With a 9% year-over-year rise in net sales to $211 million, Tilray Brands (TLRY, Financials) released financial results for the second quarter of fiscal 2025. Investors responded to ongoing net losses and inconsistent sector performance, thus the company's shares dropped 11.3% on Friday, ending at $1.22, down $0.15.
Revenue climbed 10% adjusted for constant currency; gross profit jumped 29% year over year to $61 million. Rising from 24% in the previous year, gross margins now show 29%. With $75 million ascribed to non-cash charges—including foreign currency losses and stock-based compensation—Tilray reported a net loss of $85 million for the quarter. At $2 million, adjusted net loss matched last year. Reflecting expenses related to reducing stock-keeping units in the beverage division, adjusted profits before interest, taxes, depreciation, and amortization came in at $9 million, somewhat down from $10 million a year earlier.
Supported by better gross margins of 40%, up from 34% in the previous year, revenue in the beverage alcohol category jumped 36% to $63 million. While the wellness section saw a 13% rise in income to $15 million, cannabis revenue was constant at $66 million. Slightly over $67 million in the previous year, the distribution division made $68 million.
Targeting $25 million in operational synergies, the business kept carrying out its Project 420 effort. Through operational streamlining and cost cuts at the end of the quarter, Tilray had saved $17 million. Still, these reductions have not completely offset expenditures in infrastructure and marketing, which influences cash flow and changed EBITDA for the quarter.
Emphasizing its emphasis on increasing its footprint in the beverage, cannabis, and wellness areas, Tilray confirmed its fiscal 2025 revenue projection of $950 million to $1 billion. Through continuous operational simplification and strategic investments, the firm hopes to be profitable and expand over long term, according to its statement.
