Tilray Brands has announced its highest-ever quarterly sales, surpassing market expectations while significantly narrowing its losses. The cannabis and consumer packaged goods company also confirmed progress on its global strategy with a key consolidation in the European medical market.
Financial Performance Exceeds Estimates
For its second quarter of fiscal year 2026, Tilray generated record revenue of $217.5 million. This figure represents a 3% year-over-year increase and came in ahead of the average analyst forecast of $211.15 million.
The company’s net loss showed substantial improvement, shrinking by 49% to $43.5 million. On an adjusted basis, the loss per share was $0.02. Excluding non-cash tax charges, Tilray actually achieved an adjusted profit of $0.01 per share, a result that was notably better than the anticipated $0.06 per-share loss. Operational cash flow also strengthened, improving by $32.2 million from the prior year to negative $8.5 million.
Key Financial Metrics:
* Q2 FY2026 Revenue: $217.5 million (+3% YoY)
* Net Loss: $43.5 million (49% improvement)
* Liquidity: $291.6 million in cash and marketable securities
* FY2026 EBITDA Forecast: $62-72 million (reaffirmed)
* Project 420 Annualized Savings: $27 million
Strategic Move in European Medical Cannabis
A significant step in Tilray’s international branding strategy was unveiled on January 22, 2026, with the rebranding of its Italian subsidiary, FL Group, to Tilray Medical Italia. This move consolidates the company’s medical cannabis operations in one of Europe’s most important regulated markets.
Should investors sell immediately? Or is it worth buying Tilray?
Through a partnership with Molteni Farmaceutici, a pharmaceutical firm with established access to Italian hospitals and pharmacies, Tilray Medical Italia will distribute a portfolio of cannabis flower varieties and medically approved cannabis oils sanctioned by Italy’s Ministry of Health. This expansion is part of a broader initiative to unify the company’s global medical cannabis businesses under a single brand. Tilray Medical currently supplies over 20 countries with medical cannabis programs across five continents.
Beverage Segment Faces Headwinds
Not all divisions performed equally well. The beverage segment posted revenue of $50.1 million for the quarter, a decline of 20.6% from the $63.1 million reported in the same period last year. Company leadership attributed the decrease to challenges in the craft beer category and heightened competitive pressures.
Despite this, Tilray maintains a dominant position in the Canadian THC beverage market, holding a market share exceeding 45%. The company’s ongoing efficiency program, Project 420, has already realized annualized cost savings of $27 million in the first half of the fiscal year.
Mixed Analyst Sentiment
Market analysts have presented a divided view on the stock following the earnings release. On January 13, Zacks Research downgraded Tilray shares to a Strong Sell rating. Roth Capital reaffirmed its Neutral rating on January 20 but reduced its price target from $20 to $10. Subsequently, on January 27, Canaccord Genuity initiated coverage with a Hold recommendation.
Investors can expect the company’s next quarterly financial update on April 7, 2026.
Ad
Tilray Stock: Buy or Sell?! New Tilray Analysis from February 1 delivers the answer:
The latest Tilray figures speak for themselves: Urgent action needed for Tilray investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 1.
Tilray: Buy or sell? Read more here...
