Key Highlights
- Q3 net revenue reached an all-time high of $206.7M, representing an 11% year-over-year increase and surpassing analyst projections of $201.35M
- The company posted adjusted earnings of $0.02 per share, significantly outperforming the expected loss of -$0.14
- Cannabis segment revenue expanded 19% to $64.8M, fueled by a remarkable 73% increase in international cannabis sales
- Adjusted EBITDA climbed 19% to reach $10.7M; management maintains fiscal 2026 outlook of $62M–$72M
- The company completed BrewDog acquisition for approximately £40M and forged strategic alliance with Carlsberg beginning in 2027
Tilray Brands delivered record-breaking quarterly performance in its third fiscal quarter of 2026, achieving net revenue of $206.7 million. This represents an 11% increase compared to $185.8 million reported during the corresponding period last year, exceeding analyst consensus estimates.
The real story was the earnings beat. Wall Street analysts anticipated a per-share loss of 14 cents. Instead, Tilray delivered an adjusted profit of $0.02 per share. This significant outperformance drove the stock upward, with TLRY gaining 8.01%.
The company recorded a net loss of $25.2 million for the quarter. While this represents a negative result, it marks substantial progress from the $793.5 million loss recorded in the prior-year quarter.
Gross profit reached $55.0 million, reflecting 6% year-over-year growth, while the consolidated gross margin stood at 27%.
The cannabis division showed particularly strong performance. Overall cannabis revenue increased 19% to $64.8 million. International cannabis net revenue skyrocketed 73%, while cannabis flower sales volume saw a twofold increase compared to last year.
In Canada, adult-use and medical cannabis net revenue advanced 8%, maintaining Tilray’s position as the leading cannabis revenue generator in the Canadian market.
The distribution business also delivered impressive results. It achieved record Q3 net revenue of $83.0 million, with distribution gross profit climbing to $10.0 million and margin expansion to 12%.
Tilray successfully concluded its Project 420 synergy initiative during the quarter. This program generated approximately $33 million in annualized cost reductions.
BrewDog Acquisition and Carlsberg Strategic Alliance
Following quarter-end, Tilray finalized its purchase of BrewDog, the prominent UK craft beer company, for roughly £40 million in cash. Chief Executive Officer Irwin Simon indicated the acquisition enables the company to develop a “scaled global beverage platform.”
Additionally, Tilray unveiled a strategic partnership with Carlsberg, scheduled to commence in 2027. According to the company, this collaboration extends its footprint throughout Europe, the Middle East, Australia, Asia-Pacific, and the United States.
Adjusted EBITDA for the third quarter totaled $10.7 million, marking a 19% improvement from $9.0 million in the year-ago period.
Fiscal 2026 Outlook Maintained
Management reiterated its fiscal 2026 adjusted EBITDA guidance of $62 million to $72 million. This projection indicates anticipated growth of 13% to 31% versus fiscal year 2025 results.
Wall Street’s consensus rating on TLRY remains at Hold, supported by one Buy recommendation and five Hold ratings issued during the past three months. The average analyst price target stands at $8.97, suggesting potential upside of approximately 38.64% from current trading levels.
Notwithstanding the third-quarter outperformance, TLRY shares have declined 28.35% year-to-date and 0.68% over the trailing 12-month period.
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