As Trump Considers Signing a Cannabis Executive Order, Should You Buy the Dip in Tilray Stock?

Group 1: Market Reaction and Regulatory Changes - Canadian cannabis stocks, including Tilray (TLRY), surged following reports that President Donald Trump could sign an executive order reclassifying marijuana from a Schedule I drug to Schedule III, which would allow cannabis companies to deduct business expenses and improve access to banking services [1] - Tilray's stock jumped 44% on Friday, reflecting strong market sentiment following the news [2] Group 2: Financial Performance - In fiscal Q1 of 2026, Tilray reported record revenue of $210 million, a 5% year-over-year increase, driven by gains in both domestic and international markets [4] - Sales for adult-use cannabis in Canada rose 12%, while international revenue increased by 10% year-over-year [5] - Tilray achieved a net income of $1.5 million in Q1, a significant improvement from a loss of $34.7 million in the same period last year [5] Group 3: Operational Developments - The beverage segment remained flat as management rationalized its SKUs under Project 420, which has generated $25 million in annual savings [6] - Tilray's craft beer portfolio performed well, with Shock Top emerging as a top-selling brand in the Southeast, where dollar sales rose 49% year-over-year [7] Group 4: Balance Sheet and Financial Health - Tilray strengthened its balance sheet by reducing outstanding debt by $7.7 million, ending with $265 million in cash [8] - The company raised $22.5 million through its at-the-market equity program, improving its net debt to adjusted EBITDA ratio to 0.07x, providing flexibility for future growth investments [8]