TILT Holdings Inc. (TLLTF)·Q2 2025 Earnings Summary

Executive Summary

• Q2 results reflect the pivot to an asset‑light, Jupiter‑centric model: continuing ops revenue fell to $10.5M as certain Jupiter customers shifted to a commission model and MA/OH were moved to discontinued ops; gross margin held at 17.4% with adjusted gross margin at 17.9% .
• Net loss from continuing operations improved year over year to $(9.2)M (vs. $(16.6)M) on lower OpEx and taxes, but Adjusted EBITDA declined to $(2.0)M on weaker gross profit .
• No formal financial guidance was issued; the company secured CCC approval to transfer MA retail licenses with closing expected in Q3 and signed a four‑year MariMed management agreement in PA, marking tangible steps toward a full exit of plant‑touching operations within 12 months .
• There was no Q2 earnings call; management emphasized EU MDR certification for Jupiter’s QMID device and tariff/supply chain dynamics as near‑term drivers. S&P Global consensus for EPS/revenue was unavailable for TLLTF this quarter (no estimate comparison possible) .

What Went Well and What Went Wrong

• What Went Well

  • Regulatory and strategic milestones: CCC approved the license transfer for the MA retail sale; closing targeted for Q3; a four‑year management and licensing agreement with MariMed for Standard Farms PA begins Sept 1, 2025—advancing the asset‑light transition .
  • Product/regulatory progress: EU MDR certification for QMID, described as the first medically certified handheld liquid vaporizer, with Curaleaf International as distribution partner—supports global medical market expansion .
  • Cash generation improvement: Operating cash flow from continuing operations was $4.4M YTD through 6/30/25 vs. $(2.1)M in the same period last year; ERC cash refund received ($3.5M; $528k interest passed through) also supported liquidity .
  • Management quote: “The second quarter demonstrated continued execution of our transformation into a focused, asset‑light business centered on Jupiter.” — CEO Tim Conder .

• What Went Wrong

  • Topline pressure: Continuing ops revenue declined to $10.5M (down ~45% YoY), driven by the transition of certain Jupiter customers to a commission model, U.S. cannabis macro softness, and supply chain/tariff uncertainty .
  • Margin mix headwind: Gross margin of 17.4% (vs. 18.9% YoY) reflected price compression and mix in plant‑touching operations (partly offset by Jupiter margin lift from commission model); Adjusted GM 17.9% (vs. 20.1% YoY) .
  • Profitability drag from financing costs: Interest expense of $7.6M in Q2 weighed on the P&L; Adjusted EBITDA from continuing ops was $(2.0)M vs. $(1.2)M in Q2’24 .

Financial Results

Note: Beginning Q2 2025, MA and OH were classified as discontinued operations; prior periods shown below are reclassified where disclosed for comparability .

Discontinued operations (for context):

Liquidity and cash flow:

Comparability note: Q1 2025 “Total revenue” previously disclosed at $22.7M included businesses later moved to discontinued operations; the reclassified “continuing ops” revenue for Q1 2025 is $16.9M .

Guidance Changes

Earnings Call Themes & Trends

Note: Company did not host a Q2 2025 call .

Management Commentary

• Strategy: “We achieved key milestones… and the closing of any transaction will mark our full exit from plant‑touching operations—an important inflection point that will simplify operations, improve capital efficiency, and unlock the full value of the Jupiter platform.” — CEO Tim Conder .
• Product/expansion: “The recent EU MDR certification of our QMID handheld vaporizer—the first of its kind—positions us for expansion across global medical markets…with Curaleaf International as our distribution partner.” .
• Operating context: “Results…reflect the transition of a portion of Jupiter revenue to a commission‑based model…seasonality after Chinese New Year and importing challenges around tariff uncertainty and supply chain shifts outside of China.” .
• Q1 framing: “This quarter marked an important step forward in reshaping TILT into a streamlined, Jupiter‑first business…” — CEO Tim Conder .

Q&A Highlights

• The company did not host an earnings call for Q2 2025; therefore, there were no Q&A exchanges or on‑call guidance clarifications this quarter .

Estimates Context

• We queried S&P Global/Capital IQ consensus for revenue, EPS, target price and recommendation for Q2 2025, Q1 2025, and Q4 2024; no consensus data were available for TLLTF for these periods. As a result, there is no versus‑consensus comparison this quarter. We will update if SPGI consensus becomes available.

Key Takeaways for Investors

• The asset‑light transition is advancing with concrete milestones (CCC license transfer approval; MariMed PA agreement) and a 12‑month exit timeline for plant‑touching operations—simplifying the story and focusing capital on Jupiter .
• Revenue headwinds from the Jupiter commission‑model transition and sector/tariff pressures are real near term, but the mix shift supports margin quality; investors should prioritize margin and cash conversion over raw revenue in the interim .
• Liquidity remains tight ($2.0M cash, cash equivalents and restricted at quarter‑end) but YTD operating cash flow improved ($4.4M from continuing ops), aided by working capital and ERC‑related proceeds .
• Financing costs are a notable drag (Q2 interest expense $7.6M); deleveraging or refinancing remains an important medium‑term lever as the business simplifies .
• EU MDR certification plus Curaleaf International distribution is a credible growth catalyst for Jupiter’s medical channels outside the U.S.; execution/commercial timelines now move to the forefront .
• The absence of a Q2 call reduces near‑term communication, but the 10‑Q was filed the same day; monitor SEC/Sedar+ filings for additional detail and subsequent 8‑Ks for divestiture closings .
• Trading setup: stock narrative likely hinges on (1) MA transaction close in Q3, (2) additional asset exits, and (3) early evidence of Jupiter international uptake; any slippage on these milestones or incremental tariff headwinds could pressure sentiment .

References

• Q2 2025 8‑K press release and exhibits (Aug 14, 2025)
• Q1 2025 8‑K press release and exhibits (May 15, 2025)
• Q4/FY 2024 8‑K press release and exhibits (Mar 19, 2025)