Tilray Brands Reports $185.8M Revenue with Significant Net Loss in Latest Quarter

Tilray Brands, Inc. reported its financial results for the quarter ending February 28, 2025, revealing a net revenue of $185.8 million, a slight decrease of 1% from $188.3 million in the same period last year. For the nine months ending February 28, 2025, the company achieved a revenue of $596.8 million, representing a 7% increase compared to $559.1 million for the prior year. The gross profit for the quarter was $52.0 million, up 5% from $49.4 million, while the gross profit for the nine-month period increased by 23% to $172.9 million from $141.0 million. However, the company reported a significant net loss of $793.5 million for the quarter, compared to a loss of $105.0 million in the previous year, largely due to a non-cash impairment charge of $699.2 million.

The financial performance reflects several strategic developments, including the acquisition of a portfolio of beverage brands from Anheuser-Busch and the integration of craft breweries, which contributed to revenue growth in the beverage segment. The company also noted a focus on SKU rationalization and geographic distribution adjustments as part of its Project 420 initiative, aimed at optimizing its product offerings and enhancing profitability. Despite these efforts, the cannabis segment experienced a decline in revenue, attributed to market conditions and a strategic shift to prioritize higher-margin international sales.

Operationally, Tilray's customer base and market presence have expanded, with notable increases in international cannabis revenue, particularly in Germany, which remains a key market for the company. The company reported a slight decrease in its Canadian market share, from 9.4% to 9.3%, as it redirected inventory to international markets. The total employee headcount has also increased due to recent acquisitions, contributing to higher operational costs.

Looking ahead, Tilray Brands, Inc. anticipates continued challenges in the cannabis market, particularly regarding price compression and competition. The company is focused on enhancing its global supply chain and expanding its cultivation footprint to meet growing demand. Management remains optimistic about future growth opportunities, particularly in the beverage sector, as it integrates its recent acquisitions and leverages its brand portfolio to drive revenue. The company plans to utilize proceeds from its At-the-Market program to fund strategic acquisitions and investments, positioning itself for long-term growth in the evolving cannabis and beverage markets.