Tilray Brands (TLRY) Stock: Is It Still a Buy After 67% Rally?

TLDR

Table of Contents

Tilray stock jumped 40% on September 29 after President Trump posted a video on Truth Social promoting CBD oil for senior healthcare
The video calls for Medicare coverage of CBD treatments and claims it could save the healthcare system $64 billion annually
Tilray’s beverage business generated $241 million in fiscal 2025, nearly matching cannabis revenue of $249 million
International cannabis revenue surged 71% year over year in Q4, with Germany up 134%
The company maintains $256 million in liquidity with leverage at only 0.3 times net debt to adjusted EBITDA

Tilray Brands saw its stock price explode 40% on September 29 following a weekend video post by President Trump on Truth Social. The video promoted CBD oil as a treatment option for seniors.

Trump shared a nearly three-minute video created by The Commonwealth Project, a nonprofit backed by philanthropist Howard Kessler. The organization focuses on integrating medical cannabis into mainstream healthcare for the 65-plus population.

President Trump’s recent post on Truth Social about the potential health benefits of cannabis for seniors are a major milestone in the national healthcare conversation. At @Tilray, we’re ready to lead the way with science, responsibility, and a commitment to public health.
As a… pic.twitter.com/TpDAJK6uDd
— Irwin D. Simon (@IrwinDSimon) September 29, 2025

The video argues that doctors have discovered an “endocannabinoid system” in the human body that weakens with age. It positions hemp-derived CBD as a better alternative to traditional pharmaceuticals for treating symptoms of this decline.

The presentation specifically calls for Medicare to cover marijuana-related treatments. It promises $64 billion in annual savings for the healthcare system once this happens.

Investors interpreted Trump’s endorsement as a potential signal for marijuana legalization legislation. The stock jumped from around $1.15 to over $1.80 in morning trading.

Beyond Cannabis

What many investors miss is that Tilray Brands isn’t just a cannabis company anymore. The beverage segment generated approximately $241 million in fiscal 2025, nearly matching the cannabis division’s $249 million.

Tilray completed the acquisition of eight craft beer brands from Anheuser-Busch InBev in late 2023. The deal included Shock Top, Breckenridge, Blue Point, 10 Barrel, Redhook, Widmer, Square Mile, and HiBall.

This purchase made Tilray the fourth-largest craft brewer in the United States by volume. The portfolio came with four production facilities, eight brewpubs, and distribution infrastructure that would take competitors years to build.

The acquisition scaled up Tilray’s beer production from approximately 4 million to 12 million cases on a pro forma basis. These brands have established national distribution and retail relationships across the country.

International Growth

While domestic cannabis revenue declined year over year in fiscal 2025, international markets showed strong growth. In Q4 fiscal 2025, international cannabis revenue hit $22.4 million, up 71% year over year.

Germany proved particularly strong, with revenue up 134% in the quarter. This international expansion provides a growth avenue outside North America’s oversupplied cannabis market.

Management delivered one of its best quarterly adjusted EBITDA results in Q4 fiscal 2025 at approximately $27 million to $28 million. The beverage business contributed steady cash flow without the regulatory friction that crimps cannabis margins.

At fiscal year-end 2025, Tilray reported a liquidity position of $256.4 million, including $221.7 million in cash and $34.7 million in marketable securities. The company reduced total debt by almost $100 million over the year.

Net debt to trailing-12-months adjusted EBITDA improved to 0.3 times. The primary debt obligation is 5.20% senior notes due June 15, 2027, originally $150 million.

Tilray has been exchanging portions of these convertible notes into equity, pushing maturities out while carrying some dilution risk. The balance sheet gives the company runway to integrate its beer portfolio and pursue opportunistic acquisitions.

The stock trades at roughly 1 times sales despite the diversified revenue mix. Shares remain down about 99% from their 2018 peak of over $200.

If marijuana moves from Schedule I to Schedule III, U.S. cannabis companies could deduct normal business expenses. This would end the punitive 280E tax treatment that forces cannabis operators to pay taxes on gross profit rather than net income.

Trump’s CBD video suggests cannabis reform might gain momentum. The Commonwealth Project video specifically promoted CBD benefits for pain relief, stress reduction, better sleep, and increased lifespan for seniors.

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