Shares of Tilray Brands (TLRY) have dropped 54% year-to-date, significantly underperforming the industry’s 23% decline. Despite revenue growth of 11% year-over-year to a record $915.5 million in fiscal 2026 (ending May 2026), concerns linger regarding the company’s ability to achieve sustainable profitability.
Tilray’s fiscal 2026 performance was buoyed by its multi-segment model, with the distribution segment earning $327.2 million, a 21% increase, and its cannabis business generating $268.3 million in sales, an 8% rise. However, cash generation remains a critical issue, as both operating cash flow and adjusted free cash flow were negative, impacted by a $50 million investment in BrewDog.
Looking ahead to fiscal 2027, Tilray anticipates reaching an annualized revenue run rate of approximately $1.2 billion, although margin expansion and profitability remain challenges. Amid rising competition from companies like Canopy Growth and Aurora Cannabis, analysts have tempered their earnings forecasts for the next two years, urging caution for potential investors.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
