Detailed narrative
Consolidated results
Net revenue rose 23% to $257.1M and gross profit 35% to $77.5M, lifting gross margin ~300 bps to 30%. The net loss was $40M versus net income of $1.5M; adjusted net loss was ~$3M, of which ~$5M was net cash interest, implying ~$2M adjusted net income without it.
Adjusted EBITDA was $9.2M versus $10.2M, absorbing $8.8M of international price compression and a $1.7M rise in fuel surcharges tied to geopolitics.
Cannabis and international
Total cannabis revenue was $56.1M versus $64.5M as Canada prioritised profit over volume. International cannabis grew 21% to $16.2M on German patient demand and Life in the UK. Portugal costs fell ~40%, supplies ~90% of international cannabis, and Aphria RX in Germany runs at 100% capacity.
Management says Q1 is a seasonally small cannabis quarter and cannot be read sequentially. EMA revenue (medical cannabis, beverage, distribution) rose over 70%.
Beverage and BrewDog
Beverage revenue was $101.5M, with $55.9M from BrewDog; ex-BrewDog the segment would have been down on SKU and brand rationalization. BrewDog was profitable after shedding loss-making pubs and leases, with Punk IPA sales in top six off-trade retailers up 187% in two weeks and 9,000+ new distribution points.
U.S. beer progress is shown in Circana data: #2 craft vendor in Georgia and the West and #4 in New York, with brand growth of 7.5% to 38%.
Carlsberg partnership and U.S. beer
From Jan 1, 2027 Tilray will produce and sell Carlsberg, Carlsberg Elephant and Kronenbourg 1664 Blanc in the U.S. under a profit-sharing venture. Management is consolidating breweries to 5-6 facilities and distributors, and is calling on retailers directly. Hemp/THC drinks are seen as a several-hundred-million to $1B opportunity if regulation allows.
Distribution and wellness
CC Pharma revenue rose 14% to $84.3M from $74M, exceeding expectations, with gross margin steady at 11% (improved ex a $1.3M prior-year classification difference). Wellness revenue was stable at $15.3M; margin compressed due to a one-time📎 organic hemp seed shortage affecting e-commerce mix.
Balance sheet and capital allocation
Cash, restricted cash and marketable securities were ~$221M. The ATM has $70M available. $24M of notes were retired in-quarter and $12M after, leaving $52M due June 2027; $42M of debt settled fiscal year to date. Management is evaluating further actions to cut interest expense.
Policy outlook
Management does not depend on U.S. rescheduling. In Germany, reimbursement changes from July 1 affect only new patients and are not seen as very impactful. On the U.S. Farm Bill, management expects an extension beyond December 11 and later congressional action; Tilray is waiting while able to move quickly.