Tilray Brands Q3 2025: Navigating Contradictions in International Focus, Revenue Growth, and Strategic Investments

These are the key contradictions discussed in Tilray Brands' latest 2025 Q3 earnings call, specifically including: International Market Focus and Strategic Growth, Cannabis Revenue Growth and Investment, and Revenue Growth Expectations:



Revenue and Strategic Initiatives:
- Tilray reported net revenue of $186 million for Q3, up 2% on a constant currency basis, but would have been $206 million without strategic decisions.
- The strategic initiatives focused on enhancing business operations, improving margins, and long-term operational efficiencies, leading to a short-term impact on revenue in Q3.

Cannabis Margin Expansion:
- Tilray's cannabis gross margin increased by 800 basis points year-over-year to 41%, the highest in almost two years.
- This increase was due to focusing on high-margin international markets and strategic decisions in vape and infused pre-rolls to prioritize profitability.

Beverage Business Growth:
- Beverage net revenue was $55.9 million, with a gross margin of 36%, a result of optimization and favorable product mix.
- The growth was driven by successful SKU rationalization, geographic and distribution consolidation, and the integration of craft beer businesses.

International Market Performance:
- International cannabis sales in Germany, Italy, Luxembourg, and Portugal saw significant quarter-over-quarter and year-over-year growth.
- This growth was attributed to higher patient demand and Tilray's strategic redirection of inventories to international medical cannabis markets with higher margins.

Wellness and Hemp-Derived Beverages:
- Wellness net revenue grew 8% on a constant currency basis to $14.5 million, driven by innovations and margin improvement.
- The expansion of the wellness beverages segment, including HiBall Energy, contributed to this growth, with plans for continued international sales expansion.