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 and twelve months ended December 31, 2024. All financial information is reported in U.S. dollars and prepared in accordance with U.S. generally accepted accounting principles (GAA) unless otherwise indicated.
“2024 was a transformative year for TILT, as we took deliberate steps to streamline our business and sharpen our focus on Jupiter,” said TILT’s Chief Executive Officer, Tim Conder. “With the divestiture of our Massachusetts retail assets now underway, and a path toward exiting our remaining plant-touching operations, we are positioning TILT to emerge as a more agile, focused organization. This shift will allow us to unlock Jupiter’s full potential, expand our presence into new markets, and improve access to capital and financing opportunities.
“At Jupiter, we are making critical organizational enhancements, including leadership changes and operational improvements, which are essential to driving our business forward. The addition of experienced executives like Ken Yuan and Khalid Al Naser is key to this transformation as we enhance and expand our product portfolio and develop new proprietary hardware solutions tailored to today’s evolving consumer and regulatory landscape.”
Conder added, “Our work is far from over, but we are making important progress, as we break down and rebuild. Through all the challenges we have faced, our resilience has been a key strength. As we look ahead to 2025, we must remain focused and disciplined to achieve our strategic goals.”
Q4 2024 financial summary
- Revenue was $24.6 million in the three months ended December 31, 2024, compared to $37.5 million in the prior year period. The decrease in revenue was primarily driven by the Company’s Jupiter Hardware business.
- Gross profit was $5.3 million and gross margin was 22% in the three months ended December 31, 2024, compared to $3.6 million or 10% of revenue in the prior year period. The increase in gross profit and margin was primarily driven by the Company’s transition to a commission-based model for certain Jupiter customers.
- Net loss was $41.4 million in the three months ended December 31, 2024, compared to a net loss of $22.0 million in the prior year period. The increase in net loss for the fourth quarter was attributed to intangible asset impairments and fair value measurements.
- Adjusted EBITDA (non-GAAP) was $0.5 million in the three months ended December 31, 2024, compared to $(1.6) million in the prior year period driven by gross margin and cash operating expense improvements.
- Cash used in operating activities in the fourth quarter was $0.5 million compared to cash provided by operating activities of $4.0 million for the year-ago period.
- At December 31, 2024, the Company had $4.3 million of cash, cash equivalents and restricted cash compared to $3.3 million at December 31, 2023.
Q4 2024 an recent operational highlights
- Announced a definitive agreement to sell Massachusetts retail locations to In Good Health for $2 million, with regulatory approvals expected in Q2 2025.
- Announced Adam Draizin stepped down from the Company’s Board of Directors and the appointment of Marshall P. Horowitz to fill his Board seat.
FY 2024 financial summary
- Revenue was $115.6 million in the twelve months ended December 31, 2024, compared to $166.0 million in the prior year.
- Gross Profit was $20.1 million in the twelve months ended December 31, 2024, or approximately 17% of revenue, compared to $24.4 million or 15% of revenue in the prior year.
- Net loss was $99.7 million in the twelve months ended December 31, 2024, compared to a net loss of $62.4 million in the prior year. The increase in net loss was primarily driven by an increase in operating expenses predominantly due to increased non-cash impairment loss.
- Adjusted EBITDA (non-GAAP) was a loss of $2.2 million in the twelve months ended December 31, 2024, compared to $2.1 million in the prior year.
- Cash used in operating activities was $0.2 million for the twelve months ended December 31, 2024, compared to cash provided by operating activities of $5.4 million in the prior year.
- Notes payable net of discount at December 31, 2024 was $72.1 million compared to $52.2 million at December 31, 2023.
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 multistate operator with cultivation and production facilities in three states under the Commonwealth Alternative Care and Standard Farms brands.
