Tilray Brands Reports Q3 Fiscal 2025 Financial Results
Tilray Brands (TLRY) reported Q3 fiscal 2025 financial results with net revenue of $186 million, slightly down from $188.3 million year-over-year, though reaching $193 million in constant currency. Strategic initiatives and SKU rationalization impacted revenue by $13.2 million.
Key highlights include:
- Gross profit increased 5% to $52 million with margins up 200 bps to 28%
- Net loss of $793.5 million, primarily due to $700 million non-cash impairment
- Reduced total debt by $71 million with convertible note reduction of $58 million
- Cannabis segment increased gross margins by 800 bps
- Expanded hemp-derived THC drinks distribution across 10 U.S. states
The company revised FY2025 guidance to $850-900 million in net revenue. Tilray confirmed no current impact from recent tariffs on its operations across U.S., Canadian, and European markets.
Tilray Brands (TLRY) ha riportato i risultati finanziari del terzo trimestre dell'anno fiscale 2025, con un fatturato netto di 186 milioni di dollari, leggermente in calo rispetto ai 188,3 milioni di dollari dell'anno precedente, ma raggiungendo i 193 milioni di dollari a valuta costante. Le iniziative strategiche e la razionalizzazione dei prodotti hanno influito sul fatturato per 13,2 milioni di dollari.
I punti salienti includono:
- Il profitto lordo è aumentato del 5% a 52 milioni di dollari, con margini in crescita di 200 punti base al 28%
- Perdita netta di 793,5 milioni di dollari, principalmente a causa di un'imparità non monetaria di 700 milioni di dollari
- Riduzione del debito totale di 71 milioni di dollari, con una diminuzione delle obbligazioni convertibili di 58 milioni di dollari
- Il segmento della cannabis ha aumentato i margini lordi di 800 punti base
- Espansione della distribuzione di bevande a base di THC derivate dalla canapa in 10 stati degli Stati Uniti
L'azienda ha rivisto le previsioni per l'anno fiscale 2025 a un fatturato netto di 850-900 milioni di dollari. Tilray ha confermato che non ci sono attuali impatti delle recenti tariffe sulle sue operazioni nei mercati statunitensi, canadesi ed europei.
Tilray Brands (TLRY) reportó los resultados financieros del tercer trimestre del año fiscal 2025, con ingresos netos de 186 millones de dólares, ligeramente por debajo de los 188,3 millones de dólares del año anterior, aunque alcanzando los 193 millones de dólares en moneda constante. Las iniciativas estratégicas y la racionalización de SKU impactaron los ingresos en 13,2 millones de dólares.
Los aspectos destacados incluyen:
- El beneficio bruto aumentó un 5% a 52 millones de dólares, con márgenes que subieron 200 puntos básicos al 28%
- Pérdida neta de 793,5 millones de dólares, principalmente debido a un deterioro no monetario de 700 millones de dólares
- Reducción de la deuda total en 71 millones de dólares, con una reducción de notas convertibles de 58 millones de dólares
- El segmento de cannabis aumentó los márgenes brutos en 800 puntos básicos
- Expansión de la distribución de bebidas con THC derivadas del cáñamo en 10 estados de EE.UU.
La compañía revisó la guía para el año fiscal 2025 a ingresos netos de 850-900 millones de dólares. Tilray confirmó que no hay un impacto actual de los recientes aranceles en sus operaciones en los mercados de EE.UU., Canadá y Europa.
틸레이 브랜드 (TLRY)는 2025 회계연도 3분기 재무 결과를 보고하며, 순매출이 1억 8600만 달러로 지난해 1억 8830만 달러에서 소폭 감소했지만, 상수 통화 기준으로 1억 9300만 달러에 도달했습니다. 전략적 이니셔티브와 SKU 합리화가 매출에 1320만 달러 영향을 미쳤습니다.
주요 하이라이트는 다음과 같습니다:
- 총 이익이 5% 증가하여 5200만 달러에 도달하며, 마진이 200bp 상승하여 28%에 이릅니다.
- 순손실은 7억 9350만 달러로, 주로 7억 달러의 비현금 손상 때문입니다.
- 총 부채를 7100만 달러 줄이며, 전환사채를 5800만 달러 감소시켰습니다.
- 대마초 부문이 총 마진을 800bp 증가시켰습니다.
- 미국 10개 주에서 대마에서 유래한 THC 음료의 유통을 확대했습니다.
회사는 2025 회계연도 순매출 전망을 8억 5000만 - 9억 달러로 수정했습니다. 틸레이는 최근 관세가 미국, 캐나다 및 유럽 시장에서의 운영에 현재 영향을 미치지 않음을 확인했습니다.
Tilray Brands (TLRY) a annoncé les résultats financiers du troisième trimestre de l'exercice 2025, avec un chiffre d'affaires net de 186 millions de dollars, légèrement en baisse par rapport à 188,3 millions de dollars l'année précédente, atteignant cependant 193 millions de dollars à taux de change constant. Les initiatives stratégiques et la rationalisation des SKU ont eu un impact de 13,2 millions de dollars sur le chiffre d'affaires.
Les points clés incluent:
- Le bénéfice brut a augmenté de 5% pour atteindre 52 millions de dollars, avec des marges en hausse de 200 points de base à 28%
- Perte nette de 793,5 millions de dollars, principalement en raison d'une dépréciation non monétaire de 700 millions de dollars
- Réduction de la dette totale de 71 millions de dollars, avec une diminution des billets convertibles de 58 millions de dollars
- Le segment du cannabis a augmenté les marges brutes de 800 points de base
- Expansion de la distribution de boissons à base de THC dérivées du chanvre dans 10 États américains
L'entreprise a révisé ses prévisions pour l'exercice 2025 à un chiffre d'affaires net de 850 à 900 millions de dollars. Tilray a confirmé qu'il n'y a actuellement aucun impact des récents tarifs douaniers sur ses opérations sur les marchés américains, canadiens et européens.
Tilray Brands (TLRY) hat die finanziellen Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 veröffentlicht, mit einem Nettoumsatz von 186 Millionen Dollar, leicht rückläufig von 188,3 Millionen Dollar im Vorjahr, jedoch mit 193 Millionen Dollar in konstanten Währungen. Strategische Initiativen und die Rationalisierung der SKU haben den Umsatz um 13,2 Millionen Dollar beeinflusst.
Wichtige Höhepunkte sind:
- Der Bruttogewinn stieg um 5% auf 52 Millionen Dollar, mit einer Steigerung der Margen um 200 Basispunkte auf 28%
- Nettoverlust von 793,5 Millionen Dollar, hauptsächlich aufgrund eines nicht zahlungswirksamen Wertminderungsaufwands von 700 Millionen Dollar
- Reduzierung der Gesamtschulden um 71 Millionen Dollar, mit einer Verringerung der wandelbaren Anleihen um 58 Millionen Dollar
- Der Cannabis-Sektor erhöhte die Bruttomargen um 800 Basispunkte
- Erweiterung der Verteilung von THC-Getränken aus Hanf in 10 US-Bundesstaaten
Das Unternehmen hat die Prognose für das Geschäftsjahr 2025 auf einen Nettoumsatz von 850-900 Millionen Dollar angepasst. Tilray bestätigte, dass es derzeit keine Auswirkungen der jüngsten Zölle auf seine Geschäfte in den Märkten der USA, Kanada und Europa gibt.
- Gross profit increased 5% to $52 million with margins improving 200 bps to 28%
- Total debt reduction of $71 million and net debt to EBITDA now less than 1.0x
- Cannabis segment gross margins increased significantly by 800 bps to 41%
- Distribution revenue grew 8% to $61.5 million (15% in constant currency)
- Wellness segment revenue increased 5% to $14.1 million with improved margins
- Net revenue declined to $185.8 million from $188.3 million year-over-year
- Substantial net loss of $793.5 million due to non-cash impairment charges
- Cannabis revenue decreased to $54.3 million from $63.4 million year-over-year
- Adjusted EBITDA declined to $9.0 million from $10.2 million prior year
- Downward revision of FY2025 revenue guidance to $850-900 million
Insights
Tilray's Q3 FY2025 results present a strategic pivot toward profitability over pure revenue growth. Revenue slightly decreased to
The
Their segment performance reveals a company refining its portfolio: Cannabis margins increased dramatically by 800 basis points to
Financially, Tilray has strengthened its position by reducing debt by
The guidance revision to
Tilray's strategic decisions in the cannabis segment reveal important industry dynamics. The 800 basis point improvement in cannabis gross margins to
The hemp-derived THC beverage expansion across 10 U.S. states represents a significant strategic foothold in anticipation of potential regulatory changes. With
The company's statement about tariffs having no current impact on operations is particularly relevant as industry concerns mount about international cannabis supply chains. Tilray's operational model - producing cannabis locally in Canada for Canadians and in Europe for Europeans - insulates them from these potential disruptions.
Project 420's expanded
Tilray's global cannabis supply chain expansion and cultivation footprint growth position it well for the increasing international demand, particularly as European markets continue developing.
Tilray Confirms No Current Impact of Tariffs
Generated Net Revenue of
Tilray Beverage Expands U.S. Distribution of Hemp-Derived THC Drinks Across 10 States, Increases Project 420 Cost Savings Plan to
Tilray Cannabis Increased Gross Margins by 800 bps, Remains the Leader in Canada by Sales Performance, and Generates Strong Sales Growth in Germany
Strengthens Balance Sheet with Convertible Note Reduction of
NEW YORK and LEAMINGTON, Ontario, April 08, 2025 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray”, “our”, “we” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a global lifestyle and consumer packaged goods company at the forefront of beverage, cannabis and wellness industries, today reported financial results for its third quarter ended February 28, 2025. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
In response to the recently announced tariffs on international trade, Tilray conducted an analysis of the potential implications on its business. The analysis concluded that these tariffs should not impact sales. In the United States, Tilray's American beverage brands are solely manufactured and distributed within the U.S. market. In Canada, Tilray’s cannabis brands are produced domestically for Canadian consumers. In Europe, Tilray manufactures medical cannabis brands and products for distribution across Europe and Australia. Regarding Tilray’s wellness business, Manitoba Harvest is currently exempt from the new tariffs.
Irwin D. Simon, Chairman and Chief Executive Officer of Tilray Brands, stated, "Tilray Brands is shaping the future of consumer markets with a robust global infrastructure spanning the beverage, cannabis, and wellness industries. We are meeting the needs of today’s consumers while preparing for the demands of tomorrow. In the third quarter, we prioritized sales quality and revenue, protected margins, reduced debt, and improved our capital structure. With a strong balance sheet and a clear vision for the future, Tilray is well positioned to capitalize on emerging opportunities and ensure long-term success.”
Mr. Simon continued, "We see opportunities in the alcohol, cannabis, and wellness industries and believe these sectors are here to stay. Tilray is relentlessly focused on building strong brands and developing innovative products to seize growth opportunities across all our businesses. At Tilray, we are laser-focused on building a sustainable global business platform by emphasizing profitable sales growth, improving profit margins and cash flow generation, and maintaining a solid balance sheet to navigate market challenges and capitalize on strategic opportunities. In Q3, we delivered our highest cannabis gross margins in almost two years, and as of today our net debt is now less than 1x EBITDA on a trailing twelve-month basis. We will not seek sales growth merely for the sake of sales if it does not add to the bottom line and benefit our shareholders."
Strategic Growth Initiatives – Third Quarter Fiscal Year 2025
Tilray Beverage Project 420: Tilray Beverage completed
Hemp-Derived THC Drinks in the U.S: Tilray Brands is strategically positioned to utilize the expertise of its hemp wellness and cannabis businesses to responsibly formulate beverages infused with 5mg and 10mg of hemp-derived THC. During the fiscal year to date, Tilray generated
Tilray Cannabis Profitability Initiatives: Tilray's Cannabis segment is focused on profitability and margin protection. In the third fiscal quarter, Tilray Canada redirected inventories to international cannabis markets to capitalize on higher margins expected in these markets in the upcoming fourth fiscal quarter. Tilray’s global cannabis supply chain is in Phase II of its accelerated growth plan, and the cultivation footprint is expanding to meet increasing demand in both Canadian and international markets. The Cannabis segment is concentrating on preserving gross margins and maintaining higher average selling prices in categories such as vapes and infused pre-rolls, which have experienced significant price compression and are margin dilutive. Growth in these categories is expected to resume later in the upcoming fourth fiscal quarter due to capital expenditures improving our operational efficiencies.
Debt Reduction;
AI and Cryptocurrency Business Strategy: Tilray Brands is dedicated to leveraging advanced technologies to align with our shareholder interests, the consumer of tomorrow, enhancing efficiency and driving growth. We are implementing AI across our global operations to enhance our expertise, optimize processes, achieve substantial improvements, and advance our business objectives. In the cultivation sector, we are utilizing advanced horticulture automation technology throughout our global greenhouse operations. By integrating this technology with AI-driven data insights, we can manage greenhouse conditions in real-time, leading to more efficient operations, increased output, superior quality, and reduced costs for resources such as labor, water, and energy. Additionally, Tilray plans to accept cryptocurrency as a payment method within the Company’s online operations. The Company is also exploring strategic initiatives related to cryptocurrency that align with our business goals.
Financial Highlights – Third Quarter Fiscal Year 2025
- Net revenue of
$185.8 million in the third quarter compared to$188.3 million in the prior year quarter. On a constant currency basis, net revenue in the current third quarter, increased to ~$193 million . The prior year quarter included revenue of$6 million of now discontinued SKUs. Strategic initiatives and SKU rationalization impacted revenue by$13.2 million in the current year quarter. - Gross profit increased by
5% to$52.0 million in the third quarter compared to$49.4 million in the prior year quarter. Gross margin increased 200 bps to28% in the third quarter compared to26% in the prior year quarter. - Net loss was
$(793.5) million in the third quarter, due to ~$700 million of non-cash impairment as a result of macroeconomic conditions and declines in market capitalization, foreign exchange loss, amortization, changes in fair value of convertible notes receivable, and stock-based compensation as well as non-recurring transaction and restructuring charges. - Adjusted net loss was
$(2.9) million in the third quarter compared to an adjusted net income of$0.9 million in the prior year quarter. - Adjusted EPS remained at
$0.00 in both the third quarter and the comparative period. - Adjusted EBITDA in the third quarter was
$9.0 million compared to$10.2 million in the prior year quarter due to the beverage segment’s SKU rationalization impact of$1.0 million and$0.6 million related to the prioritization of international cannabis markets. - Beverage alcohol net revenue increased to
$55.9 million in the third quarter up from$54.7 million in the prior year quarter, despite a$6.0 million impact from the strategic SKU rationalization.- Beverage alcohol gross margin increased to
36% in the third quarter compared to34% in the prior year quarter.
- Beverage alcohol gross margin increased to
- Cannabis net revenue was
$54.3 million in the third quarter compared to$63.4 million in the prior year quarter. On a constant currency basis, Cannabis net revenue was$57.5 million . The strategic initiative to redirect product from Canada to international markets resulted in a timing impact on revenue of$3.2 million . Additionally, a strategic decision to pause our presence in margin dilutive categories, such as vapes and infused pre-rolls, led to a revenue decrease of$4.0 million but prevented a potential loss exceeding$3 million .- Cannabis gross margin increased to
41% in the third quarter compared to33% in the prior year quarter resulting from our strategic prioritization of the international business and the reduction in our exposure to margin dilutive categories.
- Cannabis gross margin increased to
- Distribution net revenue increased
8% to$61.5 million in the third quarter compared to$56.8 million in the prior year quarter. On a constant currency basis, Distribution net revenue was up15% to$65.1 million .- Distribution gross margin was
9% in the third quarter compared to10% in the prior year quarter.
- Distribution gross margin was
- Wellness net revenue increased
5% to$14.1 million and8% on a constant currency basis to$14.5 million in the third quarter compared to$13.4 million in the prior year quarter.- Wellness gross margin increased to
32% in the third quarter compared to30% in the prior year quarter.
- Wellness gross margin increased to
Company’s Fiscal Year 2025 Guidance
The Company revises fiscal year 2025 guidance for net revenue to
Live Conference Call and Audio Webcast
Tilray Brands will host a webcast to discuss these results today at 8:30 a.m. ET. Investors may join the live webcast available on the Investors section of the Company’s website at www.tilray.com. A replay will be available and archived on the Company’s website.
About Tilray Brands
Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company at the forefront of beverage, cannabis and wellness industries with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy, wellness and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.
For more information on Tilray Brands, visit www.Tilray.com and follow @Tilray
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company’s ability to transform the CPG industry for cannabis, hemp, beverages and entertainment; the Company’s ability to become a leading beverage alcohol Company; the Company’s ability to achieve long term profitability; the Company’s ability to achieve operational scale, market share, distribution, profitability and revenue growth in particular business lines and markets; the Company’s ability to achieve its revised FY 2025 guidance; the Company’s ability to successfully achieve revenue growth, margin and profitability improvements, production and supply chain efficiencies, synergies and cost savings; the Company’s expected revenue growth, sales volume, profitability, synergies and accretion related to any of its acquisitions; expected commercial opportunities and regulatory developments in the U.S., including upon U.S. federal cannabis legalization or rescheduling; the Company’s anticipated investments and acquisitions, including in organic and strategic growth, partnership efforts, product offerings and other initiatives; the Company’s ability to commercialize new and innovative products; market opportunities and regulatory risks for Hemp-Derived Delta-9 (HDD9) beverage products, and expected sales, distribution, margin, price and revenue generation projections; consumer sentiment regarding HDD9 beverage products; Tilray’s strategy and anticipated offerings within the HDD9 beverage product segment, expected impacts of U.S. tariffs, and the Company’s ability to leverage AI and cryptocurrency to enhance efficiency and drive growth.
Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. Risks and uncertainties that may cause actual results to differ materially from forward-looking statements include, but are not limited to, those identified and described in our most recent Annual Report on Form 10-K as well as our other filings made from time to time with the SEC and in our Canadian securities filings. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of the Company and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of the Company made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Use of Non-U.S. GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including Adjusted gross margin (consolidated and for each of our reporting segments), Adjusted gross profit (consolidated and for each of our reporting segments), Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, adjusted free cash flow, constant currency presentations of revenue, cash and marketable securities and net debt. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.
Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, transaction costs, impairments, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.
The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company's consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year. A reconciliation of prior year revenue to constant currency revenue the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.
Adjusted EBITDA is calculated as net income (loss) before income tax benefits, net; interest expense, net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; purchase price accounting step-up; impairments, other than temporary change in fair value of convertible notes receivable, project 420 optimization costs facility start-up and closure costs; litigation costs; restructuring costs, and transaction (income) costs, net. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.
Adjusted net income (loss) is calculated as net loss attributable to stockholders of Tilray Brands, Inc., less; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; impairments, other than temporary change in fair value of convertible notes receivable, project 420 optimization costs facility start-up and closure costs; litigation costs; restructuring costs and transaction (income) costs, net. A reconciliation of Adjusted net income (loss) to net loss attributable to stockholders of Tilray Brands, Inc., the most directly comparable GAAP measure, has been included below in this press release.
Adjusted net income (loss) per share is calculated as net loss attributable to stockholders of Tilray Brands, Inc., net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; impairments, other than temporary change in fair value of convertible notes receivable, project 420 optimization costs facility start-up and closure costs; litigation costs; restructuring costs and transaction (income) costs, divided by weighted average number of common shares outstanding. A reconciliation of Adjusted net income (loss) per share to net loss attributable to stockholders of Tilray Brands, Inc., the most directly comparable GAAP measure, has been included below in this press release. Adjusted net income (loss) per share is not calculated in accordance with GAAP and should not be considered an alternative for GAAP net income (loss) per share or as a measure of liquidity.
Adjusted gross profit (consolidated and for each of our reporting segments), is calculated as gross profit adjusted to exclude the impact of purchase price accounting valuation step-up. A reconciliation of Adjusted gross profit, excluding purchase price accounting valuation step-up, to gross profit, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release. Adjusted gross margin (consolidated and for each of our reporting segments), excluding purchase price accounting valuation step-up, is calculated as revenue less cost of sales adjusted to add back amortization of inventory step-up, divided by revenue. A reconciliation of Adjusted gross margin, excluding purchase price accounting valuation step-up, to gross margin, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.
Free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release. Adjusted free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net, and the exclusion of growth CAPEX from investments in capital and intangible assets, net, which excludes the amount of capital expenditures that are considered to be associated with growth of future operations rather than to maintain the existing operations of the Company, and excludes our integration costs related to HEXO and the cash income taxes related to Aphria Diamond to align with management’s prescribed guidance. A reconciliation of net cash flow provided by (used in) operating activities to adjusted free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.
Cash and marketable securities are comprised of two GAAP measures, cash and cash equivalents added to marketable securities. The Company’s management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its short-term liquidity position by combing these two GAAP metrics.
Net debt is comprised of GAAP measures and reduces bank indebtedness, current and non-current portions of long-term debt, the principal balance of convertible debt by cash and cash equivalents and marketable securities. The company believes this metric provides useful information to management, analysts, and investors regarding its liquidity and the Company’s ability to repay all of its debt.
For further information:
Media Contact: news@tilray.com
Investor Contact: investors@tilray.com
| Consolidated Statements of Financial Position | |||||||||
| February 28, | May 31, | ||||||||
| (in thousands of US dollars) | 2025 | 2024 | |||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 199,956 | $ | 228,340 | |||||
| Marketable securities | 48,458 | 32,182 | |||||||
| Accounts receivable, net | 103,367 | 101,695 | |||||||
| Inventory | 263,398 | 252,087 | |||||||
| Prepaids and other current assets | 40,138 | 31,332 | |||||||
| Assets held for sale | 30,972 | 32,074 | |||||||
| Total current assets | 686,289 | 677,710 | |||||||
| Capital assets | 537,800 | 558,247 | |||||||
| Operating lease, right-of-use assets | 16,994 | 16,101 | |||||||
| Intangible assets | 847,215 | 915,469 | |||||||
| Goodwill | 1,299,781 | 2,008,884 | |||||||
| Long-term investments | 10,035 | 7,859 | |||||||
| Convertible notes receivable | — | 32,000 | |||||||
| Other assets | 5,032 | 5,395 | |||||||
| Total assets | $ | 3,403,146 | $ | 4,221,665 | |||||
| Liabilities | |||||||||
| Current liabilities | |||||||||
| Bank indebtedness | $ | 10,740 | $ | 18,033 | |||||
| Accounts payable and accrued liabilities | 216,567 | 241,957 | |||||||
| Contingent consideration | 15,000 | 15,000 | |||||||
| Warrant liability | 357 | 3,253 | |||||||
| Current portion of lease liabilities | 6,606 | 5,091 | |||||||
| Current portion of long-term debt | 12,904 | 15,506 | |||||||
| Current portion of convertible debentures payable | — | 330 | |||||||
| Total current liabilities | 262,174 | 299,170 | |||||||
| Long - term liabilities | |||||||||
| Lease liabilities | 60,188 | 60,422 | |||||||
| Long-term debt | 149,401 | 158,352 | |||||||
| Convertible debentures payable | 104,071 | 129,583 | |||||||
| Deferred tax liabilities, net | 123,938 | 130,870 | |||||||
| Other liabilities | 1,271 | 90 | |||||||
| Total liabilities | 701,043 | 778,487 | |||||||
| Stockholders' equity | |||||||||
| Common stock ( | 99 | 83 | |||||||
| Preferred shares ( | — | — | |||||||
| Treasury Stock (9,619,421 and nil treasury shares issued and outstanding, respectively) | — | — | |||||||
| Additional paid-in capital | 6,357,039 | 6,146,810 | |||||||
| Accumulated other comprehensive loss | (52,935 | ) | (43,499 | ) | |||||
| Accumulated deficit | (3,574,431 | ) | (2,660,488 | ) | |||||
| Total Tilray Brands, Inc. stockholders' equity | 2,729,772 | 3,442,906 | |||||||
| Non-controlling interests | (27,669 | ) | 272 | ||||||
| Total stockholders' equity | 2,702,103 | 3,443,178 | |||||||
| Total liabilities and stockholders' equity | $ | 3,403,146 | $ | 4,221,665 | |||||
| Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||
| For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||||
| February 28, | February 29, | Change | % Change | February 28, | February 29, | Change | % Change | ||||||||||||||||||||||||
| (in thousands of U.S. dollars, except for per share data) | 2025 | 2024 | 2025 vs. 2024 | 2025 | 2024 | 2025 vs. 2024 | |||||||||||||||||||||||||
| Net revenue | $ | 185,780 | $ | 188,340 | $ | (2,560 | ) | (1 | )% | $ | 596,774 | $ | 559,060 | $ | 37,714 | 7 | % | ||||||||||||||
| Cost of goods sold | 133,769 | 138,944 | (5,175 | ) | (4 | )% | 423,837 | 418,059 | 5,778 | 1 | % | ||||||||||||||||||||
| Gross profit | 52,011 | 49,396 | 2,615 | 5 | % | 172,937 | 141,001 | 31,936 | 23 | % | |||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||
| General and administrative | 39,246 | 39,940 | (694 | ) | (2 | )% | 129,356 | 123,769 | 5,587 | 5 | % | ||||||||||||||||||||
| Selling | 13,905 | 9,995 | 3,910 | 39 | % | 41,757 | 24,437 | 17,320 | 71 | % | |||||||||||||||||||||
| Amortization | 23,182 | 21,558 | 1,624 | 8 | % | 67,913 | 65,700 | 2,213 | 3 | % | |||||||||||||||||||||
| Marketing and promotion | 6,793 | 11,191 | (4,398 | ) | (39 | )% | 28,079 | 28,934 | (855 | ) | (3 | )% | |||||||||||||||||||
| Research and development | 85 | 106 | (21 | ) | (20 | )% | 250 | 241 | 9 | 4 | % | ||||||||||||||||||||
| Change in fair value of contingent consideration | — | (5,983 | ) | 5,983 | (100 | )% | — | (16,790 | ) | 16,790 | (100 | )% | |||||||||||||||||||
| Impairments | 699,235 | — | 699,235 | NM | 699,235 | — | 699,235 | NM | |||||||||||||||||||||||
| Other than temporary change in fair value of convertible notes receivable | 20,000 | 42,681 | (22,681 | ) | (53 | )% | 20,000 | 42,681 | (22,681 | ) | (53 | )% | |||||||||||||||||||
| Litigation costs, net of recoveries | 2,758 | 3,363 | (605 | ) | (18 | )% | 5,254 | 8,439 | (3,185 | ) | (38 | )% | |||||||||||||||||||
| Restructuring costs | 6,133 | 5,178 | 955 | 18 | % | 17,249 | 8,748 | 8,501 | 97 | % | |||||||||||||||||||||
| Transaction costs (income), net | 605 | 3,465 | (2,860 | ) | (83 | )% | 2,563 | 13,061 | (10,498 | ) | (80 | )% | |||||||||||||||||||
| Total operating expenses | 811,942 | 131,494 | 680,448 | 517 | % | 1,011,656 | 299,220 | 712,436 | 238 | % | |||||||||||||||||||||
| Operating loss | (759,931 | ) | (82,098 | ) | (677,833 | ) | 826 | % | (838,719 | ) | (158,219 | ) | (680,500 | ) | 430 | % | |||||||||||||||
| Interest expense, net | (8,378 | ) | (8,517 | ) | 139 | (2 | )% | (25,986 | ) | (26,977 | ) | 991 | (4 | )% | |||||||||||||||||
| Non-operating income (expense), net | (24,022 | ) | (17,239 | ) | (6,783 | ) | 39 | % | (44,631 | ) | (20,820 | ) | (23,811 | ) | 114 | % | |||||||||||||||
| Loss before income taxes | (792,331 | ) | (107,854 | ) | (684,477 | ) | 635 | % | (909,336 | ) | (206,016 | ) | (703,320 | ) | 341 | % | |||||||||||||||
| Income tax expense (recovery), net | 1,203 | (2,871 | ) | 4,074 | (142 | )% | 4,125 | 1,013 | 3,112 | 307 | % | ||||||||||||||||||||
| Net loss | $ | (793,534 | ) | $ | (104,983 | ) | $ | (688,551 | ) | 656 | % | $ | (913,461 | ) | $ | (207,029 | ) | $ | (706,432 | ) | 341 | % | |||||||||
| Total net (loss) income attributable to: | |||||||||||||||||||||||||||||||
| Stockholders of Tilray Brands, Inc. | (789,436 | ) | (92,701 | ) | (696,735 | ) | 752 | % | (913,943 | ) | (213,234 | ) | (700,709 | ) | 329 | % | |||||||||||||||
| Non-controlling interests | (4,098 | ) | (12,282 | ) | 8,184 | (67 | )% | 482 | 6,205 | (5,723 | ) | (92 | )% | ||||||||||||||||||
| Other comprehensive gain (loss), net of tax | |||||||||||||||||||||||||||||||
| Foreign currency translation gain (loss) | (5,389 | ) | (4,696 | ) | (693 | ) | 15 | % | (10,195 | ) | 3,716 | (13,911 | ) | (374 | )% | ||||||||||||||||
| Total other comprehensive gain (loss), net of tax | (5,389 | ) | (4,696 | ) | (693 | ) | 15 | % | (10,195 | ) | 3,716 | (13,911 | ) | (374 | )% | ||||||||||||||||
| Comprehensive loss | $ | (798,923 | ) | $ | (109,679 | ) | $ | (689,244 | ) | 628 | % | $ | (923,656 | ) | $ | (203,313 | ) | $ | (720,343 | ) | 354 | % | |||||||||
| Total comprehensive (loss) income attributable to: | |||||||||||||||||||||||||||||||
| Stockholders of Tilray Brands, Inc. | (794,414 | ) | (97,521 | ) | (696,893 | ) | 715 | % | (923,379 | ) | (209,811 | ) | (713,568 | ) | 340 | % | |||||||||||||||
| Non-controlling interests | (4,509 | ) | (12,158 | ) | 7,649 | (63 | )% | (277 | ) | 6,498 | (6,775 | ) | (104 | )% | |||||||||||||||||
| Weighted average number of common shares - basic | 908,342,792 | 754,439,331 | 153,903,461 | 20 | % | 860,793,723 | 725,346,952 | 135,446,771 | 19 | % | |||||||||||||||||||||
| Weighted average number of common shares - diluted | 908,342,792 | 754,439,331 | 153,903,461 | 20 | % | 860,793,723 | 725,346,952 | 135,446,771 | 19 | % | |||||||||||||||||||||
| Net loss per share - basic | $ | (0.87 | ) | $ | (0.12 | ) | $ | (0.75 | ) | 607 | % | $ | (1.06 | ) | $ | (0.29 | ) | $ | (0.77 | ) | 261 | % | |||||||||
| Net loss per share - diluted | $ | (0.87 | ) | $ | (0.12 | ) | $ | (0.75 | ) | 607 | % | $ | (1.06 | ) | $ | (0.29 | ) | $ | (0.77 | ) | 261 | % | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||||
| For the nine months ended | |||||||||||||||
| February 28, | February 29, | Change | % Change | ||||||||||||
| (in thousands of US dollars) | 2025 | 2024 | 2025 vs. 2024 | ||||||||||||
| Cash provided by (used in) operating activities: | |||||||||||||||
| Net loss | $ | (913,461 | ) | $ | (207,029 | ) | $ | (706,432 | ) | 341 | % | ||||
| Adjustments for: | |||||||||||||||
| Deferred income tax expense (recovery), net | 2,686 | (7,399 | ) | 10,085 | (136 | )% | |||||||||
| Unrealized foreign exchange loss (gain) | 30,725 | (6,622 | ) | 37,347 | (564 | )% | |||||||||
| Amortization | 99,410 | 95,183 | 4,227 | 4 | % | ||||||||||
| Accretion of convertible debt discount | 8,751 | 11,463 | (2,712 | ) | (24 | )% | |||||||||
| Impairments | 699,235 | — | 699,235 | NM | |||||||||||
| Other than temporary change in fair value of convertible notes receivable | 20,000 | 42,681 | (22,681 | ) | (53 | )% | |||||||||
| Other non-cash items | 1,503 | 13,297 | (11,794 | ) | (89 | )% | |||||||||
| Stock-based compensation | 18,189 | 24,517 | (6,328 | ) | (26 | )% | |||||||||
| Loss (gain) on long-term investments & equity investments | 5,540 | 4,255 | 1,285 | 30 | % | ||||||||||
| (Gain) loss on derivative instruments | (2,896 | ) | 13,717 | (16,613 | ) | (121 | )% | ||||||||
| Change in fair value of contingent consideration | — | (16,790 | ) | 16,790 | (100 | )% | |||||||||
| Change in non-cash working capital: | |||||||||||||||
| Accounts receivable | 321 | 5,578 | (5,257 | ) | (94 | )% | |||||||||
| Prepaids and other current assets | (8,258 | ) | 1,148 | (9,406 | ) | (819 | )% | ||||||||
| Inventory | (5,577 | ) | (4,629 | ) | (948 | ) | 20 | % | |||||||
| Accounts payable and accrued liabilities | (37,960 | ) | (30,982 | ) | (6,978 | ) | 23 | % | |||||||
| Net cash used in operating activities | (81,792 | ) | (61,612 | ) | (20,180 | ) | 33 | % | |||||||
| Cash provided by (used in) investing activities: | |||||||||||||||
| Investment in capital and intangible assets | (26,586 | ) | (19,539 | ) | (7,047 | ) | 36 | % | |||||||
| Proceeds from disposal of capital and intangible assets | 833 | 1,166 | (333 | ) | (29 | )% | |||||||||
| (Purchase) disposal of marketable securities, net | (16,276 | ) | 162,292 | (178,568 | ) | (110 | )% | ||||||||
| Business acquisitions, net of cash acquired | (18,210 | ) | (60,626 | ) | 42,416 | (70 | )% | ||||||||
| Net cash (used in) provided by investing activities | (60,239 | ) | 83,293 | (143,532 | ) | (172 | )% | ||||||||
| Cash provided by (used in) financing activities: | |||||||||||||||
| Share capital issued, net of cash issuance costs | 139,738 | — | 139,738 | NM | |||||||||||
| Proceeds from long-term debt | 3,450 | 32,621 | (29,171 | ) | (89 | )% | |||||||||
| Repayment of long-term debt | (16,115 | ) | (17,978 | ) | 1,863 | (10 | )% | ||||||||
| Proceeds from convertible debt | — | 21,553 | (21,553 | ) | (100 | )% | |||||||||
| Repayment of convertible debt | (330 | ) | (107,330 | ) | 107,000 | (100 | )% | ||||||||
| Repayment of lease liabilities | (2,586 | ) | (2,771 | ) | 185 | (7 | )% | ||||||||
| Net decrease in bank indebtedness | (7,293 | ) | (8,352 | ) | 1,059 | (13 | )% | ||||||||
| Net cash provided by (used in) financing activities | 116,864 | (82,257 | ) | 199,121 | (242 | )% | |||||||||
| Effect of foreign exchange on cash and cash equivalents | (3,217 | ) | 197 | (3,414 | ) | (1733 | )% | ||||||||
| Net decrease in cash and cash equivalents | (28,384 | ) | (60,379 | ) | 31,995 | (53 | )% | ||||||||
| Cash and cash equivalents, beginning of period | 228,340 | 206,632 | 21,708 | 11 | % | ||||||||||
| Cash and cash equivalents, end of period | $ | 199,956 | $ | 146,253 | $ | 53,703 | 37 | % | |||||||
| Net Revenue by Operating Segment | |||||||||||||||||||||||||||||
| For the three months ended | For the three months ended | For the nine months ended | For the nine months ended | ||||||||||||||||||||||||||
| (In thousands of U.S. dollars) | February 28, 2025 | % of Total Revenue | February 29, 2024 | % of Total Revenue | February 28, 2025 | % of Total Revenue | February 29, 2024 | % of Total Revenue | |||||||||||||||||||||
| Beverage business | $ | 55,921 | 30 | % | $ | 54,688 | 29 | % | $ | 174,974 | 29 | % | $ | 125,355 | 22 | % | |||||||||||||
| Cannabis business | 54,274 | 29 | % | 63,432 | 34 | % | 181,175 | 31 | % | 200,879 | 36 | % | |||||||||||||||||
| Distribution business | 61,493 | 33 | % | 56,794 | 30 | % | 197,175 | 33 | % | 193,174 | 35 | % | |||||||||||||||||
| Wellness business | 14,092 | 8 | % | 13,426 | 7 | % | 43,450 | 7 | % | 39,652 | 7 | % | |||||||||||||||||
| Total net revenue | $ | 185,780 | 100 | % | $ | 188,340 | 100 | % | $ | 596,774 | 100 | % | $ | 559,060 | 100 | % | |||||||||||||
| Net Revenue by Operating Segment in Constant Currency | |||||||||||||||||||||||||||||
| For the three months ended | For the three months ended | For the nine months ended | For the nine months ended | ||||||||||||||||||||||||||
| February 28, 2025 | February 29, 2024 | February 28, 2025 | February 29, 2024 | ||||||||||||||||||||||||||
| (In thousands of U.S. dollars) | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | |||||||||||||||||||||
| Beverage business | $ | 55,921 | 29 | % | $ | 54,688 | 29 | % | $ | 174,974 | 29 | % | $ | 125,355 | 22 | % | |||||||||||||
| Cannabis business | 57,475 | 30 | % | 63,432 | 34 | % | 186,120 | 31 | % | 200,879 | 36 | % | |||||||||||||||||
| Distribution business | 65,054 | 33 | % | 56,794 | 30 | % | 204,861 | 33 | % | 193,174 | 35 | % | |||||||||||||||||
| Wellness business | 14,499 | 8 | % | 13,426 | 7 | % | 44,068 | 7 | % | 39,652 | 7 | % | |||||||||||||||||
| Total net revenue | $ | 192,949 | 100 | % | $ | 188,340 | 100 | % | $ | 610,023 | 100 | % | $ | 559,060 | 100 | % | |||||||||||||
| Net Cannabis Revenue by Market Channel | |||||||||||||||||||||||||||||
| For the three months ended | For the three months ended | For the nine months ended | For the nine months ended | ||||||||||||||||||||||||||
| (In thousands of U.S. dollars) | February 28, 2025 | % of Total Revenue | February 29, 2024 | % of Total Revenue | February 28, 2025 | % of Total Revenue | February 29, 2024 | % of Total Revenue | |||||||||||||||||||||
| Revenue from Canadian medical cannabis | $ | 5,839 | 11 | % | $ | 6,363 | 10 | % | $ | 18,773 | 10 | % | $ | 18,793 | 9 | % | |||||||||||||
| Revenue from Canadian adult-use cannabis | 49,315 | 91 | % | 62,107 | 98 | % | 165,627 | 91 | % | 205,350 | 102 | % | |||||||||||||||||
| Revenue from wholesale cannabis | 3,893 | 7 | % | 2,764 | 4 | % | 15,993 | 9 | % | 12,348 | 6 | % | |||||||||||||||||
| Revenue from international cannabis | 13,935 | 26 | % | 14,002 | 22 | % | 40,991 | 23 | % | 40,185 | 20 | % | |||||||||||||||||
| Less excise taxes | (18,708 | ) | (35 | )% | (21,804 | ) | (34 | )% | (60,209 | ) | (33 | )% | (75,797 | ) | (37 | )% | |||||||||||||
| Total | $ | 54,274 | 100 | % | $ | 63,432 | 100 | % | $ | 181,175 | 100 | % | $ | 200,879 | 100 | % | |||||||||||||
| Net Cannabis Revenue by Market Channel in Constant Currency | |||||||||||||||||||||||||||||
| For the three months ended | For the three months ended | For the nine months ended | For the nine months ended | ||||||||||||||||||||||||||
| February 28, 2025 | February 29, 2024 | February 28, 2025 | February 29, 2024 | ||||||||||||||||||||||||||
| (In thousands of U.S. dollars) | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | |||||||||||||||||||||
| Revenue from Canadian medical cannabis | $ | 6,259 | 11 | % | $ | 6,363 | 10 | % | $ | 19,398 | 10 | % | $ | 18,793 | 9 | % | |||||||||||||
| Revenue from Canadian adult-use cannabis | 52,815 | 92 | % | 62,107 | 98 | % | 170,967 | 92 | % | 205,350 | 102 | % | |||||||||||||||||
| Revenue from wholesale cannabis | 4,170 | 7 | % | 2,764 | 4 | % | 16,525 | 9 | % | 12,348 | 6 | % | |||||||||||||||||
| Revenue from international cannabis | 14,264 | 25 | % | 14,002 | 22 | % | 41,411 | 22 | % | 40,185 | 20 | % | |||||||||||||||||
| Less excise taxes | (20,033 | ) | (35 | )% | (21,804 | ) | (34 | )% | (62,181 | ) | (33 | )% | (75,797 | ) | (37 | )% | |||||||||||||
| Total | $ | 57,475 | 100 | % | $ | 63,432 | 100 | % | $ | 186,120 | 100 | % | $ | 200,879 | 100 | % | |||||||||||||
| Other Financial Information: Key Operating Metrics | ||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||
| February 28, | February 29, | February 28, | February 29, | |||||||||||||
| (in thousands of U.S. dollars) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net beverage revenue | $ | 55,921 | $ | 54,688 | $ | 174,974 | $ | 125,355 | ||||||||
| Net cannabis revenue | 54,274 | 63,432 | 181,175 | 200,879 | ||||||||||||
| Distribution revenue | 61,493 | 56,794 | 197,175 | 193,174 | ||||||||||||
| Wellness revenue | 14,092 | 13,426 | 43,450 | 39,652 | ||||||||||||
| Beverage costs | 35,986 | 35,836 | 106,961 | 77,615 | ||||||||||||
| Cannabis costs | 32,275 | 42,518 | 111,804 | 139,507 | ||||||||||||
| Distribution costs | 55,936 | 51,231 | 175,281 | 172,846 | ||||||||||||
| Wellness costs | 9,572 | 9,359 | 29,791 | 28,091 | ||||||||||||
| Adjusted gross profit (excluding PPA step-up) | 52,070 | 51,643 | 174,547 | 153,055 | ||||||||||||
| Beverage adjusted gross margin (excluding PPA step-up) | 36 | % | 38 | % | 40 | % | 42 | % | ||||||||
| Cannabis adjusted gross margin (excluding PPA step-up) | 41 | % | 33 | % | 38 | % | 34 | % | ||||||||
| Distribution gross margin | 9 | % | 10 | % | 11 | % | 11 | % | ||||||||
| Wellness gross margin | 32 | % | 30 | % | 31 | % | 29 | % | ||||||||
| Adjusted EBITDA | $ | 9,040 | $ | 10,154 | $ | 27,391 | $ | 30,974 | ||||||||
| Cash and marketable securities as at the period ended: | 248,414 | 225,858 | 248,414 | 225,858 | ||||||||||||
| Working capital as at the period ended: | $ | 424,115 | $ | 302,111 | $ | 424,115 | $ | 302,111 | ||||||||
| Other Financial Information: Gross Margin and Adjusted Gross Margin | |||||||||||||||||||||
| For the three months ended February 28, 2025 | |||||||||||||||||||||
| (In thousands of U.S. dollars) | Beverage | Cannabis | Distribution | Wellness | Total | ||||||||||||||||
| Net revenue | $ | 55,921 | $ | 54,274 | $ | 61,493 | $ | 14,092 | $ | 185,780 | |||||||||||
| Cost of goods sold | 35,986 | 32,275 | 55,936 | 9,572 | 133,769 | ||||||||||||||||
| Gross profit | 19,935 | 21,999 | 5,557 | 4,520 | 52,011 | ||||||||||||||||
| Gross margin | 36 | % | 41 | % | 9 | % | 32 | % | 28 | % | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Purchase price accounting step-up | 59 | — | — | — | 59 | ||||||||||||||||
| Adjusted gross profit | 19,994 | 21,999 | 5,557 | 4,520 | 52,070 | ||||||||||||||||
| Adjusted gross margin | 36 | % | 41 | % | 9 | % | 32 | % | 28 | % | |||||||||||
| For the three months ended February 29, 2024 | |||||||||||||||||||||
| (In thousands of U.S. dollars) | Beverage | Cannabis | Distribution | Wellness | Total | ||||||||||||||||
| Net revenue | $ | 54,688 | $ | 63,432 | $ | 56,794 | $ | 13,426 | $ | 188,340 | |||||||||||
| Cost of goods sold | 35,836 | 42,518 | 51,231 | 9,359 | 138,944 | ||||||||||||||||
| Gross profit | 18,852 | 20,914 | 5,563 | 4,067 | 49,396 | ||||||||||||||||
| Gross margin | 34 | % | 33 | % | 10 | % | 30 | % | 26 | % | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Purchase price accounting step-up | 2,073 | 174 | — | — | 2,247 | ||||||||||||||||
| Adjusted gross profit | 20,925 | 21,088 | 5,563 | 4,067 | 51,643 | ||||||||||||||||
| Adjusted gross margin | 38 | % | 33 | % | 10 | % | 30 | % | 27 | % | |||||||||||
| For the nine months ended February 28, 2025 | |||||||||||||||||||||
| (In thousands of U.S. dollars) | Beverage | Cannabis | Distribution | Wellness | Total | ||||||||||||||||
| Net revenue | $ | 174,974 | $ | 181,175 | $ | 197,175 | $ | 43,450 | $ | 596,774 | |||||||||||
| Cost of goods sold | 106,961 | 111,804 | 175,281 | 29,791 | 423,837 | ||||||||||||||||
| Gross profit | 68,013 | 69,371 | 21,894 | 13,659 | 172,937 | ||||||||||||||||
| Gross margin | 39 | % | 38 | % | 11 | % | 31 | % | 29 | % | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Purchase price accounting step-up | 1,610 | — | — | — | 1,610 | ||||||||||||||||
| Adjusted gross profit | 69,623 | 69,371 | 21,894 | 13,659 | 174,547 | ||||||||||||||||
| Adjusted gross margin | 40 | % | 38 | % | 11 | % | 31 | % | 29 | % | |||||||||||
| For the nine months ended February 29, 2024 | |||||||||||||||||||||
| (In thousands of U.S. dollars) | Beverage | Cannabis | Distribution | Wellness | Total | ||||||||||||||||
| Net revenue | $ | 125,355 | $ | 200,879 | $ | 193,174 | $ | 39,652 | $ | 559,060 | |||||||||||
| Cost of goods sold | 77,615 | 139,507 | 172,846 | 28,091 | 418,059 | ||||||||||||||||
| Gross profit | 47,740 | 61,372 | 20,328 | 11,561 | 141,001 | ||||||||||||||||
| Gross margin | 38 | % | 31 | % | 11 | % | 29 | % | 25 | % | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Purchase price accounting step-up | 4,426 | 7,628 | — | — | 12,054 | ||||||||||||||||
| Adjusted gross profit | 52,166 | 69,000 | 20,328 | 11,561 | 153,055 | ||||||||||||||||
| Adjusted gross margin | 42 | % | 34 | % | 11 | % | 29 | % | 27 | % | |||||||||||
| Other Financial Information: Adjusted Earnings Before Interest, Taxes and Amortization | ||||||||||||||||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||||||||||||||||
| February 28, | February 29, | Change | % Change | February 28, | February 29, | Change | % Change | |||||||||||||||||||||||
| (In thousands of U.S. dollars) | 2025 | 2024 | 2025 vs. 2024 | 2025 | 2024 | 2025 vs. 2024 | ||||||||||||||||||||||||
| Net loss | $ | (793,534 | ) | $ | (104,983 | ) | $ | (688,551 | ) | 656 | % | $ | (913,461 | ) | $ | (207,029 | ) | $ | (706,432 | ) | 341 | % | ||||||||
| Income tax expense (recovery), net | 1,203 | (2,871 | ) | 4,074 | (142 | )% | 4,125 | 1,013 | 3,112 | 307 | % | |||||||||||||||||||
| Interest expense, net | 8,378 | 8,517 | (139 | ) | (2 | )% | 25,986 | 26,977 | (991 | ) | (4 | )% | ||||||||||||||||||
| Non-operating income (expense), net | 24,022 | 17,239 | 6,783 | 39 | % | 44,631 | 20,820 | 23,811 | 114 | % | ||||||||||||||||||||
| Amortization | 33,546 | 32,842 | 704 | 2 | % | 99,410 | 95,183 | 4,227 | 4 | % | ||||||||||||||||||||
| Stock-based compensation | 4,035 | 8,059 | (4,024 | ) | (50 | )% | 18,189 | 24,517 | (6,328 | ) | (26 | )% | ||||||||||||||||||
| Change in fair value of contingent consideration | — | (5,983 | ) | 5,983 | (100 | )% | — | (16,790 | ) | 16,790 | (100 | )% | ||||||||||||||||||
| Impairments | 699,235 | — | 699,235 | NM | 699,235 | — | 699,235 | NM | ||||||||||||||||||||||
| Other than temporary change in fair value of convertible notes receivable | 20,000 | 42,681 | (22,681 | ) | (53 | )% | 20,000 | 42,681 | (22,681 | ) | (53 | )% | ||||||||||||||||||
| Project 420 business optimization | 2,600 | — | 2,600 | NM | 2,600 | — | 2,600 | NM | ||||||||||||||||||||||
| Purchase price accounting step-up | 59 | 2,247 | (2,188 | ) | (97 | )% | 1,610 | 12,054 | (10,444 | ) | (87 | )% | ||||||||||||||||||
| Facility start-up and closure costs | — | 400 | (400 | ) | (100 | )% | — | 1,300 | (1,300 | ) | (100 | )% | ||||||||||||||||||
| Litigation costs, net of recoveries | 2,758 | 3,363 | (605 | ) | (18 | )% | 5,254 | 8,439 | (3,185 | ) | (38 | )% | ||||||||||||||||||
| Restructuring costs | 6,133 | 5,178 | 955 | 18 | % | 17,249 | 8,748 | 8,501 | 97 | % | ||||||||||||||||||||
| Transaction costs (income), net | 605 | 3,465 | (2,860 | ) | (83 | )% | 2,563 | 13,061 | (10,498 | ) | (80 | )% | ||||||||||||||||||
| Adjusted EBITDA | $ | 9,040 | $ | 10,154 | $ | (1,114 | ) | (11 | )% | $ | 27,391 | $ | 30,974 | $ | (3,583 | ) | (12 | )% | ||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||||||||||||||||
| February 28, | February 29, | Change | % Change | February 28, | February 29, | Change | % Change | |||||||||||||||||||||||
| (In thousands of U.S. dollars) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||||||
| Net loss attributable to stockholders of Tilray Brands, Inc. | $ | (789,436 | ) | $ | (92,701 | ) | $ | (696,735 | ) | 752 | % | $ | (913,943 | ) | $ | (213,234 | ) | $ | (700,709 | ) | 329 | % | ||||||||
| Non-operating income (expense), net | 24,022 | 17,239 | 6,783 | 39 | % | 44,631 | 20,820 | 23,811 | 114 | % | ||||||||||||||||||||
| Amortization | 33,546 | 32,842 | 704 | 2 | % | 99,410 | 95,183 | 4,227 | 4 | % | ||||||||||||||||||||
| Stock-based compensation | 4,035 | 8,059 | (4,024 | ) | (50 | )% | 18,189 | 24,517 | (6,328 | ) | (26 | )% | ||||||||||||||||||
| Change in fair value of contingent consideration | — | (5,983 | ) | 5,983 | (100 | )% | — | (16,790 | ) | 16,790 | (100 | )% | ||||||||||||||||||
| Impairments | 699,235 | — | 699,235 | NM | 699,235 | — | 699,235 | NM | ||||||||||||||||||||||
| Other than temporary change in fair value of convertible notes receivable, attributable to stockholders of Tilray Brands, Inc. | 13,600 | 29,023 | (15,423 | ) | (53 | )% | 13,600 | 29,023 | (15,423 | ) | (53 | )% | ||||||||||||||||||
| Project 420 business optimization | 2,600 | — | 2,600 | NM | 2,600 | — | 2,600 | NM | ||||||||||||||||||||||
| Facility start-up and closure costs | — | 400 | (400 | ) | (100 | )% | — | 1,300 | (1,300 | ) | (100 | )% | ||||||||||||||||||
| Litigation costs, net of recoveries | 2,758 | 3,363 | (605 | ) | (18 | )% | 5,254 | 8,439 | (3,185 | ) | (38 | )% | ||||||||||||||||||
| Restructuring costs | 6,133 | 5,178 | 955 | 18 | % | 17,249 | 8,748 | 8,501 | 97 | % | ||||||||||||||||||||
| Transaction costs (income) | 605 | 3,465 | (2,860 | ) | (83 | )% | 2,563 | 13,061 | (10,498 | ) | (80 | )% | ||||||||||||||||||
| Adjusted net income (loss) | $ | (2,902 | ) | $ | 885 | $ | (3,787 | ) | (428 | )% | $ | (11,212 | ) | $ | (28,933 | ) | $ | 17,721 | (61 | )% | ||||||||||
| Adjusted net income (loss) per share - basic and diluted | $ | — | $ | — | $ | — | NM | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.03 | (75 | )% | |||||||||||||
| Other Financial Information: Free Cash Flow | ||||||||||||||||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||||||||||||||||
| February 28, | February 29, | Change | % Change | February 28, | February 29, | Change | % Change | |||||||||||||||||||||||
| (In thousands of U.S. dollars) | 2025 | 2024 | 2025 vs. 2024 | 2025 | 2024 | 2025 vs. 2024 | ||||||||||||||||||||||||
| Net cash used in operating activities | $ | (5,761 | ) | $ | (15,361 | ) | $ | 9,600 | (62 | )% | $ | (81,792 | ) | $ | (61,612 | ) | $ | (20,180 | ) | 33 | % | |||||||||
| Less: investments in capital and intangible assets, net | (14,212 | ) | (8,727 | ) | (5,485 | ) | 63 | % | (25,753 | ) | (18,373 | ) | (7,380 | ) | 40 | % | ||||||||||||||
| Free cash flow | $ | (19,973 | ) | $ | (24,088 | ) | $ | 4,115 | (17 | )% | $ | (107,545 | ) | $ | (79,985 | ) | $ | (27,560 | ) | 34 | % | |||||||||
| Add: growth CAPEX | 1,808 | 8,802 | (6,994 | ) | (79 | )% | 6,318 | 13,647 | (7,329 | ) | (54 | )% | ||||||||||||||||||
| Add: cash income taxes related to Aphria Diamond | — | 2,117 | (2,117 | ) | (100 | )% | — | 16,333 | (16,333 | ) | (100 | )% | ||||||||||||||||||
| Add: integration costs related to HEXO | — | 13,810 | (13,810 | ) | (100 | )% | — | 25,955 | (25,955 | ) | (100 | )% | ||||||||||||||||||
| Adjusted free cash flow | $ | (18,165 | ) | $ | 641 | $ | (18,806 | ) | (2934 | )% | $ | (101,227 | ) | $ | (24,050 | ) | $ | (77,177 | ) | 321 | % | |||||||||
FAQ
What was Tilray's (TLRY) revenue and profit margin in Q3 2025?
How much debt did Tilray (TLRY) reduce in Q3 2025?
What is Tilray's (TLRY) expansion status in the US THC beverage market?
How did Tilray's (TLRY) cannabis segment perform in Q3 2025?
What is Tilray's (TLRY) revised revenue guidance for FY2025?
