Tilray Stock Earnings Reports

Tilray reported fiscal Q3 net revenue of $185.8M ($193M on a constant currency basis) and delivered improved gross margin (+200 bps to 28%) driven by margin-focused actions across cannabis, beverage and wellness. Management deliberately traded near-term revenue for higher-margin outcomes: SKU rationalizations in beverages, a temporary pullback in certain vape/infused pre-roll sales while extraction upgrades were completed, and the strategic reallocation of ~3.2 metric tons of Canadian cannabis to higher‑margin international medical markets (mostly to be recognized in Q4). Cannabis gross margin expanded to ~41% (highest in ~2 years), helped by mix shift to international medical sales; beverage gross margin improved to ~36% and Project Four Twenty (SKU/distributor/geographic consolidation) has a revised annualized cost savings target of $33M (≈$20.6M achieved). Adjusted EBITDA was ~$9M; adjusted net loss was roughly breakeven (~$2.9M loss). The company recorded a $700M non‑cash impairment tied to macro conditions and delayed regulatory expectations, producing a GAAP net loss of ~$793.5M. Cash and marketable securities totaled $248.4M; net debt was reduced to roughly $50M, putting net debt/adjusted EBITDA below 1x. Management reduced FY25 net revenue guidance to $850–900M (would have been $900–950M excluding strategic impacts). Key growth initiatives include international medical cannabis expansion (notably Germany, Italy, Poland), further ramp of hemp‑derived THC beverages across U.S. states (~1,000 retail points across 10 states), continued roll‑out of wellness products (Manitoba Harvest, Highball Energy), and continued beverage category innovation (non‑alcoholic, craft-lite lagers, spirits). Management emphasizes focus on profitable growth, margin expansion, cash generation and a strengthened balance sheet while pursuing selective investments and M&A opportunities.