TILT Holdings Q1 2024 Earnings Report

By Bill McNarland On May 16, 2024

The TDR Three Key Takeaways regarding TILT Holdings Q1 2024 Earnings Report:

TILT Holdings reports Q1 2024 revenue of $37.5 million, a decrease from $42.3 million in Q1 2023.
Adjusted EBITDA improved to $38,000 from $(79,000) in Q1 2023.
Net loss increased to $9.7 million compared to $4.9 million in Q1 2023.

TILT Holdings Inc. (Cboe: TILT, OTCQB: TLLTF), a global provider of cannabis business solutions, reported its earnings report for the first quarter of 2024, noting ongoing challenges and strategic adjustments. Revenue for Q1 2024 was $37.5 million, down from $42.3 million in the same period last year, mainly due to lower sales volume and price compression in key markets.

Gross profit of TILT Holdings for Q1 2024 was $6.7 million with a gross margin of 17.9%, compared to $8.8 million and a gross margin of 20.8% in Q1 2023. The net loss for the quarter was $9.7 million, up from a net loss of $4.9 million in Q1 2023, attributed to lower gross profit and the absence of an $8.4 million gain on asset sales recognized in Q1 2023.

Adjusted EBITDA was $38,000 for Q1 2024, an improvement from $(79,000) in Q1 2023, driven by effective operating cost controls. Cash used in operations was $2.4 million, compared to cash provided by operations of $3.8 million in the prior year period. The company ended Q1 2024 with $3.5 million in cash, cash equivalents, and restricted cash, slightly up from $3.3 million at the end of Q4 2023. Notes payable net of discount increased to $59.7 million from $52.2 million.

“Despite facing market challenges, our focus on operational efficiency has yielded positive results,” said Gary Santo, CEO of TILT Holdings. Santo emphasized the company’s commitment to addressing industry pressures and maintaining a strong financial position. “We are pleased with our progress in managing costs and achieving a positive adjusted EBITDA, which reflects our ongoing efforts to improve profitability.”

Operational highlights include launching the Level pressed tablet brand in Pennsylvania and winning the NECANN Cup for the third consecutive year with the Standard Farms brand. TILT also announced a capital lending agreement for Standard Farms PA to construct and operate dispensaries under Pennsylvania’s Senate Bill 773.TILT Holdings is addressing industry challenges and remains focused on strengthening its balance sheet, improving operational efficiency, and preparing for potential industry catalysts such as federal cannabis rescheduling. “Our ability to manage expenses and adapt to market conditions positions us well for future opportunities,” Santo added, underscoring the company’s strategic priorities for the coming quarters. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.