💸 The Tape

Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) just delivered a blockbuster third quarter for fiscal 2025, leaving many in the sector wondering if they stashed away a secret growth formula. According to Executive Chairman and CEO Miguel Martin, Aurora is riding high on record global medical net revenue, net income, adjusted EBITDA, and free cash flow—metrics that traditional businesses (and some competitors) might be eyeing with envy.

Leading the charge was the company’s global medical cannabis unit, which grew net revenue by a hefty 51% year-over-year, hitting $68.1 million and accounting for a whopping 77% of Aurora’s total Q3 net revenue. You read that right: the medical side is bringing in the lion’s share of the bacon. Even more impressive, the international market soared 112% and now comprises 60% of overall medical cannabis net revenue. Meanwhile, consumer cannabis clocked in at $9.9 million, down from $11.6 million the previous year, reflecting Aurora’s clear preference for higher-margin ventures.

But it’s not all buds and no blooms. Aurora’s plant propagation segment, propelled by Bevo, contributed $8.9 million in net revenue, up 22% from the previous year, thanks to (you guessed it) organic growth and expanded offerings. That segment’s 40% adjusted gross margin before fair value adjustments in Q3 dwarfed last year’s 28%.

If you’re looking for the bottom line, the net income from continuing operations landed at $31.2 million, a nice swing from a $17.1 million net loss in the prior year period. The key drivers included an eye-popping $42.4 million unrealized gain on changes in fair value of biological assets (translation: their plants are worth more on paper) and disciplined cost management. Adjusted EBITDA soared 316% to $23.1 million, giving Aurora a certain swagger heading into the final quarter of fiscal 2025.

Looking ahead, Aurora expects continued expansion in its medical cannabis business, historically higher revenue in plant propagation, stable margins, and positive adjusted EBITDA. They’re also aiming for modestly positive free cash flow on the back of stronger revenue and disciplined spending. On the capital front, Aurora filed a preliminary base shelf prospectus for up to U.S.$250 million in additional securities—potentially fueling future moves.

📈 Dog Walkers

IIPR To Report 2/19

Lock your calendars: Innovative Industrial Properties (NYSE: IIPR), the cannabis-focused REIT, is unveiling its Q4 2024 financials on February 19, 2025, after market close. Management, including Executive Chairman Alan Gold and CEO Paul Smithers, will host an investor call at 9 a.m. PT the next day. Access the live webcast via IIP’s Investor Relations page, or dial in. If you oversleep, an archived replay and telephone playback will be available for 90 days, with phone playback until February 27, 2025.

This is going to be a very interesting call to listen to in light of the Pharmacann situation.

AGFY Adds To Board

Agrify Corporation (Nasdaq: AGFY) welcomes music impresario Peter Shapiro and finance guru Sanjay Tolia to its Board on January 31, 2025, while Richard Drexler departs. Chairman and Interim CEO Ben Kovler deems this a “critical time” for the industry, championing THC’s future in America. Shapiro, renowned for legendary venues like Brooklyn Bowl, sees cannabis as the next frontier for concert-goers. Tolia, co-founder of Marine Layer Advisors and Bengal Capital, brings a decade of cannabis finance experience. Both new directors promise to supercharge Agrify’s presence in the thriving alternative consumption market. With expansions in beverage lines and ambitious global wellness strategies, Agrify aims to set new standards for consumer experience, education, and quality—just in time for the industry’s next big act.

Hawaii Is Rolling

Investors eyeing tropical cannabis expansions might want to keep their seats upright: Hawaii just moved one step closer to adult-use legalization after two House committees approved Rep. David Tarnas’s sweeping measure. The “one-plant approach” merges medical, adult-use, and hemp under a single Hawaii Cannabis and Hemp Office, restricting out-of-state giants via a five-year residency requirement. If fully enacted, grown-ups 21 and older could enjoy an ounce of aloha—legally—by 2026. While local businesses may cheer, public agencies and nearly 300 pages of testimony have questioned timelines and regulations. A companion bill in the Senate, courtesy of Sen. Joy San Buenaventura, adds to the momentum. Will 2025 see a final pass or another legislative stall-out—stay tuned. Time’s ticking.

🗞️ The News

Bipartisan Senators Address Marijuana Industry Banking Challenges At Hearing Despite Chairman’s Focus On ‘Federally Legal’ Businesses

Opioid Prescriptions Drop In States That Legalize Marijuana, Federally Funded Study Shows, Suggesting Some Pain Patients Prefer Cannabis

Is women’s health the key to reviving the cannabis industry?

U.S. cannabis shoppers face market flush with illegal weed

📺 YouTube

Cannabis Raised Multiple Times During Senate Banking Hearing Discussions | Trade to Black

What we covered:

✅ On our latest Trade To Black Podcast, Saphira Galoob, Executive Director of the United States Cannabis Roundtable, will join us to discuss the latest news from Washington, D.C., regarding the Senate Banking Hearing, where she was present live today.

We'll break down the biggest takeaways and what cannabis investors should interpret from today's hearing, knowing that cannabis was mentioned multiple times.

Wednesday's hearing could signal potential policy changes, including new rules or legislation that establish a national standard for banking services. Notably, cannabis was a recurring topic, brought up multiple times by Senator Elizabeth Warren and Senator Thom Tillis.

Plus Brady Cobb, CEO of Sunburn Cannabis, will join us to provide an update on what he's hearing from Washington, D.C., regarding both the rescheduling of cannabis and SAFE Banking under the Trump administration. We'll also discuss the adult-use cannabis landscape in Florida and why it's gaining momentum faster than most people expect.

Additionally, we'll cover breaking news out of Pennsylvania, where Governor Josh Shapiro recently reiterated his call for legalizing adult-use cannabis, emphasizing that the state is losing economic opportunities while neighboring jurisdictions advance their own regulated cannabis markets.