NEW YORK, July 31, 2026, 14:11 EDT
- Tilray gained 6.4% to $4.47, as three Canadian cannabis rivals slipped.
- Beverages and distribution accounted for 89% of revenue growth during the fourth quarter.
- Non-cannabis segments accounted for 71% of yearly revenue, while cannabis contributed 41% of total gross profit.
Shares of Tilray Brands, Inc. NASDAQ:TLRY climbed 6.4% to $4.47 at the start of trading on Friday. The company’s stock built on Thursday’s 5.3% gain.
The action was isolated to the company. Shares of Canopy Growth NASDAQ:CGC, Aurora Cannabis NASDAQ:ACB, and SNDL NASDAQ:SNDL each fell.
| Stock | Price | Friday move | Intraday range |
|---|---|---|---|
| Tilray Brands NASDAQ:TLRY | $4.47 | up 6.4% | $4.15–$4.52 |
| Canopy Growth NASDAQ:CGC | $0.915 | down 0.3% | $0.889–$0.919 |
| Aurora Cannabis NASDAQ:ACB | $2.78 | down 1.9% | $2.74–$2.84 |
| SNDL NASDAQ:SNDL | $1.23 | down 1.6% | $1.21–$1.25 |
Prices are based on most recent trades as of approximately 13:56 EDT.
Tilray’s move to diversify outside of cannabis is drawing positive response from investors. The drinks and distribution segment contributed $50.9 million to the $57.2 million rise in quarterly sales.
Beverage sales surged 61%. Distribution climbed 15%. Cannabis was up only 5%.
| Fourth-quarter segment | FY2026 revenue | FY2025 revenue | Increase | Share of total increase |
|---|---|---|---|---|
| Beverage | $105.6 million | $65.6 million | $40.0 million | 69.9% |
| Distribution | $85.0 million | $74.1 million | $10.9 million | 19.1% |
| Cannabis | $71.5 million | $67.8 million | $3.6 million | 6.4% |
| Wellness | $19.7 million | $17.0 million | $2.7 million | 4.6% |
| Total | $281.7 million | $224.5 million | $57.2 million | 100% |
Tilray’s segment data was used to determine percentages.
The yearly breakdown shows a similar trend, with non-cannabis operations generating 71% of revenue for fiscal 2026.
However, cannabis contributed a greater share to overall profits, accounting for 41% of gross profit while representing just 29% of sales.
| Fiscal 2026 segment | Revenue | Revenue share | Gross profit | Gross-profit share | Gross margin |
|---|---|---|---|---|---|
| Beverage | $254.0 million | 27.7% | $91.2 million | 35.0% | 36% |
| Cannabis | $268.3 million | 29.3% | $107.1 million | 41.1% | 40% |
| Distribution | $327.2 million | 35.7% | $40.7 million | 15.6% | 12% |
| Wellness | $65.9 million | 7.2% | $21.5 million | 8.2% | 33% |
| Total | $915.5 million | 100% | $260.4 million | 100% | 28% |
Reported annual revenue and gross profit are used to determine shares.
Distribution accounted for 36% of total sales yet contributed just 16% of gross profit. The division’s margin stood at 12%, behind the 40% achieved by cannabis.
The combination restricted overall margin gains for the year. Gross margin for the entire company dropped to 28% from 29%.
The signal improved in the fourth quarter. Overall gross margin climbed to 32%, up from 30% the previous year. Distribution saw a rise of four margin points.
| Financial measure | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Revenue | $915.5 million | $821.3 million | +11% |
| Gross profit | $260.4 million | $240.6 million | +8% |
| Gross margin | 28% | 29% | -1 point |
| Adjusted EBITDA | $61.1 million | $55.0 million | +11% |
| Adjusted net income | $12.2 million | $6.5 million | +87% |
| Adjusted EPS | $0.11 | $0.07 | +57% |
| Fiscal 2027 adjusted EBITDA guidance | $68–$75 million | — | 11% to 23% above FY2026 |
Adjusted EBITDA and revenue for fiscal 2026 both increased by approximately 11%. The GAAP net loss declined to $105.2 million.
The comparison was helped by $2.1 billion in impairments recorded in the prior year. These charges were absent in fiscal 2026.
Tilray projects adjusted EBITDA for fiscal 2027 between $68 million and $75 million, indicating growth of 11%-23% over the current reported level. Management anticipates annual revenue to exceed $1 billion.
Chief Executive Irwin Simon spelled out the strategy in clear terms. “The next chapter for Tilray will not be defined by one product, one market or one regulatory event,” he said. SEC
Analysts held mixed ratings after the results. Derek Lessard at TD Cowen reiterated a Buy rating and a $5 price target. Frederico Gomes from ATB and Aaron Grey at Alliance Global both reiterated Hold ratings, setting their targets at $8 and $5 respectively.
Adjusted earnings outpace cash conversion. GAAP operating cash flow posted a loss of $69.1 million. Free cash flow stood at negative $98.6 million.
As of the end of May, Tilray held approximately $235 million in cash, restricted cash, and securities. Net debt stood at $0.7 million. The company raised $158.0 million through share sales over the year.
Risks: Beverage margin declined by three points for the full year. Shares outstanding increased 24%. Stock compensation totaled $45.9 million, representing approximately three-quarters of adjusted EBITDA. Legal challenges to U.S. rescheduling remain.
The rally creates a decisive challenge. Tilray needs to turn its broader sales base into sustainable margins and growth funded from within.
