Tilray Brands (TLRY) Q4 2024 earnings summary

Executive summary

• Achieved record financial results in FY2024, with 26% net revenue growth to $789 million and record adjusted EBITDA of $60.5 million, driven by strong cannabis and beverage-alcohol performance.

• Net loss narrowed significantly to $222.4 million from $1.4 billion, primarily due to lower non-cash expenses.

• Expanded global footprint and strengthened market position through strategic acquisitions in cannabis, beverage, and wellness segments, now operating in over 20 countries.

• Integrated major acquisitions (Hexo, Redecan, Truss Beverages, ABI craft brands), driving market leadership in Canadian cannabis and U.S. craft beer.

• Reduced net convertible debt by approximately $300 million, improving the balance sheet.

Financial highlights

• Net revenue grew 26% year-over-year to $788.9 million; beverage alcohol revenue up 113% to $202.1 million, cannabis up 24% to $272.8 million, wellness up 5% to $55.3 million.

• Gross profit increased 52% to $223.4 million; gross margin rose to 28% from 23%; Q4 gross margin was 36%.

• Adjusted net income was $6.2 million, up from $0.4 million; adjusted EBITDA reached $60.5 million, up 3%.

• Net loss per share improved to $(0.33) from $(2.35); adjusted net income per share was $0.01.

• Cash and marketable securities at $260.5 million as of May 31, 2024; adjusted free cash flow positive at $6.6 million.

Outlook and guidance

• FY2025 net revenue guidance set at $950 million–$1 billion, with mid-single digit organic growth expected.

• Double-digit organic growth anticipated in cannabis and beverage segments; wellness to grow low to mid-single digits.

• No EBITDA guidance provided; focus remains on revenue, margin expansion, and free cash flow.

• Management expects continued growth through diversification, innovation, and further integration of recent acquisitions.