Tilray (TLRY) Stock Jumps 22% as Cannabis Company Beats on Earnings

TLDR

Table of Contents

Tilray Brands stock jumped 22.1% after reporting a surprise profit in fiscal Q1, beating analyst expectations who predicted a loss.
The company posted $1.5 million in net profit ($0.00 per share) on revenue of $209.5 million, exceeding the forecasted $205.8 million.
Revenue grew 5% year-over-year, though gross profit margin declined three percentage points to 27%.
Free cash flow improved drastically to negative $10.9 million from negative $42 million in the same quarter last year.
CEO Irwin D. Simon bought 165,000 shares at $0.61 each in July, showing confidence in the company’s direction.

Tilray Brands turned heads on Thursday when it delivered something Wall Street wasn’t expecting. A profit.

The cannabis company posted earnings of $0.00 per share for fiscal Q1. That might sound like breaking even, but analysts had predicted a loss of $0.04 per share.

Tilray Brands Reports Strong First Quarter Fiscal 2026 Results, Highlighting Continued Growth with Record Q1 Net Revenue of $210 Million and Net Income.
Details https://t.co/U0ktm2yEj5 $TLRY pic.twitter.com/Vt0Ei8gT4d
— Tilray Brands (@tilray) October 9, 2025

Under the hood, Tilray actually made $1.5 million in net profit. The per-share figure just rounded down to zero.

Revenue came in at $209.5 million. That beat the $205.8 million consensus estimate.

Shares exploded higher on the news. The stock jumped 22.1% during midday trading, reaching as high as $2.32.

Trading volume told the story too. Approximately 298 million shares changed hands, up 516% from the average daily volume of 48 million shares.

Revenue growth was modest at 5% year-over-year. Gross profit margin dropped three full percentage points to 27%.

Cash Flow Shows Real Progress

The cash flow statement revealed something interesting. Tilray posted negative free cash flow of $10.9 million for the quarter.

That sounds bad at first. But a year ago, the company was burning through $42 million per quarter.

Management pointed to their focus on operational efficiencies and profitability. That strategy appears to be working.

The stock had closed at $1.72 the previous day. By the end of trading, it sat at $2.10.

Insider Activity and Analyst Views

CEO Irwin D. Simon made a personal bet on the company back in July. He purchased 165,000 shares at an average price of $0.61 per share.

That transaction was worth $100,650. Following the purchase, Simon directly owned 3.9 million shares valued at $2.4 million.

Wall Street remains cautious. The consensus rating sits at “Hold” with an average price target of $1.94.

Jefferies Financial Group raised their price target from $1.50 to $2.00 in August. They gave the stock a “buy” rating.

Wall Street Zen downgraded shares to a “strong sell” in July. Weiss Ratings maintained a “sell” rating as well.

Two analysts rate the stock as a buy. Four have issued hold ratings and one rates it as a sell.

The company has a market cap of $2.31 billion. Its price-to-earnings ratio stands at negative 0.91.

The stock’s beta is 1.98, indicating higher volatility than the broader market. The 50-day moving average is $1.22 while the 200-day moving average sits at $0.75.

Tilray has a current ratio of 2.46 and a quick ratio of 1.49. The debt-to-equity ratio is 0.20.

Institutional ownership remains low at 9.35% of the stock. Several hedge funds adjusted their positions during the first quarter.

Fifth Lane Capital increased their holdings by 400%, bringing their total to 50,000 shares worth $33,000. Capital Management Associates doubled their position to 50,760 shares.

Analysts don’t expect Tilray to achieve consistent profitability until 2028 at the earliest. For the current year, they forecast negative $0.20 earnings per share.

The company lost $2.2 billion over the last 12 months. But this quarter’s results show the gap is narrowing.

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