Tilray Brands Delivers Record Q2 Fiscal 2026 Net Revenue of $218 Million, Moves to Net Cash Position and Reaffirms Full-Year Adjusted EBITDA Guidance
Executive Summary
- Tilray Brands reported Q2 FY 2025 net revenue of $217.5 M, a modest 3% increase year‑over‑year, highlighted by a 36% rise in international cannabis revenue and a 6% gain in Canadian adult‑use cannabis.
- Net loss narrowed to $(43.5) M ($0.41 per share) from $(85.3) M a year ago; adjusted net loss improved to $(2.0) M ($0.02 per share). Adjusted EBITDA was $8.4 M, down 7% YoY but still positive.
- Cash and marketable securities grew to $291.6 M, providing a net cash position of $27.4 M; total debt decreased by $4.2 M.
Key Details
- Revenue Breakdown (Q2 FY 2025):
- Cannabis: $67.5 M (up 3% YoY) – driven by +36% international and +6% Canadian adult‑use sales.
- Beverage: $50.1 M (down 21% YoY).
- Distribution (incl. Tilray Pharma): $85.3 M (record high, up 26%).
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Wellness: $14.6 M (flat).
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Gross Profit / Margin:
- Total gross profit $57.5 M; gross margin 26% (down from 29%).
- Cannabis gross profit $26.1 M; margin 39% (up from 35%).
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Beverage gross profit $15.7 M; margin 31% (down from 40%).
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Operating Expenses:
- Total operating expenses $79.8 M, a 23% reduction YoY.
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Significant cuts in amortization ($4.4 M vs $22.9 M) and restructuring costs ($0.97 M vs $6.87 M).
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Net Loss:
- GAAP net loss $(43.5) M, improved 49% YoY.
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Adjusted net loss $(2.0) M, a modest improvement over the prior period.
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Liquidity & Debt:
- Cash & marketable securities $291.6 M (up from $252.2 M).
- Net cash position $27.4 M versus $3.8 M at end of Q1.
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Total debt reduced by $4.2 M; bank indebtedness down to $8.6 M.
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Adjusted EBITDA Outlook: reaffirmed FY 2026 guidance of $62‑$72 M.
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Management Commentary: CEO Irwin D. Simon highlighted the record quarterly revenue, strong balance sheet, and anticipation of U.S. federal cannabis rescheduling to expand medical operations.
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Webcast: Live investor webcast scheduled for the day of release (4:30 p.m. ET).
Notable Quotes
“We achieved another record quarter with net revenue reaching $218 million… Our strong balance sheet and ample liquidity afford us flexibility for selective investment in strategic growth initiatives.” – Irwin D. Simon, Chairman & CEO
Materiality Assessment: Material – Neutral – The release contains a full set of quarterly financial results, significant changes to profitability, cash position, and forward‑looking guidance that are material to investors.