TILT Holdings Reports Third Quarter 2023 Results

Published: December 12, 2023

TILT Holdings Reports Third Quarter 2023 Results

TILT Holdings Inc., a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, is reporting its financial and operating results for the three and nine months ended September 30, 2023. All financial information is reported in U.S. dollars and prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) unless otherwise indicated.

“I am pleased with our third quarter results as we continued to identify and execute opportunities for improvement across our plant-touching and Jupiter vape hardware businesses,” said TILT’s Chief Executive Officer, Tim Conder. “These various initiatives led to double-digit revenue growth in the quarter, a near 20% reduction of operating expense, and an increase in adjusted EBITDA. We are leveraging the flywheel effects between our vape hardware and plant-touching businesses to drive higher sales by helping inhalation-focused brand partners expand their market footprint through TILT’s plant-touching operations while purchasing hardware from Jupiter.”

Conder continued, “In August, we announced the early repayment of our Bridge Notes, leading to a cleaner balance sheet and a lower monthly debt service obligation. We remain committed to strengthening our balance sheet and maintaining alignment with our debt and equity holders. Looking to the fourth quarter, we anticipate a delay in Jupiter revenue due to the timing of orders for Chinese New Year, with a pickup in the first quarter of 2024. Ultimately, we expect to close out the year on stronger footing and positioned to grow revenue, adjusted EBITDA, cash from operations, and free cash flow in 2024.”

Q3 2023 Financial Summary

  • Revenue increased 10.0% to $44.6 million in the three months ended September 30, 2023, compared to $40.5 million in the prior year period, with the increase primarily driven by higher Jupiter sales volume from both legacy and new customers, partially offset by price normalization in Massachusetts.
  • Gross profit was $8.0 million and gross margin was 17.9% in the three months ended September 30, 2023, compared to $9.5 million or 23.6% in the prior year period. The decrease in gross margin was primarily due to price normalization in Massachusetts and Pennsylvania. Adjusted gross margin (non-GAAP), or gross margin excluding non-cash inventory adjustments, was 20.0% for the third quarter.
  • Net loss improved 44.8% to $8.7 million in the three months ended September 30, 2023, compared to a net loss of $15.7 million in the prior year period, with the improvement primarily driven by a tax benefit related to net operating loss carryforwards and lower operating expenses.
  • Adjusted EBITDA (non-GAAP) increased significantly to $2.2 million in the three months ended September 30, 2023, compared to $0.6 million in the prior year period. The increase was primarily driven by continued progress with the Company’s strategic refinement and optimization initiatives.
  • At September 30, 2023, the Company had $2.8 million of cash, cash equivalents and restricted cash compared to $3.5 million at December 31, 2022. Notes payable net of discount at September 30, 2023 was $53.5 million compared to $59.7 million at December 31, 2022.


Q3 2023 & Recent Operational and Management Highlights

  • Announced the sale of membership interests in Standard Farms New York for total consideration of $1.4 million.
  • Filed a claim with the Internal Revenue Service for employee retention credits and received an advanced payment of $2.9 million.
  • Announced a new brand partnership with Edie Parker, a nationally recognized and leading female founded and operated lifestyle cannabis brand, to distribute Flower by Edie Parker in Pennsylvania, pairing TILT’s core competencies in inhalation with a high-quality flower brand.
  • Appointed Tim Conder as Permanent Chief Executive Officer. Mr. Conder is a member of TILT’s Board of Directors (“Board”) and was the Interim Chief Executive Officer from April 2023 until September 2023. He has also previously served as the Company’s President and Chief Operating Officer from July 2019 until November 2020.
  • Appointed Art Smuck as Chair of the Board. Mr. Smuck was initially appointed to the Board in June 2023.
  • Announced a fundraising partnership via Standard Farms in Pennsylvania with the PA Breast Cancer Coalition (“PBCC”) during Breast Cancer Awareness Month. During October, Standard Farms donated $5 dollars to PBCC for every Jupiter Pink Ceramic Mouth Tip vape cartridge sold in medical dispensaries statewide.


About TILT

TILT helps cannabis businesses build brands. Through a portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across 39 states in the U.S., as well as Canada, Israel, South America and the European Union. TILT’s core businesses include Jupiter Research LLC, a wholly-owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing; and cannabis operations, Commonwealth Alternative Care, Inc. in Massachusetts, Standard Farms LLC in Pennsylvania, and Standard Farms Ohio, LLC in Ohio. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.