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Tilray(TLRY) - 2025 Q3 - Quarterly Results
TLRYTilray(TLRY)2025-04-08 11:00

Revenue Performance - Generated net revenue of 186millioninQ3,with186 million in Q3, with 193 million in constant currency; impacted by strategic initiatives and SKU rationalization by 13million[2]−Cannabisnetrevenuewas13 million [2] - Cannabis net revenue was 54.3 million, down from 63.4millionintheprioryearquarter;grossmarginincreasedto4163.4 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 61.5million,withgrossmarginat961.5 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,adecreaseof1185,780,000, a decrease of 1% compared to 188,340,000 for the same period in 2024 [34] - The cannabis business generated 54,274,000inrevenueforthethreemonthsendedFebruary28,2025,down1454,274,000 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]−TotalnetrevenueforQ32025reached55,921,000 [34] - Total net revenue for Q3 2025 reached 192,949, a 2% increase from 188,340inQ32024[35]−Cannabisbusinessrevenuedecreasedto188,340 in Q3 2024 [35] - Cannabis business revenue decreased to 54,274 in Q3 2025, down 14% from 63,432inQ32024[36]−Distributionbusinessrevenueincreasedto63,432 in Q3 2024 [36] - Distribution business revenue increased to 65,054, up 15% from 56,794inQ32024[35]−BeveragebusinessrevenueforQ32025was56,794 in Q3 2024 [35] - Beverage business revenue for Q3 2025 was 55,921, a slight increase from 54,688inQ32024[38]ProfitabilityandLoss−Grossprofitincreasedby554,688 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)millionduetoapproximately(793.5) million due to approximately 700 million of non-cash impairment and other charges; adjusted net loss was (2.9)million[15]−OperatinglossforthethreemonthsendedFebruary28,2025,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)inthesameperiodlastyear[32]−NetlossattributabletostockholdersofTilrayforthethreemonthsendedFebruary28,2025,was(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)intheprioryear[32]−Thecompanyreportedacomprehensivelossof(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)intheprioryear[32]−ThenetlossforthethreemonthsendedFebruary28,2025,was(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)inthesameperiodof2024[41]FinancialPosition−Reducedtotaldebtby(104,983,000) in the same period of 2024 [41] Financial Position - Reduced total debt by 71 million, with 248millionavailableincashandmarketablesecurities,resultinginnetdebttotrailingtwelvemonthsEBITDAoflessthan1.0x[8]−TotalcurrentassetsasofFebruary28,2025,were248 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 677.71millionasofMay31,2024,reflectingaslightincrease[29]−Cashandcashequivalentsdecreasedto677.71 million as of May 31, 2024, reflecting a slight increase [29] - Cash and cash equivalents decreased to 199.96 million from 228.34millionoverthesameperiod[29]−Totalliabilitiesdecreasedto228.34 million over the same period [29] - Total liabilities decreased to 701.04 million from 778.49million,indicatingimprovedfinancialhealth[30]−Thecompany’saccumulateddeficitincreasedto778.49 million, indicating improved financial health [30] - The company’s accumulated deficit increased to 3.57 billion as of February 28, 2025, from 2.66billionasofMay31,2024[30]−Cashandcashequivalentsattheendoftheperiodwere2.66 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 146,253,000attheendofthepreviousyear[33]−WorkingcapitalasofFebruary28,2025,was146,253,000 at the end of the previous year [33] - Working capital as of February 28, 2025, was 424,115, an increase from 302,111inFebruary2024[39]OperationalEfficiency−ImplementingAIandadvancedhorticultureautomationtechnologytoenhanceoperationalefficiencyandreducecosts[9]−AdjustedEBITDAiscalculatedbyexcludingvariousnon−operatingexpenses,providingaclearerviewofoperationalperformance[22]−Thecompanyreportedanadjustednetlossattributabletostockholders,whichexcludesnon−operatingincomeandotheradjustments[23]StrategicInitiatives−Revisedfiscalyear2025guidancefornetrevenueto302,111 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 900million,withpotentialadjustmentsforstrategicinitiativestotalingapproximately900 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),a33(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)thousandto(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)thousandto(81,792) thousand to (61,612) thousand [44] - Free cash flow improved to (19,973)thousand,adecreaseof(19,973) thousand, a decrease of 4,115 thousand or 17% from (24,088)thousand[44]−Adjustedfreecashflowshowedasubstantialdeclineto(24,088) thousand [44] - Adjusted free cash flow showed a substantial decline to (18,165) thousand from 641thousand,achangeof641 thousand, a change of (18,806) thousand or 2934% [44]