1st BATCH OF FILES AVAILABLE NOW!

Tilray's revenue and gross profit rose to record levels in its fiscal Q3 (Dec 2025 thru Feb 2026). But that was no thanks to its ailing bev division, which declined 24% to $42.6 mil for the qtr, co reported this morn. It's the 2d consecutive qtr Tilray bev division slipped more than 20%, down to 21% of Tilray's mix for period. Trends are nearly 2X softer all-channel than in off-prem scans, where Tilray beer $$ slipped just 12.6% to $12.16 mil for 12 wks thru Feb 22, per Circana multi-outlet + convenience data. Suggests indie and on-prem channels are extra soft. Tho ceo Irwin Simon chalked "quite a bit" of the decline up to SKU "rationalization" and net shelf space losses for both Tilray and the US craft beer category writ large. Virtually all that softness was on the beer side as spirits depletions grew for the qtr. But it's also gaining space on newer products/SKUs, Irwin assured, citing "big gains" in Walmart, Kroger, Albertsons and Stop & Shop among others, "all and all&hellip;happy with what we got." Adding to Tilray's beer/bev challenges, gross margins from bevs dropped 400 basis points to 32% even as co completed its Project 420 initiative that took out $33 mil/yr in costs including another $6.2 mil in savings this latest qtr, partly due to a $2.9-mil hit from higher aluminum costs and lower overhead utilization rates, execs detailed. Bev division cost savings "will continue to be a key focus area for us," and the 32% margin is viewed as the "bottom" for this biz, cfo Carl Merton assured.$53 Mil for All BrewDog's Assets, Just $9 Mil for Australia & US; 18 Mil Cases of Beer Globally But FQ3 results didn't include co's newest shiny toy, BrewDog, acquired in early-to-mid Mar, or Carlsberg US brand rights partnership that begins Jan 2027. All told, Tilray paid "a little over" &pound;40 mil ($53.3 mil USD at current exchange rate) for BrewDog, Irwin shared, including global intellectual property plus UK, Ireland, Australia, and US assets. Recall, global IP and UK assets were said to cost &pound;33 mil, suggesting co paid just over &pound;7 mil total ($9.3 mil USD) for Australia and US assets. Deal brings Tilray to almost 18 mil cases/yr (1.3 mil bbls) of beer globally, adding $225-250 mil in annual revs, Irwin detailed. Between that and incoming Carlsberg biz, Tilray bev division is approaching $500 mil/yr and total Tilray $1.2 bil. So Tilray bevs will jump to ~40% of revs."Definitely" More Savings Oppys; More "Rationalization" on Brewery Footprint, Distribs to Come Irwin marveled at the journey Tilray's taken in short order since first investing in SweetWater and working thru myriad challenges in cannabis. Of the hundreds of deals Irwin's done in his career, he's "never had so many" folks reach out as on BrewDog, showcasing the "excitement" around the brand globally. But "stabilization is the key to this here," making sure it's "getting things back up" operationally. And co anticipates plenty more oppy for cost savings going forward, thru scale partnerships for ingredients, workin' with one of the biggest global brewers in Carlsberg, and more oppys for "rationalization" on its brewing facilities, distributors and orgs as they're integrated. Newest US facility, BrewDog's Columbus brewery, is likely gonna be utilized with other brands across Tilray's sprawling portfolio. That could include hemp-derived THC bevs if they're "able to stay in the portfolio," (OH ain't the best bet for that these days) plus HiBall, which is back to growth, and other non-alc bevs. And "we have a great plan to grow Carlsberg," said Irwin. Net-net, there's "good light at the end of the tunnel" for "what we're building here."Tilray Cannabiz Posting Hearty Gains in Canada & Europe; Total Oper Income Still Negative Tilray total revs grew 11% to $206.7 mil for the qtr, posting record highs as cannabis, distribution and wellness biz units grew strong double digits. Cannabis sales grew heartily in core mkt Canada and nearly doubled internationally. Its pharma distribution biz unit (across cannabis and traditional pharma products) grew most of all, up 35% to nearly $83 mil on its own for the qtr. And its wellness biz grew 16% to $16.4 mil. But all told, Tilray posted a $26.4 mil oper loss for the qtr. While that's much improved from last yr when it took a hefty $699 mil impairment charge on intangible assets/goodwill, Tilray's still makin' slow progress on a quest for profitability even as it reaches its goal to become a $1 bil revenue company.

Tilray Bev Revs -24% in FQ3, Margins Whacked 400 Bps; Transformational Deals Put Bevs at 18-Mil-Cases, ~$500 Mil Annually

Publishing Info