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Should You Buy, Sell or Hold TLRY Stock Post Q2 Earnings?
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Key Takeaways
TLRY delivered record Q2 net revenues of $217.5M, up 3% year over year, with narrower losses.
TLRY saw global cannabis jump 36% and distribution rise 26%, offsetting a 21% decline in beverage revenues.
TLRY reaffirmed full-year adjusted EBITDA guidance and ended Q2 with improved net cash and strong liquidity.
Tilray Brands (TLRY - Free Report) posted its second-quarter fiscal 2026 results last Thursday after the closing bell. The company’s net revenues reached a record $217.5 million, up 3% on a year-over-year basis and also surpassed the Zacks Consensus Estimate. Management attributed the performance to disciplined execution within the diversified portfolio, which spans cannabis, beverage, wellness and distribution sectors. Net loss came to 41 cents per share, missing the consensus mark but improving meaningfully from the 99-cent loss in the prior-year quarter. Reflecting the reverse stock split effective Dec. 2, 2025, Tilray reported an adjusted loss of 2 cents per share for the fiscal second quarter.
Adjusted EBITDA came in at $8.4 million compared with $9 million last year. Tilray reaffirmed its full-year adjusted EBITDA guidance of $62 million-$72 million. Further, the quarter also concluded with a strong balance sheet and sufficient liquidity. Since the earnings announcement, TLRY shares have edged up 1.9%, ending yesterday’s session at $9.30.
In the past six months, TLRY shares have climbed 42.5%, outperforming the industry’s 6.7% loss, the Medical sector’s 11.7% gain and 14.1% growth of the S&P 500 Composite. Among its peers, Canopy Growth (CGC - Free Report) posted 4.2% growth, while Aurora Cannabis (ACB - Free Report) fell 6.8% in the same period.
TLRY 6-Month Price Comparison
Image Source: Zacks Investment Research
TLRY’s Mixed Divisional Performance in Q2
Net revenues of the Beverage segment dropped 21% year over year to $50.1 million, reflecting continued category challenges within the craft beer division and competitive pressures. Tilray Brands’ portfolio optimization efforts under Project 420, which include SKU rationalization and margin-focused initiatives, also weighed on results.
Global Cannabis net revenues totaled $67.5 million, up $1.83 million from the prior year’s figure. The gain was driven by a 36% increase (51% sequentially) in international cannabis revenues due to growth in the German medical cannabis market, receipt of previously backlogged permits and expansion into emerging medical markets, as well as by a 6% increase in Canadian adult-use cannabis. Meanwhile, Canadian medical cannabis gross revenues fell 4% due to uninsured patient attrition to the adult-use recreational market, partially offset by new insured patient acquisition. Wholesale cannabis revenues also declined compared with prior periods, reflecting the company’s strategic decision to channel more volumes into the other markets.
Distribution net revenues, which include Tilray Pharma, increased 26% year over year to $85.3 million, marking the segment’s highest quarterly revenues. Growth was driven by competitive pricing, portfolio optimization and heightened medical device sales. The Wellness business generated flat revenues at $14.6 million, emphasizing a strategic focus on value-added innovation, including high-protein super seeds, better-for-you breakfast products, better-for-you snacking and continued demand for Hiball clean energy drinks.
TLRY’s Liquidity Position
As of the second-quarter fiscal 2026 end, Tilray Brands had cash and cash equivalents, and marketable securities of $291.6 million and $0.8 million in digital assets. The company also reduced its total outstanding debt by approximately $4.2 million, further strengthening the balance sheet.
Meanwhile, the overall net cash position came to $27.4 million compared with a net debt position of $3.8 million in the prior quarter, reflecting a $31.2 million sequential improvement. Cash flow used in operations came to $8.5 million, improving by $32.2 million sequentially due to reductions in working capital. During the quarter, Tilray Brands also completed the At-the-Market (“ATM”) program in the market, with its proceeds intended to support strategic and accretive acquisitions, investments and capital expenditures.
From a technical standpoint, TLRY is trading slightly below its 50-day simple moving average (SMA). However, it has been trading above its 200-day SMA since last month, signaling long-term bullish momentum.
TLRY’s Technical Indicators
Image Source: Zacks Investment Research
TLRY’s Investment Case
The company is the leading cannabis producer in Canada by revenues and the fourth-largest craft beer brewer in the United States. Its high-protein hemp food portfolio holds close to a 60% share in the North American markets. With the global industry still early in its long-term development cycle, the cannabis business is well-positioned for its next phase of growth. Meanwhile, management views the latest federal rescheduling could expand U.S. medical cannabis research, physician involvement and patient access, where Tilray can leverage its experience for building a responsible, national medical cannabis industry. Tilray Medical is expected to generate approximately $150 million in annualized revenues globally.
The high-margin international cannabis business, which just registered one of the strongest international quarters to date, is likely to continue the momentum with the expanding global footprint. Additionally, Tilray Pharma is enhancing operational efficiency to support its commercial expansion into 3,000 additional pharmacies through strategic partnerships and is expected to play a significant role in the overall company growth.
The company’s disciplined approach to product mix, margin management and premium pricing has supported its strategic re-entry into the high-growth segments as vapes and infused pre-rolls, with a focus on accretive margins. At the same time, it also continues to advance its innovation pipeline. Tilray’s liquidity and balance sheet strength also continue to be a clear strategic advantage.
TLRY’s Valuation Metrics
Tilray Brands stock is trading at a forward 12-month Price-to-Sales (P/S) ratio of 1.17, above its median but below the 3.07 industry average. Meanwhile, Aurora Cannabis and Canopy Growth have a 12-month P/S of 0.85 and 2.15, respectively.
TLRY 1-Year P/S
Image Source: Zacks Investment Research
Endnote on TLRY
Tilray Brands’ latest quarterly performance highlighted its improving fundamentals, operational execution and benefits from its diversified global platform across cannabis, beverage and wellness. Solid financial stability is another promising factor. The company’s strong focus on expanding its operations and pursuing its priorities is expected to support long-term shareholder value. With its solid six-month performance and attractive valuation relative to the industry, the Zacks Rank #3 (Hold) stock appears to be a worthwhile option for now. However, new buyers may consider a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Should You Buy, Sell or Hold TLRY Stock Post Q2 Earnings?
Key Takeaways
Tilray Brands (TLRY - Free Report) posted its second-quarter fiscal 2026 results last Thursday after the closing bell. The company’s net revenues reached a record $217.5 million, up 3% on a year-over-year basis and also surpassed the Zacks Consensus Estimate. Management attributed the performance to disciplined execution within the diversified portfolio, which spans cannabis, beverage, wellness and distribution sectors. Net loss came to 41 cents per share, missing the consensus mark but improving meaningfully from the 99-cent loss in the prior-year quarter. Reflecting the reverse stock split effective Dec. 2, 2025, Tilray reported an adjusted loss of 2 cents per share for the fiscal second quarter.
Adjusted EBITDA came in at $8.4 million compared with $9 million last year. Tilray reaffirmed its full-year adjusted EBITDA guidance of $62 million-$72 million. Further, the quarter also concluded with a strong balance sheet and sufficient liquidity. Since the earnings announcement, TLRY shares have edged up 1.9%, ending yesterday’s session at $9.30.
In the past six months, TLRY shares have climbed 42.5%, outperforming the industry’s 6.7% loss, the Medical sector’s 11.7% gain and 14.1% growth of the S&P 500 Composite. Among its peers, Canopy Growth (CGC - Free Report) posted 4.2% growth, while Aurora Cannabis (ACB - Free Report) fell 6.8% in the same period.
TLRY 6-Month Price Comparison
Image Source: Zacks Investment Research
TLRY’s Mixed Divisional Performance in Q2
Net revenues of the Beverage segment dropped 21% year over year to $50.1 million, reflecting continued category challenges within the craft beer division and competitive pressures. Tilray Brands’ portfolio optimization efforts under Project 420, which include SKU rationalization and margin-focused initiatives, also weighed on results.
Global Cannabis net revenues totaled $67.5 million, up $1.83 million from the prior year’s figure. The gain was driven by a 36% increase (51% sequentially) in international cannabis revenues due to growth in the German medical cannabis market, receipt of previously backlogged permits and expansion into emerging medical markets, as well as by a 6% increase in Canadian adult-use cannabis. Meanwhile, Canadian medical cannabis gross revenues fell 4% due to uninsured patient attrition to the adult-use recreational market, partially offset by new insured patient acquisition. Wholesale cannabis revenues also declined compared with prior periods, reflecting the company’s strategic decision to channel more volumes into the other markets.
Distribution net revenues, which include Tilray Pharma, increased 26% year over year to $85.3 million, marking the segment’s highest quarterly revenues. Growth was driven by competitive pricing, portfolio optimization and heightened medical device sales. The Wellness business generated flat revenues at $14.6 million, emphasizing a strategic focus on value-added innovation, including high-protein super seeds, better-for-you breakfast products, better-for-you snacking and continued demand for Hiball clean energy drinks.
TLRY’s Liquidity Position
As of the second-quarter fiscal 2026 end, Tilray Brands had cash and cash equivalents, and marketable securities of $291.6 million and $0.8 million in digital assets. The company also reduced its total outstanding debt by approximately $4.2 million, further strengthening the balance sheet.
Meanwhile, the overall net cash position came to $27.4 million compared with a net debt position of $3.8 million in the prior quarter, reflecting a $31.2 million sequential improvement. Cash flow used in operations came to $8.5 million, improving by $32.2 million sequentially due to reductions in working capital. During the quarter, Tilray Brands also completed the At-the-Market (“ATM”) program in the market, with its proceeds intended to support strategic and accretive acquisitions, investments and capital expenditures.
From a technical standpoint, TLRY is trading slightly below its 50-day simple moving average (SMA). However, it has been trading above its 200-day SMA since last month, signaling long-term bullish momentum.
TLRY’s Technical Indicators
Image Source: Zacks Investment Research
TLRY’s Investment Case
The company is the leading cannabis producer in Canada by revenues and the fourth-largest craft beer brewer in the United States. Its high-protein hemp food portfolio holds close to a 60% share in the North American markets. With the global industry still early in its long-term development cycle, the cannabis business is well-positioned for its next phase of growth. Meanwhile, management views the latest federal rescheduling could expand U.S. medical cannabis research, physician involvement and patient access, where Tilray can leverage its experience for building a responsible, national medical cannabis industry. Tilray Medical is expected to generate approximately $150 million in annualized revenues globally.
The high-margin international cannabis business, which just registered one of the strongest international quarters to date, is likely to continue the momentum with the expanding global footprint. Additionally, Tilray Pharma is enhancing operational efficiency to support its commercial expansion into 3,000 additional pharmacies through strategic partnerships and is expected to play a significant role in the overall company growth.
The company’s disciplined approach to product mix, margin management and premium pricing has supported its strategic re-entry into the high-growth segments as vapes and infused pre-rolls, with a focus on accretive margins. At the same time, it also continues to advance its innovation pipeline. Tilray’s liquidity and balance sheet strength also continue to be a clear strategic advantage.
TLRY’s Valuation Metrics
Tilray Brands stock is trading at a forward 12-month Price-to-Sales (P/S) ratio of 1.17, above its median but below the 3.07 industry average. Meanwhile, Aurora Cannabis and Canopy Growth have a 12-month P/S of 0.85 and 2.15, respectively.
TLRY 1-Year P/S
Image Source: Zacks Investment Research
Endnote on TLRY
Tilray Brands’ latest quarterly performance highlighted its improving fundamentals, operational execution and benefits from its diversified global platform across cannabis, beverage and wellness. Solid financial stability is another promising factor. The company’s strong focus on expanding its operations and pursuing its priorities is expected to support long-term shareholder value. With its solid six-month performance and attractive valuation relative to the industry, the Zacks Rank #3 (Hold) stock appears to be a worthwhile option for now. However, new buyers may consider a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.