TILT Holdings Inc. ( CSE: TILT ) ( OTCQX: TLLTF ) reported its financial and operating results for the three months ended March 31, 2021. Revenue increased 15% to $46.8 million compared to $40.6 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 45% to $11.7 million and inhalation and accessory revenue increased 8% to $35.1 million. Net losses dropped sequentially from $45 million in the fourth quarter to $1.5 million in the first quarter.
“Our first-quarter results reflect another period of strong execution as we continue to build an integrated B2B cannabis company that partners with leading MSOs, LPs and cannabis brands,” said Gary Santo, President of TILT. “The results of that execution and our team’s hard work show up where it matters—in the numbers. We generated double-digit revenue growth and reduced cash operating costs on an absolute basis, all from the same asset base. We are more efficient operators today and we are just getting started. Over the coming quarters, we expect to benefit from our recently added cultivation capacity and secure additional brand partners as we expand our portfolio of products and services for our B2B partners and the industry at large.”
Tilt also reiterated its 2021 guidance for revenue between $205 – $210 million and adjusted EBITDA between $30 -$32 million. On March 31, 2021, cash and cash equivalents increased 21% to $9.0 million compared to $7.4 million on December 31, 2020.
Following the end of the quarter, Tilt was approved for an adult-use license in Brockton, Massachusetts; state license still pending. The company also announced a partnership with Airo Brands, a multi-state CPG company focused on proprietary inhalation products to launch products in Pennsylvania. Airo is one of Jupiter Research’s earliest customers and has been licensing exclusive Jupiter products since 2016 and collaborating on proprietary inhalation technologies. Through this broader partnership with TILT and its subsidiary Standard Farms PA, Airo will look to enter the Pennsylvania market by early summer.
Airo is a leading cannabis inhalation brand, available in more than 1,250 dispensaries across the U.S. and Puerto Rico. According to Headset, Airo is the largest inhalation brand in Nevada and has been the monthly sales leader over the past year. Airo is also one of the top-selling brands in several other markets, including Illinois, Colorado, Washington and Maryland. Jupiter will continue to provide its proprietary hardware for Airo’s AiroPro and AiroX devices, as well as AiroPod cartridges, while Standard Farms will produce and fill high-quality cannabis oil for Airo’s AiroPod cartridges to be sold at retailers across Pennsylvania, pending regulatory product approval.