Tilray Brands (TLRY) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 net revenue of $200 million, up 13% year-over-year, with strong growth in beverage and wellness segments and gross margin rising over 500 basis points to 30%.

• Gross profit increased 35% to $59.7 million compared to the prior year quarter.

• Net loss improved by 38% to $(34.7) million, and adjusted net loss per share improved to $(0.01) from $(0.04) year-over-year.

• Maintained leadership in Canadian cannabis, European medical cannabis, North American hemp, and U.S. craft beer markets.

• German medical cannabis flower revenue increased 50% following legalization.

Financial highlights

• Net revenue reached $200 million, a 13% increase year-over-year; constant currency net revenue was $204 million.

• Gross profit rose to $59.7 million, up 35% from the prior year; gross margin improved to 30%.

• Adjusted net loss was $6.1 million, a 78% improvement year-over-year; adjusted net loss per share was -$0.01.

• Adjusted EBITDA was $9.3 million, slightly down from $10.7 million due to increased marketing and infrastructure investments.

• Cash and marketable securities balance was $280.1 million as of August 31, 2024.

Outlook and guidance

• Fiscal 2025 revenue guidance remains $950 million to $1 billion, not yet updated for the Molson Coors acquisition.

• Management remains optimistic about U.S. regulatory changes post-election, expecting further cannabis legalization.

• Continued focus on profitable growth, margin improvement, and cost efficiencies across all segments.

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