Company Performance - Tilray Brands, Inc. reported a quarterly loss of $0.10 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -150% [1] - The company posted revenues of $185.78 million for the quarter ended February 2025, missing the Zacks Consensus Estimate by 11.44% and down from $188.34 million year-over-year [2] - Over the last four quarters, Tilray Brands has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Movement and Outlook - Tilray Brands shares have declined approximately 56.4% since the beginning of the year, compared to a decline of -13.9% for the S&P 500 [3] - The future performance of Tilray Brands' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $278.94 million, and for the current fiscal year, it is -$0.19 on revenues of $904.53 million [7] Industry Context - The Consumer Products - Staples industry, to which Tilray Brands belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Tilray Brands' stock performance [5]

Revenue Performance - Generated net revenue of $186 million in Q3, with $193 million in constant currency; impacted by strategic initiatives and SKU rationalization by $13 million [2] - Cannabis net revenue was $54.3 million, down from $63.4 million in the prior year quarter; gross margin increased to 41% [15] - Beverage alcohol net revenue increased to $55.9 million, with gross margin rising to 36% [15] - Distribution net revenue increased 8% to $61.5 million, with gross margin at 9% [15] - Wellness net revenue increased 5% to $14.1 million, with gross margin at 32% [15] - Total net revenue for the three months ended February 28, 2025, was $185,780,000, a decrease of 1% compared to $188,340,000 for the same period in 2024 [34] - The cannabis business generated $54,274,000 in revenue for the three months ended February 28, 2025, down 14% from $63,432,000 in the prior year [34] - The beverage business accounted for 30% of total net revenue for the three months ended February 28, 2025, generating $55,921,000 [34] - Total net revenue for Q3 2025 reached $192,949, a 2% increase from $188,340 in Q3 2024 [35] - Cannabis business revenue decreased to $54,274 in Q3 2025, down 14% from $63,432 in Q3 2024 [36] - Distribution business revenue increased to $65,054, up 15% from $56,794 in Q3 2024 [35] - Beverage business revenue for Q3 2025 was $55,921, a slight increase from $54,688 in Q3 2024 [38] Profitability and Loss - Gross profit increased by 5% to $52 million, with gross margin rising 200 bps to 28% compared to the prior year quarter [15] - Net loss of $(793.5) million due to approximately $700 million of non-cash impairment and other charges; adjusted net loss was $(2.9) million [15] - Operating loss for the three months ended February 28, 2025, was $(759,931,000), an increase of 826% compared to $(82,098,000) in the same period last year [32] - Net loss attributable to stockholders of Tilray for the three months ended February 28, 2025, was $(789,436,000), a 752% increase from $(92,701,000) in the prior year [32] - The company reported a comprehensive loss of $(798,923,000) for the three months ended February 28, 2025, which is a 628% increase compared to $(109,679,000) in the prior year [32] - The net loss for the three months ended February 28, 2025, was $(793,534,000), a significant increase of 656% compared to $(104,983,000) in the same period of 2024 [41] Financial Position - Reduced total debt by $71 million, with $248 million available in cash and marketable securities, resulting in net debt to trailing twelve months EBITDA of less than 1.0x [8] - Total current assets as of February 28, 2025, were $686.29 million, compared to $677.71 million as of May 31, 2024, reflecting a slight increase [29] - Cash and cash equivalents decreased to $199.96 million from $228.34 million over the same period [29] - Total liabilities decreased to $701.04 million from $778.49 million, indicating improved financial health [30] - The company’s accumulated deficit increased to $3.57 billion as of February 28, 2025, from $2.66 billion as of May 31, 2024 [30] - Cash and cash equivalents at the end of the period were $199,956,000, reflecting a 37% increase from $146,253,000 at the end of the previous year [33] - Working capital as of February 28, 2025, was $424,115, an increase from $302,111 in February 2024 [39] Operational Efficiency - Implementing AI and advanced horticulture automation technology to enhance operational efficiency and reduce costs [9] - Adjusted EBITDA is calculated by excluding various non-operating expenses, providing a clearer view of operational performance [22] - The company reported an adjusted net loss attributable to stockholders, which excludes non-operating income and other adjustments [23] Strategic Initiatives - Revised fiscal year 2025 guidance for net revenue to $850 million to $900 million, with potential adjustments for strategic initiatives totaling approximately $50 million [11] - The company is focusing on market expansion and new product development as part of its strategic initiatives [31] Cash Flow and Investments - Free cash flow is derived from net cash flow from operating activities minus capital investments, providing insight into liquidity [26] - Net cash used in operating activities for the nine months ended February 28, 2025, was $(81,792,000), a 33% increase from $(61,612,000) in the same period last year [33] - Total investments in capital and intangible assets rose by 40% year-over-year from $(25,753) thousand to $(18,373) thousand [44] - Year-over-year cash flow from operating activities showed a significant decline of 33% from $(81,792) thousand to $(61,612) thousand [44] - Free cash flow improved to $(19,973) thousand, a decrease of $4,115 thousand or 17% from $(24,088) thousand [44] - Adjusted free cash flow showed a substantial decline to $(18,165) thousand from $641 thousand, a change of $(18,806) thousand or 2934% [44]

Core Insights - Tilray Brands reported a net revenue of $186 million for the third quarter, with a constant currency revenue of $193 million, impacted by strategic initiatives and SKU rationalization which reduced revenue by $13 million [2][16] - The company confirmed that recent tariffs on international trade will not affect its sales, as its products are manufactured and distributed domestically in the U.S. and Canada, and its wellness business is exempt from the tariffs [3][4] - Tilray's cannabis segment achieved a gross margin increase of 800 basis points, maintaining its leadership in Canada by sales performance and showing strong sales growth in Germany [2][4] Financial Performance - Gross profit increased by 5% to $52 million, with a gross margin of 28%, up from 26% in the prior year [16] - The net loss for the quarter was $(793.5) million, primarily due to non-cash impairments and other charges, while adjusted net loss was $(2.9) million compared to an adjusted net income of $0.9 million in the prior year [16][34] - Adjusted EBITDA for the quarter was $9 million, down from $10.2 million in the previous year, affected by SKU rationalization and prioritization of international cannabis markets [16] Strategic Initiatives - Tilray's Project 420 aims to achieve $33 million in cost savings, with $20.6 million already completed, focusing on improving efficiency and profitability through SKU rationalization [5][6] - The company expanded its U.S. distribution of hemp-derived THC drinks across 10 states, generating $1.4 million in revenue from these sales [6][8] - Tilray's cannabis segment is redirecting inventories to international markets to capitalize on higher margins, with a focus on preserving gross margins and maintaining higher average selling prices [7][8] Balance Sheet and Debt Management - The company reduced total debt by $71 million, including a $58 million reduction in convertible notes, resulting in a net debt to trailing twelve months EBITDA of less than 1.0x [8][16] - As of April 8, 2025, Tilray had $248 million available in cash and marketable securities, providing flexibility for strategic opportunities [8][16] Future Outlook - Tilray revised its fiscal year 2025 guidance for net revenue to a range of $850 million to $900 million, with potential adjustments for constant currency and strategic initiatives totaling approximately $50 million [12][16] - The company is focused on leveraging advanced technologies, including AI and cryptocurrency, to enhance efficiency and drive growth across its operations [9][10]

Core Viewpoint - Atwater Brewing has launched Atwater Light, a low-calorie, low-carb beer aimed at beer enthusiasts in Michigan, reflecting the spirit of Detroit and the brewery's commitment to quality and community [1][4]. Product Details - Atwater Light contains 95 calories, 2.6 grams of carbs per 12 oz serving, and has an alcohol by volume (ABV) of 4.2% [2]. - The beer is crafted with German Noble hops and Vienna malt, providing a traditional flavor and refreshing drinking experience [2]. Brand and Community Connection - The packaging of Atwater Light features a map of Detroit, symbolizing hometown pride and the brewery's roots in the city [4]. - Carrie Shafir, Senior Brand Director at Tilray Beverages, emphasized the brewery's dedication to the hardworking people of Detroit and the importance of community in their brewing heritage [4]. Availability - Atwater Light is available at local retailers and all three Atwater Tap Rooms, with plans for additional formats such as draft and 16-oz cans [1][10]. Company Background - Atwater Brewery, founded in 1997, has a philosophy that hard work deserves quality beer, and offers a diverse portfolio of award-winning craft beers [5]. - The brewery aims to make beer approachable for all drinkers, with a variety of options catering to different tastes [5]. Parent Company Information - Tilray Brands, Inc. is a global lifestyle and consumer packaged goods company with operations across multiple regions, including cannabis and craft beverages [7]. - Tilray's mission is to inspire joy and create memorable experiences through its diverse range of brands and products [7].

Core Viewpoint - Atwater Brewing, a craft brewery in Detroit and part of Tilray Brands, has launched Atwater Light, a low-calorie and low-carb beer aimed at beer enthusiasts in Michigan [1][2]. Product Details - Atwater Light contains 95 calories, 2.6 grams of carbs per 12 oz serving, and has an alcohol by volume (ABV) of 4.2% [2]. - The beer is crafted with German Noble hops and Vienna malt, providing a traditional flavor and refreshing experience [2]. - It is available in multiple formats including 12-pack of 12-ounce cans, draft, and soon in 16-ounce cans [4]. Brand and Community Engagement - The design of Atwater Light's packaging features a map of Detroit, reflecting hometown pride and the brewery's connection to the local community [3]. - Carrie Shafir, Senior Brand Director at Tilray Beverages, emphasized the brewery's commitment to honoring Detroit's spirit and providing quality beer for the hardworking people of the city [3]. Company Background - Atwater Brewery was founded in 1997 and has a philosophy that emphasizes quality beer for hard work, with a diverse portfolio of award-winning craft beers [5]. - The brewery aims to make beer approachable for all drinkers, offering a variety of options for different tastes and occasions [5]. Parent Company Overview - Tilray Brands, Inc. is a global lifestyle and consumer packaged goods company with operations across multiple continents, focusing on cannabis, beverages, wellness, and entertainment [7]. - Tilray's mission is to be a leading premium lifestyle company with a diverse range of brands and innovative products [7].

Group 1: Company Overview - Tilray Brands went public in 2018 and has since faced significant challenges, with the stock losing nearly all its value despite the U.S. cannabis market exceeding $38 billion last year [1][2] - The company has evolved into a global cannabis business, initially focusing on medical cannabis and later expanding into recreational cannabis, hemp foods, and beverages [4][5] - Tilray currently sells over 40 brands of cannabis products and generated $829 million in sales last year, with projected revenue growth to $893 million this year and $943 million next year [5][6] Group 2: Financial Performance - While sales are not a concern, Tilray has struggled with profitability, reporting a free cash flow of minus $92 million and net losses nearing $250 million last year [7][8] - The U.S. cannabis market is expected to grow over 11% annually through 2030, presenting opportunities for Tilray's diverse product portfolio [6] Group 3: Challenges and Risks - The company has faced operational challenges due to varying legal statuses of cannabis across states in the U.S., leading to pricing pressures and competition from the black market [8] - Tilray's rapid expansion has resulted in a 348% increase in diluted share count since 2018, which negatively impacts revenue and profit distribution among shareholders [9][10] - Despite potential future growth, the stock is unlikely to yield significant returns for investors due to ongoing losses and share dilution [11]

Core Insights - Tilray Brands, Inc. has transitioned the cultivation of its flagship cannabis strain, Good Supply Jean Guy, to its new facility in Masson-Angers, Québec, enhancing its production capabilities in the region [1][2] - The Masson-Angers facility employs over 100 local residents and produces more than 12 tonnes of cannabis annually, with potential for further expansion [3] - Tilray is committed to the Québec community, as evidenced by the unveiling of new packaging and an updated logo for the Jean Guy strain, effective April 8th [2] Company Overview - Tilray is a global lifestyle and consumer packaged goods company operating in the beverage, cannabis, and wellness industries, with a presence in Canada, the United States, Europe, Australia, and Latin America [7] - The company supports over 40 brands across more than 20 countries, offering a diverse range of products including cannabis, hemp-based foods, and craft beverages [7] Product Information - Good Supply is recognized as one of Canada's leading cannabis brands, known for its high-quality flower, pre-rolls, vapes, and concentrates [5] - In addition to Jean Guy, the Masson-Angers facility cultivates other strains under the Good Supply brand, including Grand Daddy Purps, Sweet Berry Kush, and Pineapple Express [4]

Group 1 - Tilray Brands, Inc. closed at $0.66, reflecting a -0.78% change from the previous day, underperforming the S&P 500's gain of 0.55% [1] - Over the past month, Tilray's shares have decreased by 9.84%, contrasting with the Consumer Staples sector's gain of 0.24% and the S&P 500's loss of 6.22% [1] Group 2 - The upcoming earnings release for Tilray Brands, Inc. is scheduled for April 8, 2025, with a consensus revenue estimate of $211.7 million, indicating a 12.4% increase from the same quarter last year [2] - For the entire fiscal year, Zacks Consensus Estimates predict earnings of -$0.19 per share and revenue of $904.53 million, reflecting changes of +42.42% and +14.65% respectively from the previous year [3] Group 3 - Recent adjustments to analyst estimates for Tilray Brands, Inc. are important as they reflect near-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have delivered an average annual return of +25% since 1988, with Tilray currently holding a Zacks Rank of 3 (Hold) [6] Group 4 - The Consumer Products - Staples industry, part of the Consumer Staples sector, currently holds a Zacks Industry Rank of 160, placing it in the bottom 37% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Tilray Brands experienced a 9% increase in stock price following the dismissal of a lawsuit against the company in a Massachusetts court, contrasting with a 0.3% decline in the S&P 500 index on the same day [1][2]. Legal Developments - The lawsuit was filed by Clement Italume, who accused Tilray and its acquired company Hexo of failing to adequately disclose information to shareholders regarding Hexo's actions and the acquisition itself [3]. - The Superior Court in Suffolk County ruled in favor of Tilray and Hexo, granting a summary judgment motion, although it remains uncertain if the plaintiff will appeal [4]. Industry Context - Despite the legal victory, the cannabis industry continues to face significant challenges, including competition from black and gray markets, oversupply issues, and limited growth opportunities [5].

NEW YORK and LEAMINGTON, Ontario, March 27, 2025 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. ("Tilray" or the "Company") (NASDAQ:TLRY, TSX:TLRY), a global lifestyle and consumer packaged goods company at the forefront of beverage, cannabis and wellness industries, today announced that the Company will release financial results for its third quarter fiscal 2025 ended February 28, 2025 before financial markets open on April 8, 2025. Live Conference Call and Audio Webcast Tilray will hold a live conference call, w ...