(1) Certain previously reported amounts are revised (Note 2(c)).

(1) Certain previously reported amounts are revised (Note 2(c)).

(1) Certain previously reported amounts are revised (Note 2(c)).

						Three months ended June 30,
			Note			2025			2024(1)
						$			$
Operating activities
Net income (loss) from continuing operations						(19,381)			3,450
Adjustments for non-cash items:
Unrealized gain on changes in fair value of biological assets						(28,658)			(47,469)
Changes in fair value of inventory and biological assets sold						36,675			33,048
Depreciation of property, plant and equipment						5,948			5,633
Amortization of intangible assets						234			107
Share-based compensation			7			2,186			3,019
Impairment of property, plant and equipment						—			129
Net interest accrual and accretion						178			738
Deferred tax recovery (expense)						102			1,547
Other gain (loss)						(584)			(2,521)
Foreign exchange gain (loss)						(61)			(2,313)
Deferred compensation amortization						951			952
Cash provided by (used in) operating activities from continuing operations before changes in non-cash working capital						(2,410)			(3,680)
Changes in non-cash working capital			9			12,545			12,540
Net cash provided by (used in) operating activities from continuing operations						10,135			8,860
Net cash used in operating activities from discontinued operations						(14)			(485)
Net cash provided by (used in) operating activities						10,121			8,375
Investing activities
Proceeds from disposal of marketable securities						—			4,700
Purchase of property, plant and equipment and intangible assets						(5,044)			(5,153)
Proceeds from disposal of property, plant and equipment and assets held for sale						10			1,267
Changes in restricted cash			2(c)			—			(830)
Net cash used in investing activities						(5,034)			(16)
Financing activities
Proceeds from loans and borrowings			5			—			671
Repayment of loans and borrowings			5			(1,901)			(5,593)
Net principal payments of lease liabilities						(1,451)			(1,384)
Proceeds from stock option exercise						30			—
Cash used in financing activities						(3,322)			(6,306)
Effect of foreign exchange on cash and cash equivalents						474			62
Increase (decrease) in cash and cash equivalents						2,239			2,115
Cash and cash equivalents, beginning of period			2(c)			137,921			136,095
Cash and cash equivalents, end of period			2(c)			140,160			138,210

(1) Certain previously reported amounts are revised (Note 2(c)).

Aurora Cannabis Inc.’s (the “Company” or “Aurora”) principal strategic business lines are focused on the production, distribution and sale of cannabis products in Canada and internationally. The Company currently conducts the following key business activities in the jurisdictions listed below:

•Production, distribution and sale of medical and consumer cannabis products in Canada pursuant to the Cannabis Act;

•Production and distribution of wholesale medical cannabis in the European Union (“EU”) pursuant to the German Medicinal Products Act and German Narcotic Drugs Act; and

•Distribution of wholesale medical cannabis in various international markets, including Australia, New Zealand, and the Caribbean.

The Company’s head office and principal address is 2207 90B St. SW Edmonton, Alberta T6X 0J9, Canada. The Company’s registered and records office address is Suite 1700, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8.

Preparation of these interim condensed consolidated financial statements requires management to make certain judgments, estimates and assumptions based on existing knowledge that affect the application of accounting policies and reported amounts and disclosures. Actual results could differ from these estimates and assumptions. In particular, the impact of geopolitical events, such as imposed tariffs in the North American market, could materially impact customer and supplier arrangements, namely within the plant propagation segment, as well as interest and inflation rates, resulting in increased volatility and near-term uncertainty. Management has, to the extent reasonable, incorporated known facts and circumstances into estimates made, however actual results could differ from those estimates and those differences could be material. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The Company’s unaudited interim condensed consolidated financial statements are prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). Unless otherwise noted, all amounts are presented in thousands of Canadian dollars, except share and per share data.

The interim condensed consolidated financial statements do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with the Company’s March 31, 2025 audited annual consolidated financial statements.

Certain financial balances from fiscal 2025 have been reclassified in the interim condensed consolidated statements of income (loss) and comprehensive income (loss) and interim condensed consolidated statements of cash flows. In management’s opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects (Note 2(c)).

These interim condensed consolidated financial statements were authorized for issue by the Audit Committee of the Board of Directors on August 5, 2025.

These interim condensed consolidated financial statements include the financial results of the Company and its subsidiaries. Subsidiaries include entities which are wholly-owned as well as entities over which Aurora has the authority or ability to exert control over the investee’s financial and/or operating decisions (i.e. control), which in turn may affect the Company’s exposure or rights to the variable returns from the investee. The interim condensed consolidated financial statements include the operating results of acquired or disposed entities from the date control is obtained or the date control is lost, respectively. All intercompany balances and transactions are eliminated upon consolidation.

(c) Revisions to Previously Issued Financial Statements

As previously disclosed in the Company’s March 31, 2025 audited annual consolidated financial statements, in connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company identified an error in inventory and cost of sales arising from intercompany profit eliminations, resulting in an overstatement of inventory and understatement of cost of sales. Additionally, the Company understated its lease liability during a period in which a rent concession was granted by the lessor. In respect of the Company’s presentation of cash and cash equivalents and restricted cash, the Company determined that certain previously reported restricted cash held within its captives was accessible to the Company and therefore not restricted. The unrestricted portion was reclassified to cash and cash equivalents. The Company concluded an amendment of previously-filed audited consolidated financial statements and unaudited interim condensed consolidated financial statements was not required. The revisions are reflected in the comparative period of the Company’s prospective interim condensed consolidated financial statements filing. Refer to note 2(j) to the Company’s consolidated financial statements as at and for the year ended March 31, 2025.

The following is a breakdown of biological assets:

The changes in the carrying value of biological assets during the period are as follows:

During the three months ended June 30, 2025, biological assets expensed to cost of sales of $26.2 million (three months ended June 30, 2024 – $22.6 million) including $5.2 million (three months ended June 30, 2024 – $3.9 million) related to the changes in fair value of biological assets sold.

As of June 30, 2025, the weighted average fair value less cost to complete and cost to sell a gram of dried cannabis produced at the Company’s indoor cannabis cultivation facilities was $3.24 per gram (March 31, 2025 – $3.62 per gram) and the stage of completion of indoor cannabis was 44% (March 31, 2025 - 44%).

The following table highlights the sensitivities and impact of changes in significant assumptions on the fair value of biological assets grown at indoor cannabis production facilities:

Significant inputs & assumptions(1)			Range of inputs						Sensitivity			Impact on fair value
			June 30, 2025			March 31, 2025						June 30, 2025			March 31, 2025
Average selling price per gram			$6.36			$6.61			Increase or decrease of $1.00 per gram			$3,201			$3,401
Weighted average yield (grams per plant)			75.44			73.46			Increase or decrease by 5 grams per plant			$1,627			$1,823
Cost per gram to complete production			$1.32			$1.40			Increase or decrease of $1.00 per gram			$3,201			$3,466

(1)Significant inputs and assumptions are in whole numbers as indicated.

During the three months ended June 30, 2025, the Company’s indoor cannabis biological assets produced 11,690 kilograms of dried cannabis (June 30, 2024 – 11,744 kilograms).

The following table highlights the sensitivities and impact of changes in significant assumptions on the fair value of biological assets grown at plant propagation production facilities:

Significant inputs & assumptions(1)			Range of inputs						Sensitivity			Impact on fair value
			June 30, 2025			March 31, 2025						June 30, 2025			March 31, 2025
Average selling price per floral/bedding plant			$5.82			$7.38			Increase or decrease by 10%			$1,554			$2,963
Average stage of completion in the production process			52		%	69		%	Increase or decrease by 10%			$1,139			$1,894

(1)Significant inputs and assumptions are in whole numbers as indicated.

As of June 30, 2025, the weighted average fair value less cost to complete and cost to sell per propagation plant was $2.72 per plant (March 31, 2025 – $3.77).

During the three months ended June 30, 2025, inventory expensed to cost of sales was $72.6 million (three months ended June 30, 2024 – $65.4 million), which included $31.4 million (three months ended June 30, 2024 – $29.1 million) related to the changes in fair value of inventory sold.

During the three months ended June 30, 2025, the Company recognized $12.9 million in inventory provisions (three months ended June 30, 2024 – $15.8 million) recognized in cost of sales of $5.9 million (three months ended June 30, 2024 – $2.1 million) and changes in fair value of inventory sold of $7.0 million (three months ended June 30, 2024 – $13.7 million).

On August 25, 2022, through the acquisition of a controlling interest of 50.1% in Bevo, the Company acquired the loans under Bevo’s credit facility (the “Credit Agreement”). The Credit Agreement includes two term loans (“Term Facility 1” and “Term Facility 2”, together the “Term Facilities”) and a Revolver.

On January 21, 2025, the Credit Agreement was amended (“Amended Credit Agreement”), resulting in the settlement of Term Facility 1 with a new loan agreement in the amount of $43.0 million. This includes transfers from the Revolver of $4.0 million and from Term Facility 2 of $5.0 million, which was substantially modified in the Amended Credit Agreement. Additionally, the maturity date of the Term Facilities and Revolver were extended to October 20, 2028 and quarterly interest is variable based on daily CORRA, plus an adjustment factor of 0.3%, plus an applicable margin ranging from 1.50% and 3.00%. The Term Facilities and Revolver are secured against all of Bevo’s propagation facilities, which have a carrying value of approximately $118.0 million. The terms of the Amended Credit Agreement are subject to customary financial and non-financial covenants.

As at June 30, 2025, Bevo was not in compliance with its fixed charge coverage ratio financial covenant. Accordingly, the Term Facilities are classified as current in the interim condensed consolidated statements of financial position. In addition, subsequent to June 30, 2025, Bevo was not in compliance with a non-financial covenant to provide audited financial statements. Bevo is in discussions with the lender to obtain a waiver for the breaches and enter into an amended credit agreement.

The changes in the carrying value of the Term Facilities are as follows:

The Company currently makes quarterly repayments of $0.5 million, with the balance outstanding payable upon maturity. As at June 30, 2025, the amount outstanding was $41.5 million (March 31, 2025 – $42.0 million) with a borrowing rate of 6.02% and an effective interest rate of 6.36%.

The Amended Credit Agreement allows for multiple advances to a maximum of $6.0 million. Quarterly repayments are required and are based on the amounts drawn upon, with the balance outstanding payable upon maturity. As at June 30, 2025, the total amount drawn from Term Facility 2 was $0.4 million (March 31, 2025 – $0.5 million) with a borrowing rate and effective interest rate of 6.02%.

The total borrowings available under the revolver is $18.0 million until maturity of October 21, 2028. Interest payments are based on daily CORRA, plus an adjustment factor of 0.3%, plus an applicable margin ranging from 1.50% and 3.00%. The undrawn balance of the revolver is subject to a stand-by fee between 0.4% and 0.6%. As at June 30, 2025, the total amount drawn from the revolver was $16.4 million (March 31, 2025 – $16.7 million), with a borrowing rate of 7.00%. The Revolver is classified as current on the interim condensed consolidated statements of financial position.

The Term Facilities and Revolver are secured against all of Bevo’s propagation facilities, which have a carrying value of approximately $118.0 million.

On March 18, 2024, the Company entered into an unsecured Pari Passu Creditor Agreement (“Creditor Agreement”) with Bevo, in which participating shareholders of Bevo provided funds pursuant to the Creditor Agreement. The Creditor Agreement was for a total loan of $5.0 million and bears interest at a fixed rate of 17.0% per annum. The principal and accrued interest were originally due on May 31, 2025, however this was subsequently amended to allow for a two month extension of the principal due August 1, 2025. The amendment also increases the fixed rate of interest to 17% during the extension period and requires accrued interest and an amendment fee totaling $0.5 million payable upon execution of the amendment. The Company advanced funds of $2.5 million, which together with accrued interest and the amendment fee are eliminated upon consolidation. During the three months ended June 30, 2025, the Company repaid $1.0 million to the other participating shareholders, resulting in a remaining balance of $1.5 million classified as current on the interim condensed consolidated statements of financial position. As a result of the breach in financial covenant under the Credit Agreement, the principal under the Creditor Agreement shall not be payable to Bevo shareholders until Bevo obtains additional financing from participating shareholders of Bevo and approval from the lender of the Credit Agreement.

During the three months ended June 30, 2025, total interest expense for loans and borrowings of $1.1 million (three months ended June 30, 2024 – $1.3 million) was recognized as finance and other costs in the interim condensed consolidated statements of income (loss) and comprehensive income (loss). Accrued interest of $0.1 million (March 31, 2025 - $0.3 million) is recorded in accounts payable and accrued liabilities on the interim condensed consolidated statements of financial position.

The authorized share capital of the Company is comprised of the following:

i.Unlimited number of common voting shares without par value (“Common Shares”).

ii.Unlimited number of Class “A” Shares each with a par value of $1.00.

iii.Unlimited number of Class “B” Shares each with a par value of $5.00.

At June 30, 2025, 56,252,660 Common Shares (March 31, 2025 – 56,234,231) were issued and outstanding. As at June 30, 2025, no Class “A” Shares and no Class “B” Shares were issued and outstanding.

A summary of warrants outstanding is as follows:

The Option Plan provides the right for directors, officers, employees and consultants to purchase shares at a specified price (exercise price) in the future. The stock options have a service requirement of three years, vest 1/3 on the anniversary of the grant date and are amortized on an accelerated basis over that period. Stock options expire after five years.

A summary of stock options outstanding is as follows:

The following table summarizes the stock options that are outstanding as at June 30, 2025:

During the three months ended June 30, 2025, stock option expense of $0.7 million (three months ended June 30, 2024 – $0.8 million) was recognized in share-based compensation in the interim condensed consolidated statements of income (loss) and comprehensive income (loss).

Stock options granted during the respective periods presented below were fair valued based on the following weighted average assumptions:

(1)The risk-free rate is based on Canada government bonds with a remaining term equal to the expected life of the options.

(2)Volatility was estimated by using the average historical volatilities of the Company and certain companies in the same industry.

(3)The expected life in years represents the period of time that options granted are expected to be outstanding.

Under the terms of the Company’s Restricted Share Unit Plan (the “RSU Plan”), officers, employees and consultants of the Company may be granted RSUs that are released as Common Shares upon completion of the vesting period. Each RSU gives the participant the right to receive one common share of the Company. The RSUs have a service requirement of three years, vest 1/3 on the anniversary of the grant date and are amortized on an accelerated basis over that period and expire after three years.

A summary of the RSUs outstanding are as follows:

During the three months ended June 30, 2025, a total RSU expense of $0.9 million (three months ended June 30, 2024 – $1.2 million) was recognized in share-based compensation in the interim condensed consolidated statements of income (loss) and comprehensive income (loss).

Under the terms of the Company’s Non-Employee Directors Deferred Share Unit Plan (the “DSU Plan”), non-employee directors of the Company may be granted DSUs. Each non-employee director is entitled to redeem their DSUs for a period of 180 days following their termination date, being the date of their retirement from the Board. The DSUs can be redeemed, at the Company’s sole discretion, for (i) cash; (ii) Common Shares issued from treasury; (iii) Common Shares purchased in the open market; or (iv) any combination of the foregoing. DSUs vest immediately upon grant and have no expiry date.

(1)Includes DSUs issued under cash settlement plan Note 7(e).

During the three months ended June 30, 2025, a total DSU expense of $0.1 million (three months ended June 30, 2024 – expense of $0.3 million) was recognized in share-based compensation in the interim condensed consolidated statements of income (loss) and comprehensive income (loss).

Under the terms of the Company’s Performance Share Unit Plan (the “PSU Plan”), officers, employees and consultants of the Company may be granted PSUs that are released as Common Shares or are paid in cash to the participant equal to the market price of Common Shares on the entitlement date multiplied by the number of performance share units being settled. In each case upon the 3-year cliff vesting date the performance shares units are subject to performance conditions multiplied by the achieved performance ratio. If the performance criteria are not met at the time of vesting the PSU will expire.

The PSUs are amortized on a straight line basis over the three year period and expire after three years.

A summary of the PSUs outstanding is as follows:

(1)Includes PSUs issued under cash settlement plan Note 7(e).

During the three months ended June 30, 2025, a total PSU expense of $0.5 million (three months ended June 30, 2024 – $0.7 million) was recognized in share-based compensation in the interim condensed consolidated statements of income (loss) and comprehensive income (loss).

PSUs granted during the respective periods highlighted below were fair valued based on the following weighted average assumptions:

(1)The risk-free rate is based on Canada government bonds with a remaining term equal to the expected life of the PSUs.

(2)Volatility was estimated by using the 20-day VWAP historical volatility of the Company and the peer group of companies.

(3)The expected life in years represents the period of time that the PSUs granted are expected to be outstanding.

(4)The equity correlation is estimated by using 1-year historical equity correlations for the Company and the peer group of companies.

The weighted average fair value of PSUs granted during the three months ended June 30, 2025 was $7.32 per unit (three months ended June 30, 2024 – $9.63 per unit).

During the three months ended June 30, 2025, the Company issued DSU’s and PSU’s, which will be settled in cash, pursuant to the DSU Plan and PSU Plan, respectively. The DSUs and PSUs issued under these plans are included in the continuities above.

The DSUs subject to cash settlement are classified as a derivative liability in the interim condensed consolidated statements of financial position and are initially measured at fair value. DSUs are issued in recognition of past service for Directors and are expensed immediately at fair value to share-based compensation expense in the interim condensed consolidated statements of income (loss) and comprehensive income (loss). The DSUs are remeasured each reporting period with the difference recorded to share-based compensation expense. Upon settlement, the DSU’s are re-measured and the derivative liability is extinguished at the remeasured amount. As at June 30, 2025, the related derivative liability was $2.1 million (March 31, 2025 – $2.0 million).

The PSUs subject to cash settlement are classified as a derivative liability in the interim condensed consolidated statements of financial position. They are initially measured at fair value using a Monte Carlo simulation model. The PSUs have a service requirement of three years and are amortized ratably over that period. The PSUs are re-measured at fair value each reporting period with the change in value reflected in share-based compensation expense. As at June 30, 2025, the related derivative liability was $2.7 million (March 31, 2025 – $2.4 million).

The following is a reconciliation of basic income (loss) per share:

			Three months ended June 30,
			2025			2024
Net income (loss) from continuing operations attributable to Aurora shareholders			($14,725)			$4,822
Net Income (loss) from discontinued operations attributable to Aurora shareholders			($484)			$304
Net Income (loss) attributable to Aurora shareholders			($15,209)			$5,126
Weighted average number of Common Shares outstanding			56,243,178			51,721,790
Basic Income (loss) per share, continuing operations			($0.26)			$0.09
Basic income (loss) per share, discontinued operations			($0.01)			$0.01
Basic Income (loss) per share			($0.27)			$0.10

The following is a reconciliation of diluted income (loss) per share:

(1)Diluted earnings per share is not applicable when the impact will decrease loss per share or increase earnings per share.

The changes in non-cash working capital are as follows:

Additional supplementary cash flow information is as follows:

Included in restricted cash as of June 30, 2025 is $3.4 million (March 31, 2025 – $3.4 million) attributed to collateral held for letters of credit and corporate credit cards, $0.1 million (March 31, 2025 – $0.1 million) attributed to international subsidiaries and $42.4 million (March 31, 2025 – $43.9 million) of funds reserved for the segregated cell program for insurance coverage and not held for the purpose of meeting short term cash commitments.

The Company generates revenue from the transfer of goods at a point-in-time from the revenue streams below. Net revenue from sale of goods reflects the net of actual returns and estimated variable consideration for future returns and price adjustments. The estimated variable consideration is based on historical experience and management’s expectation of future returns and price adjustments.

Included in net revenue for the three months ended June 30, 2025 are net revenues of approximately $18.9 million from one customer (three months ended June 30, 2024 – $18.9 million from one customer) in the Plant Propagation segment, contributing 10 per cent or more to the Company’s net revenue.

The carrying values of the financial instruments as at June 30, 2025 are summarized in the following table:

The following is a summary of financial instruments measured at fair value segregated based on the various levels of inputs:

There were no changes in the nature, characteristics and risks of financial instruments that would result in a change in classification of financial assets and financial liabilities disclosed above. There were no transfers between fair value measurement hierarchy levels during the three months ended June 30, 2025.

Other long-term liability includes the put option arising from the acquisition of Bevo. The put option is valued using a Monte Carlo simulation model. The determination relies on forecasted information, of which the significant assumptions used within the model are revenue, cost of sales and operating expenses. As at June 30, 2025, the present value of the amount payable on exercise of the put option was $48.7 million (March 31, 2025 – $47.6 million) which is recorded in other long-term liability in the interim condensed consolidated statements of financial position. The change during the three months ended June 30, 2025 of $1.1 million (three months ended June 30, 2024 – $4.8 million) is recorded in deficit in the interim condensed consolidated statements of changes in equity.

For the three months ended June 30, 2025

(in Canadian Dollars)

This Management’s Discussion and Analysis (“MD&A”) of Aurora Cannabis Inc. (“Aurora” or the “Company” “us”, “we” or “our”) as at and for the three months ended June 30, 2025 should be read in conjunction with both the Company’s annual audited consolidated financial statements for the year ended March 31, 2025 (the “Annual Financial Statements”) and the interim condensed consolidated financial statements (“Interim Condensed Financial Statements”) for the three months ended June 30, 2025, and MD&A for the year ended March 31, 2025 (the “Annual MD&A”).

Unless otherwise noted, all financial information is prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting of International Financial Reporting Standard (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Unless otherwise noted, all amounts are presented in thousands of Canadian dollars, except share and per share data. For a description of Aurora’s segments, refer to the Annual MD&A.

This MD&A contains forward-looking information within the meaning of applicable securities laws, and the use of Non-GAAP Measures (as defined below). Refer to “Cautionary Statement Regarding Forward-Looking Statements” and “Cautionary Statement Regarding Certain Non- GAAP Performance Measures” included within this MD&A.

Additional information about Aurora, including the Interim Condensed Financial Statements, the Annual Financial Statements, the Annual MD&A and Aurora’s annual information form (“AIF”) as at and for the year ended March 31, 2025 are available in Canada on SEDAR+ at www.sedarplus.com and in the U.S. on EDGAR at www.sec.gov and Aurora’s website at www.auroramj.com.

Aurora’s principal strategic business lines are focused on the production, distribution and sale of cannabis products in Canada and internationally. Aurora currently conducts the following key business activities in the jurisdictions listed below:

•Production, distribution and sale of medical and consumer cannabis products in Canada pursuant to the Cannabis Act;

•Production and distribution of wholesale medical cannabis in the European Union (“EU”) pursuant to the German Medicinal Products Act and German Narcotic Drugs Act; and

•Distribution of wholesale medical cannabis in various international markets, including Australia, New Zealand, and the Caribbean.

Aurora’s head office and principal address is 2207 90B St. SW Edmonton, Alberta T6X 0J9, Canada. The Company’s registered and records office address is Suite 1700, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8. For a detailed description of Aurora’s Strategy, refer to the Annual MD&A.

This MD&A reflects only the results of continuing operations, unless otherwise noted.

The interim condensed consolidated statements of income (loss) and comprehensive income (loss) and interim condensed consolidated statements of cash flows for the previously reported Nordic, Reliva and ICC Labs Inc. (“ICC”), all formerly part of the Company’s cannabis operating segment are presented as discontinued operations, separate from the Company’s continuing operations. Certain prior period financial information on the interim condensed consolidated statements of income (loss) and comprehensive income (loss) and the interim condensed consolidated statements of cash flows have been updated to present Nordic, Reliva and ICC as discontinued operations, and has therefore been excluded from both continuing operations and discussions for all periods presented in this MD&A.

(1)These terms are defined in the “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” section of this MD&A. Refer to the following sections for reconciliation of Non-GAAP Measures to the IFRS equivalent measure:

a.Refer to the “Cost of Sales and Gross Margin” section for a reconciliation of net revenue to the IFRS equivalent.

b.Refer to the “Adjusted Gross Margin” section for reconciliation to the IFRS equivalent.

(2)In connection with the audit of the Annual Financial Statements the Company noted that inventory and lease obligation were misstated, impacting the interim condensed consolidated financial     statements filed during the 2025 fiscal year. Certain balances in the interim condensed consolidated financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to the “Historical Quarterly Results” section of the Annual MD&A.

(1)These terms are defined in the “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” section of this MD&A. Refer to the following sections for reconciliation of Non-GAAP Measures to the IFRS equivalent measure:

a.Refer to the “Revenue” and “Cost of Sales and Gross Margin” section for a reconciliation of cannabis net revenue to the IFRS equivalent.

b.Refer to the “Adjusted Gross Margin” section for reconciliation to the IFRS equivalent.

c.Refer to the “Adjusted EBITDA” section for reconciliation to the IFRS equivalent.

d.Refer to the “Operating Expenses” section for reconciliation to the IFRS equivalent.

e.Refer to the “Liquidity and Capital Resources” section for a reconciliation to the IFRS equivalent.

f.“Working capital” is defined as Current Assets less Current Liabilities as reported on the Company’s Consolidated Statements of Financial Position.

(2)Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets.

(3)Certain previously reported amounts have been adjusted to exclude the results of discontinued operations.

(4)In connection with the audit of the Annual Financial Statements, the Company noted that inventory and lease obligation were misstated, impacting the interim condensed consolidated financial     statements filed during the 2025 fiscal year. Certain balances in the interim condensed consolidated financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to the “Historical Quarterly Results” section of the Annual MD&A.

During the three months ended June 30, 2025, the Company received the requisite regulatory approval for the share sale of a wholly-owned subsidiary of ICC. The share sale is expected to close in Q2 2025.

Subsequent to June 30, 2025, the Company received EU-GMP certification for its distribution centre in Brampton, Ontario, Canada, which allows the Company to better service its international medical markets.

As at June 30, 2025, Bevo was not in compliance with its fixed charge coverage ratio financial covenant under its credit agreement. In addition, subsequent to June 30, 2025, Bevo was not in compliance with a non-financial covenant to provide audited financial statements. Bevo is in discussions with the lender to obtain a waiver for the breaches and enter into an amended credit agreement.

The Company primarily operates in the cannabis market. The table below outlines the revenue attributed to medical, consumer and bulk sales channels for the three months ended June 30, 2025 and the comparative periods.

(1)Net revenue is a Non-GAAP Measure and is defined in the “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” section of this MD&A. Refer to the “Cost of Sales and Gross Margin” section of this MD&A for a reconciliation to IFRS equivalent.

During the three months ended June 30, 2025, total medical cannabis net revenue was $64.8 million compared to $67.8 million for the three months ended March 31, 2025, and $47.2 million for the three months ended June 30, 2024, representing a decrease of $3.0 million and an increase of $17.6 million, respectively.

Canadian medical cannabis net revenue was $27.7 million during the three months ended June 30, 2025 compared to $26.8 million for the three months ended March 31, 2025 and $27.1 million for the three months ended June 30, 2024. The increases are driven by higher sales to insured patients and in part related to the commercial collaboration with Cogent International Manufacturing Ltd (“Cogent”) announced in the first quarter of 2025.

International medical cannabis net revenue was $37.1 million during the three months ended June 30, 2025 compared to $41.0 million for the three months ended March 31, 2025 and $20.1 million for the three months ended June 30, 2024. The decrease of $3.9 million compared to the three months ended March 31, 2025 relates to lower sales in UK market due to change in distributor during the quarter and one-time favourable impact of transaction in Australia in the prior quarter. The increase $17.0 million compared to the three months ended June 30, 2024 is due to higher sales in all European markets, mainly driven by the de-schedulization in Germany.

During the three months ended June 30, 2025, consumer cannabis net revenue decreased to $7.9 million compared to $8.2 million for the three months ended March 31, 2025 and $11.5 million for the three months ended June 30, 2024. The decrease over both periods is a result of the Company’s strategic shift to focus on portfolio optimization and allocation of cannabis flower to highest margin business segments.

During the three months ended June 30, 2025, the Company’s plant propagation revenue was $23.9 million compared to the three months ended March 31, 2025 of $13.8 million and $23.1 million for the three months ended June 30, 2024. The increase over the three months ended March 31, 2025 of $10.2 million relates to the seasonality of the vegetable and floral business, which delivers higher revenue in the late winter and spring months as orders are fulfilled. The increase of $0.9 million compared to the three months ended June 30, 2024 relates to organic growth from increased product offerings and higher orchid sales.

(1)These terms are Non-GAAP Measures and neither is a recognized, defined or standardized measure under IFRS. Refer to the “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” section of this MD&A.

(2)In connection with the audit of the Annual Financial Statements, the Company noted that inventory and lease obligation were misstated, impacting the interim condensed consolidated financial     statements filed during the 2025 fiscal year. Certain balances in the interim condensed consolidated financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to the “Historical Quarterly Results” section of the Annual MD&A.

Gross margin before fair value adjustments was 37% for the three months ended June 30, 2025 compared to 48% for the three months ended March 31, 2025 and 34% for the three months ended June 30, 2024. During the three months ended June 30, 2025, Bevo incurred costs of $1.6 million related to inventory write-offs caused by a non-recurring quality issue as well as some surplus crops that were not sold. Excluding these costs, adjusted gross margin before fair value adjustments was 38% for the three months ended June 30, 2025. The decrease compared to the three months ended March 31, 2025 is largely attributable to higher sales of lower-margin goods from the plant propagation business during its peak season. The increase compared to the three months ended June 30, 2024 is largely driven by increased sales to Europe and Australia, in combination with a reduction in lower margin sales into the consumer market.

The table below outlines adjusted gross profit and margin before fair value adjustments for the indicated three month period: