Tilray Brands Reports Fiscal Q1 2027 Financial Results

NEW YORK – LONDON – Tilray Brands Inc. reported that net revenue for the three months ended August 31, 2026, climbed 23% year-over-year to $257.1 million, setting a new record for the company’s opening fiscal quarter. Gross profit rose 35% to $77.5 million, with overall gross margin widening to 30% from 27%.

The engine behind those headline numbers was the beverage segment. Revenue there jumped 82% YoY to $101.5 million, largely reflecting the BrewDog acquisition completed in fiscal 2026. BrewDog also reached profitability in Q1. Beverages now account for 39% of Tilray’s total revenue, the largest share of any operating segment, and carries a 41% gross margin.

The international distribution arm also contributed meaningfully, with revenue up 14% to $84.3 million. Across Tilray’s full international business, EMEA revenue rose 71%, led by medical Cannabis, beverage and pharmaceutical distribution.

Cannabis, however, told a different story. Net Cannabis revenue declined to $56.1 million from $64.5 million in the comparable quarter, pulled down by softness in the Canadian adult-use market and a steep drop in wholesale volumes. International Cannabis offered some counterweight, rising from $13.4 million to $16.2 million YoY. Cannabis gross margin improved to 39% from 36%, suggesting that even a contracting top line is becoming leaner at the production level.

On the bottom line, net loss came in at $40 million for the quarter – a sharp swing from net income of $1.5 million in the prior-year period. Management attributed the bulk of that deterioration to non-cash charges, surging transaction costs tied to the BrewDog integration, and a 55% increase in marketing and promotion spend.

Adjusted EBITDA stood at $9.2 million, slightly below last year’s $10.2 million and further burdened by approximately $1.7 million in global fuel surcharges. Cash and equivalents closed the quarter at $221.4 million. Tilray also reduced total outstanding debt by $42 million fiscal year-to-date, ending the quarter in a net cash position. Management reaffirmed its full-year fiscal 2027 adjusted EBITDA guidance of $68 million to $75 million, representing double-digit growth over fiscal 2026.

Tilray’s Q1 FY 2027 narrative is effectively two companies sharing one balance sheet – a global beverage and pharmaceutical distribution platform generating real margin expansion, and a Canadian Cannabis operation under pressure from market maturity and competitive pricing. The 82% beverage revenue surge is notable, but it carries integration costs and a management attention premium that won’t normalize overnight. Until Tilray demonstrates consistent EBITDA growth at the consolidated level, and until U.S. federal regulatory clarity finds its way back to the agenda, the distance between the company’s operational ambitions and its public market valuation is unlikely to close on its own.