Tilray’s FY 2025 Performance Reflects Shifting Margins, Beverage Integration, and Europe’s Momentum
- The Salespreneur
- 4 hours ago
- 3 min read
An analytic review of Tilray’s full-year results, segmented by profitability, brand integration, and its European push—with actionable lessons for CPG and dispensary marketers.
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When Tilray Brands released its FY 2025 earnings, the numbers told a story of a company in transition. Revenue for the year came in at $821 million—or $834 million when adjusting for currency shifts—marking modest growth over the prior year.
But beneath the topline figures, a more interesting narrative was unfolding: Tilray wasn’t just selling more; it was reshaping what it sold, where it sold it, and how it stitched together its portfolio.
Margins Over Volume
For years, cannabis companies chased scale at almost any cost. Tilray, by contrast, leaned into a different playbook. Its cannabis net revenue of $249 million was actually down year-over-year, yet gross margin in the segment rose to 40 % (and 44 % in Q4) thanks to deliberate SKU rationalization and focus on higher-margin products.
This was not an accident. By trimming low-profit products, Tilray showed that it preferred sustainable profitability over a sugar-rush of sales. The strategy echoes a lesson familiar to anyone in consumer goods: the right mix beats the widest mix.
The wellness division mirrored this approach. Though modest in size at $60 million, wellness revenue rose 9 %, and margins ticked up to 32 %. Again, the pivot was toward margin discipline rather than volume for volume’s sake.
Meanwhile, Tilray’s beverage arm—now armed with four Molson Coors craft labels—delivered $240.6 million, a healthy 19 % increase. Yet even here, the pursuit of growth had its costs: beverage gross margin slipped to 39 %, down from 44 % a year earlier.
The Beer Bet—And Its Bumps
Tilray’s “Project 420” was designed to wring efficiencies from its beer acquisitions, targeting $33 million in annual savings. By the close of FY 2025, $24 million had been realized. It was a promising step, but not without bruises.
For one, some acquired brands—like Revolver Brewing in Texas—faced pressures that forced production to wind down. Add in the fact that SKU rationalization shaved roughly $20 million from beverage revenue (New Cannabis Ventures), and the path forward looks less like a smooth merger and more like a gritty integration.
As CEO Irwin Simon put it during a recent earnings call, Tilray is “building a platform that is resilient, but never static.” That’s corporate speak for something simpler: sometimes growth requires pruning.

Europe Becomes the Bright Spot
If North America felt like a balancing act, Europe was all momentum. International cannabis revenue jumped 19 % across FY 2025, and in Q4 alone it leapt 71 % year-over-year. Excluding Australia, growth was an eye-popping 112 % .
Germany became the crown jewel, with $22.4 million in Q4 revenue, up 71 %.
Tilray’s foothold there is anchored by its licensed Aphria RX facility, which enables it to participate in Germany’s reimbursement-driven medical cannabis system (24/7 Wall St).
It’s not hard to see why Tilray is doubling down. The German medical cannabis market, valued at roughly $37 million in 2024, is projected to grow about 14 % annually through 2030 (Reuters). By planting early roots in Germany and Portugal, Tilray is effectively betting that Europe will become cannabis’s next growth engine.
Lessons for Marketers—Tilray’s Playbook
Tilray’s 2025 results aren’t just numbers; they’re a case study in adaptation. And for consumer packaged goods (CPG) and dispensary marketers, there are three takeaways:
Margins beat vanity metrics. Trimming unprofitable SKUs may dent sales headlines but builds healthier businesses.
Integration is messy but necessary. Acquisitions need synergy goals and clear execution timelines, or they become distractions.
Global expansion is the real upside. Where mature markets stagnate, emerging ones—like Germany—offer growth disproportionate to their current size.
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