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]

Core Insights - Tilray Brands reported a 9% year-over-year increase in net revenue, reaching a record $211 million in Q2, with a 10% increase in constant currency [4][6] - Gross profit rose by 29% year-over-year to $61 million, with gross margin improving to 29% from 24% [4][6] - The company announced Project 420, a $25 million synergy plan aimed at enhancing the Tilray beverage business [5][8] Financial Performance - Beverage revenue increased by 36% to $63 million, while international cannabis revenue grew by 25% and wellness segment revenue rose by 13% [4][6] - Adjusted gross profit increased by 20% to $63 million, with adjusted EBITDA at $9 million [6][8] - The net loss for the quarter was $(85) million, primarily due to non-cash items [6][8] Strategic Initiatives - Project 420 aims to achieve $25 million in synergies through operational optimization, cost savings, and SKU rationalization [5][7] - The company is focusing on brand and business investment to reestablish dominance in core markets, with $17 million of the synergy plan already achieved [8][9] - Tilray is committed to its fiscal year 2025 guidance, anticipating net revenues between $950 million and $1 billion [9][10] Market Position - Tilray is positioned as a leading force in the beverage industry, revitalizing the beer market and advancing cannabis legitimacy for recreational and medical use [3][11] - The company has made several acquisitions in the beverage category to diversify its product offerings and scale its business [5][11] Operational Highlights - The company is optimizing its operational footprint by integrating manufacturing and warehousing assets to improve efficiency [7][8] - SKU rationalization efforts are aimed at focusing resources on higher growth products, which is expected to accelerate revenue growth in future quarters [7][8]

Company Overview - Tilray Brands Inc (NASDAQ: TLRY) is a global lifestyle company that has shifted away from a pure cannabis focus, but its financial performance has not improved [1] Earnings Report - Tilray Brands Inc is set to report earnings at the end of the week, and the results are likely not very promising [1] Investment Research Service - Out Fox The Street is an investing group led by Mark that provides stock picks, deep research, and various model portfolios to help readers uncover potential multibaggers while managing portfolio risk via diversification [1] - The service features daily updates, real-time alerts, and access to community chat and direct chat with Mark for questions [1]

Company Announcement - Tilray Medical, a division of Tilray Brands, Inc, has secured a tender to supply Luxembourg with high-quality cannabis flower through its German subsidiary, Tilray Deutschland GmbH [1] - The tender was granted by the Ministry of Health and Social Security for the Grand Duchy of Luxembourg, highlighting the trust placed in Tilray Medical to deliver consistent, high-quality medical cannabis globally [1] - This achievement reinforces Tilray's commitment to meeting Europe's growing demand for premium medical cannabis products [1] Leadership Statement - Denise Faltischek, Chief Strategy Officer and Head of International, expressed honor in being selected again to supply medical cannabis to Luxembourg, attributing this success to the team's dedication to providing high-quality medical cannabis products to patients worldwide [2] Company Overview - Tilray Medical is dedicated to transforming lives and fostering dignity for patients through safe and reliable access to a global portfolio of medical cannabis brands, including Tilray Medical, Broken Coast, Redecan, Good Supply, and Navcora [2] - The company has grown from being one of the first approved licensed producers of medical cannabis in Canada to building the first GMP-certified cannabis production facilities in Portugal and Germany [2] - Today, Tilray Medical is one of the largest suppliers of medical cannabis brands, serving patients, physicians, hospitals, pharmacies, researchers, and governments in over 20 countries across five continents [2] Parent Company Information - Tilray Brands, Inc is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America [3] - The company operates at the intersection of cannabis, beverage, wellness, and entertainment, aiming to elevate lives through moments of connection [3] - Tilray's mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences [3] - The company supports over 40 brands in more than 20 countries, offering comprehensive cannabis products, hemp-based foods, and craft beverages [3]

Market Performance - Tilray Brands, Inc (TLRY) closed at $1 45 with a -0 68% movement compared to the previous day lagging behind the S&P 500's 1 26% gain the Dow's 0 8% gain and the Nasdaq's 1 77% gain [1] - Over the previous month TLRY shares gained 12 31% outperforming the Consumer Staples sector's loss of 6 03% and the S&P 500's loss of 2 82% [1] Earnings and Revenue Estimates - The company is expected to release earnings on January 10 2025 with a Zacks Consensus Estimate for revenue of $218 22 million up 12 62% from the year-ago period [2] - For the entire fiscal year the Zacks Consensus Estimates predict earnings of -$0 14 per share and revenue of $908 93 million indicating year-over-year changes of +57 58% and +15 21% respectively [3] Analyst Estimate Revisions - Recent changes to analyst estimates for Tilray Brands Inc reflect short-term business trends with positive revisions indicating optimism about the company's business outlook [4] - These estimate alterations are directly linked to near-term stock price performance [5] Industry Ranking - The Consumer Products - Staples industry part of the Consumer Staples sector has a Zacks Industry Rank of 73 placing it in the top 30% of all 250+ industries [6] - The Zacks Industry Rank shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6] Zacks Rank System - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell) with 1 rated stocks producing an average annual return of +25% since 1988 [7] - Over the past month the Zacks Consensus EPS estimate for Tilray Brands Inc has shifted 2 33% upward and the company currently holds a Zacks Rank of 3 (Hold) [7]

Due to the closure of the Securities and Exchange Commission and U.S. stock markets on January 9, in honor of the late former President Jimmy Carter, Tilray has moved its earnings announcement to January 10NEW YORK and LEAMINGTON, Ontario, Jan. 02, 2025 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a leading global lifestyle and consumer packaged goods company, today announced that the Company will now release its financial results for the second quarter ende ...