Tilray Brands (TLRY) Q2 2025 earnings summary

Executive summary

• Q2 net revenue reached a record $211 million, up 9% year-over-year and 10% in constant currency, marking the highest Q2 net revenue to date, with growth across all four business segments.

• Gross profit increased 29% to $61.2 million, with gross margin rising to 29% from 24% in the prior year quarter.

• Adjusted net loss improved to $2.2 million, a 17% year-over-year improvement, while net loss was $85.3 million, largely due to $75 million in non-cash items and $8 million in one-time costs.

• Strong operational focus on cost control, margin expansion, and integration of recent acquisitions, including Project 420, which achieved $17 million of targeted $25 million in cost synergies.

• Fiscal 2025 net revenue guidance reaffirmed at $950 million to $1 billion.

Financial highlights

• Net revenue grew 9% year-over-year to $211 million; constant currency growth was 10%.

• Gross profit rose 29% to $61.2 million; adjusted gross profit up 20% to $63 million.

• Net loss was $85.3 million, impacted by $75 million in non-cash costs, including a $34 million FX loss.

• Adjusted EBITDA was $9 million, maintaining nearly six years of positive adjusted EBITDA, though down from $10 million year-over-year.

• Cash and marketable securities at quarter-end were $252 million.

Outlook and guidance

• Fiscal 2025 net revenue expected between $950 million and $1 billion.

• Management expects SKU rationalization and new product innovation to offset a projected $20 million reduction in net sales over the fiscal year.

• Anticipates revenue acceleration in the second half due to seasonality, new product launches, and expanded distribution.

• Ongoing SKU rationalization expected to be offset by innovation and new product introductions.