Tilray Stock Dips To 4-Week Low On $20M Revenue Blow Projection For 2025, But Retail’s Still Riding High

Shares of Tilray Brands tumbled over 12% on Thursday, hitting their lowest point since Dec. 20, as the cannabis and beer company reported disappointing fiscal second-quarter (Q2) results and projected a $20 million revenue blow for 2025.

The company posted a Q2 net loss of $85.3 million, nearly doubling its year-ago loss of $46.2 million. 

Cannabis net revenue fell slightly to $66 million from $67 million in the prior year. 

While overall Q2 revenue rose 8.8% year-over-year to $211 million, it missed Wall Street’s estimate of $216.33 million.

Tilray also launched “Project 420,” a $25 million initiative to streamline its beverage business. 

The plan involves cutting back on certain alcohol beverage brands, which will contribute to the $20 million anticipated revenue impact for fiscal 2025. 

The company cited prioritizing key products and discontinuing underperforming stock keeping units (SKUs) as reasons for the dip. 

For the six months ended Nov. 30, 2024, the company reported a $6.0 million reduction in net sales, driven by the prioritization of certain products in key markets. 

An additional $2.0 million decline resulted from the decision to discontinue specific SKUs due to market conditions, Tilray said.

However, the firm expects the move to be offset by innovation in new beverage categories and brand extensions over the next 18 months.

TLRY sentiment and message volume Jan 10 as of 11 am ET | source: Stocktwits

Despite the underwhelming financial performance, retail investors on Stocktwits remained surprisingly bullish. 

Many speculated on the possibility of a reverse stock split and expressed optimism about management’s potential for a turnaround. 

There was also some solace in Tilray breaking even on an adjusted basis, outperforming analysts’ expectations of a $0.03 per share loss.

Tilray's stock lost 34% in 2024.

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