Tilray Brands, Inc. has reported its financial results for the third quarter ended February 28, 2025, indicating a net revenue of $185.8 million, slightly down from the previous year's $188.3 million. However, on a constant currency basis, the net revenue increased to approximately $193 million. The company also reported a 5% increase in gross profit to $52.0 million and an increase in gross margin to 28% from 26% in the prior year quarter.
The net loss for the third quarter was $(793.5) million, primarily due to non-cash impairment, foreign exchange loss, amortization, changes in the fair value of convertible notes receivable, and stock-based compensation, as well as non-recurring transaction and restructuring charges. Adjusted net loss was $(2.9) million compared to an adjusted net income of $0.9 million in the prior year quarter, while adjusted EBITDA was $9.0 million compared to $10.2 million in the prior year quarter.
In terms of segment performance, the beverage alcohol net revenue increased to $55.9 million from $54.7 million in the prior year quarter, with a gross margin increase to 36% from 34%. Cannabis net revenue was $54.3 million compared to $63.4 million in the prior year quarter, and the gross margin increased to 41% from 33%. Distribution net revenue increased to $61.5 million from $56.8 million in the prior year quarter, while wellness net revenue increased to $14.1 million from $13.4 million in the prior year quarter.
Despite the slight decrease in net revenue, Tilray Brands remains focused on strategic initiatives and cost-saving measures. The company confirmed that it had generated $1.4 million in revenue from hemp-derived THC beverage sales and expanded the distribution of these drinks across over 1,000 points of sale in 10 states, including Florida, Alabama, Georgia, North Carolina, South Carolina, Tennessee, Louisiana, and New Jersey. Additionally, the company reported a reduction in outstanding total debt by $71 million, with convertible note reduction of $58 million, strengthening its balance sheet. As of April 8, 2025, Tilray had $248 million available in cash and marketable securities.
Looking ahead, Tilray Brands has revised its fiscal year 2025 guidance for net revenue to $850 million to $900 million, factoring in constant currency adjustments and the impacts of strategic initiatives and SKU rationalization. These adjustments, totaling approximately $50 million, would have resulted in expected net revenue of $900 million to $950 million.
Today the company's shares have moved -18.9% to a price of $0.47. Check out the company's full 8-K submission here.
