outstanding, basic and diluted132,175,202101,272,580116,844,98599,607,158 Immunic, Consolidated Balance Sheets(In thousands, except share and per share amounts)(Unaudited)June 30, 2025December 31, 2024(Unaudited) AssetsCurrent assets:Cash and cash equivalents $ 55,310$ 35,668 Other current assets and prepaid expenses 4,5323,664 Total current assets 59,84239,332 Property and equipment, net 612545 Right-of-use assets 975991 Total assets $ 61,429$ 40,868 Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 7,893$ 7,846 Accrued expenses 18,11312,913 Other current liabilities 1,3071,416 Total current liabilities 27,31322,175 Long term liabilitiesOperating lease liabilities 205264 Total long-term liabilities 205264 Total liabilities 27,51822,439 Commitments and contingenciesStockholders' equity:Preferred stock, $0.0001 par value; 20,000,000 shares authorized and no shares issued or outstanding as of June 30, 2025 and December 31, 2024 —— Common stock, $0.0001 par value; 500,000,000 shares authorized as of June 30, 2025 and December 31, 2024, and 98,650,590 and 90,150,869 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 98 Additional paid-in capital 595,069525,611 Accumulated other comprehensive income 2,5254,209 Accumulated deficit (563,692)(511,399) Total stockholders' equity 33,91118,429 Total liabilities and stockholders' equity $ 61,429$ 40,868 View original content to download multimedia: SOURCE Immunic, Inc. 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