Tilray Brands (TLRY) Q2 2025 earnings summary

Executive summary

• Q2 net revenue reached a record $211 million, up 9% year-over-year, with growth across all business segments.

• Gross profit increased 29% to $61.2 million, with gross margin up over 500 basis points year-over-year to 29%.

• Adjusted net loss improved to $2.2 million, with adjusted net loss per share at zero.

• Net loss was $85.3 million, impacted by $75 million in non-cash costs and $8 million in one-time costs.

• Project 420, a $25 million synergy plan, achieved $17 million in cost savings by Q2.

Financial highlights

• Beverage segment net revenue grew 36% year-over-year to $63.1 million, now representing 30% of total net revenue.

• International cannabis revenue up 25%; wellness net revenue increased 13% to $15 million.

• Gross margin improved across all segments: beverage (40%), cannabis (35%), distribution (12%), wellness (31%).

• Adjusted EBITDA was $9 million, slightly down from $10.1 million in the prior year quarter.

• Cash and marketable securities stood at $252.1 million at quarter end.

Outlook and guidance

• Fiscal 2025 net revenue guidance reaffirmed at $950 million to $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 driven by new product launches, seasonality, and expanded distribution.