Any investor hoping to reap the rewards by holding marijuana companies must be a shiny-eyed optimist at this point. Weed companies are among the worst performers on the stock exchange since they are constantly barraged by headwinds in North America. At the very least, they have to contend with heavy competition, punitive levels of taxation, and (in the case of the U.S.) patchy, inconsistent legalization.One of the larger players on the pot market is Tilray Brands (TLRY), and its difficult 2024 mirrored the ...

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Bursting with Bright Citrus Flavor, the Limited-Release IPA Hits Shelves This MonthBRECKENRIDGE, Colo., Jan. 14, 2025 (GLOBE NEWSWIRE) -- Breckenridge Brewery, a subsidiary of Tilray Brands, Inc. (NASDAQ: TLRY and TSX: TLRY), is thrilled to introduce its new seasonal beer release, Spring Forward Grapefruit IPA. This vibrant brew masterfully balances bold grapefruit and refreshing zesty citrus flavors with just the right level of hop-driven bitterness. Spring Forward Grapefruit IPA bursts with a crisp, clea ...

Market Share and Revenue Growth - Tilray's market share in Canada decreased marginally from 9.8% to 9.4% in the quarter, reflecting efforts to preserve margins amid price compression[129] - Tilray acquired four craft brands and breweries on September 1, 2024, expected to enhance beverage segment revenues and market penetration[144] - Manitoba Harvest's US branded business grew 6.2% in multi-outlet consumption for the six months ended November 30, 2024, driven by value-added innovation[142] - Tilray's international cannabis business benefits from EU-GMP cultivation facilities in Portugal and Germany, along with a fully owned route-to-market infrastructure in key regions[131] Operational Efficiency and Product Innovation - Wellness gross margin increased to 31% for both the three and six months ended November 30, 2024, driven by operational efficiencies and higher-margin product sales[177] - Tilray's Breckenridge Distillery received Double Gold awards, including the World's best finished Bourbon at the 2024 World Whiskies Awards[126] - Tilray launched a lineup of Hemp Derived Delta-9 (HD-D9) products, Non-Alcoholic beverages, and Energy drinks as part of its innovation strategy[128] - In Germany, Tilray received the first license for domestic medical cannabis cultivation under the new MedCanG regulations, leading to increased prescription numbers and business growth[133] Financial Performance and Expenses - Operating expenses increased by $14.2 million (16%) to $103.4 million for the three months and by $32.0 million (19%) to $199.7 million for the six months ended November 30, 2024, primarily due to the inclusion of expenses from the Craft Acquisition II[179] - Selling costs increased by 113% to $16.2 million for the three months and by 93% to $27.9 million for the six months ended November 30, 2024, driven by higher freight costs and increased sales from the Craft Acquisition II[179][187] - Research and development costs increased by 7% to $60,000 for the three months and by 22% to $165,000 for the six months ended November 30, 2024, related to external costs for new product development[179][190] - Salaries and wages increased by 19% to $22.7 million for the three months and by 23% to $44.3 million for the six months ended November 30, 2024, due to the inclusion of employees from the Craft Acquisition II[181] - Office and general expenses increased by 17% to $9.5 million for the three months and by 15% to $18.7 million for the six months ended November 30, 2024, primarily due to the Craft Acquisition II[182] - Stock-based compensation decreased by 12% to $7.2 million for the three months and by 14% to $14.2 million for the six months ended November 30, 2024, due to fully vested stock options and RSUs[184] - Insurance expense increased by 26% to $3.2 million for the three months but decreased by 12% to $5.6 million for the six months ended November 30, 2024, driven by lower premiums and additional policies for the beverage business[185] - Rent expense decreased by 34% to $1.0 million for the three months and by 5% to $2.3 million for the six months ended November 30, 2024, due to the exit from the Truss Lease and reduced lease payments[186] - Marketing and promotion costs increased by 6% to $9.7 million for the three months and by 20% to $21.3 million for the six months ended November 30, 2024, due to the Craft Acquisition II and quarterly variability in discretionary expenses[189] - Change in fair value of contingent consideration was $nil for both the three and six months ended November 30, 2024, compared to a loss of $0.3 million and a gain of $10.8 million in the prior year period[191] - Net loss for the three months ended November 30, 2024, increased by 85% to $(85.275) million compared to $(46.183) million in the same period last year[206] - Adjusted EBITDA for the three months ended November 30, 2024, decreased by 11% to $9.017 million compared to $10.086 million in the same period last year[206] Cash Flow and Debt Management - Long-term investments decreased to $7.416 million as of November 30, 2024, from $7.859 million as of May 31, 2024[56] - The company has drawn down $10,000 from a $30,000 revolving credit facility as of November 30, 2024[59] - Net carrying amount of long-term debt decreased to $164.709 million as of November 30, 2024, from $173.858 million as of May 31, 2024[62] - The company issued 67,210,864 shares under the ATM program, generating gross proceeds of $114.3 million during the six months ended November 30, 2024[213] - Net cash used in operating activities increased to $(76.031) million for the six months ended November 30, 2024, compared to $(46.251) million in the same period last year[215] - Net cash used in investing activities increased to $(60.120) million for the six months ended November 30, 2024, compared to $55.207 million in the same period last year[215] - Cash and marketable securities totaled $252.249 million as of November 30, 2024, compared to $259.791 million as of November 30, 2023[215] - The company repaid the remaining principal of the APHA 24 Notes in cash upon maturity on June 1, 2024[68] - Cash flows from financing activities increased to $38.2 million for the three months ended November 30, 2024, compared to ($85.4) million in the prior year period[219] - Cash flows from financing activities increased to $98.8 million for the six months ended November 30, 2024, compared to ($71.3) million in the prior year period[219] - The company received $21.6 million from the overallotment issuance of TLRY 27 Notes in the prior period ended November 30, 2023[219] - The company repaid $107.3 million for the TLRY 23 and APHA 24 Notes in the prior period ended November 30, 2023[219] Legal and Accounting Matters - The company believes that the reasonably possible losses from litigation are not material and will not have a material adverse effect on its financial position[221] - Critical accounting estimates include revenue recognition, valuation of inventory, long-lived assets, goodwill, intangible assets, stock-based compensation, and deferred tax assets[222] - The company's financial statements are prepared in accordance with U.S. GAAP, requiring significant estimates and assumptions[222] - Recently issued accounting pronouncements may impact the company's financial position and results of operations[223] - There have been no material changes in market risk during the six months ended November 30, 2024[224] Business Expansion and Brand Promotion - The company operates 20 brew pubs across the U.S., including the Breckenridge Distillery restaurant, to promote craft beer brands and drive revenue growth[128] - The company incurred $2.0 million in transaction expenses for the six months ended November 30, 2024, related to acquisitions and strategic transactions[143]

Financial Data and Key Metrics - The company will refer to non-GAAP financial measures during the call, which are intended to provide useful information for investors but should not be considered in isolation or as a substitute for GAAP financial information [4] - A reconciliation of non-GAAP financial measures to GAAP measures is available in the earnings press release [4] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific information on company strategy or industry competition was provided in the content Management Commentary on Operating Environment and Future Outlook - No specific commentary from management on the operating environment or future outlook was provided in the content Other Important Information - The earnings press release is available on the Investors section of the Tilray Brands' website and has been filed with the SEC and the CSA [3] Q&A Session Summary - No Q&A session content was provided in the documents

Earnings Performance - Tilray's stock dropped 12% after missing analyst sales forecasts, reporting $211 million in revenue compared to the expected $216.3 million for Q2 FY2025 [1] - Despite the revenue miss, the company achieved a 9% year-over-year revenue growth, reaching a record $211 million for Q2 [2] - Adjusted earnings broke even, outperforming the forecasted $0.01 per share loss, but GAAP results showed a net loss of $85 million, or $0.10 per share, which is nearly 50% worse than the previous year's Q2 loss of $0.07 per share [4][5] Business Segment Performance - International cannabis sales grew 25%, beverage revenue increased 36%, and wellness revenue rose 13% year-over-year [2] - Gross profit increased 29%, with growth observed across all four business segments [2] - Total cannabis sales declined by 1.5% to $66 million, despite the strong growth in international cannabis sales [2] Company Outlook - Tilray has consistently reported losses over the past six years and is expected to continue losing money in the coming years [5] - The company's inability to achieve profitability raises concerns about its stock being a viable investment [5]

Performance Overview - Tilray Brands reported revenue of $210 95 million for the quarter ended November 2024, an 8 9% increase compared to the same period last year [3] - The company's EPS was -$0 10, compared to $0 00 in the year-ago quarter [3] - The revenue surprise was -3 33% compared to the Zacks Consensus Estimate of $218 22 million, while the EPS surprise was -150 00% compared to the consensus estimate of -$0 04 [3] Business Segment Performance - Cannabis business revenue was $65 65 million, a -2 2% year-over-year change, slightly below the two-analyst average estimate of $67 19 million [2] - Wellness business revenue was $14 61 million, a 13% year-over-year increase, slightly above the two-analyst average estimate of $14 51 million [2] - Beverage alcohol business revenue was $63 08 million, a 35 6% year-over-year increase, below the two-analyst average estimate of $68 40 million [2] - Distribution business revenue was $67 61 million, a 0 6% year-over-year increase, slightly below the two-analyst average estimate of $68 million [2] Stock Performance - Tilray Brands' shares returned +13 2% over the past month, outperforming the Zacks S&P 500 composite's -2 2% change [1] - The stock currently has a Zacks Rank 3 (Hold), indicating it could perform in line with the broader market in the near term [1] Key Metrics Analysis - Revenue and earnings changes year-over-year, along with comparisons to Wall Street expectations, are critical for investors to determine their next move [4] - Key metrics provide a more accurate picture of the company's financial health and help investors project stock price performance [4]

Stock Performance and Earnings Outlook - Tilray Brands shares have gained approximately 3% year-to-date, outperforming the S&P 500's 0.6% gain [1] - The company's future stock performance will largely depend on management's commentary during the earnings call [1] - Current consensus EPS estimate for the coming quarter is -$0.04 on $219.18 million in revenues, while the fiscal year estimate is -$0.14 on $908.93 million in revenues [3] - The company has surpassed consensus EPS estimates twice in the last four quarters [9] Industry Context and Peer Comparison - The Consumer Products - Staples industry ranks in the top 23% of Zacks industries, with top 50% industries outperforming the bottom 50% by more than 2 to 1 [4] - Church & Dwight, a peer in the same industry, is expected to report quarterly earnings of $0.77 per share, representing an 18.5% year-over-year increase [5] - Church & Dwight's revenues are projected to be $1.56 billion, up 2.4% from the year-ago quarter [6] Earnings Estimate Revisions and Stock Rating - Empirical research shows a strong correlation between near-term stock movements and earnings estimate revisions [7] - Tilray Brands currently has a Zacks Rank 3 (Hold), indicating expected market-aligned performance [8] - The company's recent quarterly report showed a loss of $0.10 per share, significantly missing the consensus estimate of -$0.04 and representing a -150% earnings surprise [10] Financial Performance and Revenue Trends - Tilray Brands reported revenues of $210.95 million for the quarter ended November 2024, missing the Zacks Consensus Estimate by 3.33% [9] - This represents a year-over-year revenue increase from $193.77 million in the same quarter last year [9] - The company has topped consensus revenue estimates only once in the last four quarters [9]

Financial Performance and Revenue Growth - Net revenue for the beverage business increased by 30% to $63.1 million, contributing 30% of total revenue[18] - The cannabis business generated $65.7 million in net revenue, representing 31% of total revenue[18] - Distribution business net revenue was $67.6 million, accounting for 32% of total revenue[18] - Wellness business net revenue grew to $14.6 million, making up 7% of total revenue[18] - Total net revenue increased by 9% to $210.95 million for the three months ended November 30, 2024[26] - Net revenue increased 9% to $211 million in Q2 2025 compared to $194 million in the prior year quarter, with a 10% increase on a constant currency basis[32] - Beverage alcohol net revenue increased 36% to $63 million in Q2 2025, with gross margin rising to 40% from 34% in the prior year quarter[32] - Cannabis net revenue was $66 million in Q2 2025, with gross margin increasing to 35% from 31% in the prior year quarter[34] - Wellness net revenue increased 13% to $15 million in Q2 2025, with gross margin rising to 31% from 29% in the prior year quarter[34] - Distribution net revenue was $68 million in Q2 2025, with gross margin increasing to 12% from 11% in the prior year quarter[34] - Revenue from Canadian adult-use cannabis was $59.077 million, representing 90% of total cannabis revenue in Q2 2025[38] - Revenue from international cannabis increased to $14.865 million, representing 23% of total cannabis revenue in Q2 2025[38] - Net cannabis revenue for the three months ended November 30, 2024, was $65.65 million, a decrease from $67.11 million in the same period in 2023[42] - Net beverage revenue for the three months ended November 30, 2024, increased to $63.08 million from $46.51 million in the same period in 2023[42] - Total net revenue for the six months ended November 30, 2024, was $410.99 million, up from $370.72 million in the same period in 2023[44] Profitability and Margins - Gross profit rose by 29% to $61.2 million, with a gross margin improvement to 29%[26] - Gross profit increased by 29% to $61 million in Q2 2025, with gross margin rising to 29% from 24% in the prior year quarter[32] - Cannabis adjusted gross margin (excluding PPA step-up) remained stable at 35% for both the three months ended November 30, 2024, and 2023[42] - Adjusted gross profit for the six months ended November 30, 2024, was $122.48 million, compared to $101.41 million in the same period in 2023[44] Costs and Expenses - Selling expenses increased by 113% to $16.2 million, primarily due to higher marketing and promotional activities[26] - Net loss for the six months ended November 30, 2024, was $119.9 million, an 18% increase compared to the same period in 2023[16] - Net loss was $(85) million in Q2 2025, with $75 million comprised of non-cash items and $8 million in one-time non-recurring costs[32] - Net loss for the three months ended November 30, 2024, was $85.28 million, an increase of 85% from $46.18 million in the same period in 2023[40] - Net loss attributable to stockholders increased by 74% to $85,342 million in Q3 2024 from $49,008 million in Q3 2023[45] - Restructuring costs surged by 159% to $6,869 million in Q3 2024 compared to $2,655 million in Q3 2023[45] - Adjusted net income improved by 17% to a loss of $2,228 million in Q3 2024 from a loss of $2,685 million in Q3 2023[46] - Stock-based compensation for the six months ended November 30, 2024, was $14.2 million, a 14% decrease compared to the same period in 2023[16] - Stock-based compensation decreased by 12% to $7,237 million in Q3 2024 from $8,201 million in Q3 2023[45] - Litigation costs, net of recoveries, decreased by 70% to $901 million in Q3 2024 from $3,042 million in Q3 2023[45] Cash Flow and Liquidity - Operating cash flow in the quarter was lower due to increased investments in marketing, promotion, and infrastructure for recently acquired brands[1] - Net cash used in operating activities increased by 64% to $76.0 million, compared to $46.3 million in the previous period[17] - Cash and cash equivalents decreased by 31% to $189.7 million as of November 30, 2024[24] - Marketable securities increased by 94% to $62.6 million, reflecting improved short-term liquidity[24] - Free cash flow worsened by 26% to a negative $45,557 million in Q3 2024 from a negative $36,245 million in Q3 2023[46] - Net cash used in operating activities increased by 34% to $40,724 million in Q3 2024 from $30,409 million in Q3 2023[46] - Adjusted free cash flow worsened by 137% to a negative $43,587 million in Q3 2024 from a negative $18,355 million in Q3 2023[46] - Cash and marketable securities as of November 30, 2024, were $252.25 million, slightly down from $259.79 million as of November 30, 2023[42] - Working capital as of November 30, 2024, increased to $428.82 million from $247.04 million as of November 30, 2023[42] Adjusted EBITDA and Non-GAAP Metrics - Achieved $17 million of the $25 million synergy plan as of Q2 2024, with Adjusted EBITDA lower by $1.8 million and $3.2 million for the three and six months ended November 30, 2024, respectively, due to SKU rationalization[1] - Adjusted EBITDA is calculated by excluding items such as income tax benefits, interest expense, and stock-based compensation, with a reconciliation provided in the financial statement tables[13] - Adjusted gross profit excludes the impact of purchase price accounting valuation step-up, with a reconciliation provided in the financial statement tables[14] - Adjusted EBITDA in Q2 2025 was $9 million, impacted by a $1.8 million SKU rationalization in the beverage segment[32] - Adjusted EBITDA for the three months ended November 30, 2024, was $9.02 million, down from $10.09 million in the same period in 2023[42] - Adjusted EBITDA for Q3 2024 decreased by 11% to $9,017 million compared to $10,086 million in Q3 2023[45] Foreign Exchange and Non-Operating Items - Unrealized foreign exchange loss for the six months ended November 30, 2024, was $9.6 million, a 272% increase compared to the same period in 2023[16] - Non-operating income for the three months ended November 30, 2024, was $33.26 million, a significant increase from a loss of $821,000 in the same period in 2023[40] - Non-operating income (expense), net, improved significantly by 4,151% to $33,255 million in Q3 2024 from a loss of $821 million in Q3 2023[45] Guidance and Future Outlook - Company reaffirms fiscal year 2025 guidance of anticipated net revenues between $950 million and $1 billion[9]

Gross Profit Increased by 29% Year-Over-Year, Reaching $61 Million in Q2 with Growth Across All Four Business Segments Achieved 9% Year-Over-Year Growth, Generating Record Q2 Net Revenue of $211 Million, 10% in Constant Currency Beverage Revenue Increase by 36%, International Cannabis by 25%, Wellness Segment by 13% Announces Project 420: A $25 Million Synergy Plan for Tilray Beverage Business Tilray Reaffirms Fiscal Year 2025 Guidance Conference Call to be Held at 8:30 a.m. ET Today NEW YORK and LEAMINGTON ...