Core Insights - Tilray Brands, Inc. reported a record net revenue of $218 million for the second fiscal quarter ended November 30, 2025, reflecting a 3% increase compared to the previous year [3][5] - The company is well-positioned for growth in the U.S. medical cannabis market, anticipating federal rescheduling to enhance research and patient access [3][5] - Tilray's financial position remains strong with $292 million in cash and marketable securities, and a net cash position of approximately $30 million [2][4][6] Financial Performance - Net revenue increased by 3% to $217.5 million from $211.0 million year-over-year [5][28] - Cannabis net revenue rose by 3% to $67.5 million, driven by a 36% increase in international cannabis revenue and a 6% increase in Canadian adult-use cannabis [5][32] - Gross profit decreased to $57.5 million from $61.2 million, with a gross margin of 26% compared to 29% in the prior year [5][28] Segment Performance - Beverage net revenue was $50.1 million, down from $63.1 million, with a gross margin of 31% compared to 40% [5][32] - Distribution net revenue reached a record $85.3 million, up from $67.6 million, with a gross margin of 13% [5][32] - Wellness segment revenue remained flat at $14.6 million, with a slight increase in gross profit [5][32] Loss and Adjustments - The net loss improved to $(43.5) million from $(85.3) million, with net loss per share improving to $(0.41) from $(0.99) [5][28] - Adjusted EBITDA was $8.4 million, slightly down from $9.0 million [5][28] - Adjusted net loss and adjusted net loss per share improved to $(2.0) million and $(0.02), respectively [5][28] Cash Flow and Balance Sheet - Cash used in operations improved by $32.2 million to $(8.5) million from $(40.7) million [4][30] - The cash and marketable securities balance grew to $291.6 million, providing flexibility for strategic opportunities [4][6] - Total outstanding debt was reduced by $4.2 million, strengthening the balance sheet [4][6]

Core Viewpoint - Tilray Brands, Inc. will announce its financial results for the second quarter of fiscal year 2026 on January 8, 2026, after market close [1] Group 1: Financial Results Announcement - The financial results will cover the period ending November 30, 2025 [1] - A live conference call and audio webcast will be held on the same day at 4:30 PM Eastern Time to discuss these results [2] - Investors can submit questions via Robinhood and Say Technologies until January 7, 2026 [2] Group 2: Company Overview - Tilray is a leading global lifestyle and consumer packaged goods company with operations in multiple regions including Canada, the United States, Europe, Australia, and Latin America [3] - The company focuses on cannabis, beverage, wellness, and entertainment sectors, aiming to elevate lives through moments of connection [3] - Tilray supports over 40 brands in more than 20 countries, offering a range of products including cannabis, hemp-based foods, and craft beverages [3]

Core Viewpoint - Tilray Brands, Inc. is set to release its financial results for the second fiscal quarter ending November 30, 2025, on January 8, 2026, after market close [1] Group 1: Financial Results Announcement - The financial results will be announced after the financial markets close on January 8, 2026 [1] - A live conference call and audio webcast will be held at 4:30 PM Eastern Time on the same day to discuss these results [2] Group 2: Investor Engagement - Investors can submit and upvote questions via Robinhood and Say Technologies from now until January 7, 2026 [3] - Questions can be submitted on the Tilray stock detail page on Robinhood or through the Say Technologies platform [3] Group 3: Company Overview - Tilray is a leading global lifestyle and consumer packaged goods company with operations in multiple regions including Canada, the United States, Europe, Australia, and Latin America [3] - The company focuses on cannabis, beverage, wellness, and entertainment sectors, aiming to elevate lives through moments of connection [3] - Tilray supports over 40 brands in more than 20 countries, offering a range of products including cannabis offerings, hemp-based foods, and craft beverages [3]

Core Insights - Tilray Medical has announced significant updates to its pricing programs in Canada, aimed at enhancing affordability and accessibility for medical cannabis patients [1][5] Group 1: Pricing Program Updates - The Compassionate Pricing program has increased the annual income eligibility threshold from $32,500 CAD to $65,000 CAD, allowing more patients to qualify for support [2] - Patients enrolled in the Compassionate Pricing program will continue to benefit from promotional campaigns and additional savings opportunities [2] - The 'Seniors Pricing' program has been strengthened to better support elderly patients, while dedicated programs for first responders and pediatric patients remain in place [3] Group 2: Specialized Support Programs - Tilray Medical continues to provide specialized support through the 'Warrior Wellness' program for Veterans and the 'First Responders Appreciation' program, ensuring personalized care and streamlined access to medical cannabis [4] - The company emphasizes its commitment to health equity, empowering various groups, including seniors, veterans, and families, to access medical cannabis affordably [5] Group 3: Company Overview - Tilray Medical is a leading supplier of medical cannabis, with a global portfolio of brands and products designed to meet patient needs [6] - The company has evolved from being one of the first licensed producers of medical cannabis in Canada to establishing GMP-certified production facilities in Portugal and Germany [6]

Core Viewpoint - Tilray Brands, Inc. announced the approval of a reverse stock split at a ratio of 1-to-10 to 1-to-20, but has paused its implementation to evaluate timing and stock price [1][2]. Financial Structure - In the fiscal quarter ended February 28, 2025, Tilray reduced its total debt by approximately $76 million, resulting in a net debt to trailing twelve-months Adjusted EBITDA of less than 1.0x [3]. - As of the last fiscal quarter, Tilray's cash and marketable securities balance was approximately $250 million, providing financial strength and flexibility for strategic opportunities and acquisitions [3]. Strategic Objectives of Reverse Stock Split - The reverse stock split aims to ensure compliance with Nasdaq listing requirements, align the number of shares with similar companies, attract institutional shareholders, and potentially save up to $1 million annually in costs associated with stockholder meetings [7].

Financial Data and Key Metrics Changes - The company reported Q1 sales of $348 million, a 3.2% increase year-over-year, with comparable restaurant sales up 1.7% driven by 2.7% traffic growth [30][31] - Restaurant level cash flow margin improved to 16%, marking a 100 basis point increase from the previous year [31] - Net income for the quarter was $13.5 million, with diluted net income per share rising 80% to $0.58 compared to $0.32 last year [35][36] Business Line Data and Key Metrics Changes - The restaurant level operating profit increased by 10% to $55.6 million, the highest Q1 profit recorded [32] - Adjusted EBITDA was $35.4 million, representing 10.2% of sales, which is $6 million higher than the previous year [35] Market Data and Key Metrics Changes - The company experienced strong traffic growth, outperforming the industry average by approximately 320 basis points [11] - Comp sales were negatively impacted in February due to adverse weather and delayed tax refunds, but rebounded in March with a 3% increase [6][30] Company Strategy and Development Direction - The company is focused on operational excellence and enhancing guest satisfaction, which is expected to drive future sales growth [8][12] - Strategic initiatives include a brand refresh and menu optimization, particularly around core offerings like pizza and Pizookie [21][22] - The company plans to continue investing in marketing and operational improvements while maintaining a balanced approach to pricing [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic headwinds and continue expanding margins [8][39] - There is an expectation of modest inflation in the second half of the year, but the company feels comfortable with its current guidance [37][38] Other Important Information - The company has raised its profit guidance for 2025, expecting restaurant level operating profit between $210 million and $219 million [37] - Approximately 85% of food is sourced from the US, Canada, or Mexico, mitigating the impact of proposed tariffs [17][38] Q&A Session Summary Question: Can you frame the impact of simplification and process changes on margins? - Management indicated that half of the 100 basis point margin improvement was due to leveraging sales and traffic, with ongoing initiatives expected to sustain these levels [41][43] Question: What are the dynamics behind check and mix components? - Management noted that while traffic growth was strong, the mix was slightly lighter due to various factors, including the timing of holidays [49][52] Question: Why is the casual dining customer performing better than quick service? - Management attributed the resilience of casual dining customers to higher income demographics and a strong value proposition [56][60] Question: What drives the reduction in per store labor costs? - Management highlighted improved scheduling and increased focus on operational efficiencies as key drivers of reduced labor costs [64][66] Question: How is the company addressing macroeconomic challenges? - Management stated that there have been no significant changes in consumer behavior, and the Pizookie Meal Deal has been effective in driving traffic [74][78] Question: What is the outlook for unit growth? - Management expressed optimism about unit growth opportunities, focusing on existing markets with brand awareness and operational efficiencies [84][86] Question: What is the importance of the pizza platform to the brand? - Management emphasized that pizza is a core association with the brand, particularly in California, and is a significant traffic driver [101][102]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated sales of $348 million, a 3.2% increase year-over-year, with comparable restaurant sales up 1.7% driven by 2.7% traffic growth [27][28] - Restaurant level cash flow margin was 16%, marking a 100 basis point improvement from the previous year, while adjusted EBITDA was $35.4 million, representing 10.2% of sales [28][32] - Net income for the quarter was $13.5 million, with diluted net income per share increasing by 80% to $0.58 compared to $0.32 last year [32] Business Line Data and Key Metrics Changes - The company reported a strong performance in its Pizookie Meal Deal, which significantly contributed to traffic growth and guest satisfaction [10][11] - Restaurant level operating profit increased by 10% to $55.6 million, marking the most profitable Q1 ever for the company [28] Market Data and Key Metrics Changes - The company experienced a solid start to the quarter with comp sales up approximately 3% in January, followed by a dip in February due to adverse weather, and a rebound in March with comp sales again up approximately 3% [27][28] - April comp sales were reported to be in the mid-two percent range, indicating continued positive momentum [28] Company Strategy and Development Direction - The company is focused on operational excellence and enhancing guest experience, with initiatives aimed at improving efficiency and margin expansion [6][9] - A brand refresh and menu optimization are underway, with a focus on core offerings like pizza and Pizookie, which are expected to drive traffic and sales [19][20][96] - The company plans to continue remodeling existing locations and is optimistic about future unit growth, particularly in markets where it already has a presence [24][25][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic headwinds and maintain market share, citing strong guest satisfaction metrics and operational improvements [6][12] - The company raised its profit guidance for 2025, expecting restaurant level operating profit between $210 million and $219 million, and adjusted EBITDA between $131 million and $140 million [34] Other Important Information - The company has implemented a proactive facilities program and improved its POS systems to enhance operational efficiency and guest experience [12][18] - Approximately 85% of the company's food is sourced from the US, Canada, or Mexico, mitigating potential tariff impacts [14][34] Q&A Session Summary Question: Can you help frame the impact of simplification and process changes on margins? - Management noted that half of the 100 basis point margin improvement was due to leveraging sales and traffic, with ongoing initiatives expected to sustain these levels [40][42] Question: What are the dynamics behind check and mix components? - Management indicated that while traffic growth was strong, the mix was slightly lighter due to various factors, including the timing of promotions and seasonal trends [45][48] Question: Why is the casual dining customer performing better than quick service? - Management attributed the resilience of the BJ's customer base to higher income demographics and a strong value proposition, particularly during uncertain economic times [52][54] Question: What is the outlook for unit growth? - Management expressed optimism about future unit growth, focusing on existing markets with brand awareness and operational efficiencies, but noted that significant growth would not materialize until late 2026 [81][82] Question: How important is the pizza platform to the brand? - Management emphasized that pizza is a core association with the brand, particularly in California, and is a significant traffic driver, with plans to revitalize this offering [95][96]