Key Takeaways Tilray Brands swings to Q1 net income of $1.5M from a $34.7M loss a year earlier. Tilray Brands benefits from lower SG&A and reduced amortization driving adjusted profit gains. Tilray Brands sees stronger revenue contributions across key segments supporting profitability.Tilray Brands (TLRY) delivered a notable turnaround in profitability during the first quarter of fiscal 2026, marking a sharp improvement from the prior-year period. The company generated net income of $1.5 million compared to ...

Group 1 - The article highlights the strong performance of the analyst team, achieving an annualized return of almost 40% over the past decade with a long-only model portfolio return of over 23 times [1] - The focus is on providing income-focused picks for investors who prefer lower-risk firms with steady dividend payouts [1] Group 2 - The analyst has previously covered Aurora Cannabis Inc., indicating that this article serves as an update to earlier coverage [2] - The analyst has a historical focus on tech stocks but has expanded coverage to include the offshore drilling, supply industry, and shipping industry [3]

Group 1 - The analyst team has a proven track record of outperforming across all market conditions, achieving an annualized return of almost 40% over the past decade with a long-only model portfolio return of over 23x [1] - The focus includes income-oriented picks for investors preferring lower-risk firms with steady dividend payouts [1] - The research covers sectors such as energy, shipping, and offshore markets, indicating a broad scope of industry analysis [1] Group 2 - Aurora Cannabis Inc. is mentioned as a company previously covered, indicating ongoing interest and updates regarding its performance [2] - The analyst has expanded coverage to include offshore drilling, supply industry, and shipping, alongside a focus on the fuel cell industry [3] - The analyst has a background in auditing and trading, providing a diverse perspective on market movements and industry trends [3]

Core Insights - The U.S. cannabis sector is evolving with more states expanding medical and recreational markets, creating opportunities for multi-state operators despite recent volatility due to regulatory uncertainty and shifting consumer demand [1][2] - Long-term expectations for the industry remain positive, particularly as discussions around federal reform and cannabis banking access progress [1] - Investors should focus on operators with scale, strategic market positions, and disciplined financial planning, as well as those maintaining a consistent brand identity [1][2] Company Summaries Trulieve Cannabis Corp. (TCNNF) - Trulieve is a leading multi-state cannabis operator with a strong presence in Florida and over 225 dispensaries across the U.S. by 2025 [3][6] - The company employs a vertically integrated model, controlling cultivation, processing, and retail distribution, which supports strong brand awareness and market reach [3][6] - Financially, Trulieve has shown steady year-over-year revenue growth and maintained strong gross margins, while working on reducing operational expenses and improving supply chain efficiency [6] Verano Holdings Corp. (VRNOF) - Verano is a significant multi-state operator with over 150 dispensaries nationwide, focusing on premium cannabis products and maintaining control over quality through vertically integrated production [7][10] - The company has demonstrated improving operational performance with positive adjusted EBITDA margins and strong cost controls, despite facing industry-wide challenges [9][10] - Verano's wide retail footprint and recognizable brand position it for long-term growth as regulatory conditions evolve [10] AYR Wellness Inc. (AYRWF) - AYR is a vertically integrated cannabis company with a presence in key U.S. states, focusing on brand consistency and localized consumer connections [11][13] - The company has achieved revenue growth through store openings and product expansion, although profitability has been pressured by operational expenses and competition [13] - AYR is working on improving efficiency and maintaining liquidity, signaling a potential path toward greater financial stability if market demand strengthens [13]

INVESTOR PRESENTATION FY26 Q2 November 2025 Disclaimer CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information contained in this presentation constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements. Forward looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "in ...

Core Insights - Aurora Cannabis Inc. reported a record net revenue of $90.4 million for Q2 2026, marking an 11% increase year-over-year, driven primarily by a 15% growth in the global medical cannabis segment and a 34% increase in plant propagation revenue [6][9][10] - The company achieved an adjusted EBITDA of $15.4 million, reflecting a 52% increase compared to the same period last year, indicating strong operational performance [19][9] - Aurora maintains a strong balance sheet with $141.9 million in cash and operates a debt-free cannabis business, positioning itself well for future growth [4][9] Financial Performance - Total net revenue for Q2 2026 was $90.4 million, up from $81.1 million in Q2 2025, with medical cannabis contributing $70.5 million, which is 78% of total revenue [6][8] - Adjusted gross profit before fair value adjustments was $51.8 million, a 22% increase from $42.6 million in the prior year [7] - The adjusted gross margin before fair value adjustments improved to 61% in Q2 2026 from 54% in the prior year [7] Medical Cannabis Segment - Medical cannabis net revenue reached $70.5 million, a 15% increase year-over-year, accounting for 94% of adjusted gross profit before fair value adjustments [8][9] - International medical cannabis revenue grew by 22% to $42.7 million, highlighting Aurora's leadership in key markets [9][10] - The adjusted gross margin for medical cannabis was 69%, slightly up from 68% in the previous year, driven by cost reductions and improved production efficiency [11] Consumer Cannabis Segment - Consumer cannabis net revenue decreased by 34% to $6.9 million, attributed to a strategic focus on high-margin medical cannabis over consumer products [12][9] - The adjusted gross margin for consumer cannabis improved to 27% from 15% in the prior year, reflecting cost efficiencies [13] Plant Propagation Segment - Plant propagation revenue was $11.6 million, a 34% increase from $8.6 million in the prior year, driven by organic growth and expanded product offerings [14] - However, the adjusted gross margin for plant propagation decreased to 10% from 19% due to inventory write-offs and surplus crops [15] Operational Efficiency - Adjusted SG&A expenses rose to $35.5 million, up from $31.7 million in the prior year, primarily due to increased freight and logistics costs [16] - The company reported a net loss from continuing operations of $53.2 million, a significant decline from a net income of $1.4 million in the prior year, influenced by increased operating expenses and other costs [17] Future Outlook - For Q3 2026, Aurora expects consolidated net revenue to increase year-over-year, driven by 8% to 12% growth in the global medical cannabis segment [21] - The company anticipates maintaining strong adjusted gross margins and positive free cash flow due to improved operational performance [22][23]

Core Insights - Tilray Medical has announced significant updates to its pricing programs in Canada, aimed at enhancing affordability and accessibility for medical cannabis patients [1][5] Group 1: Pricing Program Updates - The Compassionate Pricing program has increased the annual income eligibility threshold from $32,500 CAD to $65,000 CAD, allowing more patients to qualify for support [2] - Patients enrolled in the Compassionate Pricing program will continue to benefit from promotional campaigns and additional savings opportunities [2] - The 'Seniors Pricing' program has been strengthened to better support elderly patients, while dedicated programs for first responders and pediatric patients remain in place [3] Group 2: Specialized Support Programs - Tilray Medical continues to provide specialized support through the 'Warrior Wellness' program for Veterans and the 'First Responders Appreciation' program, ensuring personalized care and streamlined access to medical cannabis [4] - The company emphasizes its commitment to health equity, empowering various groups, including seniors, veterans, and families, to access medical cannabis affordably [5] Group 3: Company Overview - Tilray Medical is a leading supplier of medical cannabis, with a global portfolio of brands and products designed to meet patient needs [6] - The company has evolved from being one of the first licensed producers of medical cannabis in Canada to establishing GMP-certified production facilities in Portugal and Germany [6]

Core Insights - Village Farms International, Inc. will host a conference call on November 10, 2025, at 8:30 a.m. ET to discuss its third quarter 2025 financial results [1][2] - The company expects to release its financial results on the same day at 7:00 a.m. ET [2] Company Overview - Village Farms is a large-scale, vertically-integrated supplier of high-value, plant-based Consumer Packaged Goods, leveraging decades of experience in Controlled Environment Agriculture [4] - The company has a strong foundation as a leading fresh produce supplier in the US and Canada, while now focusing on high-growth cannabinoid opportunities internationally [4] Cannabis Operations - In Canada, Village Farms' subsidiary Pure Sunfarms is one of the largest cannabis operations globally, with 2.2 million square feet of greenhouse production and is recognized as a low-cost producer [5] - The company owns an additional 2.6 million square feet of greenhouse capacity in Canada for future expansion and holds an 80% stake in Rose LifeScience, a leader in cannabis product commercialization [5] International Expansion - Village Farms is targeting legal cannabis opportunities internationally, exporting medical cannabis from its EU GMP certified facility in Canada to markets such as Germany, the UK, Israel, Australia, and New Zealand [6] - The company is expanding its export business and making investments in international production assets, including a license to grow and distribute recreational cannabis in the Netherlands [6] US Market Strategy - In the US, Village Farms' subsidiary Balanced Health Botanicals is a leading CBD and hemp-derived brand, with plans to enter the US THC market leveraging its Texas-based greenhouse assets [7] - The company has 2.2 million square feet of existing greenhouse capacity and 950 acres of owned land for future expansion in the US [7] Renewable Energy Initiatives - Village Farms Clean Energy, in partnership with Terreva Renewables, generates renewable natural gas from landfill gas at its Delta RNG facility, receiving royalties on all generated revenue [8]

Core Insights - The Canadian cannabis sector is gaining renewed attention due to optimism surrounding U.S. legalization, with the U.S. cannabis industry projected to exceed $40 billion in annual sales by 2026 [1][3] - Canadian producers such as Tilray, Canopy Growth, and Village Farms are well-positioned to benefit from potential U.S. reforms that could open cross-border trade and new investment flows [1][4] - Strong consumer demand, expanding export markets, and cost-efficient production models are driving long-term growth potential in the sector [1] Company Summaries Tilray Brands, Inc. (TLRY) - Tilray reported fiscal 2025 net revenue of approximately $821 million, with cannabis revenue around $249 million, indicating a challenging competitive landscape [7] - The company's gross profit improved significantly to roughly $99 million, with gross margins expanding to nearly 40%, highlighting progress in efficiency and cost management [7] - Tilray focuses on branded products and international distribution, allowing it to operate across multiple markets beyond traditional retail cannabis [5][7] Canopy Growth Corporation (CGC) - Canopy Growth reported Canadian cannabis revenue growth of about 4% year over year, driven by rising adult-use demand [10] - The company reduced total debt by nearly 50%, although profitability remains a challenge with gross margins hovering near the mid-teens [10] - Canopy's brand-first approach positions it to benefit from potential U.S. federal reform, while ongoing restructuring efforts aim to transform operations into a more efficient, brand-driven enterprise [8][10] Village Farms International, Inc. (VFF) - Village Farms achieved revenue growth of roughly $336 million in 2024, an increase of more than 18% year over year, with the cannabis division growing 31% [13] - The company focuses on efficient production and export markets, leveraging its agricultural experience to produce high-quality cannabis [11][13] - Village Farms maintains a healthy balance sheet with modest debt levels, and its upward trend in margins makes it a compelling growth opportunity among Canadian producers [13][14]

Core Insights - Aurora Cannabis (ACB) shares have increased by 21% year to date, outperforming the industry average of 5% [1][3] Company Performance - For the first quarter of fiscal 2026, Aurora's total revenues rose by 17% year over year and 8% sequentially to C$98 million, driven primarily by the medical cannabis segment [4][7] - Medical cannabis sales increased by 37% year over year to nearly C$65 million, supported by higher revenues from insurance-covered and self-paying patients in Canada, as well as growth in international markets such as Australia, Germany, Poland, and the UK [5][6] - The adjusted gross margin for the medical cannabis segment improved to 69%, up from 67% in the previous year, contributing to a 209% year-over-year increase in adjusted EBITDA to approximately C$11 million and generating free cash flow of over C$9 million, a 42% increase year over year [6][7] Market Outlook - Aurora anticipates continued growth in international medical cannabis sales in the fiscal second quarter, aided by new product launches and market expansion efforts [7][8] - The global medical cannabis market is projected to exceed $130 billion by the end of 2032, highlighting Aurora's strategic focus on this high-margin segment [8] Competitive Landscape - Despite strong performance in the medical cannabis sector, Aurora's recreational segment is underperforming due to intense competition and price pressures in Canada's adult-use market [9][10] - The company is shifting its strategy to prioritize the production of GMP-certified medical cannabis products, which offer higher margins and align with its long-term goals [10] - Aurora faces significant competition from peers like Curaleaf Holdings and Tilray Brands, both of which are also pursuing international expansion and cost optimization strategies [11][12] Valuation Estimates - Loss per share estimates for 2025 and 2026 have remained unchanged over the last 30 days, indicating stability in expectations [13] Investment Considerations - While there are positive trends in Aurora's medical cannabis division, challenges remain due to ongoing weakness in the recreational segment and a competitive market environment [15][16] - The company's cash flow is improving but remains modest compared to its investment needs, and its limited presence in the U.S. market restricts its ability to capitalize on potential federal reforms [16]