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Should You Buy, Hold or Sell TLRY Stock Post Q4 Earnings Release?
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Key Takeaways
Tilray Q4 EPS beat estimates but sales missed, with both declining year over year.
Fiscal 2025 revenues hit $821M, led by 70% sales from non-cannabis segments.
Cannabis sales fell 9% in 2025, offset by 19% growth in international cannabis sales.
On Monday, Canada-based Tilray Brands (TLRY - Free Report) announced its fourth-quarter results for fiscal 2025 (year ending May 2025). While earnings beat our estimates, sales fell short of expectations. Both numbers declined when compared to the year-ago quarter.
Adjusted EPS during the quarter was 2 cents, down 50% year over year. Revenues declined 2% to $224.5 million, primarily due to the soft sales performance of its cannabis and beverages businesses. However, the adjusted EBITDA of $27.6 million for the quarter is the second highest in the company’s lifetime (the highest being the one reported in the year-ago period).
Tilray expects adjusted EBITDA for fiscal 2026 to be between $62 million and $72 million, suggesting growth of 13-31% over the prior-year levels. The company did not issue any hard top or bottom-line numbers.
However, long-term investors do not bother much about a single quarter’s results and instead focus on strong fundamentals. Let’s understand Tilray’s strengths and weaknesses to better analyze how to play the stock in the post-earnings scenario.
Tilray’s Focus on Non-Cannabis Businesses Pays Off
While Tilray’s primary business focuses on cannabis, slower growth in the Canadian market and the uncertainty of marijuana legalization at the federal level in the United States have forced the company to shift gears. TLRY reported record revenues of $821 million in fiscal 2025, up 4% year over year, thanks to this diversification.
Non-cannabis sources — beverages, distribution and wellness — accounted for approximately 70% of overall sales in fiscal 2025. While the beverage business accounted for 29% of total revenues, the company’s distribution business (which includes the purchase and resale of pharmaceutical and wellness products) makes up 33%. The remaining 8% comes from the wellness segment, which includes sales of hemp-based products.
Over the past few years, Tilray has acquired over a dozen beer and spirits brands — including deals with Anheuser-Busch and Molson Coors — which have helped solidify its position as one of the largest craft brewers in the United States. Sales in the beverage segment rose 19% year over year to $240.6 million in fiscal 2025, despite SKU rationalization implemented as part of the company’s broader Project 420 plan to integrate its craft beer businesses and streamline operations.
Thanks to the 2018 Farm Bill, Tilray also markets hemp-based THC beverages like Herb & Bloom and Happy Flower. Sales in the fiscal year rose 9% year over year to $60.5 million, driven by organic growth within the branded hemp food business and the relaunch of HiBall Energy. Per the company, it continues to dominate the hemp industry “with nearly 60% branded market share in the U.S. and 80% in Canada.”
Though the distribution segment accounts for the largest share of total revenues, it registered the smallest increase among non-cannabis categories. Revenues rose around 5% year over year to $271.2 million, driven by a change in product mix.
Looking ahead, we expect Tilray to reap the benefits of Project 420 in the second half of fiscal 2026. The company’s focus on enhancing its global supply chain and increasing cultivation footprint is likely to meet the growing demand across all marketed territories.
TLRY’s Domestic Cannabis Sales Eclipse International Gains
Tilray maintains a diversified business model across the cannabis space, spanning both recreational and medical channels. However, it continues to face pricing pressure and competitive headwinds.
In fiscal 2025, Tilray’s cannabis revenues declined 9% year over year to $249 million, primarily due to the decision to focus on preserving margins in the Canadian market. This led the company to scale back in the vape and infused pre-roll categories, which are margin-dilutive. Though revenues from international cannabis rose 19% year over year, it remains a relatively small portion of the segment. The majority of cannabis sales still come from the Canadian market, which is facing intense saturation.
Cutthroat Competition From Other Cannabis Players
Tilray is targeting an overcrowded market. It faces stiff competition from its peers — Aurora Cannabis (ACB - Free Report) , Canopy Growth (CGC - Free Report) and Curaleaf Holdings (CURLF - Free Report) — all of which are also pursuing international expansion and cost optimization strategies, making the competitive landscape even tougher.
As TLRY gains ground in international markets, competitive responses from Aurora Cannabis, Canopy Growth and Curaleaf Holdings could intensify.
TLRY Stock Performance & Valuation
Shares of Tilray Brands have plunged 56% year to date against the industry’s 6% growth, as seen in the chart below. The fall in share price likely reflects the company’s ongoing financial challenges and continued uncertainty around U.S. marijuana legalization.
Image Source: Zacks Investment Research
Estimates for TLRY’s loss per share for fiscal 2026 and 2027 have been mixed in the last 30 days.
Image Source: Zacks Investment Research
How to Play TLRY Stock?
Tilray’s efforts to diversify into craft beverages and THC drinks show some strategic foresight. However, the persistent decline in its core cannabis business and competitive concerns remain near-term headwinds. Investors may want to wait for clearer signs of sustained improvement in sales and profitability before taking new positions in this Zacks Rank #3 (Hold) stock.
Image: Bigstock
Should You Buy, Hold or Sell TLRY Stock Post Q4 Earnings Release?
Key Takeaways
On Monday, Canada-based Tilray Brands (TLRY - Free Report) announced its fourth-quarter results for fiscal 2025 (year ending May 2025). While earnings beat our estimates, sales fell short of expectations. Both numbers declined when compared to the year-ago quarter.
Adjusted EPS during the quarter was 2 cents, down 50% year over year. Revenues declined 2% to $224.5 million, primarily due to the soft sales performance of its cannabis and beverages businesses. However, the adjusted EBITDA of $27.6 million for the quarter is the second highest in the company’s lifetime (the highest being the one reported in the year-ago period).
Tilray expects adjusted EBITDA for fiscal 2026 to be between $62 million and $72 million, suggesting growth of 13-31% over the prior-year levels. The company did not issue any hard top or bottom-line numbers.
However, long-term investors do not bother much about a single quarter’s results and instead focus on strong fundamentals. Let’s understand Tilray’s strengths and weaknesses to better analyze how to play the stock in the post-earnings scenario.
Tilray’s Focus on Non-Cannabis Businesses Pays Off
While Tilray’s primary business focuses on cannabis, slower growth in the Canadian market and the uncertainty of marijuana legalization at the federal level in the United States have forced the company to shift gears. TLRY reported record revenues of $821 million in fiscal 2025, up 4% year over year, thanks to this diversification.
Non-cannabis sources — beverages, distribution and wellness — accounted for approximately 70% of overall sales in fiscal 2025. While the beverage business accounted for 29% of total revenues, the company’s distribution business (which includes the purchase and resale of pharmaceutical and wellness products) makes up 33%. The remaining 8% comes from the wellness segment, which includes sales of hemp-based products.
Over the past few years, Tilray has acquired over a dozen beer and spirits brands — including deals with Anheuser-Busch and Molson Coors — which have helped solidify its position as one of the largest craft brewers in the United States. Sales in the beverage segment rose 19% year over year to $240.6 million in fiscal 2025, despite SKU rationalization implemented as part of the company’s broader Project 420 plan to integrate its craft beer businesses and streamline operations.
Thanks to the 2018 Farm Bill, Tilray also markets hemp-based THC beverages like Herb & Bloom and Happy Flower. Sales in the fiscal year rose 9% year over year to $60.5 million, driven by organic growth within the branded hemp food business and the relaunch of HiBall Energy. Per the company, it continues to dominate the hemp industry “with nearly 60% branded market share in the U.S. and 80% in Canada.”
Though the distribution segment accounts for the largest share of total revenues, it registered the smallest increase among non-cannabis categories. Revenues rose around 5% year over year to $271.2 million, driven by a change in product mix.
Looking ahead, we expect Tilray to reap the benefits of Project 420 in the second half of fiscal 2026. The company’s focus on enhancing its global supply chain and increasing cultivation footprint is likely to meet the growing demand across all marketed territories.
TLRY’s Domestic Cannabis Sales Eclipse International Gains
Tilray maintains a diversified business model across the cannabis space, spanning both recreational and medical channels. However, it continues to face pricing pressure and competitive headwinds.
In fiscal 2025, Tilray’s cannabis revenues declined 9% year over year to $249 million, primarily due to the decision to focus on preserving margins in the Canadian market. This led the company to scale back in the vape and infused pre-roll categories, which are margin-dilutive. Though revenues from international cannabis rose 19% year over year, it remains a relatively small portion of the segment. The majority of cannabis sales still come from the Canadian market, which is facing intense saturation.
Cutthroat Competition From Other Cannabis Players
Tilray is targeting an overcrowded market. It faces stiff competition from its peers — Aurora Cannabis (ACB - Free Report) , Canopy Growth (CGC - Free Report) and Curaleaf Holdings (CURLF - Free Report) — all of which are also pursuing international expansion and cost optimization strategies, making the competitive landscape even tougher.
As TLRY gains ground in international markets, competitive responses from Aurora Cannabis, Canopy Growth and Curaleaf Holdings could intensify.
TLRY Stock Performance & Valuation
Shares of Tilray Brands have plunged 56% year to date against the industry’s 6% growth, as seen in the chart below. The fall in share price likely reflects the company’s ongoing financial challenges and continued uncertainty around U.S. marijuana legalization.
Image Source: Zacks Investment Research
Estimates for TLRY’s loss per share for fiscal 2026 and 2027 have been mixed in the last 30 days.
Image Source: Zacks Investment Research
How to Play TLRY Stock?
Tilray’s efforts to diversify into craft beverages and THC drinks show some strategic foresight. However, the persistent decline in its core cannabis business and competitive concerns remain near-term headwinds. Investors may want to wait for clearer signs of sustained improvement in sales and profitability before taking new positions in this Zacks Rank #3 (Hold) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.