Tilray Brands Reports Q2 Fiscal 2026 Financial Results

NEW YORK – Tilray Brands Inc. posted net revenue of $217.5 million for its fiscal second quarter ended November 30, 2025, marking the company’s highest quarterly figure to date and edging up 3% from $211 million a year earlier. The results underscore steady progress in core Cannabis operations even as beverage sales softened, with executives pointing to a fortified balance sheet as evidence of tighter financial controls.

Cannabis net revenue climbed to $67.5 million, a 3% increase, fueled by a 36% surge in international medical sales that offset softer wholesale demand in Canada. Canadian adult-use Cannabis added a 6% lift, reflecting consumer shifts toward premium flower and pre-rolls. Gross margins in the segment expanded to 39% from 35%, a sign that pricing discipline and supply chain efficiencies are taking hold amid regulatory hurdles.

The beverage division, however, posted $50.1 million in net revenue, down sharply from $63.1 million, as legacy brands like Breckenridge Brewery faced distribution headwinds and inflationary pressures squeezed margins to 31%. Distribution and wellness segments provided counterbalance: the former hit a quarterly record of $85.3 million, up 26%, thanks to expanded pharmaceutical partnerships in Europe, while wellness held steady at $14.6 million.

Overall, gross profit dipped 6% to $57.5 million, with margins at 26%, reflecting the beverage drag. Yet Tilray narrowed its net loss to $43.5 million, or 41 cents per share, from $85.3 million the prior year – a $41.8 million swing driven by lower operating costs and reduced amortization. Adjusted EBITDA came in at $8.4 million, off 7%, but the company flipped to a net cash position of about $30 million, ending the quarter with $292 million in cash and equivalents after paying down debt. Tilray reaffirmed its full-year adjusted EBITDA target of $62 million to $72 million, a range that assumes continued regulatory tailwinds abroad and measured U.S. bets.

Irwin D. Simon, Tilray’s chairman and CEO, called the quarter a testament to “disciplined execution” across a portfolio that now spans four pillars. “Our business model supports scalability and adaptability in challenging markets,” he said in a statement, adding that the firm is positioned to capitalize on potential U.S. federal rescheduling of Cannabis, which could open doors for its medical infrastructure already active in 20 countries.

Tilray’s revenue growth, while modest, beats analyst expectations and signals resilience in a fragmented industry where many peers grapple with oversupply and stagnant U.S. reform. The international Cannabis push [now 70% of segment sales] highlights a smart strategy to avoid domestic saturation and potentially yield higher returns as global markets mature. Beverages remain a wildcard; divestitures or sharper cost cuts could unlock value there, but for now, they dilute focus on higher-margin Cannabis and pharma plays.