TILT Holdings Inc (TILT) AI Stock Analysis

• Market Cap: C$213.77M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: -29.40%
• EPS Growth: -58.95%
• Country: CA
• Employees: 292
• Sector: Technology
• Sector Strength: 69
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.15
• Shares Outstanding: 347,410,130
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

TILT Holdings Inc. is struggling with significant financial challenges, including declining revenues, high leverage, and operational inefficiencies. These are compounded by technical indicators suggesting limited momentum and valuation concerns due to negative profitability. The earnings call and recent corporate events highlight a mixed outlook, with strategic shifts offering potential but overshadowed by ongoing financial difficulties and market pressures.

TILT Holdings Inc Business Overview & Revenue Model

Company Description

TILT Holdings Inc. operates in the cannabis industry in the United States, Canada, Israel, Mexico, South America, and the European Union. It operates through Cannabis, Accessories, and Other segments. The company engages in the production, cultivation, extraction, and sale of cannabis products; manufacture and distribution of electronic and non-nicotine devices and systems; and focuses on greenhouse cultivation and CO2 extraction. It also processes and provides medical cannabis products, including flower, infused products, concentrates, topicals, tinctures, vape cartridges, and syringes. The company is headquartered in Phoenix, Arizona.

How the Company Makes Money

TILT Holdings Inc. generates revenue through several key streams. Primarily, the company earns income by manufacturing and selling cannabis-related hardware products, including vaporizers, which are distributed to both wholesale and retail customers. Additionally, TILT offers software and support services designed to optimize supply chain management and enhance customer relationships for cannabis businesses. The company also benefits from strategic partnerships with established cannabis brands and cultivators, allowing it to expand its product offerings and market reach. Revenue is further supplemented by its operations in the cultivation and sale of cannabis products in markets where it is legally permissible.

TILT Holdings Inc Financial Statement Overview

Summary

TILT Holdings Inc is facing substantial financial difficulties, characterized by declining revenues, negative profit margins, and increased financial leverage. Despite some cash generation from operations, the company's profitability issues and increased debt levels pose significant long-term financial health risks.

Income Statement

TILT Holdings Inc has shown a declining revenue trend over the years with a negative revenue growth rate of -22% in the TTM compared to 2023. The company is struggling with profitability as indicated by consistently negative EBIT and Net Income, which results in negative profit margins. The gross profit margin has significantly dropped from 23% in 2023 to 0.7% in the TTM, indicating increasing cost pressures or inefficiencies.

Balance Sheet

The company's balance sheet indicates a high debt-to-equity ratio, rising to 28.08 in the TTM from 1.76 in 2023, signaling increased leverage and financial risk. Stockholders' equity has diminished significantly, reflecting potential financial instability. Despite this, TILT Holdings maintains a high equity ratio of 2.41% in the TTM, although it has decreased from 27% in 2023, indicating a declining proportion of assets financed by equity.

Cash Flow

There has been a decline in free cash flow from 2023 to the TTM, with a negative free cash flow growth rate of -26.5%. The operating cash flow to net income ratio is relatively strong at -0.054, suggesting operational activities are generating cash despite net losses. However, the free cash flow to net income ratio is -0.042, indicating challenges in converting earnings to cash.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
165.96M	174.19M	202.71M	158.41M	152.94M
	Gross Profit
18.77M	38.17M	58.21M	58.95M	55.14M
	EBIT
-43.15M	-28.72M	272.00K	4.50M	-101.67M
	EBITDA
-22.02M	-64.65M	-17.04M	-29.62M	-90.84M
	Net Income Common Stockholders
-62.38M	-107.46M	-45.12M	-52.11M	-133.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.03M	2.20M	6.95M	7.43M	2.58M
	Total Assets
231.19M	293.98M	415.18M	429.60M	545.90M
	Total Debt
109.99M	105.91M	98.47M	85.01M	86.53M
	Net Debt
107.96M	103.70M	91.51M	77.58M	83.95M
	Total Liabilities
168.79M	172.46M	181.15M	146.56M	158.15M
	Stockholders Equity
62.39M	121.35M	233.86M	283.05M	387.75M
Cash Flow		Free Cash Flow
4.65M	-6.53M	-12.29M	7.75M	-60.16M
	Operating Cash Flow
5.37M	8.61M	-8.82M	9.65M	-27.96M
	Investing Cash Flow
13.17M	-16.84M	872.00K	-2.52M	-96.24M
	Financing Cash Flow
-18.69M	4.78M	6.02M	-2.91M	28.51M

TILT Holdings Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
TILT	41 Neutral	C$213.77M	―	-955.11%	―	-29.40%	-58.95%

TILT Holdings Inc Corporate Events

TILT Holdings Faces Default Notices Over Unpaid Rent

TILT Holdings Inc. has received default notices from Innovative Industrial Properties due to outstanding rental payments on properties in Pennsylvania and Massachusetts. The company is actively negotiating with the landlord to resolve these financial obligations and has already made payments to satisfy April rent obligations, securing a temporary forbearance from eviction. This situation highlights potential financial challenges for TILT, impacting its operations and possibly affecting stakeholder confidence.

TILT Holdings Reports Transformative Year with Strategic Shifts and Financial Results

TILT Holdings Inc. reported its financial results for Q4 and the full year 2024, highlighting a transformative year with strategic shifts towards focusing on its Jupiter segment. The company is divesting its Massachusetts retail assets and exiting plant-touching operations to become more agile and focused. Despite a decrease in revenue and an increase in net loss, improvements in gross margin and cash operating expenses were noted. TILT is making organizational changes, including leadership enhancements, to drive business forward and expand its product portfolio.

TILT Holdings Shifts Focus to Jupiter Amid Financial Restructuring

TILT Holdings Inc. reported its financial results for the fourth quarter and full year 2024, highlighting a strategic shift towards focusing on its Jupiter business. The company is divesting its Massachusetts retail assets and exiting plant-touching operations to become more agile. Despite a decrease in revenue, TILT improved its gross margin and adjusted EBITDA due to operational changes. The company also announced leadership changes and plans to sell its Massachusetts retail locations, aiming to strengthen its market position and achieve strategic goals.

TILT Holdings Divests Massachusetts Dispensaries for Strategic Optimization

TILT Holdings Inc. has signed an Asset Purchase Agreement to divest two dispensaries in Massachusetts for $2 million, as part of its strategy to optimize its balance sheet and operating expenses. The sale to In Good Health marks a significant step in TILT’s plan to focus on its Jupiter business, while In Good Health expands its footprint in Massachusetts by adding the Taunton dispensary to its portfolio.