Terrapin Beer, a subsidiary of Tilray Brands (TLRY, Financial), has announced an enhanced collaboration with Orvis, a well-known outdoor retailer specializing in fly-fishing. This partnership forms part of Terrapin's ongoing Terraprint initiative, which was initiated in 2024. The initiative aims to reduce the environmental footprint of the brewery while enhancing its positive impact within the local community.
The collaboration between Terrapin Beer and Orvis is designed to bolster efforts toward environmental sustainability and community engagement. Through the Terraprint initiative, Terrapin Beer is committed to implementing strategies that not only lessen the brewery's ecological impact but also contribute positively to societal well-being.
By partnering with Orvis, Terrapin seeks to leverage shared values and goals to advance these objectives. This strategic alliance is expected to expand the reach and efficacy of Terrapin's sustainability programs, further aligning with Tilray Brands' broader vision of responsible business practices.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Tilray Brands Inc (TLRY, Financial) is $1.28 with a high estimate of $2.50 and a low estimate of $0.60. The average target implies an upside of 189.68% from the current price of $0.44. More detailed estimate data can be found on the Tilray Brands Inc (TLRY) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Tilray Brands Inc's (TLRY, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tilray Brands Inc (TLRY, Financial) in one year is $1.91, suggesting a upside of 333.8% from the current price of $0.4403. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tilray Brands Inc (TLRY) Summary page.
TLRY Key Business Developments
Release Date: April 08, 2025
- Net Revenue: $185.8 million, compared to $188.3 million in the prior year quarter; $193 million on a constant currency basis.
- Adjusted Net Revenue: $206 million, excluding strategic decisions impacting revenue.
- Gross Margin: Increased by 200 basis points to 28% from 26% in the prior year quarter.
- Net Loss: $793.5 million, primarily due to a $700 million noncash impairment.
- Adjusted EBITDA: $9 million, compared to $10.2 million in the prior year quarter.
- Cash and Marketable Securities: $248.4 million as of February 28, 2025.
- Net Debt: Reduced to approximately $50 million, with a net debt to adjusted EBITDA leverage ratio below 1.
- Cannabis Net Revenue: $54.3 million, would have been over $60 million without strategic decisions.
- Beverage Net Revenue: $55.9 million, would have been over $60 million without strategic decisions.
- Wellness Net Revenue: $14.1 million, a 5% increase from the prior year quarter.
- Distribution Net Revenue: $61.5 million, an 8% increase from the prior year quarter.
- Guidance for Fiscal 2025: Revised net revenue to $850 million to $900 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tilray Brands Inc (TLRY, Financial) reported a 5% increase in gross profit and a 200 basis-point increase in gross margin to 28% compared with the prior year period.
- The company has a strong balance sheet with ample cash and marketable securities totaling $248 million.
- Tilray Brands Inc (TLRY) achieved its highest cannabis gross margin in almost two years, with an 800 basis-point improvement to 41%.
- The company is expanding its beverage business, with Project 420 targeting $33 million in cost savings, of which $20.6 million has already been achieved.
- Tilray Brands Inc (TLRY) is leveraging advanced technology, including AI and cryptocurrency, to enhance efficiency and drive growth.
Negative Points
- Tilray Brands Inc (TLRY) reported a net loss of $793.5 million, primarily due to a $700 million noncash impairment related to macroeconomic conditions.
- The company's net revenue for Q3 was $185.8 million, slightly down from $188.3 million in the previous year quarter.
- The strategic decisions to focus on margins and SKU rationalization impacted Q3 revenues, pushing approximately $13 million in sales to later quarters.
- The company faces challenges in the Canadian cannabis market due to tight regulation, price compression, and excise taxes.
- Tilray Brands Inc (TLRY) is experiencing increased competition in the German market, impacting pricing and market dynamics.
