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DATE

Wednesday, Aug. 5, 2026 at 8:00 a.m. ET

CALL PARTICIPANTS

• Executive Chairman and Chief Executive Officer - Miguel Martin
• Chief Financial Officer - Simona King
• Director of Strategic Finance and Investor Relations - Kevin Niland

TAKEAWAYS

• Net Revenue -- $67.6 million, representing a balance between 17% growth in international medical cannabis and declines in the Canadian consumer segment.
• International Medical Cannabis Net Revenue -- $43 million, driven by expansion and demand in the German market.
• Revenue Composition -- 64% of total net revenue was generated outside of Canada, an increase from 50% in the prior year.
• Adjusted Gross Margin -- 58%, finishing at the high end of the annual guidance range due to strong international contributions.
• Adjusted SG&A -- $35.1 million, a reduction from $36.1 million in the same period last year driven by lower general and administrative spending.
• Adjusted EBITDA -- $3.4 million, compared to $10.8 million in the prior year, reflecting regulatory impacts in the Canadian market.
• Adjusted Net Income -- $3.8 million, down from $6.6 million in the prior-year period.
• Cash Balance -- Nearly $150 million in cash, cash equivalents, and short-term investments as of June 30, 2026.
• Debt Position -- Zero debt maintained on the balance sheet to provide operational and strategic flexibility.
• Free Cash Flow -- A use of $5.8 million, compared to a $6.8 million generation in the prior-year period.
• Canadian Medical Reimbursement -- A 30% reduction in the Veterans Affairs Canada (VAC) reimbursement rate that took effect on April 1.
• Genetic Yield Improvements -- Up to 40% increase in yields per plant achieved through the company's plant science and breeding programs.
• Safari Flower Company Facility -- 59,000 square feet of EU GMP certified indoor manufacturing capacity acquired to support global demand.
• Leuna Production Capacity -- Investments nearing completion that are expected to double the site's annual flower output in Germany.
• Polish Market Leadership -- Number one market share position supported by higher annual import limits and commercial execution.
• Fiscal Second Quarter Guidance -- Management expects revenue and adjusted EBITDA to be substantially higher than first-quarter levels.
• Global Medical Cannabis Opportunity -- Management estimated the total addressable market at approximately $9 billion.
• German Market Performance -- Two proprietary cultivars ranked among the top five by sales in the country as of the first quarter.
• Unsolicited Acquisition Proposal -- Implied consideration of US$4.00 per share from Curaleaf Holdings, Inc., consisting of 0.3463 shares plus US$0.75 in cash.

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RISKS

• King stated, "The change versus the prior year was primarily due to the expected changes in Canadian medical pricing," referring to the 30% reduction in the VAC reimbursement rate.
• Martin stated, "As new competitors enter Germany and pricing pressure increases," the company is adjusting pricing and broadening its product line in the value segment.
• Management noted in regulatory filings that the unsolicited bid from Curaleaf included a value cap of US$5.00 per share, which is a "lower price than Aurora Shares have traded as recently as December 18, 2025."

SUMMARY

Management at Aurora Cannabis Inc. (ACB +4.74%) reported a focus on reallocating resources to global medical cannabis opportunities as the company navigates regulatory changes in the Canadian market. The company completed the acquisition of Safari Flower Company to expand its EU GMP manufacturing capacity and is nearing the completion of expansion at its Leuna facility in Germany. Financial results for the first quarter were impacted by a significant reduction in Canadian medical reimbursement rates, which management characterized as a transitionary headwind. The company reported a cash balance of nearly $150 million with no debt while considering a special committee to review an unsolicited takeover bid from Curaleaf Holdings, Inc.

• Martin noted that Germany remains the company's "largest and fastest-growing international market," where they hold one of only three active in-country production licenses.
• The company is shifting its Australian sales mix toward core and premium products, reflecting increased demand from prescribing physicians and patients for higher-tier options.
• King stated that the company is "purposely investing in our international business to support growth in our most profitable markets" through strategic sales initiatives and capacity expansion.
• Management identified three areas of opportunity in the U.S. following potential federal rescheduling: research collaboration, GMP partnerships, and long-term import-export possibilities.
• CEO Martin noted that genetic differences alone can drive yield improvements of up to 40% on the same cost base, which he described as "a critical advantage in a capital-intensive business."
• The board established a special committee of independent directors to evaluate the Curaleaf proposal, which Martin noted did not initially include "detail regarding the mix of cash and share consideration."
• Management reported that the Polish market share position is being supported by recent increases in annual import limits and a loyal patient base.

INDUSTRY GLOSSARY

• EU GMP: European Union Good Manufacturing Practice, a system for ensuring that products are consistently produced and controlled according to quality standards required for pharmaceutical products.
• VAC: Veterans Affairs Canada, the government department responsible for providing services and benefits to veterans, including medical cannabis reimbursement.
• EBITDA: Earnings before interest, taxes, depreciation, and amortization, used as a measure of operating performance.
• IFRS: International Financial Reporting Standards, the set of accounting rules followed by the company for financial reporting.
• MSO/SSO: Multi-state operator and single-state operator, terms used for cannabis companies operating across various jurisdictions in the United States.
• MHRA: Medicines and Healthcare products Regulatory Agency, the government body that regulates medicines and medical devices in the United Kingdom.

Full Conference Call Transcript

Operator: [Operator Instructions] This conference call is being recorded today, Wednesday, August 5, 2026. I would now like to turn the conference over to your host, Kevin Niland, Director of Strategic Finance and Investor Relations. Please go ahead, sir.

Kevin Niland: Hello, and thank you for joining us. With me are Miguel Martin, Executive Chairman and CEO, and Simona King, CFO. Earlier this morning, we filed our fiscal first quarter 2027 financials for the period ending June 30, 2026, and issued a news release containing our quarterly results. Financial statements, MD&A, and news releases are available on our IR website and can also be accessed via SEDAR+ and EDGAR. In addition, you will find a supplemental information deck on our IR website. Please note that we present our financials in accordance with IFRS and in Canadian dollars.

Throughout our discussions, we will be referring to both GAAP and non-GAAP adjusted results and encourage you to review the reconciliation contained within the press release from GAAP to the corresponding non-GAAP measures. Our discussion today serves as a reminder that certain matters could constitute forward-looking statements that are subject to risks and uncertainties relating to our future financial or business performance. Actual results could differ materially from those anticipated in those forward-looking statements. Risk factors that may affect actual results are detailed in our annual information form and other periodic filings and registration statements. Documents may similarly be accessed via SEDAR+ and EDGAR. Following our prepared remarks, we'll conduct a question-and-answer session with our covering analysts.

With that, I'll turn the call over to Miguel. Please go ahead.

Miguel Martin: Thanks, Kevin. Aurora has become synonymous with medical cannabis in nationally legal markets because we spent years building the infrastructure, scientific capability, and regulatory expertise required to deliver reliable, scalable, and consistently high-quality products to patients. A dedicated focus on medical cannabis enables us to maximize opportunities in the industry's most attractive, durable, and profitable segment, and should help us maintain and expand our leadership over time. We are already a leading exporter and hold top-tier market share positions in Canada, Germany, Poland, and Australia. We are also well positioned to export to other countries as the regulatory environment continues to open. We prioritize expanding our manufacturing capacity to support growth in the estimated $9 billion global medical cannabis market.

There are only a handful of companies like Aurora that have the capabilities and certified pharmaceutical-grade facilities required to reliably produce and sell directly into European and Australian medical channels. Our integrated approach to manufacturing and distribution reflects disciplined operational and financial management that drives lower production costs through strong yields, higher potency, and continued operational efficiency. Our cost base is structured to support top-line growth, and our continued investment in international expansion helps offset the near-term headwind in revenue and gross profit contributions to our business, stemming from the reduced VAC reimbursement rate in Canadian medical. We continue to prioritize and maintain a strong balance sheet with ample cash and no debt.

This gives us greater flexibility to navigate regulatory and competitive developments across Canada, Europe, and other key international markets, and lets us deploy capital thoughtfully to stay ahead of our competition. Here are some of the key highlights from this quarter. First, international medical cannabis net revenue rose 17% to $43 million, driven by strong performance in Germany. Notably, about 64% of our total net revenue was generated outside of Canada, up from 50% last year. Second, our acquisition of Safari Flower Company and the recently announced certification of its EU GMP facility adds critical manufacturing capacity to serve the growing, profitable international medical cannabis markets.

Third, adjusted gross margin was 58% at the high end of our expected annual range as we benefited from strong contributions from international markets. And finally, we ended the quarter with nearly $150 million in cash, cash equivalents, and short-term investments with no debt. Our operational network is clearly a core differentiator for Aurora, further supported by the recently completed acquisition of Safari Flower Company and the investments we have made in genetics and plant science. As international medical cannabis markets continue to evolve, EU GMP certification remains a critical enabler for global strategy and supports long-term profitable growth. Our investment in plant science and genetics has helped deliver meaningful reductions in the cost per gram to manufacture.

Genetic differences alone can drive a yield improvement of up to 40% on the same cost base, a critical advantage in a capital-intensive business. Consistency is equally important, particularly in highly regulated medical markets, where product variability can disqualify items from market access altogether. Safari is an established EU GMP certified cultivator and manufacturer operating a 59,000 square foot purpose-built indoor facility in Ontario that strengthens our position as one of the largest Canadian exporters of medical cannabis. The acquisition gives us incremental EU GMP capacity that aligns with our existing global manufacturing network, strengthening our ability to meet the growing international demand for high-quality EU GMP products.

This transaction was accretive to our adjusted EBITDA results during the first quarter, and we intend to apply our plant science and operational expertise to drive incremental benefits through increased yields, lower manufacturing costs, and additional supply of EU GMP flower to maximize the high-margin opportunities in Europe and other key international markets. Now let's discuss our key medical cannabis markets individually. Germany is our largest and fastest-growing international market. It's also one of the most rigorous markets with strict GMP standards required for access. We view these attributes as a competitive advantage rather than a barrier and one that has helped us build a stellar reputation with wholesalers, distributors, and pharmacists.

The market is structured around flower and oil, and unlike in other countries, Germany maintains meaningful separation between premium, core, and value-tier pricing. We operate primarily in the premium and core segments, which represent the majority of our volume, with all 3 segments continuing to grow. As new competitors enter Germany and pricing pressure increases, we've maintained our leading market share by adjusting pricing where appropriate and broadening our product line to include more value options. We also expect GMP standards to become increasingly stringent, a trend we believe favors experienced and established operators like Aurora.

Our EU GMP certified facilities and integrated supply chain allow us to ship directly to Germany and continue supporting growing patient demand in the years ahead. Our leadership showed through this quarter with 2 of our proprietary cultivars continuing to rank in the top 5 by sales. Clear evidence of our brand equity that we've developed since first entering Germany in 2018. We're one of only 3 active in-country producers of medical cannabis holding a production and R&D license under German cannabis law, giving us a strong foundation to directly serve the growing medical markets across Europe.

To capture incremental share in this growing market and augment our EU GMP production, we are in the final phase of our expansion plans for our Leuna facility. These investments should increase product quality through the same industry-leading genetics and operational playbook that has helped deliver incremental margin gains. The project is nearing completion and combined with the rollout of our proprietary cultivars is expected to double the site's annual flower output. The German market has built a very mature and integrated medical cannabis framework. They have a well-developed physician and pharmacy-led network that supports patient access, which is further supported by proper manufacturing and distribution capacity, GMP-level standards, and strong regulatory oversight.

All those points to a system that's solid, well thought out, and highly integrated. We continue to monitor the regulatory and legislative environment in Germany, and while there's been lots of discussion regarding potential changes, we believe that we have the skills and capabilities to navigate any potential revision successfully and come out stronger on the other side. Similar to how we successfully navigated the changes in Poland last year. Speaking of Poland, we hold the #1 market share position, supported by strong commercial execution. We are encouraged by recent increases in annual import limits and the strong, loyal patient base, which strengthens our growth outlook for this key, highly regulated market.

Success in Germany and Poland positions us well for other emerging regulated markets, such as France, Ukraine, Switzerland, Spain, and Austria, as our capabilities are portable. We will continue to focus on cultivation and wholesale, where we believe the greatest margin opportunity exists, rather than downstream channels like retail or telehealth. These sit outside our core competencies of weaving ever-increasing regulatory standards into our operations. Our well-established leadership in Australia is allowing us to shift our sales mix towards core and premium products, reflecting growing demand from both prescribing physicians and patients for higher-tier options.

Australia also offers one of the broadest product format ranges outside of North America, giving us the opportunity to fully leverage our diverse product portfolio beyond flower and oils. We are also encouraged by the growth we are seeing in New Zealand, another highly regulated market where patients are responding favorably to our growing product assortment. Finally, let's turn to Canada. The first quarter marked the onset of revisions to the federal reimbursement program, which took effect April 1. As expected, this external regulatory shift impacted both our top line and adjusted gross profit.

However, we are encouraged by our continued strong margins in our global medical cannabis business that supported the consolidated adjusted gross margins of 58%, which are at the higher end of our targeted range. These leading margins along with our historical ability to grow share in this business should therefore remain intact. Against this backdrop, we expect to expand share as new patients continue to enter the market. The revenue and adjusted EBITDA impact reflected in our first quarter performance and reaffirmed annual guidance is primarily a function of industry-wide changes and not a reflection of underlying demand or our competitive position in the long term.

In our view, we have the capability, high-quality products, financial resources, and resilience to successfully navigate this headwind and deliver profitable growth while continuing to invest in growing international opportunities. Finally, let me address the changing U.S. regulatory landscape. We're watching developments in the U.S. closely, particularly as recent uplisting activity and potential rescheduling create new possibilities. We see 3 areas of opportunity for us. Expanded research collaboration following federal rescheduling, potential partnerships leveraging our GMP and medical-grade manufacturing standards, and longer-term import-export possibilities between the U.S. and the international medical markets we already serve. That said, we are encouraged by this renewed momentum and look forward to further regulatory clarity from the U.S. administration in the coming months.

Let me now turn the call over to Simona.

Simona King: Thank you, Miguel. Our quarterly performance reflects the strategic decisions we have made to reallocate our resources to focus on global medical cannabis opportunities. While some of the year-over-year comparatives may appear less favorable, the results themselves are in line with our expectations, and we are purposely investing in our international business through strategic sales initiatives and EU GMP capacity expansion to support growth in our most profitable markets. Let's now review our fiscal first quarter 2027 compared to the prior year, and I will then reaffirm our fiscal year 2027 outlook. Net revenue was $67.6 million, which is inclusive of a 17% increase in international medical cannabis.

Growth was offset by the expected changes in Canadian medical net revenue and the planned exit from our lower-margin Canadian consumer cannabis business. Consolidated adjusted gross margin held strong at 58%, coming in at the high end of our annual guidance range. The change versus the prior year was primarily due to the expected changes in Canadian medical pricing, offset by strong international performance. Consolidated adjusted SG&A was reduced from $36.1 million in the prior year to $35.1 million this quarter. This $1 million reduction was driven primarily by lower general and admin spending, offset by slightly higher selling costs.

Adjusted EBITDA was $3.4 million compared to $10.8 million in the prior year, while adjusted net income was $3.8 million compared to $6.6 million last year. The year-over-year changes primarily reflect lower adjusted gross profit before fair value adjustments, partially offset by improved SG&A performance and an increase in other income. Our balance sheet remains one of the strongest in the global cannabis industry. We held close to $150 million in cash, cash equivalents, and short-term investments with no debt. We have ample liquidity and can be opportunistic with respect to investing in ourselves as needed, while also pursuing additional acquisitions.

Free cash flow was an outflow of $5.8 million compared to an inflow of $6.8 million from the prior year. This was mainly due to a reduction in gross profit before fair value adjustments of $9.7 million. Let me now reaffirm our outlook for fiscal 2027 ending March 31, 2027. It reflects the important steps that we've taken to strengthen the business and drive growth in the attractive global medical cannabis market. Recall that we viewed this as a transitionary year, and we remain optimistic in our long-term trajectory. Fiscal 2027 is being shaped by changes in Canadian medical that can be partially offset by international growth, as we demonstrated in Q1.

We are purposely investing in our international business to support growth in our most profitable markets. This includes our new wholly owned subsidiary, Safari Flower Company, a trusted cultivator and manufacturer of high-quality medical cannabis, which provides incremental capacity to supply international markets such as Germany, Poland, and the U.K. For the fiscal second quarter, we expect revenue and adjusted EBITDA to be substantially higher than in the fiscal first quarter. Thank you for your time. I'll now turn the call back to Miguel.

Miguel Martin: Thanks, Simona. We've established one of the most attractive medical cannabis growth businesses in the world, supported by a sizable footprint across all major countries and regions. To accelerate our global momentum, we are deploying targeted investments to rapidly expand GMP capacity, push a steady cadence of new product launches, seize additional market share, and reinforce our leadership position. These actions are engineered to deliver a sustained double-digit revenue growth, maintain superior margins, and drive higher EBITDA contributions over the coming years. Thank you all for your time today and for your continued confidence in Aurora.

Operator: [Operator Instructions] Our first question comes from Bill Kirk with ROTH Capital Partners. Please proceed with your question.

William Kirk: I was hoping Miguel and Simona if you could give us some more details or specifics on the expectation for sequential revenue growth and the EBITDA improvement that you expect off Q1. And in particular, are there any markets where you're confident that, that growth is going to be driven from or any cost savings opportunities that you have on the horizon that gives you that sequential improvement confidence?

Miguel Martin: Great, and good morning, Bill. Let me start and I'll let Simona pick up the backside of it. I think overall it's going to be similar to what you've seen. So the same markets where we see opportunities and we see growth will continue to be there. Obviously, there's a bit of a reset as it pertains to VAC, but we expect to grow share off of that. As you move offshore we see opportunities in Poland and Germany and Australia and New Zealand. Clearly, Germany being the biggest is the most sort of obvious place for it.

And as we said in our prepared remarks, we continue to find significant opportunities there because of the scarcity of high-quality GMP flower, which is something that really we excel at. And so I think it's more of the same, so there won't be any real big surprises. And on the cost side, we continue to look for efficiencies. The biggest do come from our genetic work and the production efficiencies we get out of our facilities. So as we said and we've said in the past, some of those genetics can yield up to a 40% increase and also have improvements in quality and potency and terps scores and things like that allow you to garner some higher economics.

But, Simona, anything you want to add to that?

Simona King: I think you covered it, Miguel, and maybe to reiterate that we're very encouraged by the strong growth that we're seeing in Germany. And we're happy to, especially in Q1, deliver on the high end of our guidance range with our adjusted gross margins being at 58%. So, again, reflecting on what Miguel said that we see continued efficiencies in our manufacturing network.

William Kirk: As a follow-up, on that manufacturing network, you talked a lot about the importance of EU GMP and your medical standards and quality. What do you think about the U.S. growers who are confident they can export into international markets? And would you think of them as potential extra competition in those markets, or would they be potential partners that you could help access your international supply chain?

Miguel Martin: Listen, I think it's a little early. Obviously the regulatory construct that the MSOs and the SSOs operate in is totally different than what we see, say, in Germany or Poland or New Zealand. And that's not to take anything away from them, because I think there's some very strong operators there. What I do know is that we've been in Germany since 2018, and it's difficult. And it's not just the regs that exist today. As we've said, those standards continue to tighten. And so I think whether you come from the U.S. or you come from Canada, it's a challenge in order to get product consistently in there.

The other thing for us, which is a big advantage, is we grow almost everything that we sell. So we control that network all the way through as opposed to, say, third-party purchases or other aspects on it. And in terms of partnership, as we said in our comments, we absolutely believe that there will be opportunities to partner. Our almost decade-plus of large-scale GMP manufacturing in a pharmaceutical setup for these countries lines up very well for what we're starting to see from the rescheduling regulations coming out of the U.S. So we're hopeful, just like we partner with folks in Canada and internationally that, that would also extend to the U.S.

Operator: Our next question comes from Frederico Gomes with ATB Capital Markets. Please proceed with your question.

Frederico Yokota Gomes: I guess I want to talk about Germany because Miguel, you mentioned that, I guess, you're seeing, or you expect to see continued pricing pressure there. Can you talk about the magnitude of that price pressure that you're seeing, and are prices coming down steadily every quarter, and that being lumpy and varied according to the availability of supply? And then the second point on Germany is just potential revisions there in terms of the regulatory framework. If you could just talk about how you think the regulatory environment in Germany is going to evolve and how Aurora is positioned to potentially benefit from that.

Miguel Martin: Of course, and good morning, Fred. I think, so first let me talk about pricing in Germany. So, as we mentioned in our prepared remarks, there really are 3 distinct sort of quality tiers in Germany that are very articulated, and we like that in a market. So you've got premium, core, and value. All of them are required to be GMP, so they hold a higher standard than maybe a non-GMP market. We see most of the pricing pressure in the value segment, as to be expected.

And actually, when you look at core and premium, because of the increasingly challenge that comes with these GMP standards getting more stringent, we see that pricing's been held up quite well there. So I think while you always are sort of seeing something in the value segment, on the higher ends you don't, and we also see, since it's such a large self-payer market, that you don't see some of the pressure on the reimbursement side as maybe the reimbursement rates would change like you see in Canada in the VAC system. So I think we're pretty confident in that piece of it.

And overall, when you think about some of the noise that we've heard from potential legislation, we'll know a lot more in the coming months. But usually when these things happen, it benefits those companies that have the sort of wherewithal and the persistence to stick through it. Obviously, the most obvious example is Poland when they made some changes in the telehealth platform there, which you're well aware of. We saw a short-term dip. And then for those companies like Aurora that were able to pivot and handle the regulatory changes, there was actually growth opportunities.

And so if there were changes to the telehealth provisions in Germany, which seem a little less likely on some of the more severe ones, but we'll see, I think companies like Aurora actually stand to gain because it makes it that much more difficult for those that haven't dealt with it or are not prepared to manage it.

Operator: Our next question comes from Ryan Neal with TD Cowen. Please proceed with your question.

Ryan Neal: Just to start in the domestic market, can you isolate the impact of the lower reimbursement rates on revenue, gross profit, and EBITDA, and have you seen any further changes in patient behavior or pricing since the initial adjustment?

Miguel Martin: Let me take the second part of it. I'll let Simona pick up the first part. We've seen very little changes. I mean, because for the VAC patient, there is very little difference for them. Most of, if not the entirety of the pricing change has been handled by the LPs that service those critical patients. So from a format choice and selection and cadence and everything, it's pretty much unchanged. But Simona, maybe you want to take the first part?

Simona King: Yes, so we have seen an impact in Canadian medical on our revenues versus the prior quarters. That's a result of the reimbursement impact coming into effect on April 1, a 30% reduction in reimbursement rates. And so that is as expected as we discussed last quarter, where we're anticipating these changes. And this is how Q1 has come in. It's coming in line with our expectations.

Ryan Neal: Great. And then just as a follow-up, how is the integration of Safari progressing and do you see any expected accretion and synergies in fiscal '27? And are there any updates on sort of the operational or genetic improvements there?

Miguel Martin: Yes, I mean we saw contributions this quarter. We don't break out each of the facilities, and we're very pleased with the integration. I think the fact they just received their GMP certification, which is valid for 3 years was very exciting for us, and we're thrilled. So more to follow in the coming quarters in terms of what it means, but early days on Safari are very encouraging.

Operator: [Operator Instructions] Our next question comes from Pablo Zuanic with Zuanic & Associates. Please proceed with your question.

Pablo Zuanic: Miguel, in my opinion, the industry did a very good job over the last 4 or 5 years in Canadian medical. The penetration with veterans, according to the numbers that I see, went from around 4% to 8% over a 4-year period. How much higher can that go? What would you think is the natural cap on that percentage? Is there room to take that up much further?

Miguel Martin: Pablo, I think it's a difficult one because it's really that behavior is really an interaction between that patient, the doctor, and then coming to the LP. I think clearly we've seen through our interactions with the veterans and everything that we owe them that they're seeing a strong benefit from that cannabis component as they leave the service. We're also seeing new patients join that system on a very regular basis, and those patients are all across different age spectrums and gender and different sort of indications. And so, hard to say what is the cap, as you talked about, 4% to 8%.

I think the system, though, is healthy and we see an opportunity for us to grow share in that because of the great service that we do offer them. The other part about that which is very interesting is the portability of those insights because that veteran interest in medical cannabis is not solely a Canadian condition. We see interest across the board whether it's in the U.S. or in New Zealand and Australia. And those veteran communities are very well connected because in many cases they serve with each other in those different markets. So we're excited beyond just what we're seeing in Canada from those learnings and those insights.

But again, the portability of that, because it's a very specific sort of activity and service level required to take care of that critical patient. So I think there's benefits across the board, even those outside of Canada.

Pablo Zuanic: Just a quick follow-up. Obviously you've been, you are the first or you've been among the first in entering a lot of these overseas markets. But in the case of the U.K., and correct me if I'm wrong, I think you've been slower than other people, right? And that market has very quickly vertically integrated downstream LPs controlling online pharmacies, clinics, etc. Can you talk more about am I right? You've been slow in the U.K., and can you still catch up there?

Miguel Martin: Yes, with all due respect, I wouldn't describe it as slow. I don't think we've been slow at all. Our real sort of focus is on the genetics, the development, and the manufacturing of these medications. And in the U.K., you're right, there's been a lot of movement on the clinic side and on the pharmacy side. Those are not areas of focus for us. But as the regs have started to change in the U.K. through interactions we have with the MHRA, we feel very confident about our position there. What we do know is that the U.K. is, once again, a place where high-quality premium medical products are valued, particularly in the self-payer market.

And Aurora having some of the largest supply of those GMP products for that market, I think, will be just fine. So I think as things sort of ebb and flow, you can't look at things in the short term. I think you have to look at things in the long term. And I think we've proven across almost 12-plus countries that very stringent standards benefit us, and we're seeing that in the U.K., and we think that will play out over the coming quarters.

Operator: Our next question comes from Ryan Neal with TD Cowen. Please proceed with your question.

Ryan Neal: Curious if you have any color on recent progress in Australia as you transition to more of the core and premium offerings there and how that's evolved in recent months.

Miguel Martin: Ryan, it's a great question. I think that what we're seeing in Australia is a very interesting dynamic because it allows more than flower and oils, and we're seeing a lot of quality. Having been there for almost a decade and, right, predominantly focused in what they call the concession market, which is a bit of the value market, we're starting to see strong progress in the core and premium, and it's a country where cannabis is moving pretty quickly, and so we're excited about that as well.

Right next to it is New Zealand, and I know that wasn't your question, but there's a lot of efficiencies and synergies in having success in Australia, and New Zealand's a bit more difficult from a regulatory standpoint, which lines up well for us. So I think when you combine the 2, we're very encouraged about what the opportunities there are. And it's also a wonderful jumping-off spot for that part of the world as medical cannabis gains more sort of mainstream acceptance. So we're bullish on both the opportunities that present themselves in that market, what it means for us in markets next door.

Operator: We've reached the end of our question-and-answer session. I would now like to turn the floor back over to Mr. Martin for closing comments.

Miguel Martin: Operator, thank you very much, and our appreciation to everyone's coverage of Aurora. We're incredibly excited about the future, and we look forward to sharing that with you in the coming quarters. All the best. Thank you.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.