Should You Buy, Sell or Hold TLRY Stock Post Q2 Earnings?

Core Insights - Tilray Brands (TLRY) reported record net revenues of $217.5 million for Q2 fiscal 2026, a 3% increase year-over-year, surpassing Zacks Consensus Estimate [1] - The company experienced a net loss of 41 cents per share, which, while missing consensus expectations, showed significant improvement from a 99-cent loss in the same quarter last year [1] - Adjusted EBITDA for the quarter was $8.4 million, slightly down from $9 million the previous year, with full-year guidance reaffirmed at $62 million to $72 million [2] Financial Performance - The Beverage segment saw a 21% decline in net revenues to $50.1 million, attributed to challenges in the craft beer division and competitive pressures [7] - Global Cannabis net revenues increased to $67.5 million, driven by a 36% rise in international cannabis revenues, particularly in the German market [8] - Distribution net revenues rose 26% year-over-year to $85.3 million, marking the highest quarterly revenues for this segment [9] Liquidity and Balance Sheet - As of the end of Q2 fiscal 2026, Tilray had cash and cash equivalents of $291.6 million and reduced total outstanding debt by approximately $4.2 million [11] - The overall net cash position improved to $27.4 million, reflecting a $31.2 million sequential improvement [12] Market Performance - TLRY shares have increased by 42.5% over the past six months, outperforming the industry and major indices [3] - The stock is currently trading slightly below its 50-day simple moving average but above its 200-day simple moving average, indicating long-term bullish momentum [13] Strategic Positioning - Tilray is a leading cannabis producer in Canada and the fourth-largest craft beer brewer in the U.S., with a strong position in the high-protein hemp food market [17] - The company is well-positioned for growth in the cannabis sector, particularly with potential federal rescheduling in the U.S. that could enhance medical cannabis research and access [17] - Tilray Pharma is expanding operational efficiency and is expected to play a significant role in the company's growth by entering 3,000 additional pharmacies [18] Valuation Metrics - Tilray Brands stock has a forward 12-month Price-to-Sales (P/S) ratio of 1.17, which is above its median but below the industry average of 3.07 [20]