Canadian Adult-Use Cannabis Gross Revenue Increased 12%, Maintaining the #1 Position in Revenue and Expanding Market Share; International Cannabis Revenue Grew 10% Year-Over-Year
Balance Sheet Strengthened to $265 Million in Cash; Net Debt Reduced to $4 Million
Reiterates Fiscal Year 2026 Adjusted EBITDA Outlook of $62 Million, $72 Million
NEW YORK and LONDON and LEAMINGTON, Ontario, Oct. 09, 2025 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. ("Tilray", "our", "we" or the "Company") (NASDAQ:TLRY, TSX:TLRY), a global lifestyle and consumer packaged goods company at the forefront of the cannabis, beverage, and wellness industries, today reported financial results for its first fiscal quarter ended August 31, 2025. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Irwin D. Simon, Chairman and Chief Executive Officer, stated, "As we enter fiscal 2026, Tilray's first quarter results underscore the effectiveness of our strategic vision and disciplined execution. Achieving a record Q1 net revenue of $210 million, delivering net income, and fortifying our balance sheet are not just milestones, they are proof points of our commitment to building sustainable growth, operational excellence, and unlocking value for our shareholders. Our global platform positions Tilray Brands not just to participate in, but to lead, the evolution of the global cannabis, beverage, and wellness sectors."
Mr. Simon continued, "Looking forward, I am confident in Tilray's ability to seize the transformative opportunities ahead, especially as the U.S. explores cannabis rescheduling and the European cannabis landscape continues to evolve. Our global platform, proven expertise in medical and adult-use cannabis, and trusted partnerships with patients, healthcare professionals, and policymakers set us apart as the partner of choice in this dynamic industry. We are committed to expanding access, advancing innovation, and supporting responsible regulatory progress around the world. These achievements and forward trends reinforce my unwavering belief in Tilray's trajectory and our ability to deliver long-term value to our investors."
Financial Highlights All comparisons made to the prior year period
Net revenue increased 5% to $209.5 million in the first quarter compared to $200.0 million.
Gross profit was $57.5 million in the first quarter compared to $59.7 million.
Gross margin was 27% in the first quarter compared to 30%.
Cannabis net revenue increased 5% to $64.5 million in the first quarter compared to $61.2 million.
Cannabis gross profit was $23.3 million in the first quarter compared to $24.2 million.
Cannabis gross margin was 36% in the first quarter compared to 40%.
Beverage net revenue was $55.7 million in the first quarter compared to $56.0 million.
Beverage gross profit was $21.3 million in the first quarter compared to $22.9 million.
Beverage gross margin was 38% in the first quarter compared to 41%.
Wellness net revenue increased to $15.2 million in the first quarter compared to $14.8 million.
Wellness gross margin was 32% in the first quarter and was unchanged.
Distribution net revenue was $74.0 million in the first quarter compared to $68.1 million.
Distribution gross margin was 11% in the first quarter compared to 12%.
Net income was $1.5 million in the first quarter compared to a net loss of $(34.7) million.
Adjusted net income increased by $10.0 million to $3.9 million in the first quarter compared to adjusted net loss of $(6.1) million.
Adjusted EBITDA increased 9% to $10.2 million in the first quarter compared to $9.3 million.
Cash Flow: Cash used in operations improved significantly by $34.0 million to $(1.3) million from $(35.3) million.
Balance Sheet Update: In the first quarter, Tilray reduced its total outstanding debt by $7.7 million, further strengthening the balance sheet. As a result, the ratio of net debt to trailing twelve months adjusted EBITDA was reduced to 0.07x. Our $264.8 million cash balance provides Tilray with great flexibility for strategic opportunities.Live Audio Webcast
Tilray Brands will host a webcast to discuss these results today at 8:30 a.m. Eastern Time. Investors may join the live webcast available on the Events & Presentations section of Tilray's Investor Relations website. A replay will be available and archived on the Company's website.
About Tilray BrandsTilray Brands, Inc. ("Tilray") (NASDAQ:TLRY, TSX:TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray's mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences. Tilray's unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release constitute forward-looking information or forward-looking statements (together, "forward-looking statements") under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the "safe harbor" created by those sections and other applicable laws. Forward-looking statements can be identified by words such as "forecast," "future," "should," "could," "enable," "potential," "contemplate," "believe," "anticipate," "estimate," "plan," "expect," "intend," "position," "may," "project," "will," "would" and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company's ability to become a leading lifestyle consumer packaged goods company; the Company's ability to become a leading beverage alcohol Company; the Company's ability to achieve long term profitability; the Company's ability to achieve operational scale, market share, distribution, profitability and revenue growth in particular business lines and markets; the Company's ability to successfully achieve revenue growth, margin and profitability improvements, production and supply chain efficiencies, synergies and cost savings; the Company's ability to achieve fiscal year 2026 financial guidance, including expected Adjusted EBITDA of $62 to $72 million and synergy optimizations; the Company's expected revenue growth, sales volume, profitability, synergies and accretion related to any of its acquisitions; expected opportunities in the U.S., including upon U.S. federal cannabis legalization or rescheduling; the Company's ability to successfully leverage artificial intelligence strategies; the Company's anticipated investments and acquisitions, including in organic and strategic growth, partnership efforts, product offerings and other initiatives; and the Company's ability to commercialize new and innovative products.
Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of the Company and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of the Company made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Use of Non-U.S. GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including Adjusted gross margin (consolidated and for each of our reporting segments), Adjusted gross profit (consolidated and for each of our reporting segments), Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, adjusted free cash flow, constant currency presentations of revenue, cash and marketable securities, net debt and net debt to adjusted EBITDA. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.
Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, transaction costs, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.
The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company's consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year. A reconciliation of prior year revenue to constant currency revenue the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.
Adjusted EBITDA is calculated as net income (loss) before income tax benefits, net; interest expense, net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; purchase price accounting step-up; project 420 optimization costs; litigation costs; restructuring costs, and transaction (income) costs, net. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.
Adjusted net income (loss) is calculated as net loss attributable to stockholders of Tilray Brands, Inc., less; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent project 420 optimization costs; litigation costs; restructuring costs and transaction (income) costs, net. A reconciliation of Adjusted net income (loss) to net loss attributable to stockholders of Tilray Brands, Inc., the most directly comparable GAAP measure, has been included below in this press release.
Adjusted net income (loss) per share is calculated as net loss attributable to stockholders of Tilray Brands, Inc., net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; project 420 optimization costs; litigation costs; restructuring costs and transaction (income) costs, divided by weighted average number of common shares outstanding. A reconciliation of Adjusted net income (loss) per share to net loss attributable to stockholders of Tilray Brands, Inc., the most directly comparable GAAP measure, has been included below in this press release. Adjusted net income (loss) per share is not calculated in accordance with GAAP and should not be considered an alternative for GAAP net income (loss) per share or as a measure of liquidity.
Adjusted gross profit (consolidated and for each of our reporting segments), is calculated as gross profit adjusted to exclude the impact of purchase price accounting valuation step-up. A reconciliation of Adjusted gross profit, excluding purchase price accounting valuation step-up, to gross profit, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release. Adjusted gross margin (consolidated and for each of our reporting segments), excluding purchase price accounting valuation step-up, is calculated as revenue less cost of sales adjusted to add back amortization of inventory step-up, divided by revenue. A reconciliation of Adjusted gross margin, excluding purchase price accounting valuation step-up, to gross margin, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.
Free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release. Adjusted free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net, and the exclusion of growth CAPEX from investments in capital and intangible assets, net, which excludes the amount of capital expenditures that are considered to be associated with growth of future operations rather than to maintain the existing operations of the Company, and excludes cash paid for litigation settlements. A reconciliation of net cash flow provided by (used in) operating activities to adjusted free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.
Cash and marketable securities are comprised of two GAAP measures, cash and cash equivalents added to marketable securities. The Company's management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its short-term liquidity position by combing these two GAAP metrics.
Net debt is comprised of GAAP measures and reduces bank indebtedness, current and non-current portions of long-term debt, the principal balance of convertible debt by cash and cash equivalents and marketable securities. The company believes this metric provides useful information to management, analysts, and investors regarding its liquidity and the Company's ability to repay all of its debt. Net debt to adjusted EBITDA is a liquidity ratio used by management and is computed as the ratio of net debt to the trailing 12 months of adjusted EBITDA defined above.
Contacts:Investor
Consolidated Statements of Financial Position
August 31,
May 31,
(in thousands of US dollars)
2025
2025
Assets
Current assets
Cash and cash equivalents
$
264,828
$
221,666
Marketable securities
—
34,697
Accounts receivable, net
107,075
121,489
Inventory
282,787
270,882
Prepaids and other current assets
40,650
34,092
Assets held for sale
5,800
5,800
Total current assets
701,140
688,626
Capital assets
560,157
568,433
Operating lease, right-of-use assets
21,003
22,279
Digital assets
992
—
Intangible assets
25,173
21,423
Goodwill
752,350
752,350
Long-term investments
10,172
10,132
Other assets
11,659
11,084
Total assets
$
2,082,646
$
2,074,327
Liabilities
Current liabilities
Bank indebtedness
$
8,185
$
7,181
Accounts payable and accrued liabilities
230,913
235,322
Contingent consideration
—
15,000
Warrant liability
4,762
1,092
Current portion of lease liabilities
7,477
6,941
Current portion of long-term debt
16,295
14,767
Total current liabilities
267,632
280,303
Long - term liabilities
Lease liabilities
63,345
64,925
Long-term debt
144,175
148,493
Convertible debentures payable
84,267
86,428
Deferred tax liabilities, net
1,943
3,748
Other liabilities
626
855
Total liabilities
561,988
584,752
Stockholders' equity
Common stock ($0.0001 par value; 1,416,000,000 common shares authorized; 1,118,291,159 and 1,060,678,745 common shares issued and outstanding, respectively)
111
106
Treasury Stock (3,213,914 and 2,004,218 treasury shares issued and outstanding, respectively)
—
—
Preferred shares ($0.0001 par value; 10,000,000 preferred shares authorized; nil and nil preferred shares issued and outstanding, respectively)
—
—
Additional paid-in capital
6,431,410
6,401,657
Accumulated other comprehensive loss
(43,230
)
(43,063
)
Accumulated deficit
(4,847,548
)
(4,847,226
)
Total Tilray Brands, Inc. stockholders' equity
1,540,743
1,511,474
Non-controlling interests
(20,085
)
(21,899
)
Total stockholders' equity
1,520,658
1,489,575
Total liabilities and stockholders' equity
$
2,082,646
$
2,074,327
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)
For the three months ended
August 31,
August 31,
Change
% Change
(in thousands of U.S. dollars, except for per share data)
2025
2024
2025 vs. 2024
Net revenue
$
209,501
$
200,044
$
9,457
5
%
Cost of goods sold
152,032
140,338
11,694
8
%
Gross profit
57,469
59,706
(2,237
)
(4
)%
Operating expenses:
General and administrative
41,053
44,113
(3,060
)
(7
)%
Selling
12,923
11,690
1,233
11
%
Amortization
3,929
21,804
(17,875
)
(82
)%
Marketing and promotion
10,155
11,566
(1,411
)
(12
)%
Research and development
41
105
(64
)
(61
)%
Change in fair value of contingent consideration
(15,000
)
—
(15,000
)
NM
Litigation costs, net of recoveries
1,007
1,595
(588
)
(37
)%
Restructuring costs
869
4,247
(3,378
)
(80
)%
Transaction costs (income), net
400
1,156
(756
)
(65
)%
Total operating expenses
55,377
96,276
(40,899
)
(42
)%
Operating income (loss)
2,092
(36,570
)
38,662
(106
)%
Interest expense, net
(6,696
)
(9,842
)
3,146
(32
)%
Non-operating income (expense), net
3,832
12,646
(8,814
)
(70
)%
Loss before income taxes
(772
)
(33,766
)
32,994
(98
)%
Income tax expense (recovery), net
(2,285
)
886
(3,171
)
(358
)%
Net income (loss)
$
1,513
$
(34,652
)
$
36,165
(104
)%
Total net income (loss) attributable to:
Stockholders of Tilray Brands, Inc.
(322
)
(39,165
)
38,843
(99
)%
Non-controlling interests
