Tilray Brands Inc ( TLRY ) shares are getting smoked Tuesday after the company missed earnings estimates and said it no longer expects to generate positive adjusted free cash flow for full-year 2024.

What Happened: Tilray reported third-quarter revenue of $188.34 million, up approximately 30% year-over-year. The number came in below the consensus estimate of $198.5 million, according to data from Benzinga Pro.

Cannabis net revenue increased 33% to $63.4 million in the quarter, while beverage-alcohol net revenue jumped 165% to $54.7 million. Distribution net revenue fell to $56.8 million in the third quarter. Wellness net revenue increased 12% to $13.4 million.

Tilray reported gross profit of $49.4 million and adjusted gross profit of $51.6 million in the third quarter. Gross margin was 26% and adjusted gross margin was 27%. Adjusted EBITDA came in at $10.2 million in the third quarter.

“Over the past several years, our playbook of expanding our cannabis business to complementary markets such as beverages and hemp-based consumer products has positioned us well to navigate the current environment and to benefit from future growth opportunities,” said Irwin Simon, chairman and CEO of Tilray Brands ( TLRY ).

“We made several notable achievements during the third quarter, including growing revenue across our core business segments, increasing our adjusted gross profit, reducing our convertible debt balance, progressing the integration of our recently acquired craft beverage brands, realizing operating synergies in integrating our HEXO acquisition, completing our Canadian and international cannabis cost reduction plans, and strengthening our balance sheet.”

Don’t Miss This: Cannabis Giant Tilray Reports 30% YoY Increase In Q3 Net Revenue, Updates FY 2024 Guidance

Tilray also updated its full-year 2024 guidance. The company said it’s now targeting adjusted EBITDA of $60 million to $63 million. Tilray also said it no longer expects to generate positive adjusted free cash flow for 2024, due to delayed timing for collecting cash on various asset sales.

TLRY Price Action: Tilray shares were down 20.9% at $2.05 at the time of writing, according to Benzinga Pro.