Why did TLK's earnings drop in recent quarters?

The recent drop in TLK's earnings can be attributed to several factors:

1. **Impact of Acquisitions**: The acquisitions of craft brands in the beverage-alcohol sector have added pressure to margins. These brands, although they have the potential to drive significant revenue growth, currently operate at lower margins than the existing business. This is evident in the case of Tilray Brands, where the addition of craft brands led to a decline in gross margin for the beverage-alcohol segment.
2. **Economic Uncertainty and High Operating Costs**: The broader economic environment, marked by uncertainty and high business operating costs, has also played a role in the decline of TLK's earnings. This has been reflected in the statewide revenue declines observed in California, which is a key market for TLK's operations.
3. **Currency Fluctuations**: Currency fluctuations have also affected TLK's earnings. For instance, the company reported a 12.7% year-on-year increase in personal expenses, which could be attributed to currency movements. Such fluctuations can impact the cost of operations and, consequently, the net profit margin.

In summary, TLK's earnings drop is a result of a combination of factors including the impact of acquisitions, economic uncertainty and high operating costs, and currency fluctuations.