TILT Holdings Reports 45% Revenue Decline in Q2 2025, Restructuring Underway

TILT Holdings Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues of $10.5 million, a 45% decrease from $19 million in the same period last year. The company's net loss from continuing operations was $9.2 million, compared to a loss of $16.6 million in the prior year. For the first half of 2025, TILT's revenues totaled $27.4 million, down 44% from $48.9 million in the first half of 2024, while the net loss from continuing operations was $18.4 million, an improvement from a loss of $23.2 million in the previous year.

The decline in revenue was primarily attributed to a 51% drop in sales from TILT's inhalation technology division, Jupiter, which faced lower sales volumes due to a transition to a direct invoicing model with its primary supplier. The cannabis division also experienced a 14% revenue decrease, driven by price compression despite an increase in sales volume. The company's gross profit for the second quarter was $1.8 million, down from $3.6 million a year earlier, reflecting a gross margin of 17%, slightly lower than the 19% margin in the previous year.

In terms of strategic developments, TILT is undergoing a significant restructuring, including the divestiture of its plant-touching assets. On January 28, 2025, the company entered into an asset purchase agreement to sell its dispensaries in Massachusetts for $2 million. Additionally, TILT has classified its wholesale-related operations as held for sale, indicating a strategic shift that will impact its financial results. The results from these operations are presented as discontinued operations in the financial statements.

Operationally, TILT's total operating expenses decreased by 28% year-over-year to $6.8 million, driven by cost reduction strategies, including a reduction in headcount and third-party services. The company reported a negative working capital of $93.9 million as of June 30, 2025, compared to $46.6 million at the end of 2024, primarily due to an increase in notes payable and a decrease in trade receivables and inventories. As of the end of the second quarter, TILT had cash and cash equivalents of $772,000, down from $1.6 million at the end of 2024.

Looking ahead, TILT's management has outlined plans to increase revenue through existing and new product sales, reduce operational costs, and secure additional financing. However, the company faces substantial doubt regarding its ability to continue as a going concern due to ongoing operating losses and liquidity constraints. The company is currently negotiating with noteholders regarding non-compliance with certain payment obligations and covenants, which adds to the uncertainty surrounding its financial outlook.