TILT Holdings Q2 Sees Revenue Dip Due To Hardware Business Struggles, Eyes Ohio Cannabis Market

TILT Holdings Inc. TILT TLLTF, a cannabis technology, hardware, cultivation and production company headquartered in Phoenix, Arizona, announced its financial results Friday for the three months ended June 30, 2024.

The company attributed revenue decline primarily to challenges within its Jupiter hardware business, which is undergoing a transition to a just-in-time production model.

Q2 2024 Financial Highlights

• Revenue was $26.6 million, compared to $41.6 million in the prior year period.
• Net loss was $35.9 million, compared to a net loss of $26.9 million in the same period last year.
• Adjusted EBITDA loss was $1.2 million, compared to $1.5 million in Q2 2023.
• Gross profit was $4.3 million, compared to $4 million in the prior year period.

Read Also: U.S. Cannabis Sales Hit Record High in June: LeafLink Report

Despite the revenue drop, TILT’s gross profit increased to $4.3 million, with a gross margin of 16%, compared to 9.7% in Q2 2023. This improvement was driven by gains in the company's plant-touching markets. However, the net loss widened to $35.9 million from $26.9 million a year ago, mainly due to a non-cash impairment charge.

Despite these challenges, cash flow from operations improved to $1.4 million, up from a cash usage of $3.3 million in the prior year period.

TILT’s Management Commentary

CEO Tim Conder commented on the company’s ongoing adjustments, stating, "Our second quarter was highlighted by sequential growth on both the top and bottom line in our plant-touching business, as we continue cultivating strong customer relationships across our three markets. However, in our Jupiter hardware business, we are navigating certain production and supply chain changes that impacted second quarter results." Conder remains optimistic about the company’s long-term growth potential, with particular attention on growth opportunities in Ohio following the launch of the state’s adult-use cannabis program.

Diversifying Brand Portfolio

TILT also expanded its market presence by launching Level, a leading pressed tablet brand, and Edie Parker Flower, a lifestyle brand merging fashion and cannabis, in Pennsylvania. These launches underscore TILT’s strategy to diversify and strengthen its brand portfolio in key markets.

TLLTF Price Action
TLLTF's shares were trading 7% higher at $0.0214 per share at the time of this writing around 11 AM ET Friday.

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