Tilray Brands’ 2025 fiscal year ended with mixed results, as the Canadian cannabis and U.S. craft beer platform generated $821.3 million in net revenue ($833.7 million in constant currency) across its various business units for full-year 2025 (FY25, ending May 31, 2025), marking a 4% increase year-over-year (YoY).
However, Tilray noted “strategic decisions” cut into its revenue by $35 million, the company reported Monday. By business segment in FY25, that broke out to:
- $240.6 million net revenue (+19%) for Tilray’s beverage division;
- $60 million in revenue (+9%) for its wellness division;
- $249 million in cannabis revenue, down from $272.8 million in FY 2024.
In Q4, Tilray also took a non-cash impairment of $1.396 billion. The company attributed the impairment charge to goodwill and intangible assets due to the 2021 Aphria and Tilray merger and elevated stock and market values for cannabis firms due to expectations of federal cannabis legalization in the U.S., which has yet to materialize.
“Let me be very clear, despite recording this noncash accounting charge, it does not change how we feel about the future of our business today, including the intrinsic value of our tangible assets, our liquidity and, of course, our brand equity,” Tilray chairman and CEO Irwin D. Simon said Monday during a call with investors and analysts.
“We remain incredibly optimistic, and we believe we have the right long-term strategy to deliver for our shareholders.”
Tilray’s total net loss for Q4 was $1.267 billion, compared to a $15.4 million loss in Q4 2024.
Tilray posted $224.5 million in Q4 net revenue, a decline of around $5.4 million YoY. The company achieved $67.6 million in gross profit during the quarter, down around $14.8 million compared to Q4 2024. The company’s gross margin was 30% in Q4.
Q4 beverage net revenue fell 15% to $65.6 million (-$11.1 million YoY), which the company attributed to Project 420 and a national SKU rationalization program to cut underperforming craft brands, as well as soft craft beer sales.
Gross profit for the beverage division in Q4 declined $15.8 million YoY, to $25 million. Beverage gross margin declined to 38% in Q4, down from 53% in Q4 2024.
Cannabis net revenue declined around $4.1 million YoY in the quarter, to $67.8 million in Q4. Tilray attributed the decline to pausing vapes and infused pre-prolls as it focused on profitability
Cannabis gross profit grew around $800,000 YoY to $29.6 million in Q4. Cannabis gross margin increased to 44% in Q4, up from 40% this time last year.
Distribution net revenue increased to $74.1 million in Q4, up from $65.6 million in Q4 2024. Wellness net revenue grew 9% to $17 million in Q4.
Tilray’s international cannabis business grew 71% in Q4 and 19% for FY 2025. The company also touted a “strong balance sheet with $256 million available in cash and marketable securities.” It also has paid back around $100 million of its debt to date.
Tilray noted its consolidated adjusted EBITDA for Q4 was the “second highest in the company’s history.”
Beverage Biz Still Plagued by Integration Side Effects
Within its beverage business, Tilray cited the acquisition of four Molson Coors craft brands – Hop Valley, Terrapin Beer Co, Revolver Brewing and Atwater Brewery – during FY25, along with its Project 420 initiative to pair down its business (including SKU rationalization) as the cause for the portfolio’s losses.
Simon also noted that the company’s 2023 acquisition of eight brands from Anheuser-Busch InBev (ABI) provided “unexpected distribution headwinds at retail due to missed reset windows that occurred prior to the closing of the acquisition.
“We also saw a shift to on-premise dynamics,” Simon added. “And while we introduced new products, not all met our expectations.”
Simon did not list which innovations have failed to meet expectations, but instated called out growth for its non-alcoholic (NA) beer brand, Runner’s High, which is “now recognized as a top 15 brand” in the Na segment, as is “the fourth fastest-growing NA beer in the Southeast.”
Additionally, SweetWater Daytrip IPA is “the No. 1 new craft brand in the Southeast and the No. 7 new craft brand in the U.S.” The offering launched in January and is available in eight states. Earlier in FY25, Tilray launched intoxicating hemp-based THC beverages in the U.S. Those offerings are now sold in 13 states, with 1,300 points of distribution, leadership shared.
“We see this category evolving continuously and expect it to be a significant part of our growth in 2026,” Simon said. “Unlike other newcomers to the sector, we have an edge with our established beer network.”
Tilray was the fourth largest domestic craft brewing company in 2024, producing 783,495 barrels of beer, a 13% decline YoY, according to the Brewers Association. The company is the 15th largest beer vendor in Circana-tracked off-premise channels, with dollar sales (-15.5%) and volume (-14.6%) both down double-digits year-to-date (data ending July 17, 2025).
Project 420 has helped reduce costs by $24 million with an additional $9 million in cost-savings targeted for completion by Q3 FY 2026. So far, the company has cut down its manufacturing facilities from 10 to seven and cut out $20 million worth of SKUs, Simon said.
The company is also continuing to consolidate its weighty distribution network that includes 800 to 900 distributors, according to Simon.
“We have a Molson distributor network, we have an ABI distributor network, so we have to look at some things there,” he added.
Project 420 has “impacted revenue to date by approximately $20 million and an adjusted EBITDA of $6 million,” which is expected to be offset “in future quarters,” Simon said.
“Additionally, although our SKU rationalization made strategic sense, there’s a natural time lag before higher-performing SKUs could replace those phased out,” Simon added. “Now with substantially revitalized brands, a refreshed innovation pipeline, SKU rationalization behind us, we are well positioned to recapture revenue and secure more points of distribution in the up-and-coming resets.”
Simon also noted that Tilray “grew our beverage business 19%” in FY25. However, “like the rest of the beer industry, our business was impacted by softer consumer demand.”
“We attribute this to lower demand and short-term influences and broader category-related challenges, including adverse weather, integration process and delayed innovation,” he continued.
Optimism for 2026
For fiscal-year 2026, Tilray is projecting between $62 million and $72 million in adjusted EBITDA.
Tilray announced that its international expansion will be led by incoming international manager Rajnish Ohri, who is based in London and Dubai. The company is expecting “substantial growth opportunities” across Europe, the Middle East, Türkiye and Asia, led by its non-alcoholic beer, beverage and hemp-based food products.
“Looking ahead to 2026, we see strong opportunities and anticipate increased demand for beer,” Simon added. “Beer is not going away. With continued consolidation in the craft beer industry and exits of smaller craft brewers and consumer demand continuing, we see opportunities within this business where we have several new exciting innovation plans and are committed to driving Tilray’s beverage growth under our new leadership.”
“This year was a challenging year in our beverage beer business, as we put the ABI acquisition together, the Molson’s acquisitions and SweetWater, Montauk,” Simon said. “The good news is, 90% of our products today, maybe a little more, come from our own facility. So we control the growth. We can control the cost. We’re not necessarily affected by tariffs out there, other than maybe buying cans.
“After five, six years, as maturation comes into place, I feel good about the top line growth. We feel good about the top line growth. We feel good about the scalability.”