Everyone, and thank you for joining the 27th Annual H.C. Wainwright Global Investment Conference 2025. My name is Daniel Smith, and I'm an H.C. Wainwright Equity Research Associate. With that said, let me introduce our presenter for the session. I'd like to welcome Simona King, CFO of Aurora Cannabis Inc, who is developing a leading global cannabis platform. Aurora trades on the Nasdaq under the ticker ACB. Simona, the floor is yours.
Great. Thank you, Daniel. Hello everyone. My name is Simona King, and I'm the CFO for Aurora Cannabis. It is great to be presenting at the H.C. Wainwright 27th Annual Global Investment Conference, and I look forward to meeting with many of you over the course of the conference. Our presentation today is going to provide you with an overview of our company and walk you through our key financial metrics to highlight why we believe that Aurora Cannabis is best positioned to win in the global cannabis industry. Firstly, for those of you who are not familiar with Aurora Cannabis, we are a Canadian-based leading global medical cannabis company with industry-leading positions in Canada, Europe, Australia, and New Zealand. We are the largest Canadian exporter of high-quality medical cannabis with world-class manufacturing facilities in Canada and Germany.
It is these world-class manufacturing facilities which give us the flexibility and consistency of supply to successfully compete in the rapidly expanding high-margin international medical cannabis markets. Fiscal 2025 was a record-setting year for Aurora, and based on our first quarter results for fiscal 2026, we think Aurora's future is incredibly bright. I say that based on the following important points. First, we made a deliberate strategic shift several years ago to prioritize a medical cannabis-first approach, channeling our resources toward high-margin opportunities outside of North America. This strategy is working, and our proven commitment to medical cannabis and our strong execution in seizing global opportunities resulted in excellent strategic and financial performance in fiscal 2025. Second, global access to medical cannabis continues to expand, supporting a strong growth trend that directly benefits Aurora.
We see the potential for this market to surpass $5 billion in the coming years, and we are well positioned to play a significant role in that growth, and we will continue to concentrate primarily on Europe and Australia, which are both vastly under-penetrated. Third, thanks to our early mover advantage and strong operational capabilities, we maintain a meaningful edge over many of our peers. These strengths uniquely position us to lead in both established and emerging markets, and finally, our disciplined focus on profitable business segments, combined with a strong balance sheet and our financial flexibility, enables us to act with agility and positions us to seize opportunities, drive strong returns, and create lasting shareholder value. Fiscal 2025 was a record-setting year in global medical net revenue, adjusted EBITDA, and positive free cash flow.
Our performance is anchored by a strong and flexible balance sheet, exemplified by a sizable cash balance of CAD 186 million and a debt-free cannabis business, which we believe that's a significant advantage relative to the industry, and here are some financial key highlights from fiscal 2025. First, net revenue rose 27% to a record CAD 343 million, which included global medical cannabis revenue increasing 39%. International revenue generation eclipsed a strong contribution from Canadian medical and comprised over half of total global medical cannabis, up from 41% in fiscal 2024. Second, adjusted gross margin improved to 55% compared to 49%, as we benefited from both higher cannabis and plant propagation margins, and finally, we generated record adjusted EBITDA of almost CAD 50 million, with record positive free cash flow of approximately CAD 10 million.
Aurora is the leader of global medical cannabis, the industry's highest margin segment, and we are best positioned to deliver high-quality products to patients worldwide, with over a decade of experience in international medical cannabis sales. Our products meet and exceed the highest international standards through our unparalleled scientific knowledge, genetics, breeding, and regulatory expertise. With leading market positions in Canada, Australia, Germany, Poland, and the U.K., we can also quickly capitalize on new medical cannabis opportunities as they emerge in other markets. As part of our global footprint, we have dedicated local teams in Germany and Australia to ensure seamless integration with surrounding regional markets, alongside a GMP-certified cultivation and manufacturing facility in Leuna, Germany. We are the largest Canadian exporter of high-quality medical cannabis, with multiple GMP-certified facilities representing 90% of our annual manufacturing capacity.
It is these world-class manufacturing facilities which give us the flexibility and consistency of supply to successfully compete in the rapidly expanding high-margin international medical cannabis market, which we believe could be worth more than $5 billion in the coming years. Aurora has a diversified global business model that focuses on defensible, stable, high-margin segments, which is further supported by our investments in science and innovation. Aurora's differentiation is also reflected through our lower production costs, made possible by our focus on yield improvements and operational efficiencies. Additionally, we have invested in new cultivation technology to meet our product demand, while establishing strong third-party partnerships that enable us to optimize our production planning to meet demand. Our ability to generate top-tier margins and pricing is a function of selling high-quality premium products.
Portfolio mix is also favorably impacting margins as we are selling more medical cannabis than ever before, which is further benefited by our continued focus on expansion into key high-margin international markets. International medical cannabis net revenue increased 89% to CAD 137 million in 2025, driven by leadership positions in Germany, Poland, the U.K., Australia, and New Zealand. We continue to hold the number one market share in Canadian medical, with 4% year-over-year growth resulting in net revenue of CAD 107 million in 2025. Our total cannabis net revenue is further supported by our Canadian consumer business that contributed CAD 40 million in 2025, resulting in a 28% annual growth in net cannabis revenue. Our cannabis business is also supported by Bevo Farms, our non-cannabis plant propagation business that generated record revenue last year of CAD 54 million.
This business has a track record of profitable cash flow positive operations, with plans for future growth in the controlled environment agricultural space. Fiscal 2025 was a record-setting year for the company, and we have carried that momentum into fiscal 2026, further demonstrating the effectiveness of our leading global medical cannabis platform. In our first quarter in fiscal 2026, which we reported on in August, we saw quarterly global medical cannabis net revenue reach CAD 64.8 million, up 37% compared to the prior year period. This increased revenue is primarily attributable to increasing sales in Canada, Germany, Poland, and the U.K. Adjusted gross margins for medical cannabis consistently meet or exceed 60% target in all of Aurora's key profitable international markets, reaching 69% in Q1.
These strong results were further supported by quarterly adjusted EBITDA more than doubling to CAD 11 million, with positive free cash flow of CAD 9 million, up 49% on the prior year period. So, as the largest global medical cannabis company in nationally legal markets, Aurora has a diversified and growing footprint in the high-margin medical cannabis markets across the globe. We delivered consolidated net revenue of CAD 343 million in fiscal year 2025, combined with a record CAD 50 million in annual adjusted EBITDA and an annual free cash flow positive of CAD 10 million. Our industry leadership in global medical cannabis and our high level of operational execution have positioned Aurora for sustainable, profitable growth in fiscal year 2026 and beyond. Global medical cannabis is estimated to become a multi-billion-dollar global market, so there is considerably more room to grow, particularly in Europe and Australia.
We have built strong competitive barriers around the world through our scientific expertise, proven ability to navigate complex international regulatory frameworks, while continuing to innovate and expand our product portfolio. These attributes set us apart and are delivering consistent revenue generation, positive adjusted EBITDA, and positive free cash flow. So, thank you for attending this presentation, and I look forward to meeting you to answer any questions you may have.