false Trading Ideas Stock Market Crypto Forex Economic Commodity Video World Here's why the Tilray stock price has crashed and what next Written by Crispus NyagaCrispus N. Crispus Nyaga Market Analyst Crispus Nyaga Market Analyst Crispus is a Market Analyst for Invezz covering the stock, cryptocurrency and forex markets. He's an experienced analyst with more than 8 years of industry experience. read more. Written onNov 17, 2025 Reading time 3 minutes Tilray Brands stock price has plunged and moved into a be ...

Core Viewpoint - Tilray Brands has experienced a significant recovery in its stock price over the past six months, with shares up nearly 25% year to date, driven by positive developments in the cannabis industry and a better-than-expected quarterly earnings report [1][2][4]. Financial Performance - For the first quarter of fiscal year 2026, Tilray reported a revenue increase of 5% year over year, reaching $209.5 million. The company also recorded a net income of $1.5 million, marking a notable shift from its previous net losses [4]. Market Sentiment and Regulatory Environment - Speculation regarding potential legal changes in the U.S. cannabis industry, particularly the possible reclassification of cannabis from Schedule 1 to Schedule 3, has contributed to the positive market sentiment surrounding Tilray [2]. - The company is seen as a leading player in the cannabis sector, benefiting from the news related to cannabis reclassification, which could ease funding challenges for growers [2]. Challenges and Future Outlook - Despite recent gains, Tilray faces challenges, including plans to raise up to $51.6 million by selling additional shares, which may dilute existing shareholders. This highlights ongoing financial difficulties [5]. - The long-term outlook for Tilray's stock remains uncertain, with indications that it may not deliver strong returns despite recent momentum [6].

Core Viewpoint - The cannabis sector is experiencing a surge in stock prices following President Trump's endorsement of hemp-derived CBD, which he claims could revolutionize senior healthcare and serve as an alternative to expensive prescription drugs [1][2]. Industry Developments - Major cannabis companies such as Tilray, Canopy Growth, and Aurora have seen their stock prices jump by double digits in response to the president's comments [2]. - The cannabis sector has been volatile, with some stocks losing value this year while others have gained over 30% [5]. Regulatory Changes - President Trump previously legalized hemp-derived products like CBD through the 2018 Farm Bill and hinted at reclassifying cannabis from a Schedule I drug to a Schedule III drug, which would ease criminal penalties and tax burdens on companies [3][4]. - The reclassification would also facilitate more medical research into cannabis, as new HHS standards acknowledge its accepted medical use and some credible scientific support [4]. Market Implications - The potential reclassification of cannabis could welcome big pharmaceutical companies into the market, although the process remains lengthy [5]. - The current administration has the authority to expedite the reclassification process, which could further impact the cannabis market positively [6].

Core Viewpoint - President Donald Trump's recent video on Truth Social has reignited interest in cannabis, particularly its potential health benefits and the possibility of changes in federal drug policy [1][2]. Group 1: Health Benefits of Cannabis - The video, produced by The Commonwealth Project, advocates for CBD to be covered under Medicare, labeling it as "the most important senior health initiative of the century" [2]. - It claims that CBD could slow disease progression and serve as an alternative to many prescription drugs for older adults, potentially saving the healthcare system $64 billion annually if cannabis is fully integrated [2]. Group 2: Federal Policy Implications - Trump's video follows earlier comments indicating that his administration is considering reclassifying cannabis at the federal level, which could lead to reduced criminal penalties and eased operational restrictions for cannabis businesses [2]. Group 3: Market Reaction - The announcement led to a significant rally in cannabis stocks, with Canopy Growth Corp. rising 15% and Tilray Brands, Inc. surging 35% [3]. - Other companies such as Cronos Group, Inc., SNDL Inc., and Aurora Cannabis, Inc. also saw increases of over 20% [3]. - The AdvisorShares Pure US Cannabis ETF experienced a nearly 20% increase, reflecting the overall positive market sentiment towards the cannabis sector [4].

Core Insights - Tilray Brands (NASDAQ: TLRY) has experienced a significant stock price increase of nearly 200%, rising from $0.42 in early July to $1.24, primarily due to potential reclassification of cannabis by the Trump administration from Schedule I to Schedule III [2][15] - The company is focusing on product differentiation and expanding its operations in Europe, including launching new EU-GMP certified medical cannabis strains in Germany [3] - Investors are questioning whether TLRY stock remains a compelling investment at its current price, with significant upside potential linked to the prospective reclassification of marijuana [4][16] Financial Performance - Tilray's revenues have grown at an average rate of 9.9% over the last three years, with a 4.1% increase from $789 million to $821 million in the past 12 months [12] - The latest quarterly revenues decreased by 2.3% to $225 million from $230 million a year prior [12] - The company reported an operating income of -$108 million, resulting in an operating margin of -13.1% and a cash flow margin of -11.5%, generating nearly -$95 million in operating cash flow [12] - TLRY's net income for the corresponding period was approximately -$2.2 billion, indicating a net margin of around -266.3% [12] Debt and Financial Stability - TLRY's debt stood at $329 million at the end of the most recent quarter, with a current market cap of $1.2 billion, resulting in a debt-to-equity ratio of 26.7% [13] - The company's cash (including cash equivalents) constitutes $256 million of $2.1 billion in total assets, leading to a cash-to-assets ratio of 12.4% [13] Stock Performance - TLRY stock has plummeted 97.6% from a peak of $63.91 on February 10, 2021, to $1.52 on June 23, 2023, compared to a peak-to-trough decline of 25.4% for the S&P 500 [14] - The stock has not yet rebounded to its pre-crisis peak, with the highest value since then being $3.31 on September 11, 2023, and currently trading at $1.24 [14] - TLRY stock dropped 88.4% from a high of $21.36 on January 15, 2020, to $2.47 on March 18, 2020, versus a peak-to-trough decline of 33.9% for the S&P 500 [14] Market Position and Strategy - Tilray Brands engages in the research, cultivation, production, marketing, and distribution of medical cannabis products across various segments, including GMP-certified flowers, oils, vapes, edibles, and topicals [7] - The company is enhancing its business operations by concentrating on product differentiation and developing new products for its premium segment [3]