Tilray Brands, Inc. (TLRY) reported its financial results for the first quarter ended August 31st, 2025, today. All financial data is reported in U.S. dollars, unless otherwise indicated and in comparison to the previous quarter. Highlights are as follows:
Q1 Financial Highlights
- Net Revenue: DOWN 12.8% to $220.4M
- Cannabis Business: DOWN 1.0% to $71.2M
- as a % of Net Revenue: DOWN to 30.5%
- Canadian Medical: UP 28.6% to $6.3M
- as a % of Cannabis Business: UP to 8.8%
- Adult-use: UP 21.7% to $57.2M
- as a % of Cannabis Business: UP to 80.3%
- Wholesale: DOWN 44.4% to $5.5M
- as a % of Cannabis Business: DOWN to 7.7%
- International: DOWN 76.5% to $2.2M
- as a % of Cannabis Business: DOWN to 3.1%
- Canadian Medical: UP 28.6% to $6.3M
- as a % of Net Revenue: DOWN to 30.5%
- Beverage Alcohol Business: DOWN 27.0% to $56.0M
- As a % of Net Revenue: UP to 27.9%
- Distribution Business: UP 3.8% to $68.1M
- As a % of Net Revenue; UP to 34.0%
- Wellness Business: DOWN 5.7% to $14.8M
- As a % of Net Revenue: UP to 7.4%
- Cannabis Business: DOWN 1.0% to $71.2M
- Gross Profit: DOWN 27.5% to $59.7M
- Gross Profit Margin as a % of Net Revenue: DOWN to 30% from 36%
- (Gross Profit Margin is the profit remaining after subtracting the cost of goods sold from revenue. A high gross profit margin indicates that a company is successfully producing profit over and above its costs.)
- Cannabis Business: Unchanged at 40%
- Wellness Business: UP to 32% from 31%
- Beverage Alcohol Business: DOWN to 41% from 53%
- Distribution Business: Unchanged at 12%
- Gross Profit Margin as a % of Net Revenue: DOWN to 30% from 36%
- Selling, General and Admin (SG&A) including Marketing and R&D Expenses: DOWN 3.3%% to $67.5M
- SG&A as a % of Net Revenue: UP to 33.6% from 30.4%
- (SG&A expenses are the costs a company incurs to run its business, which include salaries, marketing, rent, utilities, and office supplies and the SG&A margin is the percentage of revenue consumed by these expenses and shows how much revenue is being absorbed by overhead costs. In this instance a lower margin reflects how efficiently a company manages its operating expenses.)
- SG&A as a % of Net Revenue: UP to 33.6% from 30.4%
- Net Profit (Loss): Increased 125.3% to $(34.7)M
- Net Loss as a % of Net Revenue: Increased to (17.3)% from (6.7)%
- (Net profit margin, or simply net margin, measures how much net income or profit a company generates as a percentage of its revenue. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit. A higher margin reflects the cash profit generated by the company’s operations.)
- Net Loss/Share: Unchanged at $(0.04)
- Net Loss as a % of Net Revenue: Increased to (17.3)% from (6.7)%
- Adj. EBITDA: DOWN 68.5% to $9.3M
- Adj. EBITDA as a % of Net Revenue: DOWN to 4.6% from 12.8%
- (Adjusted EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, represents the cash profit generated by the company’s operations excluding non-recurring, irregular, and one-time items such as unrealized gains or losses; non-cash expenses such as depreciation and amortization; litigation expenses; gains or losses on foreign exchange; goodwill impairments; non-operating income; and share-based compensation that may distort the EBITDA. Remember, a higher margin reflects the cash profit generated by the company’s operations.)
- Adj. EBITDA as a % of Net Revenue: DOWN to 4.6% from 12.8%
- Cash/Marketable Securities on Hand: DOWN 10.1% to $205M
Management Commentary:
Irwin D. Simon, Chairman and CEO, stated:
- “….Tilray Brands is disrupting the CPG industry through innovative products that are transforming the way consumers eat, drink, and unwind with cannabis, hemp and beverage products…
- We are dedicated to…increasing revenue, driving operational efficiencies, and improving margins and profitability while investing in our continued growth…
- We believe that there is a greater likelihood that the upcoming U.S. Presidential elections will result in improved regulatory changes in the cannabis industry, as both candidates have publicly confirmed their support for further legalization.
- We are optimistic about the future of the cannabis industry and look forward to the potential opportunities that lie ahead.”
Stock Price
Tilray’s stock price was DOWN 4.9% this morning on the disappointing Q1 results but has rebounded by 2.6% so far this afternoon and is now DOWN 60% YTD.
