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Tilray(TLRY) - 2025 Q2 - Quarterly Results
TLRYTilray(TLRY)2025-01-10 12:00

Financial Performance and Revenue Growth - Net revenue for the beverage business increased by 30% to 63.1million,contributing3063.1 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 67.6million,accountingfor3267.6 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 210.95millionforthethreemonthsendedNovember30,2024[26]−Netrevenueincreased9210.95 million for the three months ended November 30, 2024[26] - Net revenue increased 9% to 211 million in Q2 2025 compared to 194millionintheprioryearquarter,witha10194 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 66millioninQ22025,withgrossmarginincreasingto3566 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 68millioninQ22025,withgrossmarginincreasingto1268 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 14.865million,representing2314.865 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 67.11millioninthesameperiodin2023[42]−NetbeveragerevenueforthethreemonthsendedNovember30,2024,increasedto67.11 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 46.51millioninthesameperiodin2023[42]−TotalnetrevenueforthesixmonthsendedNovember30,2024,was46.51 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 370.72millioninthesameperiodin2023[44]ProfitabilityandMargins−Grossprofitroseby29370.72 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 61millioninQ22025,withgrossmarginrisingto2961 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 101.41millioninthesameperiodin2023[44]CostsandExpenses−Sellingexpensesincreasedby113101.41 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 119.9million,an18119.9 million, an 18% increase compared to the same period in 2023[16] - Net loss was (85) million in Q2 2025, with 75millioncomprisedofnon−cashitemsand75 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 85.28million,anincreaseof8585.28 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 85,342millioninQ32024from85,342 million in Q3 2024 from 49,008 million in Q3 2023[45] - Restructuring costs surged by 159% to 6,869millioninQ32024comparedto6,869 million in Q3 2024 compared to 2,655 million in Q3 2023[45] - Adjusted net income improved by 17% to a loss of 2,228millioninQ32024fromalossof2,228 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 14.2million,a1414.2 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 8,201millioninQ32023[45]−Litigationcosts,netofrecoveries,decreasedby708,201 million in Q3 2023[45] - Litigation costs, net of recoveries, decreased by 70% to 901 million in Q3 2024 from 3,042millioninQ32023[45]CashFlowandLiquidity−Operatingcashflowinthequarterwaslowerduetoincreasedinvestmentsinmarketing,promotion,andinfrastructureforrecentlyacquiredbrands[1]−Netcashusedinoperatingactivitiesincreasedby643,042 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 46.3millioninthepreviousperiod[17]−Cashandcashequivalentsdecreasedby3146.3 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 62.6million,reflectingimprovedshort−termliquidity[24]−Freecashflowworsenedby2662.6 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 36,245millioninQ32023[46]−Netcashusedinoperatingactivitiesincreasedby3436,245 million in Q3 2023[46] - Net cash used in operating activities increased by 34% to 40,724 million in Q3 2024 from 30,409millioninQ32023[46]−Adjustedfreecashflowworsenedby13730,409 million in Q3 2023[46] - Adjusted free cash flow worsened by 137% to a negative 43,587 million in Q3 2024 from a negative 18,355millioninQ32023[46]−CashandmarketablesecuritiesasofNovember30,2024,were18,355 million in Q3 2023[46] - Cash and marketable securities as of November 30, 2024, were 252.25 million, slightly down from 259.79millionasofNovember30,2023[42]−WorkingcapitalasofNovember30,2024,increasedto259.79 million as of November 30, 2023[42] - Working capital as of November 30, 2024, increased to 428.82 million from 247.04millionasofNovember30,2023[42]AdjustedEBITDAandNon−GAAPMetrics−Achieved247.04 million as of November 30, 2023[42] Adjusted EBITDA and Non-GAAP Metrics - Achieved 17 million of the 25millionsynergyplanasofQ22024,withAdjustedEBITDAlowerby25 million synergy plan as of Q2 2024, with Adjusted EBITDA lower by 1.8 million and 3.2millionforthethreeandsixmonthsendedNovember30,2024,respectively,duetoSKUrationalization[1]−AdjustedEBITDAiscalculatedbyexcludingitemssuchasincometaxbenefits,interestexpense,andstock−basedcompensation,withareconciliationprovidedinthefinancialstatementtables[13]−Adjustedgrossprofitexcludestheimpactofpurchasepriceaccountingvaluationstep−up,withareconciliationprovidedinthefinancialstatementtables[14]−AdjustedEBITDAinQ22025was3.2 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 1.8millionSKUrationalizationinthebeveragesegment[32]−AdjustedEBITDAforthethreemonthsendedNovember30,2024,was1.8 million SKU rationalization in the beverage segment[32] - Adjusted EBITDA for the three months ended November 30, 2024, was 9.02 million, down from 10.09millioninthesameperiodin2023[42]−AdjustedEBITDAforQ32024decreasedby1110.09 million in the same period in 2023[42] - Adjusted EBITDA for Q3 2024 decreased by 11% to 9,017 million compared to 10,086millioninQ32023[45]ForeignExchangeandNon−OperatingItems−UnrealizedforeignexchangelossforthesixmonthsendedNovember30,2024,was10,086 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 33.26million,asignificantincreasefromalossof33.26 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 33,255millioninQ32024fromalossof33,255 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 950millionand950 million and 1 billion[9]