Tilray Inc.'s (TLRY) stock took a beating on Friday, plummeting 13.16% in premarket trading following its mixed fiscal second-quarter earnings release. While the cannabis and beverage company reported an adjusted EPS of 0c, beating consensus estimates of -1c, it missed on the top line, with revenue coming in at $211 million, below analyst expectations of $216.33 million.

The revenue shortfall appears to be the primary driver behind the stock's steep decline, overshadowing the earnings beat. Tilray's core cannabis business saw a year-over-year decline in revenue, falling from $67.1 million to $65.7 million. Meanwhile, its beverage business revenue rose to $63.1 million, up from $46.5 million a year earlier.

Tilray also announced a $25 million cost-cutting plan called "Project 420," which aims to streamline its portfolio of 20 beer, spirits, and non-alcoholic drinks. The company expects this move to impact its full-year revenue by $20 million but believes it will ultimately accelerate revenue growth by focusing on its more successful brands.