Tilray Brands, Inc. (TLRY) Cash Flow Statement

The enormous gap between net loss and operating cash flow appears driven primarily by multi-billion-dollar non-cash impairments in 2025Q3 and 2025Q4, which inflated the reported loss without a proportional cash impact. However, the more instructive signal is that operating cash flow has been negative in nine of ten quarters even after adding back D&A and impairments, suggesting the core business — not just its asset base — consumes cash. With the 2027Q1 OCF/NI ratio at 0.41 on a $40.0 million loss, cash conversion appears to remain structurally negative even as losses moderate, which is consistent with the prior finding that TLRY's cost base has not been right-sized to its shrinking revenue.

The single positive FCF quarter (2024Q4, +$29.6 million) was driven by a $27.5 million working capital release rather than operating profitability, which makes it non-recurring by nature and therefore a poor anchor for any recovery narrative. Since then, FCF margins have remained deeply negative across all eight subsequent quarters, averaging roughly -10%, and the deterioration to -16.9% in 2026Q4 came alongside the 10.6% year-over-year revenue contraction flagged in the income statement work. Absent evidence of a structural inflection, the implied burn rate suggests TLRY may require incremental external financing to sustain operations and its existing asset base.

This recurring drag appears consistent with TLRY's declining revenue environment: as sales shrink, receivables may collect more slowly or inventory may build relative to demand, both of which absorb liquidity. The volatility — ranging from a $49.6 million drain in 2025Q1 to a $27.5 million release in 2024Q4 and another $44.6 million drain in 2026Q4 — suggests inconsistent collections or payables management rather than a deliberately controlled cycle. For a company already generating negative operating cash flow, this absorption compounds the financing need and warrants monitoring for worsening receivable aging or inventory obsolescence, neither of which is separately disclosed in the supplied data.

The complete absence of dividends and repurchases in every period suggests capital is being preserved for operations and debt service rather than distributed, which is defensible for a loss-making issuer but means equity holders have no cash return floor supporting valuation. More questionable is the sequencing of M&A: net acquisition outflows of $52.2 million in 2026Q4 and $24.6 million in 2025Q2 occurred during quarters of meaningful operating cash burn, implying management views inorganic assets as accretive even as the organic base contracts. The return profile of these acquisitions is not disclosed in the supplied data, but their cash cost is unambiguous and directly worsened an already negative FCF trajectory.