How Tilray Brands Is Acting on Its Vast International Opportunity

Core Insights - Tilray Brands (TLRY) reported a strong international quarterly performance in Q2 of fiscal 2026, with revenues from its international cannabis business increasing by 36% year over year and 51% sequentially to $20 million, despite facing permit challenges and price compression [1][8] Group 1: International Market Performance - The international cannabis market is a key long-term growth driver for Tilray, supported by increasing market opportunities, revenues, and profitability [2] - The company has reduced supply in the Canadian wholesale market to focus on international markets, maintaining a leading position in Canada across various product categories [2][3] - Tilray's cannabis cultivation capacity has increased to 200 metric tons annually, aiding its expansion into fast-growing markets and improving margins [3] Group 2: Product Expansion and New Markets - Tilray is expanding its beverage business globally, with plans to launch HiBall Energy in the U.K. and further expansion into the Middle East and Africa [4] - The company has entered the Quebec market with vapes under the Good Supply brand, quickly achieving top three SKU positions in the province [3] Group 3: Competitive Landscape - Village Farms International's subsidiary, Pure Sunfarms, is launching 10 new products in the Netherlands, reflecting a focus on innovation and competitive differentiation [5] - SNDL Inc. has acquired five cannabis retail stores in Alberta and Saskatchewan, with plans for further acquisitions in Ontario [6] Group 4: Financial Performance and Valuation - Tilray's shares have increased by 40.4% over the past six months, contrasting with a 6.6% decline in the industry [7] - The company is trading at a forward Price-to-Sales (P/S) ratio of 1.22X, which is lower than the industry average of 2.81X [9]