Tilray(US:TLRY)2025-01-10 12:00Financial 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]