Tilray Brands (TLRY) Q1 2025 earnings summary

Executive summary

• Record Q1 net revenue was $200.0M, up 13% year over year; gross profit rose 35% to $59.7M and gross margin expanded to 30%.

• Net loss narrowed to $34.7M from $55.9M, while adjusted EBITDA declined to $9.3M from $10.7M.

• Beverage alcohol and wellness grew, while cannabis revenue declined amid price compression.

Financial highlights

• Net revenue was $200.0M versus $176.9M; constant-currency net revenue was $204M.

• Gross profit was $59.7M versus $44.2M; cost of goods sold rose 6% to $140.3M, below revenue growth.

• Adjusted net loss improved to $6.1M from $27.1M; adjusted net loss per share improved to $0.01 from $0.04.

• Operating cash use was $35.3M versus $15.8M; adjusted free cash flow was negative $39.5M versus negative $6.3M.

• Cash and marketable securities totaled $280.1M at August 31, 2024.

Outlook and guidance

• Fiscal 2025 revenue guidance remained $950M–$1B and had not yet been updated for the Molson Coors acquisition.

• Priorities include positive operating and free cash flow, cost and structure optimization, margin improvement, and investment in innovation.

• Management anticipated further growth in Germany and Europe as regulatory changes take effect and new markets open.

• Wholesale cannabis markets were expected to remain volatile, with conditions assessed quarterly.