Tilray Brands Inc (NASDAQ:TLRY) stock fell 10.95% (As on January 10, 11:25:19 AM UTC-4, Source: Google Finance) after the company reported second quarter fiscal 2025 results that missed revenue expectations. Adjusted gross profit increased by 20% to $63 million in the second quarter from $52 million in the prior year quarter. Net loss was $(85) million in the second quarter, of which $75 million was comprised of non-cash items (including foreign exchange loss, amortization, and stock-based compensation) and $8 million, of which were one-time non-recurring costs. Adjusted EBITDA in the second quarter was $9 million compared to $10 million in the prior year quarter due to the beverage segment’s SKU rationalization EBITDA impact of $1.8 million.

Moreover, Beverage alcohol net revenue increased 36% to $63 million in the second quarter compared to $47 million in the prior year quarter. Beverage alcohol gross margin increased to 40% in the second quarter compared to 34% in the prior year quarter. Cannabis net revenue was $66 million in the second quarter compared to $67 million in the prior year quarter. Cannabis gross margin increased to 35% in the second quarter compared to 31% in the prior year quarter. Distribution net revenue was $68 million in the second quarter compared to $67 million in the prior year quarter. Distribution gross margin increased to 12% in the second quarter compared to 11% in the prior year quarter. Wellness net revenue increased 13% to $15 million in second the quarter compared to $13 million in the prior year quarter. Wellness gross margin increased to 31% in the second quarter compared to 29% in the prior year quarter.

TLRY in the second quarter of FY 25 has reported the breakeven earnings per share, beating the analysts’ estimates for the adjusted loss per share of 4 cents. The company had reported the adjusted revenue growth of 9 percent to $211 million in the second quarter of FY 25, missing the analysts’ estimates for revenue of $218.17 million. Despite the revenue miss, the company highlighted its $25 million synergy plan for the Tilray beverage business, dubbed “Project 420.” Tilray said it has already achieved $17 million of the targeted synergies.

For fiscal year 2025, Tilray reaffirmed its guidance for net revenue between $950 million and $1 billion, above the current analyst consensus of $900 million.