Tilray (TLRY) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 72.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 4.10%
• EPS Growth: -594.06%
• Country: US
• Employees: 2,650
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.30
• Shares Outstanding: 1,118,291,100
• 10 Day Avg. Volume: 41,308,262
• 30 Day Avg. Volume: 72,511,161
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.46
• P/FCF Ratio: -4.01
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: -0.42
• 1Y Price Target: $1.03
• Price Target Upside: -13.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 50 Neutral
• Price Target: $1.50 ▲(26.05% Upside)

Tilray's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. While technical indicators show bullish momentum, the stock's valuation remains unattractive due to negative earnings. The earnings call provided mixed signals, with some positive revenue growth overshadowed by significant impairment charges.

Positive Factors

International Expansion

Strong growth in international markets, particularly in Europe, indicates successful expansion efforts and enhances Tilray's global footprint, providing a durable competitive advantage.

Gross Margin Improvement

Improved gross margins suggest enhanced operational efficiency and cost management, which are essential for long-term profitability and competitiveness in the cannabis industry.

New Product Offerings

The introduction of new medical cannabis strains in Germany strengthens Tilray's product portfolio and market position, supporting sustained revenue growth and market leadership in the medical cannabis sector.

Negative Factors

Cash Flow Challenges

Persistent negative cash flows indicate inefficiencies in cash management, which could hinder Tilray's ability to invest in growth opportunities and maintain financial stability over the long term.

Noncash Impairment Charges

Significant impairment charges reflect underlying asset valuation issues and market challenges, potentially impacting future profitability and shareholder value.

Beverage Segment Underperformance

Underperformance in the beverage segment suggests challenges in diversifying revenue streams and adapting to consumer preferences, which may affect long-term growth prospects.

Tilray Business Overview & Revenue Model

Company Description

Tilray Brands, Inc. engages in the research, cultivation, production, marketing, and distribution of medical cannabis products in Canada, the United States, Europe, Australia, New Zealand, Latin America, and internationally. The company operates through four segments: Cannabis Business, Distribution Business, Beverage Alcohol Business, and Wellness Business. It offers medical and adult-use cannabis products, including GMP-certified flowers, oils, vapes, edibles, and topicals; purchases and resells pharmaceutical and wellness products; and produces, markets, sells, and distributes beverage alcohol products, and hemp-based food and other wellness products. The company offers its products under the Tilray, Aphria, Broken Coast, Symbios, B!NGO, The Batch, P'tite Pof, Dubon, Good Supply, Solei, Chowie Wowie, Canaca, RIFF, SweetWater, Breckenridge Distillery, Alpine Beer Company, and Green Flash brands. It sells its products to retailers, wholesalers, patients, physicians, hospitals, pharmacies, researchers, and governments, as well as direct to consumers. The company was formerly known as Tilray, Inc. Tilray Brands, Inc. is headquartered in Leamington, Canada.

How the Company Makes Money

Tilray generates revenue primarily through the sale of cannabis products, including dried flower, oils, and edibles, which are sold to both medical and recreational consumers. The company has established key revenue streams through its direct-to-consumer sales, partnerships with distributors and retailers, and international exports of medical cannabis products. Additionally, Tilray has formed strategic alliances with other companies in the cannabis and pharmaceutical sectors, which enhance its market reach and product offerings. The company's ongoing focus on research and development also positions it to capitalize on emerging trends in the cannabis market, contributing to its earnings potential.

Tilray Financial Statement Overview

Summary

Tilray's financial statements indicate significant profitability and cash flow challenges, despite some revenue growth. The income statement and cash flow analysis highlight the need for operational improvements and better cash management to achieve sustainable growth.

Income Statement

Tilray's income statement shows a declining financial performance with consistent negative net income and EBIT over the years. The gross profit margin is moderate at 29.3% for 2025, but the net profit margin is significantly negative. There is a slight revenue growth of 4.1% from 2024 to 2025, indicating some top-line improvement. However, the negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

Tilray's balance sheet presents a mixed picture. The debt-to-equity ratio has improved to 0.16 in 2025, indicating manageable leverage. However, the return on equity is negative due to ongoing losses, and the equity ratio is strong at 72.8%, showing financial stability. The reduction in total assets highlights potential asset disposals or write-downs, posing a risk to future growth.

Cash Flow

The cash flow statement reveals challenges in cash generation, with negative operating and free cash flows for 2025. The operating cash flow to net income ratio is not meaningful due to negative figures, reflecting cash flow inefficiencies. Although free cash flow improved from 2024, it remains negative, indicating a need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.15B	1.13B	1.07B	844.72M	792.12M	619.67M
Gross Profit	353.50M	330.11M	304.33M	197.95M	147.26M	148.77M
EBITDA	-1.12B	-2.92B	-99.25M	-1.72B	-310.61M	-297.41M
Net Income	-1.36B	-3.00B	-333.80M	-1.96B	-601.05M	-443.75M
Balance Sheet
Total Assets	3.40B	2.07B	4.22B	4.31B	5.45B	6.03B
Cash, Cash Equivalents and Short-Term Investments	248.41M	256.36M	260.52M	448.53M	415.91M	488.47M
Total Debt	343.91M	235.13M	387.32M	590.13M	623.81M	938.66M
Total Liabilities	701.04M	584.75M	778.49M	977.32M	1.01B	1.56B
Stockholders Equity	2.73B	1.51B	3.44B	3.32B	4.40B	4.46B
Cash Flow
Free Cash Flow	-81.23M	-94.60M	-60.15M	-12.89M	-211.33M	-83.59M
Operating Cash Flow	-50.67M	-94.60M	-30.91M	7.91M	-177.26M	-44.72M
Investing Cash Flow	-16.47M	-46.72M	128.35M	-285.11M	-21.53M	46.10M
Financing Cash Flow	124.77M	133.51M	-75.19M	70.16M	128.20M	124.31M

Tilray Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLRY, the sentiment is Positive. The current price of 1.19 is below the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.00, and above the 200-day MA of 0.81, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.92 is Neutral, neither overbought nor oversold. The STOCH value of 62.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLRY.

Tilray Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNDL	61 Neutral	661.52M	-9.20	-8.36%	―	0.70%	15.62%
TLRY	50 Neutral	$1.41B	―	-88.27%	―	4.10%	-594.06%
IMCC	39 Underperform	9.66M	-3.28	-201.89%	―	2.17%	88.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tilray Corporate Events

Tilray Completes Debt-for-Equity Exchange Transaction

Tilray Brands, Inc. has completed a private debt-for-equity exchange transaction with an unrelated party. The company issued over 12.5 million shares of its common stock in exchange for $5 million in principal amount of its Convertible Senior Notes due in 2027, leveraging an exemption under the Securities Act for this transaction.

Tilray Approves Reverse Stock Split Proposal

On June 10, 2025, Tilray Brands, Inc. held a special meeting of stockholders to vote on two proposals: an amendment for a reverse stock split and the adjournment of the meeting for further proxy solicitation if needed. Both proposals were approved, with the board retaining discretion on executing the reverse stock split, indicating a strategic move to potentially enhance the company’s stock market positioning.