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Tilt Holdings (TSE:TILT)
:TILT
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TILT Holdings Inc
(NEO-L:TILT)
40Underperform
TILT Holdings Inc (TILT) vs. S&P 500 (SPY)
Market Cap
C$213.77M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)N/A
Revenue Growth-24.93%
EPS Growth30.59%
CountryCA
Employees341
SectorTechnology
Sector Strength40
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.20
Shares Outstanding346,969,480
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TILT Holdings Inc Business Overview & Revenue Model
Company DescriptionTILT Holdings Inc. is a vertically integrated technology and infrastructure platform serving the cannabis industry. The company operates in sectors including cultivation, manufacturing, processing, brand development, and retail. TILT provides a comprehensive range of services and products that support cannabis businesses at every stage of their growth, from plant cultivation to distribution and sale.
How the Company Makes MoneyTILT Holdings Inc. generates revenue through multiple streams. The company makes money by producing and selling cannabis products, including flower, pre-rolls, concentrates, and edibles, through its cultivation and processing facilities. Additionally, TILT earns income by providing business-to-business (B2B) solutions such as hardware and software services to other cannabis companies. TILT also benefits from strategic partnerships and licensing agreements that allow it to expand its brand presence and market reach, further contributing to its revenue.
TILT Holdings Inc Financial Statement Overview
Summary
TILT Holdings Inc is facing substantial financial difficulties, characterized by declining revenues, negative profit margins, and increased financial leverage. Despite some cash generation from operations, the company's profitability issues and increased debt levels pose significant long-term financial health risks.Income Statement
TILT Holdings Inc has shown a declining revenue trend over the years with a negative revenue growth rate of -22% in the TTM compared to 2023. The company is struggling with profitability as indicated by consistently negative EBIT and Net Income, which results in negative profit margins. The gross profit margin has significantly dropped from 23% in 2023 to 0.7% in the TTM, indicating increasing cost pressures or inefficiencies.35
Negative
Balance Sheet
The company's balance sheet indicates a high debt-to-equity ratio, rising to 28.08 in the TTM from 1.76 in 2023, signaling increased leverage and financial risk. Stockholders' equity has diminished significantly, reflecting potential financial instability. Despite this, TILT Holdings maintains a high equity ratio of 2.41% in the TTM, although it has decreased from 27% in 2023, indicating a declining proportion of assets financed by equity.40
Negative
Cash Flow
There has been a decline in free cash flow from 2023 to the TTM, with a negative free cash flow growth rate of -26.5%. The operating cash flow to net income ratio is relatively strong at -0.054, suggesting operational activities are generating cash despite net losses. However, the free cash flow to net income ratio is -0.042, indicating challenges in converting earnings to cash.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 129.46M | 165.96M | 174.19M | 202.71M | 158.41M | 152.94M | Gross Profit |
| 890.06K | 18.77M | 38.17M | 58.21M | 58.95M | 55.14M | EBIT |
| -45.98M | -43.15M | -28.72M | 272.00K | 4.50M | -101.67M | EBITDA |
| -34.15M | -22.02M | -64.65M | -17.04M | -29.62M | -90.84M | Net Income Common Stockholders |
| -80.76M | -62.38M | -107.46M | -45.12M | -52.11M | -133.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 97.25M | 2.03M | 2.20M | 6.95M | 7.43M | 2.58M | Total Assets |
| 221.24M | 231.19M | 293.98M | 415.18M | 429.60M | 545.90M | Total Debt |
| 0.00 | 109.99M | 105.91M | 98.47M | 85.01M | 86.53M | Net Debt |
| -97.25M | 107.96M | 103.70M | 91.51M | 77.58M | 83.95M | Total Liabilities |
| 14.66M | 168.79M | 172.46M | 181.15M | 146.56M | 158.15M | Stockholders Equity |
| 204.86M | 62.39M | 121.35M | 233.86M | 283.05M | 387.75M |
| Cash Flow | Free Cash Flow | ||||
| 3.42M | 4.65M | -6.53M | -12.29M | 7.75M | -60.16M | Operating Cash Flow |
| 4.36M | 5.37M | 8.61M | -8.82M | 9.65M | -27.96M | Investing Cash Flow |
| -496.67K | 13.17M | -16.84M | 872.00K | -2.52M | -96.24M | Financing Cash Flow |
| -2.74M | -18.69M | 4.78M | 6.02M | -2.91M | 28.51M |
TILT Holdings Inc Risk Analysis
TILT Holdings Inc disclosed 82 risk factors in its most recent earnings report. TILT Holdings Inc reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TILT Holdings Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $929.55M | 15.97 | 3.80% | ― | 35.87% | ― | |
57 Neutral | $18.52B | 9.81 | -13.96% | 2.71% | 5.07% | -23.65% | |
52 Neutral | C$166.66M | ― | -18.27% | ― | 7.33% | 84.41% | |
47 Neutral | $314.49M | 24.73 | 4.78% | ― | 16.39% | -98.10% | |
42 Neutral | $235.42M | ― | -84.50% | ― | -16.27% | 76.17% | |
40 Underperform | C$213.77M | ― | -955.11% | ― | -24.93% | 30.59% |
* Technology Sector Average
Performance Comparison
TSE:TILT
TILT Holdings Inc
0.58
0.00
0.00%
TSE:WEED
Canopy Growth
1.32
-11.09
-89.36%
TSE:CRON
Cronos Group
2.37
-1.25
-34.53%
TSE:ACB
Aurora Cannabis
5.75
-2.86
-33.22%
TSE:OGI
OrganiGram Holdings
1.34
-1.52
-53.15%
TILT Holdings Inc Earnings Call Summary
Earnings Call Date: Mar 19, 2025 | % Change Since: 0.00% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted TILT's strategic focus on divesting plant-touching assets and concentrating on the Jupiter business. While there were significant improvements in operational efficiency and gross margins, the company faced challenges with declining overall revenue, increased net loss, and market pressures in key states. The sentiment is mixed, with strategic progress countered by financial and market challenges.Highlights
Strategic Divestitures and Focus on Jupiter
The company announced a definitive agreement to divest its Massachusetts retail locations to In Good Health for $2 million, aiming to complete all plant-touching divestitures by the end of 2025. This will allow TILT to focus on its Jupiter business, positioning it for mainstream financing and potential U.S. exchange listings.
Growth in Jupiter Revenue
Jupiter's revenue increased to $17.4 million in Q4 2024, up from $16.8 million in Q3 2024, highlighting a positive trend in its hardware business despite year-over-year declines.
Improved Gross Margin
Gross margin for Q4 2024 increased to 22% from 14% in Q3 2024 and 10% in Q4 2023, driven by the commission-based model for Jupiter customers.
Operational Cost Reductions
Operating expenses decreased 18% year-over-year in Q4 2024, reflecting cost reduction initiatives and improved business efficiency.
Launch of New Products and Partnerships
TILT plans to launch solventless vape products in Ohio in Q2 2025 and has received final review for QMID device certification in the EU, with commercialization expected in Q2 2025 in partnership with Curaleaf.
Lowlights
Significant Year-over-Year Revenue Decline
TILT's overall revenue for Q4 2024 was $24.6 million, down from $37.5 million in Q4 2023, mainly due to challenges in the Jupiter hardware business.
Net Loss Increase
The net loss for Q4 2024 increased to $41.4 million from $22 million in Q4 2023, due to intangible asset impairments and fair value measurements.
Challenges in Massachusetts and Pennsylvania Markets
Continued pressure in the Massachusetts and Pennsylvania markets impacted revenue, with a slower-than-expected rollout of adult use in Ohio also noted.
Debt and Payable Challenges
The company's notes payable increased to $72.1 million by December 31, 2024, from $52.2 million at the end of 2023, highlighting unsustainable debt levels that need addressing.
Company Guidance
During TILT Holdings' fourth-quarter and full-year 2024 conference call, the company outlined its strategic plans and provided various metrics to illustrate its current standing and future direction. The call revealed a fourth-quarter revenue of $24.6 million, a decrease from $37.5 million in the prior year, largely due to shifts in their Jupiter Hardware business model. Despite the revenue drop, gross margin improved to 22% from 10% year-over-year, attributed to a commission-based model with their Asian supplier. The net loss for the quarter was $41.4 million, influenced by intangible asset impairments, while adjusted EBITDA improved to $500,000. TILT plans to divest its plant-touching assets, including retail stores and cultivation facilities in Massachusetts, Pennsylvania, and Ohio, aiming for completion in 2025. The company is refocusing on its Jupiter business, emphasizing innovation in vape hardware technology. Leadership changes were also highlighted, with key new hires expected to drive growth. By streamlining operations and focusing on Jupiter, TILT aims to improve financial health, enhance gross margins, and pursue better financing opportunities.TILT Holdings Inc Corporate Events
TILT Holdings Schedules Q3 Earnings Call
Nov 6, 2024
TILT Holdings Inc., a global provider of cannabis business solutions, announced a conference call for November 14, 2024, to discuss their third-quarter financial results and business strategy. The company continues to expand its influence in the cannabis industry with a focus on brand development and technology services across multiple regions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.