Tilray Brands (TLRY) Q3 2025 earnings summary

Executive summary

• Q3 net revenue was $185.8 million ($193 million constant currency), with SKU rationalization and strategic initiatives reducing reported revenue by $13.2 million; adjusted net revenue would have been $206 million.

• Gross profit increased 5% to $52 million, with gross margin up 200 basis points to 28% year-over-year.

• Net loss was $793.5 million, primarily due to ~$700 million in non-cash impairment charges across all segments, driven by macroeconomic conditions and market capitalization declines.

• Adjusted EBITDA was $9 million, down from $10.2 million year-over-year; adjusted net loss was $2.9 million.

• Cash and marketable securities totaled $248 million, with net debt to EBITDA less than 1x.

Financial highlights

• Gross profit for the quarter was $52 million, up 5% year-over-year; gross margin improved to 28%.

• Adjusted EBITDA margin for the quarter was 4.9%.

• Net loss for the quarter was $793.5 million, compared to $105 million in the prior year, mainly due to impairments.

• Cash and marketable securities at quarter-end totaled $248 million; working capital was $225.9 million.

• Net cash used in operating activities for nine months was $81.8 million, up from $61.6 million in the prior year.

Outlook and guidance

• FY2025 net revenue guidance revised to $850–$900 million; on a constant currency and adjusted basis, would have been $900–$950 million.

• Management expects beverage segment growth from new product innovation and recent acquisitions.

• International cannabis sales are expected to grow, especially in Germany, as regulatory changes take effect.

• Project 420 cost savings plan expected to complete in Q3 FY2026.

• The company is focused on achieving positive cash flow from operations and maintaining strong liquidity.