Adam JacksonTILT Holdings Inc. (OTCQX: TLLTF) posted mixed financial results for the first quarter ending March 31. The company said it faced industry headwinds such as hardware commoditization and pricing pressure in select markets, resulting in lower revenue and gross profit versus the same period last year.
Revenue for the quarter was $37.5 million, down from $42.3 million in the first quarter of 2023. Gross profit also declined to $6.7 million from $8.8 million. Despite the challenges, the company reported adjusted EBITDA of $38,000, an improvement from a loss of $79,000 in the prior year period, primarily driven by efficient operating cost controls.
“We continue to navigate the company’s transition from operational improvement to revenue growth,” CEO Tim Conder said in a statement. “Although the cannabis industry has been facing challenges related to hardware commoditization and pricing pressure in select markets, we are adapting accordingly, and the fundamentals of our business are improving despite those headwinds.”
Conder said the company’s focused on strengthening relationships with customers across its plant-touching and Jupiter hardware businesses.
“There is still work to be done to improve the business; however, we believe TILT is poised for future growth, especially with exciting industry catalysts potentially on the horizon, such as federal rescheduling and the corresponding elimination of section 280E taxes,” he said.
TILT saw some operational milestones during the quarter, including launching the Level brand in Pennsylvania, winning the NECANN Cup for best vape cartridge, and announcing a partnership with a retailer to construct and operate dispensaries in Pennsylvania.
The company posted a net loss of $9.7 million for the quarter, versus a loss of $4.9 million a year ago. It ended the quarter with $3.5 million in cash and cash equivalents.
Looking ahead, TILT plans to address its debt and execute on growth and profitability objectives throughout the year.
