Tilray Brands reported Q4 revenue of $224.53mln, a 2% YoY decrease and lower than expected. The revenue shortfall was mainly driven by declines in the cannabis and beverage alcohol segments. However, the company reported an unexpected adjusted profit of 2 cents per share and provided optimistic guidance for FY26. Tilray shares are trading lower by 12.3% at $0.61.
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY) reported its financial results for the fourth quarter and fiscal year ended May 31, 2025. The company reported a net revenue of $821.3 million for the fiscal year, representing a 4% increase compared to the prior fiscal year. However, the fourth quarter net revenue was $224.5 million, a 2% year-over-year (YoY) decrease, which was lower than expected [1].
The revenue shortfall was primarily driven by declines in the cannabis and beverage alcohol segments. The company's cannabis net revenue decreased to $67.8 million in the fourth quarter compared to $71.9 million in the prior year quarter. The cannabis gross profit increased to $29.6 million, and the gross margin improved to 44% in the fourth quarter compared to the prior year quarter. The beverage net revenue declined to $65.6 million in the fourth quarter, driven by Project 420 and national SKU rationalization across the recently acquired craft beverage brands, as well as industry challenges [1].
Despite the revenue decline, Tilray reported an unexpected adjusted profit of 2 cents per share for the fourth quarter. The company also provided optimistic guidance for fiscal year 2026, expecting adjusted EBITDA to be between $62 million and $72 million. Tilray shares are currently trading lower by 12.3% at $0.61 [1].
References:
[1] Tilray Brands, Inc. (2025). Tilray Brands Reports Fourth Quarter and Fiscal 2025 Financial Results. Globe Newswire. Retrieved from https://ir.tilray.com/news-releases/news-release-details/tilray-brands-reports-fourth-quarter-and-fiscal-2025-financial
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