What's Next for Tilray Brands After Posting Record Q2 Revenues?

Core Insights - Tilray Brands (TLRY) achieved record net revenues of $217.5 million in Q2 of fiscal 2026, marking a 3% year-over-year increase, primarily driven by strong international operations [1][8] Financial Performance - The Distribution business was the main contributor to revenue growth, increasing by 26% year-over-year to $85.3 million, supported by competitive pricing and favorable foreign exchange impacts [1][2] - The international cannabis segment saw a significant 36% increase in Q2, prompting the company to reduce shipments to the Canadian wholesale market in favor of higher-margin international markets [2][8] - Wellness segment revenues remained flat, with growth in Hi-Ball and the Ingredient Channel offset by challenges in the club retail channel [4] Market Position and Strategy - The Beverage business faced challenges due to headwinds in the craft beer segment and ongoing portfolio optimization efforts, but the company anticipates that upcoming retailer product resets will enhance brand visibility and align product offerings with consumer preferences [3] - TLRY's stock has outperformed the industry, with a 58.4% increase over the past six months compared to a 6.5% decline in the industry [7] Valuation Metrics - TLRY is currently trading at a forward Price-to-Sales (P/S) ratio of 1.18X, which is higher than its historical median but below the industry average of 3.05X [9]