Tilray Brands (TLRY) investor relations material

Executive summary

• Record Q1 FY2027 revenue was $257.1M, up 23% YoY; gross profit rose 35% to $77.5M and gross margin expanded to 30% from 27%.

• Beverage and distribution growth offset lower cannabis revenue; net loss was $40.0M and adjusted EBITDA was $9.2M.

• FY2027 adjusted EBITDA guidance was reaffirmed at $68M–$75M; debt decreased $42M fiscal year to date.

Financial highlights

• Revenue increased from $209.5M to $257.1M; gross profit rose from $57.5M to $77.5M.

• Operating loss was $24.1M versus operating income of $2.1M; operating expenses increased 83% to $101.6M.

• Net loss was $40.0M, or $0.32 per share; adjusted net loss was $3.0M, or adjusted EPS of $(0.02).

• Adjusted EBITDA was $9.2M versus $10.2M, down 10% YoY; global fuel surcharges reduced results by $1.7M.

• Operating cash outflow was $16.5M versus $1.3M; free cash flow was $(27.4)M versus $(10.6)M.

Outlook and guidance

• FY2027 adjusted EBITDA guidance was reaffirmed at $68M–$75M, representing expected double-digit growth versus FY2026.

• Results are expected to be weighted toward H2, with significant strengthening in Q4; new Canadian cultivars are expected to contribute more late in Q2 and beyond.

• Portugal is expected to deliver more than 40 metric tons of flower at full capacity in FY2027.

• Carlsberg brand production, marketing, sales and U.S. distribution are scheduled to begin January 1, 2027.