💸 The Tape

Aurora Keeps On Pushing In The Right Direction

Aurora Cannabis Inc. has just unveiled its second-quarter fiscal 2025 results, and they're not just blowing smoke. The Canadian cannabis heavyweight is flexing its global muscles, proving that when it comes to medical marijuana, they're the dealer to beat—legally speaking, of cours.

International revenue didn't just grow; it sprouted—up a staggering 93% to $35 million. For the first time ever, international sales surpassed Canadian medical revenue, contributing 57% to the total global medical cannabis revenue. It's as if Australia, Germany, Poland, and the UK all collectively decided to say, "We'll have what they're having."

Total net revenue blossomed to $81.1 million, marking a 29% increase from last year's $63.1 million. The medical cannabis segment stole the show with net revenue soaring 41% to $61.3 million, making up 76% of Aurora's total net revenue and a whopping 98% of adjusted gross profit.

Adjusted gross margin before fair value adjustments climbed to 54% from last year's 51%. Adjusted gross profit before those pesky fair value tweaks was $42.6 million, a 33% uptick. It's clear that Aurora isn't just growing plants; they're cultivating profits.

But not all is rosy in the garden. Consumer cannabis net revenue took a 13% dip to $10.4 million. However, this seems more like strategic pruning than withering. Aurora chose to allocate more of its premium buds to the higher-margin international medical markets rather than the lower-margin consumer market.

The Bevo plant propagation segment also had a growth spurt, increasing revenue by 21% to $8.6 million during what's typically its slowest season. Adjusted gross margin for this segment was a solid 19%, slightly down from 22% the previous year.

Operating expenses saw a bump due to higher freight and logistics costs—thank you, global expansion! The acquisition of MedReleaf Australia also added some weight to the expense report. But considering the international gains, it's a small price to pay for a larger slice of the global pie.

Net income from continuing operations was $1.7 million, up from $0.4 million in the prior year. Adjusted EBITDA soared 210% to $10.1 million. If EBITDA were a plant, it'd be an overachieving sunflower reaching for the sky.

Looking ahead to Q3 2025, Aurora expects the good times to keep rolling, especially in the global medical cannabis arena. They're bracing for the usual seasonal slowdown in the plant propagation segment, but with positive adjusted EBITDA and projected positive free cash flow, they're not losing any sleep over it.

Aurora Cannabis is proving that a focus on high-margin international medical markets can pay off handsomely. By prioritizing quality over quantity and making strategic decisions that favor profitability, they're establishing themselves as a global leader in the medical cannabis industry. Investors might find this growth—a breath of fresh air in a market that's often hazy—particularly invigorating.

📈 Dog Walkers

SLANG Worldwide Shall Be No More

SLANG Worldwide Inc. has decided to close the curtains, finalizing a wind-down plan after realizing it won't be able to repay its debts under a credit agreement maturing on November 15, 2024. In what resembles a corporate yard sale, the company plans to dispose of its Colorado assets through a receivership proceeding, declare bankruptcy in Canada, and possibly sell off its Vermont assets—pending local regulatory approval, of course.

Despite burning the midnight oil, SLANG couldn't conjure up a viable deal to restructure its debts or sell its assets in the usual fashion. After some serious number-crunching and tough talks with lenders, the difficult decision was made to wind down operations. B. Riley Farber Inc. is expected to step in as the trustee for the upcoming bankruptcy proceedings. It seems that, for SLANG, the bell has tolled.

Planet 13 Is Focusing On Experiential

Planet 13 Holdings is turning up the heat by hiring marketing veteran Jillian Austin as their National Head of Marketing Experiences. Fresh off orchestrating immersive collaborations with Netflix, Disney, Amazon, and Tesla at AREA15, Austin is set to sprinkle some of that magic on Planet 13's ambitious growth plans. Co-CEO Bob Groesbeck couldn't be more thrilled, highlighting that she'll oversee special events and celebrity partnerships across their SuperStore and 31-store network nationwide. With the new Planet 13 Lifestyles brand, they're sidestepping the usual cannabis industry hurdles to partner with global companies for sponsorships and events. Add to that their alliances with celebrity brands like Mike Tyson's Tyson 2.0 and Wiz Khalifa's Khalifa Kush, and it's clear Planet 13 isn't just blowing smoke—they're poised to light up the market both domestically and internationally. With Austin's 17 years of experience, expect their brand to reach new highs.

👾 Number Of The Day

$164.9M Total sales in Illinois in the month of October.

🗞️ The News

Aurora Cannabis Announces Fiscal 2025 Second Quarter Results

Planet 13 Increases Focus on Immersive Entertainment and Lifestyle Branding, Adds Jillian Austin as National Head of Marketing Experiences

SLANG Worldwide Announces Wind-Down Plan and Anticipated Receivership in Colorado and Bankruptcy Proceedings in Canada English

South Dakota Voters Reject Marijuana Legalization Ballot Initiative After Third Attempt From Advocates

Texas Voters In Dallas, Lockhart And Bastrop Approve Local Marijuana Decriminalization Initiatives At The Ballot

📺 YouTube

Live Coverage: Amendment 3 Cannabis Results Unfold in Florida

What we covered:

✅ Last night, Guap and Shadd will go live to provide up to date coverage on the U.S. Federal Election along with Amendment 3 results from Florida.,

Log on for our casual viewing party as we find out whether or not the cannabis industry will take off based Florida voting yes or no for adult use cannabis.

See you then!