Tilray(US:TLRY)2025-04-08 11:00Revenue 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]