SCOTTSDALE, Ariz. — 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 June 30, 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.
“The second quarter demonstrated continued execution of our transformation into a focused, asset-light business centered on Jupiter,” said TILT’s Chief Executive Officer, Tim Conder. “We achieved key milestones including regulatory approval for our dispensary sale in Massachusetts and a management services agreement with MariMed Advisors for Standard Farms Pennsylvania LLC. We continue to pursue strategic alternatives for our Ohio and Massachusetts assets 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.”
“At Jupiter, our innovation pipeline remains strong. The recent EU MDR certification of our QMID handheld vaporizer—the first of its kind—positions us for expansion across global medical markets in collaboration with Curaleaf International as our distribution partner. In parallel, we are broadening our product portfolio with new SKUs from supplemental manufacturing partners to better meet customer needs. Results for this quarter did not include Ohio and Massachusetts revenue that shifted to discontinued operations due to our strategic alternatives review and continue to reflect the transition of a portion of Jupiter revenue to a commission-based model with our primary supplier. Our results are also reflective of seasonality after Chinese New Year and importing challenges around tariff uncertainty and supply chain shifts outside of China. We remain confident in our go forward strategy, focused on Jupiter and the global vaporization hardware opportunity.”
Q2 2025 Financial Summary
The planned exit of the U.S. plant touching operations in Massachusetts and Ohio within the next twelve months represents a strategic shift, and as such, qualifies these assets for reporting as discontinued operations. Prior period amounts have been reclassified to reflect the discontinued operations classification.
The results below and tables attached set forth our condensed consolidated results of continuing operations, expressed in thousands of U.S. dollars for the periods presented. Our financial results for these periods are not necessarily indicative of the consolidated financial results that we will achieve in future periods.
Revenue from continuing operations, excluding Ohio and Massachusetts, was $10.5 million in the three months ended June 30, 2025, compared to $19.0 million in the prior year period. The decrease was primarily attributable to lower revenue from the Company’s Jupiter segment, as expected, due to the transition of certain customers to a commission-based model, as well as ongoing macroeconomic pressure in the U.S. cannabis sector and global supply chain for vaporization hardware.
Gross profit from continuing operations was $1.8 million and gross margin was 17.4%, compared to $3.6 million and 18.9% in the prior year period. Margin pressure stemmed primarily from price compression and a shift in product mix in the Company’s plant-touching operations. These were partially offset by Jupiter’s margin expansion driven by its shift to a commission-based model. Adjusted gross margin from continuing operations, which excludes non-cash inventory adjustments, in the second quarter was 17.9% compared to 20.1% in the year-ago period.
Net loss from continuing operations was $9.2 million compared to a net loss of $16.6 million in the prior year period. The improvement was primarily driven by decreased income tax expense and operating expenses partially offset by lower revenue and gross profit.
Adjusted EBITDA (non-GAAP) from continuing operations was $(2.0) million compared to $(1.2) million in Q2 2024. The decline was attributable to lower gross profit, partially offset by lower operating expenses.
Cash flow from continuing operations was $4.4 million through the period ended June 30, 2025, compared to $2.1 million cash used in the same period last year.
At June 30, 2025, the Company had $2.0 million in cash, cash equivalents and restricted cash, compared to $2.9 million at December 31, 2024.
Q2 2025 & Recent Operational Highlights
Received regulatory approval from the Massachusetts Cannabis Control Commission (CCC) to proceed with the license transfer for the previously announced retail transaction with In Good Health. Closing is expected in Q3, subject to customary approvals.
Entered a four-year management services and licensing agreement with MariMed to assume operational control of Standard Farms Pennsylvania beginning September 1, 2025. This aligns with the Company’s transition to an asset-light structure.
Received European Union MDR certification for the QMID handheld vaporizer, the world’s first medically certified handheld liquid vaporizer. The Company is partnering with Curaleaf International to commercialize across multiple international medical markets.
Soft-launched new Jupiter SKUs sourced from additional Asian suppliers, expanding product assortment to support differentiated pricing tiers and consumer preferences.
Received approval and refund from the IRS related to the Employee Retention Credit in the amount of $3.5 million for a portion of the claims submitted. Of this amount, $528 thousand represented accumulated interest and was passed through to the Employee Retention Credit Noteholder, 1861 Acquisition.
About TILT
TILT is dedicated to helping cannabis businesses build their brands. Through a diverse portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across North America, South America, Israel and the European Union. TILT’s core business is Jupiter Research LLC, a wholly-owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing. Jupiter recently received EU medical device certification for Europe’s first handheld liquid inhalation device. Additionally, TILT operates Commonwealth Alternative Care Inc., Inc. in Massachusetts and Standard Farms Ohio LLC in Ohio and is the permit holder of record for Standard Farms LLC in Pennsylvania. TILT is headquartered in Scottsdale, Arizona.
