Core Insights - The company reported record second-quarter fiscal 2026 results, achieving its highest-ever net revenue of approximately $218 million, with significant year-over-year improvements in net income and free cash flow [2][3][6] Financial Performance - The company ended the quarter with $291.6 million in cash and marketable securities, plus $0.8 million in digital assets, transitioning to a net cash position of almost $30 million, an improvement from a net debt position in the prior quarter [1] - Adjusted EBITDA for the quarter was $8.4 million, while the net loss improved by 49% to $43.5 million from a loss of $85.3 million in the prior year [1][6] - Cash flow used in operations improved to $8.5 million from $40.7 million a year ago, primarily due to reductions in working capital [1] Revenue Breakdown - The company reported net revenue of $218 million, with CFO Carl Merton citing a figure of $217.5 million for the quarter [2] - International cannabis revenue rose approximately 36% year-over-year and 51% sequentially, reaching about $68 million, driven by international expansion and Canadian adult-use growth [7] - The European pharmacy distribution business achieved its largest quarter ever, generating around $85 million in revenue, with a year-over-year growth of 26% [4][10] Market Dynamics - The company is shifting supply from low-priced Canadian wholesale markets to higher-margin European markets, which is expected to enhance profitability [5][7] - In Canada, adult-use and medical channel sales net of excise tax grew to $46 million, with recreational cannabis sales increasing by 6% in the quarter [8] Strategic Initiatives - The beverage segment generated $50 million in revenue, facing category headwinds but achieving $27 million in annualized cost savings, with a target of $33 million by the fourth quarter of fiscal 2026 [12][15] - The company plans to triple its medical cannabis distribution footprint in Germany, leveraging its pharmacy distribution platform [11] Future Outlook - Management reaffirmed fiscal 2026 adjusted EBITDA guidance of $62 million to $72 million, emphasizing liquidity and balance sheet flexibility as strategic advantages [6][15]

Financial Data and Key Metrics Changes - The company reported a record Q2 net revenue of $218 million, with an adjusted EBITDA of $8.4 million and a reported EPS loss of $0.02, reflecting a significant improvement in performance metrics [4][22]. - The net loss for the quarter was $43.5 million, a 49% improvement year-over-year compared to $85.3 million, with cash flow used in operations reduced to $8.5 million from $40.7 million last year [26][27]. Business Line Data and Key Metrics Changes - Cannabis net revenue increased to $67.5 million, driven by a 36% increase in international cannabis revenue and a 6% increase in Canadian adult-use cannabis [22][23]. - Beverage revenue totaled $50.1 million, impacted by headwinds in the craft beer segment, while distribution revenue grew by 26% year-over-year to $85.3 million [11][23]. - Wellness revenue remained flat year-over-year at $14.6 million, with challenges in the club retail channel being addressed [24]. Market Data and Key Metrics Changes - The international cannabis business saw a 51% sequential growth, reaching $20 million, marking one of the strongest quarters to date despite ongoing regulatory challenges [9][10]. - In Canada, the adult-use medical sales channel net of excise tax grew to $46 million, with recreational cannabis sales increasing by 6% [12][22]. Company Strategy and Development Direction - The company aims to leverage its strong balance sheet and cash position to capitalize on strategic opportunities in a rapidly evolving regulatory environment, particularly in the U.S. cannabis market [5][28]. - Tilray is focused on expanding its pharmacy reach in Germany and tripling its medical cannabis distribution footprint in fiscal 2026 [10][11]. - The company emphasizes the importance of modernizing Canadian cannabis regulations to maintain its competitive edge in the global market [14][15]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for the second half of fiscal 2026 and beyond, citing a diversified platform and improving fundamentals [21][28]. - The company is prepared for potential regulatory changes in the U.S. and anticipates that cannabis rescheduling will lead to a federally compliant medical cannabis framework [7][8]. Other Important Information - The company operates more than 40 brands in over 20 countries and is a leader in various segments, including cannabis, craft beer, and wellness products [5][6]. - The company has a strong cash position of approximately $292 million, providing flexibility for strategic investments [5][27]. Q&A Session Summary Question: What can the industry do to improve the regulatory outcome regarding the intoxicating hemp ban? - Management is working with legislators to extend the deadline or modify regulations to allow for a regulated amount of milligrams to be sold nationally [33][34]. Question: Can you quantify how much supply was held back from the Canadian market? - Approximately $5 million worth of supply was held back, which will be redeployed into higher-margin international markets [37][38]. Question: How much of the Canadian adult-use cannabis growth was volume versus price mix? - The growth was primarily driven by demand and new distribution, with a slight market share gain despite challenges [45][46]. Question: What are the expectations for growth within the Canadian market? - Management anticipates mid- to high single-digit growth, focusing on premium products and new product launches [57][58]. Question: Can you provide more color on the CC Pharma business and its distribution reach? - The company aims to triple its distribution reach and is focused on leveraging its sales organization to sell more medical cannabis in Germany [67][68].

Financial Data and Key Metrics Changes - The company reported a record Q2 net revenue of $218 million, with an adjusted EBITDA of $8.4 million and a reported EPS loss of $0.02, reflecting a significant improvement in performance metrics [4][22]. - The net loss for the quarter was $43.5 million, a 49% improvement year-over-year compared to $85.3 million, with cash flow used in operations down to $8.5 million from $40.7 million last year [27][28]. Business Line Data and Key Metrics Changes - Cannabis net revenue increased to $67.5 million, driven by a 36% increase in international cannabis revenue and a 6% increase in Canadian adult use cannabis [22][23]. - Beverage revenue totaled $50.1 million, impacted by headwinds in the craft beer segment, while distribution revenue grew by 26% year-over-year to $85.3 million [11][25]. - Wellness revenue remained flat at $14.6 million, with challenges in the club retail channel being addressed [20][25]. Market Data and Key Metrics Changes - International cannabis revenue reached $20 million, marking a 51% sequential growth and a 36% year-over-year increase [9][22]. - The Canadian adult use medical sales channel net of excise tax grew to $46 million, with recreational cannabis growing 6% in the quarter [12][22]. Company Strategy and Development Direction - The company aims to leverage its strong balance sheet and liquidity to capitalize on growth opportunities in the evolving global cannabis regulatory environment, particularly in the U.S. [5][29]. - Tilray is focused on expanding its pharmacy reach in Germany and tripling its medical cannabis distribution footprint in fiscal 2026 [10][11]. - The company is also pursuing international growth by expanding its beverage business into new markets, including the U.K., Middle East, and Africa [19][20]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for the second half of fiscal 2026 and beyond, citing a diversified platform and improving fundamentals [21][29]. - The company is prepared for potential regulatory changes in the U.S. regarding cannabis rescheduling, which could enhance its market position [7][87]. Other Important Information - The company ended the quarter with approximately $292 million in cash and marketable securities, with a net cash position exceeding debt by almost $30 million [5][28]. - The company is committed to investing in research and clinical trials to develop approved cannabis drugs for various medical conditions [85][86]. Q&A Session Summary Question: What can the industry do to improve the regulatory outcome regarding the intoxicating hemp ban? - Management is working with legislators to extend the deadline or modify regulations to allow for a regulated amount of milligrams to be sold nationally [32][34]. Question: Can you quantify how much supply was held back from the Canadian wholesale market? - Approximately $5 million worth of supply was held back, which will be redeployed into higher-margin international markets [38][39]. Question: How much of the Canadian adult use cannabis growth was volume versus price mix? - The growth was primarily driven by demand and new distribution, with a slight market share gain [44][46]. Question: What are the expectations for growth within the Canadian market? - Management expects mid- to high single-digit growth in the Canadian market, focusing on premium products and new product launches [58][60]. Question: Can you provide more color on the CC Pharma business and its distribution reach? - The company has modernized CC Pharma and is focused on expanding its pharmacy reach, with plans to sell more medical cannabis through its sales organization [66][68]. Question: What is the long-term outlook for the beverage business? - Management remains confident in the beverage business, emphasizing the importance of integration and the potential for future opportunities in cannabis-infused drinks [76][77].

Financial Data and Key Metrics Changes - The company reported a record Q2 net revenue of $218 million, with an adjusted EBITDA of $8.4 million and a reported EPS loss of $0.02, reflecting a significant improvement in performance metrics [4][22]. - The net loss for the quarter was $43.5 million, a 49% improvement year-over-year compared to $85.3 million, with cash flow used in operations reduced to $8.5 million from $40.7 million last year [27][28]. Business Line Data and Key Metrics Changes - Cannabis revenue increased to $68 million, with international cannabis revenue growing 36% year-over-year and 51% sequentially to $20 million [9][22]. - Beverage revenue totaled $50 million, impacted by headwinds in the craft beer segment, while distribution revenue grew by 26% year-over-year to $85 million [11][23]. - Wellness revenue remained flat at $14.6 million, driven by innovation in product offerings [20][24]. Market Data and Key Metrics Changes - The Canadian adult-use cannabis sales channel net of excise tax grew to $46 million, with recreational cannabis growing 6% in the quarter [12][22]. - The international cannabis market, particularly in Europe, is seen as a significant growth opportunity, with expectations for continued expansion in Germany, the UK, and Poland [10][39]. Company Strategy and Development Direction - The company aims to leverage its strong balance sheet and liquidity to capitalize on regulatory changes in the cannabis industry, particularly in the U.S. [5][29]. - The strategic focus includes enhancing operational efficiency in the beverage segment and expanding pharmacy reach in Germany through Tilray Pharma [11][18]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for the second half of fiscal 2026, citing a diversified platform and improving fundamentals [21][29]. - The company is preparing for potential regulatory changes in the U.S. that could significantly impact the cannabis market, particularly with the rescheduling of cannabis [6][54]. Other Important Information - The company operates more than 40 brands in over 20 countries and is a leader in the cannabis market, with a strong position in both the Canadian and international markets [5][6]. - The company has a robust cash position of approximately $292 million, providing flexibility for strategic opportunities [5][28]. Q&A Session Summary Question: What can the industry do to improve the regulatory outcome regarding the intoxicating hemp ban? - Management is working with legislators to extend the deadline or modify regulations to allow for a regulated amount of milligrams to be sold nationally [30][31]. Question: Can you quantify how much supply was held back from the Canadian market? - Approximately $5 million worth of supply was held back to redeploy into higher-margin international markets [32]. Question: What drove the substantial increase in distribution sales? - The increase was driven by new distribution channels and competitive pricing, with a focus on high-margin SKUs [34][36]. Question: What are the expectations for growth within the Canadian market? - Management expects mid- to high single-digit growth in the Canadian market, supported by new product launches and strong demand [40][41]. Question: Can you provide more color on the CC Pharma business and its distribution reach? - The company aims to triple its distribution reach in Germany, leveraging its sales organization to sell more medical cannabis [44][46]. Question: What is the long-term outlook for the beverage business? - Management remains confident in the beverage business, emphasizing the importance of integration and the potential for future growth, particularly with cannabis-infused drinks [51][53].

Market Position and Revenue - Tilray led the Canadian cannabis market with the highest revenue, holding a market share of 9.3%, down from 9.4% in the previous quarter[110]. - Net revenue for the three months ended November 30, 2025, was $217.5 million, representing a 3% increase compared to $210.9 million in the same period of 2024[138]. - Total net revenue for the six months ended November 30, 2025, was $427.0 million, a 4% increase from $411.0 million in the same period last year[148]. - Cannabis business revenue increased by 3% to $67.5 million for the three months ended November 30, 2025, compared to $65.7 million in the prior year[148]. - Distribution segment net revenue increased to $85.3 million for the three months ended November 30, 2025, compared to $67.6 million in the prior year, reflecting a 26% growth[148]. - Total cannabis revenue for the six months ended November 30, 2025, was $177.9 million, a 6% increase from $168.4 million in the prior year[1]. Product Innovation and Expansion - The company launched several innovative products, including Mock One non-alcoholic spirits and Mountain Shot flavored whiskey, to cater to evolving consumer preferences[109]. - The company has received additional product authorizations in Italy, expanding its medical cannabis offerings and forming a strategic partnership with Molteni Farmaceutici[122]. - Tilray's international business benefits from its vertically-integrated infrastructure, including EU-GMP cultivation facilities in Portugal and Germany, supporting its global market presence[114]. - The cannabis market in Europe is evolving, with over 19 countries legalizing medical cannabis, representing a population of more than 477 million[113]. - The company expects to leverage its compliance infrastructure to expand responsibly in the U.S. cannabis market, introducing medical-grade products[134]. Financial Performance and Cost Management - Gross profit for the six months ended November 30, 2025, was $115.0 million, a decrease of 5% from $120.9 million in the prior year[138]. - Operating expenses for the three months ended November 30, 2025, increased by 11% to $51.2 million compared to $46.0 million in the same period of 2024[138]. - The company achieved $27.2 million in savings from a $33 million synergy optimization plan as of November 30, 2025, with completion expected in Q4 of fiscal 2026[132]. - The company has exited certain businesses that were dilutive to profitability and cash flow, continuing to evaluate its portfolio[128]. - Total operating expenses for the three months ended November 30, 2025, were $79,776,000, a decrease of 23% compared to $103,438,000 in the prior year[168]. Cash Flow and Financial Position - Cash and marketable securities as of November 30, 2025, totaled $291,551,000, an increase from $252,249,000 as of November 30, 2024[146]. - Working capital as of November 30, 2025, was $470,002,000, compared to $428,815,000 as of November 30, 2024[146]. - Cash flows from operating activities showed a reduction in net cash used, amounting to $(8.5) million for the three months ended November 30, 2025, compared to $(40.7) million in the prior year[203]. - Cash provided by financing activities was $48.1 million for the three months ended November 30, 2025, an increase from $38.2 million in the prior year[205]. - The company is focused on generating positive cash flow from operations and aims to be free cash flow positive[197]. Market Challenges and Strategic Adjustments - The company anticipates ongoing price compression in the Canadian cannabis market due to intense competition among approximately 1,000 licensed producers[112]. - The decline in beverage revenue was attributed to challenges in the craft beer segment and competitive pressures[149]. - The company plans to reduce its distributor footprint from over 750 to between 450 and 500 to concentrate efforts on its brands and SKUs[131]. - The company has implemented Project 420 to support the growth of acquired beverage brands, focusing on SKU optimization, geographic rationalization, distributor rationalization, and synergy optimization[131]. Segment Performance - Beverage segment net revenue decreased to $50.1 million for the three months ended November 30, 2025, down 21% from $63.1 million in the prior year[149]. - Wellness segment net revenue remained consistent at $14.6 million for the three months ended November 30, 2025, compared to the prior year[9]. - Cannabis segment net revenue for the three months ended November 30, 2025, was $67,532,000, an increase of 3% compared to $65,652,000 in the prior year[164]. - Distribution segment gross margin for the three months ended November 30, 2025, was 13%, an increase from 12% in the prior year[165]. Stock and Shareholder Information - A reverse stock split was implemented on December 2, 2025, at a ratio of one-for-ten, with no fractional shares issued[135]. - The company issued 6,777,224 shares under the ATM Program, generating net proceeds of $73.1 million for strategic acquisitions and investments[199].

Core Insights - Tilray Brands, Inc. reported a strong second-quarter earnings performance, surpassing both revenue and earnings expectations [1][2]. Financial Performance - The company achieved quarterly earnings of $0.01 per share, exceeding the market expectation of a loss of $0.20 per share [2]. - Quarterly revenue reached $217.51 million, which was above the consensus estimate of $210.95 million [2]. Business Strategy and Growth - CEO Irwin D. Simon highlighted that the record net revenue of $218 million was a result of disciplined execution across a diversified portfolio that includes cannabis, beverage, wellness, and distribution sectors [3]. - The company is positioning itself to leverage its experience in the evolving U.S. regulatory landscape to contribute to a responsible, research-oriented national medical cannabis industry [4]. - Tilray plans to utilize its infrastructure and expertise from Tilray Medical U.S. to support a projected $150 million global medical cannabis business and a $300 million medical distribution platform, aiming to expand research and initiate new FDA trials and partnerships for product development [5]. Stock Performance - Following the earnings report, Tilray's stock price increased by 7.01%, reaching $9.77 in extended trading [6].

Financial Performance - Tilray Brands reported record Q2 fiscal 2026 net revenue of $218 million, a 3% increase from $211 million in the prior year[5]. - Adjusted EBITDA for Q2 was $8.4 million, slightly down from $9.0 million in the previous year[5]. - The company reaffirmed its full-year adjusted EBITDA guidance for fiscal 2026 at $62 million to $72 million[7]. - The net loss for the six months ended November 30, 2025, was $41,996,000, a 65% improvement compared to a net loss of $119,927,000 for the same period in 2024[31]. - The company experienced a comprehensive loss of $39,045,000 for the three months ended November 30, 2025, a 59% reduction from a comprehensive loss of $94,241,000 in the same period of 2024[30]. - The company reported a net loss of $43,509 thousand for the three months ended November 30, 2025, a 49% improvement compared to a net loss of $85,275 thousand in the same period of 2024[40]. Revenue Breakdown - International medical cannabis revenue increased by 36%, while Canadian adult-use cannabis revenue grew by 6%[5]. - Distribution net revenue, including Tilray Pharma, grew to a record $85.3 million, up from $67.6 million[5]. - The cannabis business generated $67,532,000 in revenue for the three months ended November 30, 2025, accounting for 31% of total revenue, consistent with the previous year[35]. - The beverage business reported revenue of $50,083,000 for the three months ended November 30, 2025, which is 23% of total revenue, down from 30% in the same period of 2024[33]. - Distribution revenue for the six months ended November 30, 2025, was $159,323 thousand, up from $135,682 thousand in the same period of 2024, indicating a growth of 17.4%[37]. Cash Flow and Liquidity - The company improved its cash used in operations by $32.2 million, reducing it to $(8.5) million from $(40.7) million[4]. - Tilray's cash and marketable securities balance reached $291.6 million, providing flexibility for strategic opportunities[6]. - The net cash position improved by $31.2 million to $27.4 million, compared to a net debt position of $3.8 million in Q1[6]. - Cash and cash equivalents increased to $246,703,000 from $221,666,000, while marketable securities rose to $44,848,000 from $34,697,000[27]. - Cash provided by financing activities was $67,948,000 for the six months ended November 30, 2025, a decrease of 31% compared to $98,793,000 in the same period of 2024[32]. - The company reported a net cash used in operating activities of $9,878,000 for the six months ended November 30, 2025, a significant improvement from $76,031,000 in the same period of 2024[32]. Cost Management - Cost of goods sold increased by 7% to $160,010,000 from $149,730,000, leading to a gross profit decrease of 6% to $57,497,000[29]. - Operating expenses decreased by 23% to $79,776,000 compared to $103,438,000 in the previous year, contributing to a reduced operating loss of $22,279,000[29]. - Interest expense decreased by 31% to $5,374,000 from $7,766,000, indicating improved financial management[29]. - The gross margin for cannabis products improved to 39% in Q3 2025 from 35% in Q3 2024, indicating better cost management[39]. Shareholder Information - The weighted average number of common shares outstanding increased by 28% to 110,343,368 for the three months ended November 30, 2025, compared to 86,497,456 in the same period of 2024[30]. - The adjusted net loss attributable to stockholders for the three months ended November 30, 2025, was $44,931 thousand, a decrease of $40,411 thousand (47%) from the net loss of $85,342 thousand in the prior year[43]. - The adjusted net income (loss) per share for the three months ended November 30, 2025, was $(0.02), an improvement of $0.01 (33%) from $(0.03) in the prior year[43]. Asset Management - The total assets of the company increased to $2,098,599,000 from $2,074,327,000, reflecting a positive trend in asset management[27]. - Total liabilities decreased to $552,090,000 from $584,752,000, indicating a reduction in financial obligations[28]. - Total stockholders' equity rose to $1,546,509,000 from $1,489,575,000, reflecting a strengthening of the company's financial position[28]. - The company's working capital as of November 30, 2025, was $470,002 thousand, an increase from $428,815 thousand at the end of November 2024[38].

Core Insights - Tilray Brands, Inc. reported a record net revenue of $218 million for the second fiscal quarter ended November 30, 2025, reflecting a 3% increase compared to the previous year [3][5] - The company is well-positioned for growth in the U.S. medical cannabis market, anticipating federal rescheduling to enhance research and patient access [3][5] - Tilray's financial position remains strong with $292 million in cash and marketable securities, and a net cash position of approximately $30 million [2][4][6] Financial Performance - Net revenue increased by 3% to $217.5 million from $211.0 million year-over-year [5][28] - Cannabis net revenue rose by 3% to $67.5 million, driven by a 36% increase in international cannabis revenue and a 6% increase in Canadian adult-use cannabis [5][32] - Gross profit decreased to $57.5 million from $61.2 million, with a gross margin of 26% compared to 29% in the prior year [5][28] Segment Performance - Beverage net revenue was $50.1 million, down from $63.1 million, with a gross margin of 31% compared to 40% [5][32] - Distribution net revenue reached a record $85.3 million, up from $67.6 million, with a gross margin of 13% [5][32] - Wellness segment revenue remained flat at $14.6 million, with a slight increase in gross profit [5][32] Loss and Adjustments - The net loss improved to $(43.5) million from $(85.3) million, with net loss per share improving to $(0.41) from $(0.99) [5][28] - Adjusted EBITDA was $8.4 million, slightly down from $9.0 million [5][28] - Adjusted net loss and adjusted net loss per share improved to $(2.0) million and $(0.02), respectively [5][28] Cash Flow and Balance Sheet - Cash used in operations improved by $32.2 million to $(8.5) million from $(40.7) million [4][30] - The cash and marketable securities balance grew to $291.6 million, providing flexibility for strategic opportunities [4][6] - Total outstanding debt was reduced by $4.2 million, strengthening the balance sheet [4][6]

Economic Data Summary - Initial Jobless Claims for the previous week were reported at +208K, slightly below the consensus of +210K, indicating a stable labor market [2] - Continuing Claims increased to 1.914 million from a revised 1.858 million, remaining below the 1.94 million level for five consecutive months, suggesting ongoing strength in employment [3] Productivity and Trade Deficit - U.S. Productivity for Q3 rose by +4.9%, surpassing the previous quarter's upwardly revised +4.1%, marking the highest level since the post-COVID economic recovery [4] - The U.S. Trade Deficit decreased to -$29.4 billion, the lowest since June 2009, with imports declining and exports, particularly in gold and pharmaceuticals, increasing [5] Stock Market Outlook - Current market indexes are negative, with the Dow down 177 points and the Nasdaq down 47 points, despite positive trading yields over the past month and year to date [6] - Anticipation surrounds the upcoming non-farm payrolls report from the U.S. Bureau of Labor Statistics [7] Consumer Credit and Company Earnings - U.S. Consumer Credit is expected to remain steady at $9.2 billion, with a report due at the market's closing [8] - Tilray Brands (TLRY) is expected to report fiscal Q3 earnings with an anticipated +86% earnings growth on relatively flat revenues, aiming for its third consecutive earnings beat [8]

Core Insights - Tilray Brands, Inc. is a significant player in the cannabis industry, involved in research, cultivation, production, marketing, and distribution of medical cannabis products [1] - The company operates across multiple segments, including Cannabis Business, Distribution Business, Beverage Alcohol Business, and Wellness Business, catering to a diverse customer base [1] Price Target and Analyst Sentiment - The consensus price target for Tilray has increased from $4.5 to $10 over the past year, indicating growing optimism among analysts [2] - Analyst John Zamparo from CIBC has set a more conservative price target of $8, reflecting a cautious approach ahead of the company's second-quarter earnings results scheduled for January 8, 2025 [2] Strategic Expansions and Stock Performance - Tilray's strategic expansions and partnerships in the beverage alcohol and wellness sectors have positively influenced stock sentiment [3] - The company's stock value has nearly tripled over the past six months, driven by the anticipation of cannabis reclassification in the United States, which is expected to significantly benefit cannabis growers like Tilray [3] Financial Performance - Recent earnings reports have shown improvements in revenue and profitability, supported by strong sales in both the cannabis and beverage alcohol segments [4] - The financial strength of Tilray is crucial as the cannabis industry continues to grow, driven by increasing consumer demand and the adoption of medical cannabis [4] Product Innovation - Product innovation is a key focus for Tilray, with new offerings such as GMP-certified flowers, oils, vapes, edibles, and topicals [5] - These innovations help Tilray maintain its competitive edge and attract a broader customer base in the evolving cannabis industry [5]