Earnings Live: Complete Tilray Brands (TLRY) 4Q Coverage

Updates from CEO Irwin Simon on tonight’s call:

International Cannabis Growth

• Tilray’s international cannabis business delivered $22.4 million in Q4 revenue, up 71% year-over-year.

• In Germany, Q4 cannabis sales rose 134% year-over-year. Tilray holds a top market share in the reimbursed medical channel and is expanding into the self-pay market.

• The company’s Aphria RX subsidiary is one of just three licensed cultivators in Germany, eliminating the need for import/export permits.

Strategic Platform Execution

• Fiscal 2025 revenue totaled $821 million, up 4%, but would have been closer to $870 million (+10%) excluding strategic SKU cuts and currency headwinds.

• Tilray achieved record gross profit of $241 million and posted its second-highest quarterly adjusted EBITDA at $28 million in Q4.

• Over the past year, the company repaid approximately $100 million in debt, reducing its net debt-to-EBITDA ratio from 1.7x to 0.3x.

Canadian Cannabis Optimization

• Canadian cannabis revenue for the year was $186 million. Excluding margin-focused product exits and currency effects, it would have been $206 million.

• Tilray regained the #1 market share in the flower category in Q4, driven by Redecan and Broken Coast product launches.

• The company is expanding cultivation output from 150 to over 200 metric tons to support domestic and international demand in FY2026.

Beverage Transition Underway

• Beverage revenue grew 19% year-over-year, reaching $240 million.

• Project 420, the company’s integration and optimization effort, generated $24 million in annualized savings, targeting $33 million.

• SKU rationalization impacted revenue by $20 million, but leadership expects offsetting gains in future quarters through resets and innovation.

Spirits and Innovation Pipeline

• Breckenridge Distillery expanded share in bourbon and entered tequila and non-alcoholic spirits through new products like Casa Breck and Mock One.

• Melton Shot was launched to target the premium shot segment.

THC and Non-Alcoholic Beverages

• Tilray’s hemp-derived THC beverages are now distributed in 13 U.S. states with 1,300 retail points.

• Runner’s High, Tilray’s non-alcoholic beer, became a top 15 brand in the category and is the fourth fastest-growing NA beer in the Southeast.

Wellness Business Performance

• The wellness division grew revenue 9% to $60 million, with margin expansion from 30% to 32%.

• HiBall Energy saw 68% growth after relaunching in Whole Foods and on Amazon.

• Tilray plans to expand Manitoba Harvest products and other wellness offerings into new international markets in 2026.

New Leadership for Global Expansion

• The company appointed Rajnish Ohri as Managing Director of International, based in London and Dubai, to drive growth in Asia, the Middle East, and Europe across cannabis, beverage, and wellness categories.

Despite headline GAAP losses (driven by $2.1B non-cash goodwill impairment), Tilray’s liquidity remains adequate, supporting FY26 execution.

• FY25 free cash flow: ($121M); worsened YoY due to working capital usage and integration costs.

• Cash + marketable securities: $256M

• Net debt to EBITDA: 0.3x, after ~$100M of debt repayments.

Tilray is de-emphasizing lower-margin Canadian sales in favor of international medical cannabis where ASPs and gross margins are stronger. The strategy is working.

• Q4 international cannabis revenue up +71% YoY, with Europe ex-Australia +112%.

• FY25 global cannabis margin expanded +700 bps, reaching 40%, driven by SKU consolidation and export shift.

• Permitting delays held back full potential, but FY26 outlook is bullish with new leadership in EMEA and Middle East regions.

While revenue took a hit, Tilray is prioritizing profitability and streamlining distribution, especially across brands like Montauk, Shock Top, and SweetWater.

• FY25 beverage revenue grew +19% to $241M, aided by the Molson Coors craft acquisition.

• Q4 beverage margin dropped to 38%, down from 53% YoY due to SKU cuts and early-stage integration noise.

• Cost synergies: $24M annualized captured; full $33M target expected by Q3 FY26.

We increased revenue, enhanced efficiency, and boosted gross profit across all our businesses… We have the right team and strategy to drive growth globally.

CEO Irwin Simon

Tilray emphasized its AI implementation in greenhouse automation, expanded HD-D9 THC drink reach to 1,300 stores in 13 states, and noted a shift toward higher-margin international medical cannabis, particularly in Europe, the Middle East, and Asia.

Tilray expects FY2026 adjusted EBITDA of $62–72 million, a 13–31% YoY increase. No revenue guidance was given, but expect ongoing international expansion, AI-driven cultivation efficiency, and beverage optimization through Project 420 completion by Q3 FY2026.

TLRY share price moving back to even and earnings are now in.

Tilray narrowly missed on revenue, dragged down by Project 420 SKU rationalization and vape category repositioning, but beat on profitability, signaling early traction on margin-focused strategy

No numbers released officially yet, but shares are dropping, down 4.9% in the past few minutes.

Shares are holding steady as we wait for earnings.

The market is closing and TLRY is ending the trading day up 1.96% with earnings following shortly. Conference call is expected to kick off at 4:30 PM EDT.

Stay tune for live updates once the numbers are released.

• U.S. medical cannabis legalization and Tilray’s estimated $250M revenue opportunity if it captures 2–3% of that market.

• Canadian excise tax reform: management noted Tilray paid ~$150M in excise taxes last year — a potential margin unlock if reduced.

• European expansion: medical cannabis momentum in Germany, Italy, Poland; new regulatory wins could drive upside surprise.

• THC beverage distribution: could become a 10x category expansion if sold in LCBO/convenience stores vs. just dispensaries.