Tilray Brands, Inc.

Thank you for joining today's conference call to discuss Tilray Brands' financial results for the first quarter of 2027, ended August 31, 2026. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session for analysts conducted via audio. I'll now turn the call over to Ms. Berrin Noorata, Tilray Brands' Chief Corporate Affairs Officer. Thank you. You may now begin.

Thank you, operator, and good morning, everyone. By now, you should have access to the earnings press release, which is available on the investor section of the Tilray Brands website at tilray.com and has been filed with the SEC and OFC. Please note that during today's call, we will be referring to various non-GAAP financial measures that can provide useful information for investors. However, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. The earnings press release contains a reconciliation of each non-GAAP financial measure to the most comparable measure prepared in accordance with GAAP. In addition, we will be making numerous forward-looking statements during our remarks and in response to your questions. These statements are based on our current expectations and beliefs and involve known and unknown risks and uncertainties which may prove to be incorrect. Actual results could differ materially from those described in those forward-looking statements. The text in our earnings press release includes many of the risks and uncertainties associated with such forward-looking statements. Today, we will be hearing from key members of our senior leadership team, beginning with Irwin Simon, Chairman and Chief Executive Officer, who will provide opening remarks and commentary. followed by Carl Merton, Chief Financial Officer, who will review our financial results for the first quarter of 2027. And now, I'd like to turn the call over to the Tilray Brands Chairman and CEO, Irwin Simon.

Thank you, Berrin, and good morning, everyone. Before I discuss the quarter, I want to frame how investors should think about Tilray Brands today. We're building a larger, more diversified global business with multiple engines of growth, category leadership across cannabis, beverage, wellness, and pharmaceutical distribution, and a clear focus on converting that platform into stronger margins, cash generations, and long-term shareholder value. Tilray is not a single category company, and we're not dependent upon one market, one regulatory catalyst, or one product cycle. That matters for shareholders because diversification gives us more ways to grow, more ways to manage risk, and more opportunities to create value as consumer cannabis, beverage, wellness, and pharmaceutical distribution markets evolve around the world. We have grown Tilray from a $50 million company seven years ago to a pro forma $1.2 billion global business today, reflecting our ability to identify opportunities acquire strategically, integrate assets, and build platforms with greater reach. We are not done. We will continue to grow Tilray organically and through focused M&A using our infrastructure, operating capabilities, and brand building expertise to create more value from the assets that we acquire. Today, Tilray operates from a position of global scale and category leadership. That few companies in our categories can replicate. We believe we're the world's largest cannabis grower with more than 6 million square feet of cultivation capacity and a leading low-cost production base. We are a market leader in the largest federally legal cannabis markets, including Canada and across Europe. We're the number one craft beer supplier in the UK and the fourth largest total beer category supplier in the UK grocery market. the fourth largest craft brewery in the United States and a global leader in hemp foods, beverage, and wellness. Overall, we operate nearly 40 hospitality venues including pubs, bars, and hotels that showcase our beers and beverages, deepen consumer engagement, and give in Tilray a differentiation platform to bring our brands to life in markets around the world. In the U.S., consumers can find the Tilray product and almost every major supermarket. And our beer is now available on tap in approximately 28,000 on-premise accounts. Go try one. This scale matters because it gives Tilray the infrastructure and commercial network to buy attractive assets, integrate them effectively, improve them how they run, and expand their distribution and make them stronger and more profitable businesses. With BrewDog, Hilray did more than acquire a beer company. We acquired one of the world's most recognized craft beer brands, a passionate global consumer community, a scaled hospitality footprint, and a powerful platform for international beverage growth. For shareholders, BrewDog is a clear example of our acquisition strategy in action. We can buy a valuable brand, stabilize the business, return it to profitability, reinvest behind growth, and use Hilray's global platform to expand its reach globally. Investors should also understand the cadence of our business. Not every quarter will look the same because parts of our portfolio are seasonal and our fiscal year is more heavily weighted to the second half across beverage, cannabis, and distribution. What matters is where we are going. Tilray is becoming larger and more diversified and more globally recognized with multiple levers to drive growth, expand margins, and to improve profitability over time. In the U.S., we continue to believe cannabis reform will create significant opportunities over time, and what it does, Tilray is prepared to act from a position of strength, but our strategy is not dependent upon one regulatory event. Delays in rescheduling have impacted sediment towards cannabis stocks, including ours, and we believe the market too often evaluates Tilray As if we are just a pure play U.S. cannabis operator, but we are not. Tilray is a global diversified business with established positions in cannabis, beverage, wellness, and pharmaceutical distribution, and we will continue to grow with or without a single regulatory outcome. In quarter one, we delivered record revenue of $257 million, up 23% year over year. and a record first quarter gross profit. We also expanded gross margin year over year, demonstrating that Tilray is not only getting larger, but also building a stronger financial profile. That progress reinforces our confidence as we move into the seasonality stronger second half of our fiscal year, and we're maintaining our adjusted EBITDA guidance for the year. Turning to international, this is one of Tilray's most important growth engine. and one of the clearest examples of why our global platform matters. In quarter one, email revenues, including medical cannabis, beverage and pharmaceutical distribution combined, increased over 70%, reflecting momentum across our markets where Tilray already has infrastructure, regulatory expertise and commercial reach. International cannabis revenue grew 21% year over year. while EU GMP medical cannabis shipments accelerated with flower volumes up 110%, oil volumes up 150% year over year. This is where Tilray is built to lead. Regulated markets where demand is growing, standards are high, operating expertise matters, including scale, low cost, and quality. The leadership is backed by vertically integrated global cannabis supply chains. that gives Tilray control across cultivation, production, distribution, and patient access. Approximately 90% of our international cannabis supply comes from our Portugal facility, which anchors our European cannabis operations and is one of the most strategically assets in our global network. Together with low-cost production in Canada, EU GMP capabilities in Portugal and Germany, pharmaceutical distribution through CC Pharma, Direct Patient Access Through Life in the UK, and a proprietary genetics bank, Tilray, has built an end-to-end cannabis operating model designed to compete and win across regulated medical markets. Our strategy is to leverage the global scale regulatory expertise and patient access model to capture growing demand, improve product mix, and drive greater profitability as these markets scale. Europe has become one of Tilray's most important growth markets with opportunities across Germany, Poland, the UK, and Italy. And our international opportunities extend beyond Europe. We are also expanding in Australia and New Zealand, creating additional pathways to scale our medical cannabis business and capture growing patient demand. In the UK, life gives Tilray a powerful strategic advantage, directs access to patients, We are focused on improving and shortening the patient journey, doubling life's patient base, and scaling Tilray Medical Products through an integrated pharmaceutical distribution network. Across Europe, we continue to strengthen the economics and performance of our medical cannabis operation. In Portugal, we reduced our operating and cultivation costs by approximately 40% while improving strains, process, and potency. We believe Portugal is now among the lowest cost cannabis producers in Europe, and we expect this facility to deliver more than 40 metric tons of flour at full capacity in our fiscal year 2027. In Germany, Apria RX is operating at 100% capacity. Portugal and Germany combined with our low cost production position in Canada gives Tilray one of the strongest global cannabis operating models in the industry. With the scale we have, the cost structure, quality standards, and operating discipline to compete and win across regulated medical cannabis markets. And importantly, our advantage extends well beyond cultivation. DC Pharma provides Tilray with pharmaceutical distribution, infrastructure, commercial relationships, and market access in one of Europe's most important regulated medical markets with distribution to over 16,000 pharmacies. CC Pharma is more than a growing distribution business. It is a strategic connector across pharmaceutical distribution, medical cannabis, and patient access in Europe, strengthening our competitive position and creating additional avenues for profitable growth. In Canada, Tilray is built to gain share, strengthen profitability through scale, low-cost cultivation, low-cost processing operation, and focused commercial management. Our scaled cultivation operation gives us a meaningful advantage, particularly as we come out of the summer transition to new cultivars. These strains are improving yields, lowering costs, and giving consumers the potency and terpene profiles they expect. Even with inflation and cannabis input costs, we have continued to reduce costs per gram and improve our margins. We're harvesting these cultivars now across our network. and we expect to see a larger impact late in Q2 and beyond. The cost leadership together with our brand portfolio and sharper market focus gives us a clear path to gain share in Canada. While protecting profitability, it also positions us as well as a market evolved beyond traditional cannabis formats into new consumer occasions. Cannabis beverages are one of the most Exciting and compelling examples of that opportunity. Today, Tilray pays over $100 million Canadian dollars in excise tax, and the legal cannabis industry has become an increasingly important contributor to the government revenue across Canada. And as governments look for responsible ways to expand that revenue base while strengthening the regulated market, cannabis beverage represents a clear opportunity for that. Tilray is the largest producer of THC beverages in Canada with over a 40% market share and a broader access through bars, restaurants, and other regulated outlets would be a meaningful win for consumer, governments, hospitality operators, and of course, the legal cannabis industry. It would give consumers a safe, regulated environment to try THC cannabis beverages, help drive traffic to hospitality venues, and create a stronger and more accessible legal cannabis market. In beverages, BrewDog gives Tilray more than a global brand. It gives us a passionate consumer following, a scaled hospitality footprint and significant runway to expand across beer, spirits, non-alcoholic beverages and ready to drink formats. We see BrewDog as a major growth engine for Tilray, a brand with global reach, culture relevance and the potential to help reshape our beverage alcohol business over time. Beverage revenue increased 82% year-over-year to $101.5 million in Q1, largely driven by BrewDog. BrewDog also contributed to substantial growth in the beverage segment, reinforcing the early impact of the acquisition and the momentum we're building. Importantly, BrewDog became profitable in Q1. Since taking ownership, we have stabilized operations, invested behind the brand, returned BrewDive to profitability, and began unlocking new growth. We recently launched BrewDive's first major campaign, Under New Ownership, followed by the UK-wide Choose Craft campaign, which celebrates the quality, flavor, and character that makes craft beer worth choosing. The early response has been strong. Since under new ownership campaign launch and Choose Craft began rolling out punk IPA sales across BrewDog's top six off-trade retailers up 187% over the last two weeks, compared with the same period last year. At the same time, BrewDog has also secured over 9,000 new distribution points with the launch of its latest craft beer innovations. BrewDog has also launched eight new on-trade partnerships across live entertainment, sports, pubs, and hotels. This is exactly the kind of momentum we expected when we acquired BrewDog, a globally recognized consumer brand that Tilray can stabilize, reinvest behind, and scale across markets, channels, and different locations. We see a major opportunity to make BrewDog an even larger part of Tilray's international growth story. Our strategy is to grow BrewDog globally through a combination of expanded distribution, local market partnerships, and a franchise system of BrewDog pubs, bars around the world. As Tilray expands across global medical cannabis markets, we're also building relationships, infrastructure, and market knowledge that can support the broader international growth of our beverage businesses. Through strategic partnerships, we plan to expand BrewDog's operations and build Barers across key markets where Tilray already has a presence or see attractive long-term opportunities, including India, Poland, France, Israel, and the Middle East. This is how we can use Tilray's global reach to take BrewDog into more markets, create new consumer touchpoints, and strengthen the international growth profile of our beverage business. Long-term, we see room for top-line synergies between beverage and cannabis globally. We're already using BrewDog's reach to expand the beverage portfolio globally, including the launch of over 20 Tilray-owned American craft beers and functional beverages across the UK. BrewDog also delivered strong brand coupons at the 2026 World Beer Awards, with Hazy Jane, Wigman, and Mackie's two scoops earning gold and Scotland country winner honors. Looking ahead, our focus is clear. continue integrating BrewDog, strengthening the business and investing behind its global brand, hospitality platform, and consumer experience. With BrewDog, we're not just building a stronger beer business. We're building a broader global consumer experience rooted in great beer powered by new innovation connect with today's dynamic consumers across craft beer, non-alcoholic beverages, ready-to-drink formats, Food, Digital Engagement, and Live Experience. This is how we take BrewDog Beyond Beer deep in our connection with consumers around the world and build one of the most dynamic global beverage and hospitality platforms in the industry. Across Tilray, we're managing the business with purpose, allocating capital to the opportunities where we see the greatest potential to improve performance, expand margins, and continue to grow profitability. Cost controls and capital allocation remain central to how we operate. We have streamlined our operating structure, captured acquisition efficiencies, optimized production and procurement, and maintained focus around corporate costs. These actions are creating greater operating flexibility and allowing us to invest behind the business and the markets where we see the strongest potential returns. Our Q1 result demonstrates that progress, revenue growth, record first quarter gross profit, gross margin expansion, and continued cost savings. We are building momentum. We are focused on converting that progress into stronger performance across the portfolio. In beverages, we improve gross margin sequentially, and year over year, despite normal beer seasonality, higher input costs, and, of course, fuel surcharges. A clear sign that BrewDog integration, costs, disciplines, and operating efficiencies are beginning to translate into stronger performance. That progress is important because it shows we're improving the financial profile of the beverage segment and creating additional margin upside over time. In U.S. beer, we're building a stronger, more competitive business. The category is dynamic. Distributor consolidation is reshaping the route to market, and Tilray has the reach, focus, and brand portfolio to gain share in the markets where we can win. We're simplifying the business, taking costs out, continuing to screw rationalization, and putting a sharper focus around the channels, retailers, and distributors that can drive profitable growth for us. Our spirit business is also an important part of the broader U.S. beverage strategy, Giving us another platform to reach consumers around many occasions, expand higher margin innovation, and deepen our relationship with distributors, retailers, and on-premise partners. This work takes time, but the opportunity is meaningful. Sharpen the portfolio, improve commercial performance, and convert Tilray's U.S. beverage footprint into stronger and a more profitable growth over time. We're beginning to see clear proof points that our U.S. beer turnaround strategy is gaining traction. According to Cercana data, for the 14 weeks ended August 30th, Tilray is now the number two craft vendor in Georgia and the West, number four in New York State, and Sweetwater is the third largest craft brand in Georgia, representing a 12% of craft beer sales in that market. We're also seeing meaningful brand-level momentum with Montauk Juicy IPA up 25%, Tweedwater Highlight up 38%, and the Terabin brand family delivering a 21-point swing and growing 7.5% fiscal year-to-date. And Breckenridge Juice dropped up 22% in their respective priority markets. Just as important, our portfolio and package incisions are working. Our four-pack, 16-ounce strategy drove 28% growth on the West Coast, and Key Innovation, particularly Popsicle Publite and High Voltage added more than 100,000 cases in Q1. These moves sharpen our focus, give distributors and retailers stronger reason to support our brands and position Tilray to gain share in the market where we can win. As we strengthen our core U.S. beer business, we're also positioning it for the next phase of growth through strategic partnerships that expand our scale, capabilities, and commercial reach. Our exclusive multi-year partnership with Carlsberg Group reinforces the U.S. beer business we are building. Carlsberg is one of the world's premier brewing organizations and is widely recognized as one of the largest global brewers with a business over 30 times the size of Tilray's beverage operations. The fact that a brewer of Carlsberg's scale Global sophistication, partner with Tilray as its U.S. brewing and commercial partner matters. It validates that our brewing capabilities, our quality standards, our commercial reach, and our ability to scale international brands in the U.S. matters. Beginning January 1, 2027, Tilray will produce, market, and sell and distribute Carlsberg Elephant 1664 and Cronenberg 1664 Blanc across all channels in the United States. We expect this partnership to deliver immediate scale revenue contribution when it begins, add global recognized premium European beer brands to our portfolio and deepen our relationship across the distributor and retail network. Just as important, we expect the partnership to strengthen and evolve over time as we combine Carlsberg Iconic Brands Brewing Heritage and Global Category Extra Teas with Tilray's national go-to-market capabilities. Taking together BrewDog and Carlsberg gives us two powerful levers to build a stronger, more diversified, and more profitable beverage business over time. In wellness, Manitoba Harvest remains another strong Tilray brand with room to grow beyond its core hemp platform. We're expanding Manitoba Harvest into adjacent brands, plant-based products, and new wellness occasions using the brand's leadership in hemp foods to build a broader health and wellness portfolio that can reach more consumers across grocery, natural, and of course, e-commerce channels. Across Tilray Brands, we're building something few companies in our categories can replicate, a diversified global business with powerful brands, international infrastructure, and operating capabilities across cannabis, beverage, wellness and pharmaceutical distribution. The next phase is clear. Improve productivity, expand margins, generate cash and convert our platform into stronger earnings power. This is why even with industry headwinds, climbing dynamics in the U.S. beer and planned integration growth investments, we are reaffirming our 2027 adjusted EBITDA guidance. We remain confident in our ability to deliver through the balance of the year because the underlying direction of our businesses is strong. Better operating performance, stronger cost controls, and growing contributions from FruDog and international cannabis and multiple levers to expand our profitability. Our growth plan is anchored in opportunities we can control today. expanding global medical cannabis in the markets where we already operate, leveraging our low-cost cultivation and international supply chain, scaling craft beverages, growing wellness and pharmaceutical distribution, and maintaining the disciplined capital allocation. At the same time, we continue to preserve meaningful upside from future cannabis reform globally, including the U.S. Lastly, we know profitability matters and how important it is to our shareholders. We are laser focused on improving earnings, generating cash flow, driving shareholder value. But it's also important to recognize what we have accomplished today. We have approximately $221 million of cash on our balance sheet. We have settled more than $42 million of debt fiscal year to date. We continue to actively evaluate opportunities to further strengthen our capital structure and reduce interest expense. This quarter, we reported a net loss of $40 million, excluding non-cash, non-recurring items. Our adjusted net loss was approximately $3 million, including roughly $5 million of net cash interest expense. Simply put it, we continue to reduce the interest burden. Earnings power of this business becomes increasingly visible. We know exactly what we need to do. Improve performance, expand margins, generate cash, grow sales, and convert Tilray Brand assets and operating capabilities into stronger earnings and sustain value creation. With that, I'll turn the call over to Carl to walk you through the quarter in more detail.