Tilray(TLRY) - 2026 Q2 - Quarterly Results

Financial Performance - Tilray Brands reported record Q2 fiscal 2026 net revenue of $218 million, a 3% increase from $211 million in the prior year[5]. - Adjusted EBITDA for Q2 was $8.4 million, slightly down from $9.0 million in the previous year[5]. - The company reaffirmed its full-year adjusted EBITDA guidance for fiscal 2026 at $62 million to $72 million[7]. - The net loss for the six months ended November 30, 2025, was $41,996,000, a 65% improvement compared to a net loss of $119,927,000 for the same period in 2024[31]. - The company experienced a comprehensive loss of $39,045,000 for the three months ended November 30, 2025, a 59% reduction from a comprehensive loss of $94,241,000 in the same period of 2024[30]. - The company reported a net loss of $43,509 thousand for the three months ended November 30, 2025, a 49% improvement compared to a net loss of $85,275 thousand in the same period of 2024[40]. Revenue Breakdown - International medical cannabis revenue increased by 36%, while Canadian adult-use cannabis revenue grew by 6%[5]. - Distribution net revenue, including Tilray Pharma, grew to a record $85.3 million, up from $67.6 million[5]. - The cannabis business generated $67,532,000 in revenue for the three months ended November 30, 2025, accounting for 31% of total revenue, consistent with the previous year[35]. - The beverage business reported revenue of $50,083,000 for the three months ended November 30, 2025, which is 23% of total revenue, down from 30% in the same period of 2024[33]. - Distribution revenue for the six months ended November 30, 2025, was $159,323 thousand, up from $135,682 thousand in the same period of 2024, indicating a growth of 17.4%[37]. Cash Flow and Liquidity - The company improved its cash used in operations by $32.2 million, reducing it to $(8.5) million from $(40.7) million[4]. - Tilray's cash and marketable securities balance reached $291.6 million, providing flexibility for strategic opportunities[6]. - The net cash position improved by $31.2 million to $27.4 million, compared to a net debt position of $3.8 million in Q1[6]. - Cash and cash equivalents increased to $246,703,000 from $221,666,000, while marketable securities rose to $44,848,000 from $34,697,000[27]. - Cash provided by financing activities was $67,948,000 for the six months ended November 30, 2025, a decrease of 31% compared to $98,793,000 in the same period of 2024[32]. - The company reported a net cash used in operating activities of $9,878,000 for the six months ended November 30, 2025, a significant improvement from $76,031,000 in the same period of 2024[32]. Cost Management - Cost of goods sold increased by 7% to $160,010,000 from $149,730,000, leading to a gross profit decrease of 6% to $57,497,000[29]. - Operating expenses decreased by 23% to $79,776,000 compared to $103,438,000 in the previous year, contributing to a reduced operating loss of $22,279,000[29]. - Interest expense decreased by 31% to $5,374,000 from $7,766,000, indicating improved financial management[29]. - The gross margin for cannabis products improved to 39% in Q3 2025 from 35% in Q3 2024, indicating better cost management[39]. Shareholder Information - The weighted average number of common shares outstanding increased by 28% to 110,343,368 for the three months ended November 30, 2025, compared to 86,497,456 in the same period of 2024[30]. - The adjusted net loss attributable to stockholders for the three months ended November 30, 2025, was $44,931 thousand, a decrease of $40,411 thousand (47%) from the net loss of $85,342 thousand in the prior year[43]. - The adjusted net income (loss) per share for the three months ended November 30, 2025, was $(0.02), an improvement of $0.01 (33%) from $(0.03) in the prior year[43]. Asset Management - The total assets of the company increased to $2,098,599,000 from $2,074,327,000, reflecting a positive trend in asset management[27]. - Total liabilities decreased to $552,090,000 from $584,752,000, indicating a reduction in financial obligations[28]. - Total stockholders' equity rose to $1,546,509,000 from $1,489,575,000, reflecting a strengthening of the company's financial position[28]. - The company's working capital as of November 30, 2025, was $470,002 thousand, an increase from $428,815 thousand at the end of November 2024[38].