Tilray Brands reports strong Q2 2025 financial performance
Tilray Brands, Inc., a prominent player in the global lifestyle and consumer packaged goods industry, announced its financial results for Q2 2025 ending November 30, 2024, reflecting substantial growth and strategic progress.
The company’s chairman and CEO, Irwin D. Simon, highlighted the quarter’s achievements, stating that Tilray has made significant strides in the strategic plan, with operational excellence driving improvements in margins, profits and overall financial health.
“In our fiscal second quarter, Tilray achieved strong results while making significant progress on our strategic plan,” he said. “Our dedication to operational excellence has improved Gross Margins, Gross Profit, and overall profitability across our business segments, positioning us favorably for future success.”
He emphasized Tilray’s leadership in the beverage sector, notably in revitalizing the beer market, growing the spirits and non-alcoholic beverage categories, and advancing cannabis legitimacy.
Financially, the company reported a 9% uptick in net revenue, totaling $211 million, compared to $194 million in the same quarter last year. On a constant currency basis, this increase was 10%. Gross profit saw a remarkable 29% increase to $61 million, with gross margins climbing to 29% from 24%. Adjusted gross profit also rose by 20% to $63 million.
Despite these gains, the net loss stood at $85 million, primarily due to $75 million in non-cash expenses like foreign exchange losses, amortization and stock-based compensation, plus $8 million in one-time costs. The adjusted net loss was significantly lower at $2 million, an improvement from the previous year’s $3 million loss, and adjusted net loss per share remained at $0.00.
The beverage alcohol segment was particularly robust, with net revenue increasing by 36% to $63 million and gross margins improving to 40% from 34%. Cannabis revenue was stable at $66 million with a margin increase to 35%, while distribution and wellness segments also reported growth in both revenue and margins.
Tilray’s strategic endeavors under Project 420 have included several acquisitions since 2020, such as SweetWater Brewing, Alpine Beer and others, aiming to expand and diversify its beverage offerings. This project focuses on operational optimization, cost efficiencies and portfolio rationalization. The latter has resulted in the strategic discontinuation of certain SKUs, impacting net sales by $6 million in the first half of the fiscal year, with an expected total reduction of $20 million for the year. These decisions are part of a broader strategy to focus on high-growth products and introduce new innovations, expected to drive future revenue growth.
Despite the immediate revenue impact from SKU rationalization, Tilray has achieved $17 million in savings towards a $25 million synergy plan, though these savings are currently not fully offsetting the investments in brand and business enhancement, affecting adjusted EBITDA and operating cash flow.
Looking ahead, Tilray reaffirmed its fiscal 2025 guidance, expecting net revenues to range between $950 million and $1 billion. A live conference call and audio webcast were conducted to delve into these results, providing investors with direct engagement.
Featured photo shows Madison Avenue, New York City, looking north from 41st Street. Tilray is headquartered at 655 Madison Ave. Featured image is an extracted version of the photo by Leif Knutsen (Photography by Leif Knutsen). License: CC BY-SA 3.0
