Aurora Cannabis Inc. ACB stock surged more than 45% on Wednesday morning following the release of its third-quarter fiscal 2025 earnings, which revealed a substantial increase in revenue and profitability. The company reported total net revenue of CA$88.2 million ($61.74 million), up 37% year-over-year, driven largely by a 51% jump in its global medical cannabis business.

“This quarter was record-breaking for Aurora, driven by all-time highs in global medical net revenue, net income, adjusted EBITDA, and free cash flow,” said Miguel Martin, Aurora's executive chairman and CEO. The company also posted a net income of CA$31.2 million, a 282% year-over-year increase, and an adjusted EBITDA of CA$23.1 million, up 316%.

Cannabis Stocks Rally In Sympathy?

The strong earnings report triggered a broader rally in the cannabis sector, with several companies experiencing notable gains:

• Canopy Growth Corp. CGC jumped over 23%.
• Tilray Brands Inc. TLRY climbed more than 10%.
• Cronos Group Inc. CRON rose approximately 8%.

Investors appear to be reacting positively to Aurora's performance, particularly its growing international medical cannabis revenues and improved profitability.

Do Trade Tensions Play A Role?

Beyond earnings, another factor likely contributing to the sector-wide rally is the 30-day delay in U.S.-Canada tariffs, a move that has eased investor concerns. The Trump administration postponed the imposition of 25% tariffs on Canadian imports, providing a window for further trade negotiations. While cannabis wasn't explicitly mentioned in the tariff discussions, the broader economic impact on trade between the countries may be influencing sentiment toward Canadian cannabis companies.

As Aurora continues to expand its medical cannabis footprint globally, investors are closely watching whether the company can sustain its momentum in upcoming quarters.

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