Core Insights - Tilray Brands, Inc. reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.03, and improved from a loss of $0.04 per share a year ago, resulting in an earnings surprise of +100.00% [1] - The company posted revenues of $209.5 million for the quarter ended August 2025, exceeding the Zacks Consensus Estimate by 1.29%, and showing an increase from year-ago revenues of $200.04 million [2] - Tilray Brands shares have increased approximately 29.3% since the beginning of the year, outperforming the S&P 500's gain of 14.8% [3] Earnings Outlook - The future performance of Tilray Brands' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the coming quarter is -$0.03 on revenues of $215.9 million, and -$0.11 on revenues of $877.28 million for the current fiscal year [7] Industry Context - The Medical - Products industry, to which Tilray Brands belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

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[Q1 Fiscal Year 2026 Performance Overview](index=1&type=section&id=Q1_FY2026_Performance_Overview) Tilray Brands reported strong first quarter fiscal 2026 results, achieving record net revenue and net income, driven by operational efficiencies and a focus on profitability [Headline Summary](index=1&type=section&id=Headline_Summary) Tilray Brands reported strong first quarter fiscal 2026 results, achieving record net revenue and net income, driven by operational efficiencies and a focus on profitability Q1 FY2026 Performance Overview | Metric | Q1 FY2026 (Aug 31, 2025) | Q1 FY2025 (Aug 31, 2024) | Change (YoY) | % Change (YoY) | | :------------------------- | :----------------------- | :----------------------- | :----------- | :------------- | | Net Revenue | $210 million | $200 million | +$10 million | +5% | | Net Income | $1.5 million | $(34.7) million | +$36.2 million | +104% | | Adjusted EBITDA | $10 million | $9.3 million | +$0.7 million | +9% | | Net Cash Used in Operations| $(1.3) million | $(35.3) million | +$34 million | -96% (Improvement) | | Cash Balance | $265 million | - | - | - | | Net Debt | $4 million | - | Reduced | - | - Canadian Adult-Use Cannabis Gross Revenue increased **12%**, maintaining the **1 position** in revenue and expanding market share[1](index=1&type=chunk) - International Cannabis Revenue grew **10%** year-over-year[1](index=1&type=chunk) - Reiterated Fiscal Year 2026 Adjusted EBITDA Outlook of **$62 Million – $72 Million**[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO_Commentary) CEO Irwin D. Simon highlighted the effectiveness of Tilray's strategic vision and disciplined execution, emphasizing record Q1 net revenue, net income, and a fortified balance sheet as proof points of sustainable growth and operational excellence - Record Q1 net revenue of **$210 million**, delivering net income, and fortifying the balance sheet are proof points of commitment to sustainable growth, operational excellence, and unlocking shareholder value[2](index=2&type=chunk) - Confidence in Tilray's ability to seize transformative opportunities, especially with the U.S. exploring cannabis rescheduling and the evolving European cannabis landscape[2](index=2&type=chunk) - Tilray's global platform, proven expertise in medical and adult-use cannabis, and trusted partnerships position it as a leader in the global cannabis, beverage, and wellness sectors[2](index=2&type=chunk) [Financial Highlights](index=1&type=section&id=Financial_Highlights) Tilray Brands demonstrated significant financial improvements in Q1 FY2026, particularly in profitability, with a shift from net loss to net income and a substantial increase in adjusted EBITDA, alongside improved cash flow from operations [Key Consolidated Financial Metrics](index=1&type=section&id=Key_Consolidated_Financial_Metrics) Tilray Brands demonstrated significant financial improvements in Q1 FY2026, particularly in profitability, with a shift from net loss to net income and a substantial increase in adjusted EBITDA, alongside improved cash flow from operations Consolidated Financial Performance (Q1 FY2026 vs. Q1 FY2025) (in millions of US dollars) | Metric | Q1 FY2026 (Aug 31, 2025) | Q1 FY2025 (Aug 31, 2024) | Change (YoY) | % Change (YoY) | | :------------------------- | :----------------------- | :----------------------- | :----------- | :------------- | | Net Revenue | $209.5 million | $200.0 million | +$9.5 million | +5% | | Gross Profit | $57.5 million | $59.7 million | $(2.2) million | (4)% | | Gross Margin | 27% | 30% | (3) ppts | - | | Net Income (Loss) | $1.5 million | $(34.7) million | +$36.2 million | +104% | | Adjusted Net Income (Loss) | $3.9 million | $(6.1) million | +$10.0 million | +165% | | Adjusted EBITDA | $10.2 million | $9.3 million | +$0.9 million | +9% | | Cash Used in Operations | $(1.3) million | $(35.3) million | +$34.0 million | -96% (Improvement) | [Balance Sheet Update](index=2&type=section&id=Balance_Sheet_Update) Tilray Brands successfully reduced its total outstanding debt in Q1 FY2026, leading to a significantly improved net debt to adjusted EBITDA ratio and maintaining a strong cash balance for strategic flexibility - Total outstanding debt reduced by **$7.7 million** in the first quarter[5](index=5&type=chunk) - Net debt to trailing twelve months adjusted EBITDA ratio reduced to **0.07x**[5](index=5&type=chunk) - Cash balance of **$264.8 million** provides flexibility for strategic opportunities[5](index=5&type=chunk) [About Tilray Brands](index=2&type=section&id=About_Tilray_Brands) Tilray Brands is a global lifestyle and consumer packaged goods company operating across Canada, the U.S., Europe, Australia, and Latin America, leading in the cannabis, beverage, wellness, and entertainment sectors [Company Overview](index=2&type=section&id=Company_Overview) Tilray Brands is a global lifestyle and consumer packaged goods company operating across Canada, the U.S., Europe, Australia, and Latin America, leading in the cannabis, beverage, wellness, and entertainment sectors - Tilray Brands is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America[7](index=7&type=chunk) - The company is a transformative force at the nexus of cannabis, beverage, wellness, and entertainment[7](index=7&type=chunk) - Tilray's platform supports over **40 brands** in over **20 countries**, including comprehensive cannabis offerings, hemp-based foods, and craft beverages[7](index=7&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use_of_Non-GAAP_Financial_Measures) Tilray Brands utilizes several non-GAAP financial measures, such as Adjusted gross margin, Adjusted EBITDA, and Adjusted net income, to provide investors with additional insights into operational trends and period-over-period comparisons [Non-GAAP Definitions and Rationale](index=3&type=section&id=Non-GAAP_Definitions_and_Rationale) Tilray Brands utilizes several non-GAAP financial measures, such as Adjusted gross margin, Adjusted EBITDA, and Adjusted net income, to provide investors with additional insights into operational trends and period-over-period comparisons - Non-GAAP measures provide useful additional information to investors about current trends and are useful for period-over-period comparisons, but should not be considered in isolation or as a substitute for GAAP measures[13](index=13&type=chunk) - Key non-GAAP measures include Adjusted gross margin, Adjusted gross profit, Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, adjusted free cash flow, constant currency presentations of revenue, cash and marketable securities, net debt, and net debt to adjusted EBITDA[13](index=13&type=chunk) - The company is unable to reconcile certain forward-looking non-GAAP measures to GAAP without unreasonable efforts due to the unpredictability of certain impacting items[14](index=14&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated_Financial_Statements) This section presents Tilray's consolidated financial statements, including the statements of financial position, net income (loss), and cash flows, providing a comprehensive overview of the company's financial health and performance [Consolidated Statements of Financial Position](index=4&type=section&id=Consolidated_Statements_of_Financial_Position) Tilray's balance sheet as of August 31, 2025, shows an increase in total assets and stockholders' equity compared to May 31, 2025, primarily driven by higher cash and cash equivalents, while total liabilities decreased Key Balance Sheet Items (in thousands of US dollars) | Metric | August 31, 2025 | May 31, 2025 | Change | | :-------------------------- | :-------------- | :----------- | :----- | | Cash and cash equivalents | $264,828 | $221,666 | +$43,162 | | Total current assets | $701,140 | $688,626 | +$12,514 | | Total assets | $2,082,646 | $2,074,327 | +$8,319 | | Total current liabilities | $267,632 | $280,303 | $(12,671) | | Total liabilities | $561,988 | $584,752 | $(22,764) | | Total stockholders' equity | $1,520,658 | $1,489,575 | +$31,083 | [Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)](index=5&type=section&id=Condensed_Consolidated_Statements_of_Net_Income_Loss) For Q1 FY2026, Tilray reported a significant turnaround from a net loss to a net income, driven by increased net revenue and a substantial reduction in total operating expenses, particularly amortization and changes in fair value of contingent consideration Condensed Consolidated Statements of Net Income (Loss) (in thousands of U.S. dollars) | Metric | Q1 FY2026 (Aug 31, 2025) | Q1 FY2025 (Aug 31, 2024) | Change (YoY) | % Change (YoY) | | :---------------------------------- | :----------------------- | :----------------------- | :----------- | :------------- | | Net revenue | $209,501 | $200,044 | +$9,457 | +5% | | Cost of goods sold | $152,032 | $140,338 | +$11,694 | +8% | | Gross profit | $57,469 | $59,706 | $(2,237) | (4)% | | Total operating expenses | $55,377 | $96,276 | $(40,899) | (42)% | | Operating income (loss) | $2,092 | $(36,570) | +$38,662 | (106)% | | Net income (loss) | $1,513 | $(34,652) | +$36,165 | (104)% | | Net loss per share - basic & diluted| $(0.00) | $(0.04) | +$0.04 | (100)% | - Amortization expense decreased significantly by **$17.9 million (82%)** year-over-year[28](index=28&type=chunk) - Change in fair value of contingent consideration resulted in a **$15.0 million income** in Q1 FY2026, compared to zero in the prior year[28](index=28&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed_Consolidated_Statements_of_Cash_Flows) Tilray significantly improved its cash flow from operations, reducing cash used by 96% year-over-year, with investing activities shifting from a net use to a net provision of cash, primarily due to marketable securities disposal Condensed Consolidated Statements of Cash Flows (in thousands of US dollars) | Activity | Q1 FY2026 (Aug 31, 2025) | Q1 FY2025 (Aug 31, 2024) | Change (YoY) | % Change (YoY) | | :-------------------------------- | :----------------------- | :----------------------- | :----------- | :------------- | | Net cash used in operating activities | $(1,341) | $(35,307) | +$33,966 | (96)% (Improvement) | | Net cash provided by (used in) investing activities | $24,467 | $(49,395) | +$73,862 | (150)% | | Net cash provided by financing activities | $19,848 | $60,590 | $(40,742) | (67)% | | Net increase (decrease) in cash and cash equivalents | $43,162 | $(23,154) | +$66,316 | (286)% | | Cash and cash equivalents, end of period | $264,828 | $205,186 | +$59,642 | +29% | - The significant improvement in investing activities was largely due to **$34.7 million** in proceeds from the disposal of marketable securities in Q1 FY2026, compared to a **$42.7 million** purchase in Q1 FY2025[30](index=30&type=chunk) [Segmental Revenue Performance](index=7&type=section&id=Segmental_Revenue_Performance) This section details Tilray's net revenue breakdown by operating segment and cannabis market channel, highlighting key growth drivers and market share dynamics [Net Revenue by Operating Segment](index=7&type=section&id=Net_Revenue_by_Operating_Segment) Tilray's total net revenue increased by 5% year-over-year, with growth primarily driven by the Distribution and Cannabis segments, while the Beverage segment remained relatively stable Net Revenue by Operating Segment (in thousands of U.S. dollars) | Segment | Q1 FY2026 (Aug 31, 2025) | % of Total Revenue (2025) | Q1 FY2025 (Aug 31, 2024) | % of Total Revenue (2024) | Change (YoY) | % Change (YoY) | | :---------------- | :----------------------- | :------------------------ | :----------------------- | :------------------------ | :----------- | :------------- | | Beverage business | $55,739 | 27% | $55,972 | 28% | $(233) | (0.4)% | | Cannabis business | $64,511 | 31% | $61,249 | 31% | +$3,262 | +5% | | Distribution business | $74,007 | 35% | $68,071 | 34% | +$5,936 | +9% | | Wellness business | $15,244 | 7% | $14,752 | 7% | +$492 | +3% | | **Total net revenue** | **$209,501** | **100%** | **$200,044** | **100%** | **+$9,457** | **+5%** | - In constant currency, total net revenue was **$204.8 million**, indicating a slight negative foreign exchange impact on reported revenue[32](index=32&type=chunk) [Net Cannabis Revenue by Market Channel](index=8&type=section&id=Net_Cannabis_Revenue_by_Market_Channel) Canadian adult-use cannabis revenue was the primary driver of growth within the cannabis segment, increasing by 12% year-over-year and significantly expanding its share of total cannabis revenue Net Cannabis Revenue by Market Channel (in thousands of U.S. dollars) | Channel | Q1 FY2026 (Aug 31, 2025) | % of Total Cannabis Revenue (2025) | Q1 FY2025 (Aug 31, 2024) | % of Total Cannabis Revenue (2024) | Change (YoY) | % Change (YoY) | | :-------------------------- | :----------------------- | :--------------------------------- | :----------------------- | :--------------------------------- | :----------- | :------------- | | Canadian medical cannabis | $6,146 | 10% | $6,261 | 10% | $(115) | (2)% | | Canadian adult-use cannabis | $64,067 | 99% | $57,235 | 94% | +$6,832 | +12% | | Wholesale cannabis | $4,155 | 6% | $5,507 | 9% | $(1,352) | (25)% | | International cannabis | $13,367 | 21% | $12,191 | 20% | +$1,176 | +10% | | Less excise taxes | $(23,224) | (36)% | $(19,945) | (33)% | $(3,279) | +16% | | **Total** | **$64,511** | **100%** | **$61,249** | **100%** | **+$3,262** | **+5%** | - In constant currency, Canadian adult-use cannabis revenue was **$64.4 million**, showing consistent growth[34](index=34&type=chunk) [Reconciliations and Key Operating Metrics](index=8&type=section&id=Reconciliations_and_Key_Operating_Metrics) This section provides reconciliations for non-GAAP financial measures such as Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow, offering deeper insights into Tilray's operational performance [Gross Margin and Adjusted Gross Margin](index=9&type=section&id=Gross_Margin_and_Adjusted_Gross_Margin) Consolidated gross margin decreased slightly year-over-year, primarily due to declines in Beverage, Cannabis, and Distribution segments, with Adjusted gross margin showing similar trends Gross Margin and Adjusted Gross Margin by Segment | Segment | Gross Margin Q1 FY2026 | Gross Margin Q1 FY2025 | Adjusted Gross Margin Q1 FY2026 | Adjusted Gross Margin Q1 FY2025 | | :---------------- | :--------------------- | :--------------------- | :------------------------------ | :------------------------------ | | Beverage | 38% | 41% | 38% | 41% | | Cannabis | 36% | 40% | 36% | 40% | | Distribution | 11% | 12% | 11% | 12% | | Wellness | 32% | 32% | 32% | 32% | | **Total** | **27%** | **30%** | **27%** | **30%** | - Purchase price accounting step-up adjustment was **$175 thousand** in Q1 FY2025, impacting adjusted gross profit[37](index=37&type=chunk) [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted_EBITDA_Reconciliation) Tilray's Adjusted EBITDA increased by 9% year-over-year, reaching $10.2 million, primarily due to the significant improvement in net income and reduced amortization and restructuring costs Adjusted EBITDA (in thousands of U.S. dollars) | Metric | Q1 FY2026 (Aug 31, 2025) | Q1 FY2025 (Aug 31, 2024) | Change (YoY) | % Change (YoY) | | :------------------------- | :----------------------- | :----------------------- | :----------- | :------------- | | Net income (loss) | $1,513 | $(34,652) | +$36,165 | (104)% | | Amortization | $15,561 | $31,814 | $(16,253) | (51)% | | Change in fair value of contingent consideration | $(15,000) | $0 | $(15,000) | NM | | Restructuring costs | $869 | $4,247 | $(3,378) | (80)% | | **Adjusted EBITDA** | **$10,181** | **$9,334** | **+$847** | **+9%** | [Adjusted Net Income (Loss) Per Share Reconciliation](index=10&type=section&id=Adjusted_Net_Income_Loss_Per_Share_Reconciliation) Tilray achieved a positive Adjusted Net Income of $3.9 million in Q1 FY2026, a significant improvement from a loss in the prior year, resulting in a positive Adjusted Net Income per share Adjusted Net Income (Loss) Per Share (in thousands of U.S. dollars) | Metric | Q1 FY2026 (Aug 31, 2025) | Q1 FY2025 (Aug 31, 2024) | Change (YoY) | % Change (YoY) | | :---------------------------------- | :----------------------- | :----------------------- | :----------- | :------------- | | Net loss attributable to stockholders of Tilray Brands, Inc. | $(322) | $(39,165) | +$38,843 | (99)% | | Amortization | $15,561 | $31,814 | $(16,253) | (51)% | | Change in fair value of contingent consideration | $(15,000) | $0 | $(15,000) | NM | | **Adjusted net income (loss)** | **$3,935** | **$(6,082)** | **+$10,017** | **(165)%** | | **Adjusted net income (loss) per share - basic and diluted** | **$0.00** | **$(0.01)** | **+$0.01** | **(100)%** | [Adjusted Free Cash Flow Reconciliation](index=10&type=section&id=Adjusted_Free_Cash_Flow_Reconciliation) Tilray significantly improved its adjusted free cash flow, reducing the cash outflow by 88% year-over-year, primarily driven by the substantial improvement in net cash used in operating activities Adjusted Free Cash Flow (in thousands of U.S. dollars) | Metric | Q1 FY2026 (Aug 31, 2025) | Q1 FY2025 (Aug 31, 2024) | Change (YoY) | % Change (YoY) | | :-------------------------------- | :----------------------- | :----------------------- | :----------- | :------------- | | Net cash used in operating activities | $(1,341) | $(35,307) | +$33,966 | (96)% (Improvement) | | Investments in capital and intangible assets, net | $(9,230) | $(6,708) | $(2,522) | +38% | | Free cash flow | $(10,571) | $(42,015) | +$31,444 | (75)% (Improvement) | | Add: growth CAPEX | $3,009 | $2,540 | +$469 | +18% | | Add: cash paid for litigation settlements | $2,804 | $0 | +$2,804 | NM | | **Adjusted free cash flow** | **$(4,758)** | **$(39,475)** | **+$34,717** | **(88)% (Improvement)** | [Cautionary Statement Concerning Forward-Looking Statements](index=2&type=section&id=Cautionary_Statement_Concerning_Forward-Looking_Statements) This section outlines the nature of forward-looking statements, which involve intentions, beliefs, and expectations about future events, and highlights that actual results may differ materially due to various risks and uncertainties [Forward-Looking Statements Overview](index=2&type=section&id=Forward-Looking_Statements_Overview) This section outlines the nature of forward-looking statements, which involve intentions, beliefs, and expectations about future events, and highlights that actual results may differ materially due to various risks and uncertainties - Forward-looking statements are identified by words like 'forecast,' 'future,' 'should,' 'could,' 'believe,' 'anticipate,' 'expect,' 'intend,' 'may,' 'project,' 'will,' 'would' and similar expressions[9](index=9&type=chunk) - These statements include expectations regarding becoming a leading lifestyle CPG company, achieving long-term profitability, operational scale, market share, revenue growth, margin improvements, fiscal year 2026 financial guidance (including Adjusted EBITDA), opportunities in the U.S. cannabis market, and leveraging AI strategies[10](index=10&type=chunk) - Many factors could cause actual results to differ materially from forward-looking statements, and the company does not undertake to publicly update them unless required by law[11](index=11&type=chunk)[12](index=12&type=chunk) [Corporate Information](index=2&type=section&id=Corporate_Information) This section provides details on the Q1 FY2026 financial results webcast and contact information for investor relations and media inquiries [Live Audio Webcast](index=2&type=section&id=Live_Audio_Webcast) Tilray Brands hosted a live audio webcast to discuss its Q1 FY2026 financial results, with a replay available on the company's investor relations website - Webcast held on **October 09, 2025**, at **8:30 a.m. Eastern Time**[6](index=6&type=chunk) - Available on the Events & Presentations section of Tilray's Investor Relations website, with a replay archived on the Company's website[6](index=6&type=chunk) [Contacts](index=4&type=section&id=Contacts) Contact information for investor relations and media inquiries is provided - Investor Relations: investors@tilray.com, Pro-TLRY@prosek.com[24](index=24&type=chunk) - Media: news@tilray.com[24](index=24&type=chunk)

Core Insights - The company reported a net income of $1.5 million for the first fiscal quarter of 2026, with adjusted EBITDA increasing by 9% to $10 million, and a significant improvement in net cash used in operations by $34 million year-over-year [1][3][5]. Financial Performance - Net revenue rose by 5% to $209.5 million compared to $200.0 million in the previous year [5][26]. - Gross profit decreased to $57.5 million from $59.7 million, resulting in a gross margin of 27%, down from 30% [5][26]. - Cannabis net revenue increased by 5% to $64.5 million, while cannabis gross profit fell to $23.3 million, leading to a gross margin of 36%, down from 40% [5][30]. - Beverage net revenue was $55.7 million, slightly down from $56.0 million, with a gross profit of $21.3 million and a gross margin of 38%, down from 41% [5][30]. - Wellness net revenue increased to $15.2 million from $14.8 million, maintaining a gross margin of 32% [5][30]. - Distribution net revenue grew to $74.0 million from $68.1 million, with a gross margin of 11%, down from 12% [5][30]. Operational Efficiency - The company improved its cash flow, with cash used in operations significantly reduced to $(1.3) million from $(35.3) million [3][28]. - The balance sheet was strengthened with a cash balance of $265 million and net debt reduced to $4 million [1][4]. Strategic Outlook - The company reiterated its fiscal year 2026 adjusted EBITDA outlook of $62 million to $72 million [1]. - The CEO expressed confidence in the company's ability to capitalize on transformative opportunities in the evolving cannabis landscape, particularly in the U.S. and Europe [2]. Market Position - Canadian adult-use cannabis gross revenue increased by 12%, maintaining the company's 1 position in revenue and expanding market share, while international cannabis revenue grew by 10% year-over-year [1].

Core Insights - Tilray Brands Inc. (NASDAQ:TLRY) experienced a significant increase in share price, rising by 8.23% to $1.71, as investors adjusted their portfolios in anticipation of a decision from President Donald Trump regarding the legalization of cannabis and CBD products [1][3]. Group 1: Market Reaction - Investors are actively investing in cannabis product manufacturers, including Tilray Brands Inc., Canopy Growth, Cronos Group, and Aurora Cannabis, in light of a positive decision expected soon [2]. - The rise in Tilray's stock price reflects broader market optimism surrounding potential cannabis legalization, driven by Trump's recent promotion of cannabis and CBD for medical use [3]. Group 2: Policy Implications - Trump's social media video highlighted the potential benefits of CBD oil, suggesting it could transform senior healthcare and reduce medical costs in the U.S. by $64 billion, which has influenced investor sentiment [3].

Core Insights - Tilray Brands (TLRY) is set to report its first-quarter fiscal 2026 results on October 9, 2025, before market opening [1] - The company reported fourth-quarter fiscal 2025 adjusted earnings of 2 cents per share, exceeding the Zacks Consensus Estimate by 166.67% [1] - TLRY has beaten earnings estimates in two of the last four quarters and missed in the other two [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues in the upcoming quarter is $206.8 million, indicating a 3.4% increase from the previous year [2] - The loss per share estimate is set at 3 cents, reflecting a 25% year-over-year increase [2] - Estimates for loss per share have remained unchanged at 3 cents over the past 30 days [3] Factors Influencing Performance - **Cannabis Segment**: In the fourth quarter of fiscal 2025, cannabis net revenues declined year-over-year due to a pause in vape and infused pre-roll categories and delays in international medical cannabis permits. However, international cannabis revenues reached a record high of $22.4 million, with Germany showing 134% growth [4] - **Tilray Medical**: The division introduced three new medical cannabis flower varieties in Italy, becoming the first authorized company to import and distribute its products there. A strategic partnership with Molteni aims to enhance the availability of Tilray Medical cannabis extracts in Italy, expected to boost top-line growth [5] Segment Performance Expectations - **Beverages**: The Beverages segment is anticipated to see a revenue decline due to SKU rationalization under Project 420. However, the Breckenridge Distillery brand is expected to show resilience in the bourbon sector [8][10] - **Wellness**: The Wellness segment is projected to experience a year-over-year revenue surge, driven by the growth of Manitoba Harvest Hemp Hearts and new product innovations [11] - **Distribution**: Distribution revenues, primarily from Tilray Pharma, are expected to grow due to changes in product mix [12] Earnings Outlook - Tilray Brands has an Earnings ESP of 0.00%, indicating no expected earnings surprise for the upcoming report [13] - The company currently holds a Zacks Rank of 3, suggesting a neutral outlook [13]

Core Insights - The cannabis industry is experiencing renewed investor interest due to potential reform discussions in the U.S. government [2][5] - Despite recent rallies, cannabis stocks have significantly underperformed compared to broader market indices over the past five years [1][7] Group 1: Industry Overview - Cannabis remains illegal at the federal level in the U.S., complicating operations for companies that wish to operate across state lines [3] - Companies like Tilray, which are based in Canada, face legal barriers to entering the U.S. market, limiting their growth potential [4] Group 2: Potential for Reform - Discussions about rescheduling cannabis from a Schedule I to a Schedule III substance could lead to increased research opportunities and lower tax burdens for cannabis companies [5][6] - Rescheduling could serve as a precursor to full legalization, which many investors believe would significantly benefit the industry [6] Group 3: Market Valuation - Cannabis stocks, including Tilray Brands, are currently trading at attractive valuations, with Tilray's market cap at approximately $1.8 billion, down from nearly $17 billion in early 2021 [8] - The stock trades at 1.8 times its trailing sales and a price-to-book multiple of 1.2, indicating heavy discounting by investors due to industry uncertainties [9] Group 4: Investment Considerations - While there is excitement around potential cannabis reform, historical context suggests that previous reform discussions have not led to substantial changes [10][11] - Long-term investment in cannabis stocks may be suitable for high-risk tolerance investors, but a cautious approach is recommended for the majority [12]

Group 1 - The potential de facto legalization of marijuana in the U.S. has gained momentum, positively impacting cannabis stocks like Tilray Brands, which saw an increase of over 8% in price [1] - Republican senators, traditionally resistant to marijuana law reform, have expressed cautious support for decriminalizing the drug, indicating a shift in political sentiment [2][6] - Senator Lisa Murkowski described the proposed rescheduling of marijuana from Schedule I to Schedule III as a "game changer," while Senator Kevin Cramer showed openness to the idea but emphasized a cautious, incremental approach [3] Group 2 - The current state of the marijuana industry is characterized by a patchwork of legalization, with public opinion favoring reform measures such as rescheduling, and influential politicians beginning to support these changes [4] - Investors in Tilray and similar companies are responding positively to the momentum towards legalization and reform in the cannabis sector [4]

Core Insights - Tilray's fiscal year 2025 earnings show a net revenue of $821 million, a 4% increase from the previous year, with adjustments for constant currency bringing it to $834 million [1][5] - The company is valued at a market capitalization of approximately $1.78 billion, with valuation metrics indicating it trades at a discount compared to sector medians [2] - Tilray is expanding its product offerings in Germany, launching five new cannabis products, which is seen as a strategic move to enhance its market presence [9][10] Financial Performance - The net revenue for fiscal year 2025 was $821 million, up 4% from $789 million the prior year, with a gross margin increase in the cannabis segment from 33% to 40% [1][5] - Despite a reported net loss of $2.18 billion, largely due to a non-cash impairment of goodwill, adjusted net income rose 45% to $9 million [6] - The company holds a strong liquidity position with $256 million in cash and marketable securities, having reduced its long-term debt significantly [7] Market Position and Valuation - Tilray's price-to-sales (P/S) ratio is 2.17x, compared to the sector median of 4.18x, indicating a lower valuation relative to peers [2] - The stock price is currently at $1.64, with a year-to-date increase of 21.8%, although it has seen a 52-week decline of 1.8% [3] Strategic Initiatives - The company is focusing on expanding its premium craft cannabis portfolio in Germany, which is crucial for establishing a foothold in the European market [9][10] - Recent endorsements of medical cannabis by public figures have contributed to a more optimistic outlook for the sector, potentially benefiting companies like Tilray [8] Future Outlook - Analysts estimate adjusted earnings per share for the upcoming quarters to be negative, reflecting caution regarding future profitability [11] - Management guidance indicates optimism for fiscal 2026, with expected adjusted EBITDA growth of 13% to 31% compared to fiscal 2025 [12] - The consensus among analysts is moderately bullish, with a "Moderate Buy" rating and an average price target of $1.21, suggesting a downside potential of approximately 26% [13]

Tilray Brands, Inc. (NASDAQ:TLRY) will release earnings results for the first quarter, before the opening bell on Thursday, Oct. 9.Analysts expect the Leamington, Canada-based company to report a quarterly loss at 2 cents per share, versus a year-ago loss of 1 cent per share. Tilray Brands projects quarterly revenue of $204.55 million, compared to $200.04 million a year earlier, according to data from Benzinga Pro.On Aug. 28, Tilray Brands' medical division expanded its portfolio in Germany with three newly ...