Tilt doubles fourth-quarter net loss amid renewed focus on vape business

Tilt Holdings (OTC: TLLTF) went deeper into the red during the fourth quarter and full year 2024, as the company continued its pivot toward its Jupiter hardware division.

The company reported a fourth-quarter net loss of $41.4 million for the period that ended Dec. 31, 2024, nearly doubling the $22 million loss reported for the same period in 2023. Revenue for the quarter fell to $24.6 million from $37.5 million in the prior-year period.

For the full year, Tilt reported revenue of $115.6 million, down 30% from $166 million in 2023, while net loss increased to $99.7 million versus $62.4 million the previous year.

Despite the deeper losses, TILT’s CEO Tim Conder characterized 2024 as a “transformative year” for the company.

“We took deliberate steps to streamline our business and sharpen our focus on Jupiter,” Conder said in a statement. “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.”

The company plans to sell its Massachusetts retail locations to In Good Health for $2 million, with regulatory approvals expected in the second quarter of 2025.

The company’s gross margin improved during the fourth quarter to 22%, up from 10% in the prior-year period, which Tilt attributed to its transition to a commission-based model for certain Jupiter customers.

A bright spot in the results was adjusted EBITDA, which turned positive at $500,000 in the fourth quarter versus negative $1.6 million in the same period last year.

Tilt also recently made leadership changes within its core business, Jupiter Research LLC, adding executives including Ken Yuan and Khalid Al Naser.

“At Jupiter, we are making critical organizational enhancements, including leadership changes and operational improvements, which are essential to driving our business forward,” Conder said.

The company ended 2024 with $4.3 million in cash and restricted cash, up slightly from $3.3 million at the end of 2023. Notes payable, however, increased to $72.1 million as of Dec. 31, 2024, versus $52.2 million at the end of 2023.