Tilray Brands Reports Fourth Quarter and Fiscal 2025 Financial Results

Executive Summary

• Tilray Brands reported fiscal year 2025 net revenue of $821.3 million (up 4% year-over-year) and Q4 net revenue of $224.5 million.
• The company recorded a significant net loss of $2.18 billion for the full fiscal year and $1.27 billion in Q4, primarily driven by a $2.09 billion non-cash impairment charge of goodwill and intangible assets related to the Aphria and Tilray acquisitions.
• Adjusted EBITDA for the fiscal year was $55.0 million, with Q4 Adjusted EBITDA at $27.6 million. The company provided FY2026 guidance for Adjusted EBITDA between $62 million and $72 million.
• Tilray strengthened its balance sheet with $256.4 million in cash and marketable securities and reduced total debt by approximately $100 million year-to-date.

Key Details

• Fiscal Year 2025 Financials:
  • Net Revenue: $821.3 million (up 4% YoY); $833.7 million in constant currency (up 6% YoY).
  • Gross Profit: $240.6 million (up 8% YoY); Gross Margin: 29%.
  • Adjusted Net Income: $9.0 million (up 45% YoY); Adjusted Net Income per Share: $0.01.
  • Adjusted EBITDA: $55.0 million (down 9% YoY from $60.5 million).
  • Net Loss: $(2,181.4) million, largely due to a $(2,096.1) million non-cash impairment of goodwill and intangible assets.
• Q4 2025 Financials:
  • Net Revenue: $224.5 million (down 2% YoY from $229.9 million).
  • Gross Profit: $67.6 million; Gross Margin: 30%.
  • Adjusted EBITDA: $27.6 million (down 6% YoY from $29.5 million).
  • Net Loss: $(1,267.9) million, including a $(1,396.9) million non-cash impairment charge.
  • Adjusted Net Income: $20.2 million; Adjusted Net Income per Share: $0.02.
• Segment Performance (Fiscal Year 2025):
  • Cannabis: Net revenue $249.0 million (down from $272.8 million); Gross margin increased to 40% (from 33%); Gross profit $99.0 million (up 10%).
  • Beverages: Net revenue $240.6 million (up 19% from $202.1 million), driven by acquisitions; Gross margin 39% (down from 44%).
  • Distribution: Net revenue $271.2 million (up 5% from $258.7 million); Gross margin consistent at 11%.
  • Wellness: Net revenue $60.5 million (up 9% from $55.3 million); Gross margin increased to 32% (from 30%).
• International Cannabis Growth:
  • International cannabis revenue increased 19% for the fiscal year and 71% in Q4.
  • Excluding Australia, European cannabis revenue grew 112%.
• Strategic Initiatives & Operations:
  • Acquisitions: Acquired four craft brands from Molson Coors (Hop Valley, Terrapin, Revolver, Atwater) to expand U.S. beer presence.
  • Project 420: Strategic initiative to integrate craft beer businesses; realized $24 million in annualized savings toward a $33 million cost-savings target.
  • HD-D9 THC Drinks: Launched hemp-derived Delta-9 beverages in 13 U.S. states, reaching 1,300 distribution points.
  • AI Strategy: Implementing AI in cultivation for automation, data insights, and efficiency improvements.
• Balance Sheet & Liquidity:
  • Cash and Marketable Securities: $256.4 million ($221.7 million cash, $34.7 million marketable securities).
  • Debt Reduction: Reduced outstanding total debt by ~$100 million year-to-date.
  • Net Debt to Trailing 12-Month Adjusted EBITDA: 0.3x.
• FY2026 Guidance:
  • Expected Adjusted EBITDA: $62 million to $72 million (representing 13% to 31% growth over FY2025).

Notable Quotes

• Irwin D. Simon, Chairman and CEO: "In Fiscal Year 2025, we meaningfully advanced our platform, driving growth in all of our sectors, cannabis, beverage, and wellness... Our continued investment in growth led to record fiscal year revenue, underscoring the resilience and durability of our strategy."
• Irwin D. Simon, Chairman and CEO: "Looking ahead to Fiscal Year 2026, we see key growth opportunities in cannabis, beverage and wellness. Our global infrastructure and international distribution network position us to lead as the global cannabis market expands."