How TLRY (Tilray Brands) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a cannabis producer like TLRY Income Statement Overview makes money is essential for investors and anyone interested in the business of cannabis. In this post, we break down TLRY's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick TLRY Overview

TLRY Income Statement Overview operates as a global cannabis-lifestyle and consumer packaged goods company, focusing on the production, distribution, and sale of cannabis products for medical and adult-use markets, as well as hemp-based foods and beverages. Revenue comes primarily from cannabis sales, distribution of pharmaceutical-grade products, and branded consumer goods. The company’s business segments include cannabis, distribution, beverage alcohol, and wellness, with a strong presence in North America and Europe.

Revenue Breakdown

• Total Revenue (Q3 2025): $209.5M (+4.7% YoY)
  • Cannabis: [Data not disclosed in segment breakdown]
  • Distribution: [Data not disclosed in segment breakdown]
  • Beverage Alcohol: [Data not disclosed in segment breakdown]
  • Wellness: [Data not disclosed in segment breakdown]
  • Growth is powered by expansion in international markets and increased adult-use cannabis sales.

Gross Profit and Margins

• Gross Profit: $57.5M (27.4% gross margin)
  • Cost of Revenue: $152.0M (+8.3% YoY)
  • TLRY maintains moderate margins due to its diversified product mix and ongoing efforts to optimize production costs.
• Most costs come from raw material procurement, manufacturing, and distribution expenses.

Operating Income and Expenses

• Operating Income: $2.1M (1.0% margin, YoY change not disclosed)
• Operating Expenses: $55.4M (–42.5% YoY)
  • R&D: $41.0M (–61.0% YoY, 0.0% of revenue) — Focused on product innovation, formulation, and clinical research
  • SG&A: $55.3M (–17.9% YoY, 26.4% of revenue) — Covers sales, marketing, administrative, and corporate expenses
  • TLRY continues to prioritize innovation and cost control while expanding its global footprint.

Net Income

• Pre-Tax Income: $0.8M (–97.7% YoY, 0.4% margin)
• Income Tax: [Not disclosed]
• Net Income: $0.3M (–99.2% YoY, 0.2% net margin)
• TLRY converts a minimal portion of sales into profit due to ongoing investments and competitive pricing pressures.

What Drives TLRY's Money Machine?

• Cannabis sales: The primary revenue driver, accounting for the majority of TLRY’s total revenue.
• Gross margin: 27.4%, reflecting the impact of cost controls and product mix.
• Strategic investments: Heavy focus on R&D and SG&A to support new product launches and market expansion.
• Future growth areas: International medical cannabis and wellness products, though these segments are not yet profitable.

Visualizing TLRY's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and R&D) taking the largest chunk.
• Even after significant costs and investments, only 0.2% of revenue drops to the bottom line.

Key Takeaways

• TLRY's money comes overwhelmingly from cannabis product sales
• High gross and net margins are not present; instead, margins are moderate, reflecting the challenges of the cannabis industry
• Heavy investment in R&D and SG&A, balanced by aggressive cost-cutting in operating expenses
• Ongoing growth is driven by international expansion and new product development

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FAQ About TLRY's Income Statement

1. What is the main source of TLRY's revenue in 2025?

TLRY generates over the majority of its revenue from cannabis product sales. Additional revenue sources include distribution, beverage alcohol, and wellness products, though segment breakdowns are not disclosed in this quarter.

2. How profitable is TLRY in Q3 2025?

TLRY reported net income of $0.3M in Q3 2025, with a net margin of approximately 0.2%, reflecting minimal profitability driven by moderate gross margins and high operating expenses.

3. What are the largest expense categories for TLRY?

The biggest expenses on TLRY's income statement are operating expenses, particularly Research & Development (R&D) at $41.0M and Sales, General & Administrative (SG&A) at $55.3M in Q3 2025, as TLRY prioritizes product innovation and global expansion.

4. Why does [segment/division] operate at a loss?

[Segment], despite generating $XXM in revenue, posted an operating loss of over $XXB in Q3 2025. This is because TLRY aggressively invests in new product development, international expansion, and regulatory compliance, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does TLRY's effective tax rate compare to previous years?

TLRY's effective tax rate in Q3 2025 was not disclosed, so a direct comparison to previous years is not possible. Historically, the company’s tax rate has fluctuated due to international structuring and tax benefits from share-based compensation.