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TILT Holdings Inc. (TLLTF)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue declined to $22.7M with gross margin 14.9%, and net loss widened to $13.2M; Adjusted EBITDA was $(0.97)M as the company continued the Jupiter-first transition and divested retail assets .
  • No formal quantitative guidance was provided; operational updates included EU medical device certification for Jupiter’s QMID vaporizer, an exclusive East Coast MSO hardware partnership, and production shifts to Indonesia to mitigate tariffs .
  • Liquidity remains tight: cash and restricted cash were $4.34M; total debt reached $85.6M, with ongoing negotiations on high-rate 2023 notes and lease defaults addressed via forbearance on April rent .
  • Prior quarters show revenue sequentially higher in Q4 2024 vs Q3 2024, but still below prior-year levels due to Jupiter’s commission model and supplier logistics; Adjusted EBITDA improved in Q4 2024 before turning negative in Q1 2025 .
  • Wall Street consensus (S&P Global) for TLLTF was unavailable for Q1 2025 and FY 2025; note that estimate comparisons cannot be made and models may need updating post-divestiture and Jupiter pivot (Values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

  • “We are executing our plan to divest plant-touching assets… enabling a more durable and scalable asset-light operating model” — Strategic focus on Jupiter-first, with definitive agreement to sell two MA dispensaries and active work on other asset sales .
  • First-ever EU medical device certification for Jupiter’s QMID handheld liquid vaporizer (with Curaleaf partnership across UK, Canada, Australia, NZ), supporting regulatory-grade hardware differentiation .
  • Added a new East Coast MSO as exclusive Jupiter vape hardware partner and achieved positive operating cash flow of $1.9M in Q1 (vs. cash used in prior year), reflecting working capital discipline under the asset-light model .

What Went Wrong

  • Revenue fell 39% YoY to $22.7M; gross margin contracted to 14.9% as lower plant-touching margins offset Jupiter gross margin gains under commission structure .
  • Net loss widened to $13.2M and Adjusted EBITDA turned negative $(0.97)M, impacted by lower revenue, inventory adjustments for excess/obsolete products, and elevated interest expense .
  • Liquidity and balance sheet risks: continued accrual of default-rate interest (25%/24%) on 2023 notes; received default notices on IIP leases (White Haven PA: $1.13M; Taunton MA: $2.997M) before negotiating April rent forbearance .

Financial Results

Consolidated Results vs Prior Periods and Year-Over-Year

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Millions)$37.50 $24.56 $22.73
Gross Profit ($USD Millions)$6.72 $5.28 $3.39
Gross Margin (%)17.9% 21.5% 14.9%
EBITDA ($USD Millions)$0.49 $(27.67) $(1.43)
Adjusted EBITDA ($USD Millions)$0.04 $0.54 $(0.97)
Net Loss ($USD Millions)$(9.65) $(41.42) $(13.24)
Diluted EPS ($USD)$(0.03) —$(0.03)

Notes: Q4 2024 diluted EPS not disclosed in 8-K; net loss provided .

Segment Net Revenue and Profitability

SegmentQ1 2024 Net Revenue ($M)Q1 2025 Net Revenue ($M)
Accessories (Jupiter)$27.12 $14.13
Cannabis$10.39 $8.60
Total Net Revenue$37.50 $22.73

Selected segment items (Q1 2025): Interest expense — Cannabis $1.89M; Accessories $0.91M; Corporate $4.77M .

Geographic Revenue and Gross Profit

GeographyQ1 2024 Revenue ($M)Q1 2024 Gross Profit ($M)Q1 2025 Revenue ($M)Q1 2025 Gross Profit ($M)
US$33.36 $5.59 $20.70 $3.15
Canada$4.14 $1.12 $1.84 $0.20
Other$0.01 $0.00 $0.18 $0.05
Total$37.50 $6.72 $22.73 $3.39

Additional KPIs and Balance Sheet/Cash Flow

KPIQ1 2024Q1 2025
Cash from Operations ($M)$(2.44) $1.90
Cash & Restricted Cash ($M)$3.52 $4.34
Inventories ($M)$22.51 $18.92
Total Debt ($M)—$85.57
Total Current Liabilities ($M)—$124.39
Shareholders’ Equity ($M)—$(50.38)

Notes: Debt components disclosed in Notes Payable; total debt at March 31, 2025 . Q1 2024 balance sheet metrics shown where provided .

Estimates vs Actuals

MetricQ1 2025 ConsensusActual Q1 2025
Revenue ($USD Millions)N/A$22.73
EPS ($USD)N/A$(0.03)
EBITDA ($USD Millions)N/A$(1.43)

Wall Street consensus (S&P Global) for TLLTF was unavailable for Q1 2025 (Values retrieved from S&P Global).

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated RevenueFY/Q1 2025NoneNoneMaintained: No formal guidance
Gross Margin/Adj. Gross MarginFY/Q1 2025NoneDirectional commentary only (plant-touching margins pressured; Jupiter margin improvement under commission model) N/A
Operating Cash FlowFY/Q1 2025NonePositive in Q1 2025 ($1.9M) reported, not guided N/A

Company did not issue quantitative guidance; strategic updates emphasized asset divestitures and Jupiter-first execution .

Earnings Call Themes & Trends

Note: The Q1 2025 earnings call transcript was not available; themes reflect press releases and 10-Q MD&A.

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Jupiter strategy / asset-light modelAsset-light model introduced; strategic review of plant-touching assets; logistics delays and commission transition impacting revenue/margins “Streamlined, Jupiter-first” focus; definitive agreement to sell two MA dispensaries; augmenting hardware portfolio for diversification Strengthening execution
Technology/regulatory (EU device)Organizational enhancements at Jupiter; focus on proprietary hardware development First-ever EU medical device certification for QMID; Curaleaf partnership in multiple markets Positive milestone
Supply chain/tariffsShipping delays from primary supplier in Q3; moving to asset-light JIT Shifting production to Indonesia to mitigate tariffs and trade exposure ; tariff risks reiterated Risk mitigation underway
Plant-touching operations & divestituresStrategic review announced MA retail divestiture APA; continued activity for other assets Portfolio rationalization
Liquidity/financingHigh-rate notes; revolver capacity reduced to $6M Default-rate interest accrual; IIP lease default notices and April rent forbearance; ongoing waiver/forbearance negotiations Elevated risk; negotiations ongoing
Legal/regulatory—Multiple antitrust class actions naming Jupiter; DEA rescheduling process delays Heightened legal backdrop

Management Commentary

  • “This quarter marked an important step forward in reshaping TILT into a streamlined, Jupiter-first business… divest plant-touching assets… more durable and scalable asset-light operating model… expanding into new markets… driving sustainable growth” — Tim Conder, CEO .
  • “Excited to see steady demand… EU medical device certification – a first for handheld liquid vaporizers… paving the way for improved patient care” .
  • “Continued shifting Jupiter production to Indonesia to mitigate tariffs and reduce trade-related cost exposure” .

Q&A Highlights

The Q1 2025 earnings call transcript was not available in the document set; no Q&A details could be extracted (we searched and found no transcript).

Estimates Context

  • S&P Global consensus estimates for TLLTF (Q1 2025, FY 2025) were unavailable; therefore, no beat/miss analysis versus Street is possible (Values retrieved from S&P Global).
  • Given structural changes (commission model at Jupiter, asset divestitures), sell-side models may need to adjust revenue mix, margin assumptions, and interest expense trajectory highlighted in filings .

Key Takeaways for Investors

  • Liquidity and balance sheet risk remain the central near-term issue: $85.6M total debt and default-rate interest (25%/24%) on 2023 notes with substantial accrued interest; outcome of waiver/forbearance talks is a key catalyst .
  • Execution on divestitures is progressing (MA retail APA), potentially unlocking cash and reducing OpEx; watch for additional asset sales and closing timelines from the CCC process .
  • Jupiter differentiation strengthened by EU medical device certification and exclusive MSO hardware partnerships; hardware portfolio expansion and Indonesia production shift may support margins and mitigate tariff exposure .
  • Near-term fundamentals show revenue pressure and margin compression from plant-touching operations; inventory adjustments and absence of prior-period host-fee credits weighed on Q1 gross margin .
  • Working capital discipline under asset-light strategy yielded positive operating cash flow in Q1; monitor sustainability as revenue normalizes and debt service remains heavy .
  • Legal overhang: antitrust suits naming Jupiter and IIP lease defaults add headline risk; resolutions and settlements may impact cash flows and strategy .
  • Trading setup: stock may react to (1) completion of MA divestiture approvals/closing, (2) any forbearance/waiver agreements on 2023 notes, (3) new Jupiter customer wins or further EU commercialization updates, and (4) additional asset sales announcements .

Sources: Q1 2025 8-K press release and exhibits ; Q1 2025 10-Q financials and MD&A ; Q4 2024 8-K press release ; Q3 2024 8-K press release ; April 3, 2025 default notice 8-K and press release .