TILT Holdings’ second-quarter earnings were marked by declines in revenue and increases in net losses as the company’s hardware business impacted results.
“Our second quarter was highlighted by sequential growth on both the top and bottom line in our plant-touching business, as we continue cultivating strong customer relationships across our three markets,” said Tilt CEO Tim Conder in a statement. “However, in our Jupiter hardware business, we are navigating certain production and supply chain changes that impacted second quarter results. In response, we are working closely with our manufacturing partner as we transition to a just-in-time production and shipping structure. This change will create a more ‘asset-light’ business model for Jupiter, alleviating working capital requirements by reducing sitting inventory and the cost of capital associated with larger trade payables while improving our gross margin profiles. Jupiter’s shortfall in Q2 can be directly attributed to the transition to this new model; however, customer sales order volumes remain strong and growing, indicating the fundamentals of our business remain on track.”
The company’s revenue for the second quarter totaled $26.6 million, compared to $41.6 million in the prior year period. The decrease in revenue was primarily driven by the company’s Jupiter hardware business.
Net loss was $35.9 million for the quarter, compared to a net loss of $26.9 million in the prior year period. The higher net loss was driven by a non-cash impairment charge.
