PHOENIX — TILT Holdings Inc., a global provider of cannabis business solutions including inhalation technologies, cultivation, manufacturing, processing, brand development and retail, reported its financial and operating results for the three months ended March 31, 2025. All financial information is reported in U.S. dollars and prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) unless otherwise indicated.
“This quarter marked an important step forward in reshaping TILT into a streamlined, Jupiter-first business as we continued to take decisive action to simplify operations and sharpen our strategic focus,” said TILT’s Chief Executive Officer, Tim Conder. “We are executing our plan to divest plant-touching assets with the announced definitive agreement to sell two Massachusetts retail stores and activity underway for our other plant touching businesses, which we believe will ultimately enable a more durable and scalable asset-light operating model. Once completed, this shift will allow us to fully realize Jupiter’s potential by expanding into new markets and strengthening our access to capital, ultimately driving sustainable growth, margin improvement, and consistent cash flow generation.
“At Jupiter, we’re excited to see steady demand for our innovative products, including the recent EU medical device certification – a first for handheld liquid vaporizers, marking a new era of innovation in medical cannabis delivery and paving the way for improved patient care. In addition, at Jupiter, we have begun augmenting our portfolio for customers that require product diversification and will be focused on technology development for the future.”
Conder added, “Although our transformation is still underway, we are making measurable progress to reposition the Company. Our ability to navigate a challenging market environment has been instrumental to this evolution. As we look ahead, we remain confident that Jupiter’s innovation and trustworthy, customer-centric approach will be a key driver of value in 2025 and beyond.”
Q1 2025 Financial Summary
Revenue was $22.7 million in the three months ended March 31, 2025, compared to $37.5 million in the prior year period. The decrease in revenue was primarily driven by the Company’s Jupiter Hardware business, as expected.
Gross profit was $3.4 million and gross margin was 14.9% in the three months ended March 31, 2025, compared to $6.7 million or 17.9% of revenue in the prior year period. The decrease in gross margin was driven by lower margins in the Company’s plant-touching operations, which offset the improvement in Jupiter gross margin resulting from its transition to a commission-based structure. Adjusted gross margin, which excludes non-cash inventory adjustments and one-time adjustments, in the first quarter was 18% compared to 16% in the year-ago period.
Net loss was $13.2 million in the three months ended March 31, 2025, compared to a net loss of $9.7 million in the prior year period.
Adjusted EBITDA (non-GAAP) was $(974) thousand in the three months ended March 31, 2025, compared to $38 thousand in the prior year period driven by the aforementioned lower revenue and consolidated gross margin.
Cash flow provided from operating activities in the first quarter was $1.9 million compared to cash used of $2.4 million in the year-ago period.
At March 31, 2025, the Company had $4.3 million of cash, cash equivalents and restricted cash, which was flat compared to December 31, 2024.
Q1 2025 & Recent Operational Highlights
Announced a definitive agreement to sell two Massachusetts dispensaries to In Good Health for $2 million, including a cultivation supply agreement.
Subsequent to quarter end, the Company added a new East Coast MSO customer to become an exclusive Jupiter vape hardware partner.
Achieved first-ever European Union medical device certification for Jupiter’s proprietary QMID handheld liquid vaporizer device, which is being brought to market in partnership with Curaleaf across the UK, Canada, Australia and New Zealand.
Continued shifting Jupiter production to Indonesia to mitigate tariffs and reduce trade-related cost exposure.
About TILT
TILT Holdings manages a diverse portfolio of companies in the cannabis industry, encompassing technology, hardware, cultivation, and production. Its core business, Jupiter Research LLC, is a wholly owned subsidiary and a global distribution leader in the vaporization segment. Jupiter is dedicated to hardware design, research, development, and distribution to support cannabis brands and retailers across the United States, Canada, South America, and the European Union. Additionally, TILT is a multi-state operator, with cultivation and production facilities in three states under the Commonwealth Alternative Care and Standard Farms brands.
