Tilray Brands (TSX: TLRY) reported a staggering Q4 2025 net loss of $1.27 billion, a massive decline compared to Q4 2024’s loss of just $15.4 million. Earnings per share also dramatically fell to a loss of $1.30, missing analyst estimates of just a $0.03 loss per share, an overwhelming 4,233% miss.
Following the news, Tilray shares fell nearly 15% in pre-market trading on the NASDAQ.
The cannabis firm’s revenue was $224.5 million for the quarter, slightly below the anticipated $233.29 million and marking a 2% decline YoY from $229.9 million. The revenue miss was primarily driven by setbacks in the cannabis and beverage segments. Cannabis revenue decreased to $67.8 million from $71.9 million last year, impacted by temporary halts in certain product lines and delays in international medical cannabis permits. Beverage revenue fell notably to $65.6 million from $76.7 million YoY, attributed to restructuring initiatives under “Project 420” and rationalization of product lines.
Gross profit shrank to $67.6 million, down from $82.4 million in the previous year, while overall gross margin contracted from 36% to 30%.
The immense quarterly loss primarily stems from a $1.4 billion non-cash impairment charge on goodwill and intangible assets dating back to the 2021 Aphria and Tilray merger, “at which time stock prices and market values for cannabis companies reflected expectations for US cannabis legalization.”
Adjusted net income plunged by 43% to $20.2 million from $35.1 million last year, translating into adjusted earnings of $0.02 per share compared to $0.04 last year. Adjusted EBITDA also declined 6% to $27.6 million from $29.5 million a year ago.
On a full-year basis, fiscal 2025 net revenue increased modestly by 4% to $821.3 million from $788.9 million in 2024. This falls below the low-end of the previously announced guidance of $850 million–$900 million. The annual net loss ballooned dramatically to $2.18 billion compared to $222.4 million in the prior year, while annual EPS also worsened significantly to a loss of $2.46 per share from $0.33 loss per share.
Cash flows from operations deteriorated further, with Tilray burning through $94.6 million compared to just $30.9 million in the previous fiscal year. Free cash flow also came at a negative $13.1 million this quarter compared to a positive $28.3 million a year ago. For the whole year, free cash flow declined to negative $120.7 million from 2024’s $51.6 million.
The company retains liquidity of $256 million, consisting of $222 million cash and $35 million in marketable securities.
For fiscal year 2026, Tilray expects adjusted EBITDA to grow between 13% to 31%, reaching $62 to $72 million, indicating cautious optimism for operational improvements.
Tilray last traded at $0.95 on the TSX.
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