Tilray Brands Inc (NASDAQ:TLRY) shares are trading higher Tuesday after the company reported better-than-expected financial results for the fourth quarter.

• Q4 Revenue: $229.882 million, versus estimates of $227.07 million

• Q4 EPS: 4 cents, versus estimates for a loss of 2 cents

Total revenue was up approximately 25% on a year-over-year basis. Cannabis net revenue jumped 12% to $71.9 million in the quarter, while beverage-alcohol net revenue increased 137% to $76.7 million. Distribution net revenue fell to $65.6 million in the fourth quarter and Wellness net revenue increased 6% to $15.7 million.

Gross profit came in at $82.4 million in the fourth quarter. Gross margin and adjusted gross margin was 36%. Adjusted EBITDA increased 37% year-over-year to $29.5 million in the fourth quarter. Tilray noted that it reduced its net convertible debt by about $300 million in fiscal 2024.

"Tilray Brands is leading the convergence of cannabis, beverages, and wellness on a global scale," said Irwin Simon, chairman and CEO of Tilray Brands.

"In Fiscal 2024, the Company achieved remarkable growth across its businesses, with a 26% increase in net revenue over the prior year, record-breaking performance in gross profit and adjusted EBITDA, and generated positive adjusted free cash flow for the fiscal year. We have also significantly reduced our net convertible debt by ~$300 million and surpassed our cost-savings synergy target, which has strengthened our balance sheet."

Following the print, Zuanic & Associates senior analyst Pablo Zuanic maintained a Neutral rating on Tilray shares, but noted that the stock should be a long-term holding in global cannabis portfolios.

Check This Out: ‘Tilray Should Be A Long-Term Holding In Any Global Portfolio Of Cannabis Stocks,’ Says Analyst

TLRY Price Action: Tilray shares were up 7.65% at $1.97 at the time of publication, according to Benzinga Pro.

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