Core Insights - There has been a resurgence in cannabis stock performance due to hopes of U.S. cannabis rescheduling and improved company fundamentals, with Tilray Brands (TLRY) positioned as a significant beneficiary [1][2] Company Performance - Tilray announced strong Q1 earnings on October 9, highlighting profitable expansion across its cannabis, beverages, and wellness divisions, leading to a sharp increase in its stock price [2] - The company reported record first-quarter net revenue of $209.5 million, a 5% year-over-year increase, driven by healthier cannabis and distribution channels [7] - Tilray returned to profitability in Q1 with a net income of $1.5 million, a significant turnaround from a $34.7 million loss the previous year [7] - Adjusted EBITDA rose 9% to $10.2 million, indicating improved operational efficiency [7] Market Position - Tilray's stock has shown extreme volatility, trading between $0.60 to $0.70 early in 2025 and currently around $1.70, with a year-to-date increase of 29% and a remarkable 240% rise over the past six months [5] - Despite being classified as a penny stock, Tilray commands a market capitalization of approximately $2 billion, supported by annual revenue exceeding $820 million in 2024 [6] - The company's adjusted forward price-to-earnings ratio stands at 53x, significantly higher than the sector median of 17.5x, reflecting strong investor expectations for future profitability and growth [6]