Tilray Brands Inc (NASDAQ:TLRY), a global lifestyle and consumer packaged goods company at the forefront of beverage, cannabis and wellness industries, stock fell 11.55% (As on April 8, 11:27:36 AM UTC-4, Source: Google Finance) after the company reported a significantly wider net loss for its fiscal third quarter as impairment charges weighed heavily on results, while revenue declined slightly year-over-year. The cannabis and beverage company posted a net loss of $793.5 million, or $0.87 per share, compared to a loss of $105 million, or $0.12 per share, in the same quarter last year. The steep increase in losses was primarily due to $699.2 million in impairment charges. Tilray’s cannabis segment saw revenue decline to $54.3 million from $63.4 million last year, while beverage alcohol revenue rose slightly to $55.9 million from $54.7 million. Distribution revenue increased 8% to $61.5 million. Wellness net revenue increased 5% to $14.1 million and 8% on a constant currency basis to $14.5 million in the third quarter compared to $13.4 million in the prior year quarter. As of April 8, 2025, Tilray reduced the outstanding total debt by $71 million with convertible note reduction of $58 million. The $248 million cash balance, including marketable securities, provides Tilray with great flexibility for strategic opportunities.

TLRY in the third quarter of FY25 has reported the adjusted loss per share of 10 cents, missing the analysts’ estimates for the adjusted loss per share of 4 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 1.4 percent to $185.8 million in the third quarter of FY25, missing the analysts’ estimates for revenue by 11.44%. On a constant currency basis, revenue would have increased to approximately $193 million. Gross profit increased by 5% to $52.0 million in the third quarter compared to $49.4 million in the prior year quarter. Gross margin increased 200 bps to 28% in the third quarter compared to 26% in the prior year quarter. Adjusted EBITDA in the third quarter was $9.0 million compared to $10.2 million in the prior year quarter due to the beverage segment’s SKU rationalization impact of $1.0 million and $0.6 million related to the prioritization of international cannabis markets.

The company reduced its fiscal 2025 revenue guidance to a range of $850 million to $900 million, down from its previous outlook of $900 million to $950 million.