Tilray Brands 2025 Q4 Earnings Mixed Results as Net Income Declines 8146.5%

Tilray Brands (TLRY) reported its fiscal 2025 Q4 earnings on Jul 29th, 2025. The company experienced a significant decline in net income, largely due to non-cash impairment charges, resulting in an 8146.5% increase in net losses compared to the previous year. Despite the net loss, Tilray's adjusted earnings per share exceeded expectations, coming in at $0.02 against an anticipated loss of three cents per share. The company has set its fiscal 2026 adjusted EBITDA guidance at between $62 million and $72 million, indicating a growth potential of 13% to 31%. While revenue fell short of analyst expectations at $224.53 million, Tilray remains optimistic about future growth opportunities across its cannabis, beverage, and wellness sectors.

Revenue

Tilray Brands reported a total revenue of $224.53 million in the fourth quarter of fiscal 2025, reflecting a 2.3% decline from $229.88 million in the same quarter of the previous year. The cannabis segment generated $67.8 million, down from $71.9 million year-over-year, mainly due to strategic shifts and international permit delays. Beverage segment revenue was $65.6 million, a decrease from $76.7 million, influenced by SKU rationalization and integration challenges. Distribution revenue increased to $74.1 million from $65.6 million, while the wellness segment saw a rise to $17 million from $15.7 million.

Earnings/Net Income

Tilray Brands reported a deepening loss of $1.20 per share for Q4 2025, compared to a $0.04 loss per share in Q4 2024, marking a 3041.4% wider loss. The net loss expanded to $1.27 billion from $15.38 million, driven primarily by non-cash impairment charges. The adjusted earnings per share, however, surpassed expectations, indicating positive performance excluding impairment factors.

Post-Earnings Price Action Review

The strategy of purchasing TLRY shares following a quarter-over-quarter revenue drop on the financial report release date and holding for 30 days has not been fruitful. Over the past three years, this approach has yielded an 85.62% return, significantly underperforming the benchmark by 172.97%. The negative Sharpe ratio of -0.31 highlights the considerable risk involved, while a maximum drawdown of 0% suggests no opportunity for profit. The overall outcome indicates a need for a reassessment of this investment strategy, considering the substantial risk and lack of returns observed.

CEO Commentary

Irwin D. Simon, Chairman and CEO, highlighted the company's advancements in its cannabis, beverage, and wellness sectors during fiscal year 2025. He emphasized the company's deep understanding of evolving consumer needs and its commitment to innovation. Simon expressed confidence in Tilray's global infrastructure and distribution network as key components for leading the expanding global cannabis market. The focus on innovation across their brand portfolio is expected to set them apart from competitors.

Guidance

For fiscal year 2026, Tilray Brands anticipates achieving an adjusted EBITDA between $62 million and $72 million, reflecting growth of 13% to 31% over fiscal year 2025. The management attributes this optimistic guidance to strategic initiatives aimed at enhancing international presence, particularly in cannabis, beverage, and wellness markets, while maintaining a focus on innovation and efficiency.

Additional News

In recent weeks, Tilray Brands has made notable strategic moves, including the acquisition of four craft brands from Molson Coors to strengthen its beer presence in the U.S. Additionally, the company appointed Rajnish Ohri as the new Managing Director of International, responsible for overseeing expansion efforts in Asia, the Middle East, and Europe. Furthermore, Tilray has been actively working on its AI strategy to optimize operations and drive growth, implementing advanced horticulture automation technology across its global greenhouse operations for increased efficiency and reduced costs.