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Tilray (TLRY)
NASDAQ:TLRY
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Tilray (TLRY) AI Stock Analysis

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TLRY

Tilray

(NASDAQ:TLRY)

Rating:50Neutral
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
Earnings
Adj. EBITDA of $9M came in higher vs. our $6.5M estimate, in part from better-than-expected Canadian cannabis gross margins of 40.5%.
International Sales
TLRY achieved a new record in international cannabis sales of $22M, owing to robust market growth in Europe.
Negative Factors
Beverage Sales
Beverage 4Q sales declined -14% and performance was below management's expectations.
International Growth Challenges
Reduction in international cannabis growth due to product re-certification issues.
Market Environment
The price target for Tilray stock has been lowered to $1.00 per share, reflecting a challenging environment.

Tilray (TLRY) vs. SPDR S&P 500 ETF (SPY)

Tilray Business Overview & Revenue Model

Company DescriptionTilray 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 MoneyTilray 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 Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Oct 02, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance with strong international cannabis revenue and improved financial metrics, but was offset by significant noncash impairment charges and underperformance in the beverage segment.
Q4-2025 Updates
Positive Updates
Record International Cannabis Revenue
Tilray achieved a record revenue of $22.4 million in the international cannabis business in Q4, up 71% year-over-year.
Improved Gross Margins
Total cannabis gross margin increased by 400 basis points to 44% in Q4, and by 700 basis points for the fiscal year.
Strong Adjusted EBITDA Performance
Achieved the second-highest ever quarterly consolidated adjusted EBITDA of almost $28 million in Q4.
Debt Reduction and Financial Stability
Reduced debt by approximately $100 million and improved net debt-to-EBITDA ratio to 0.3x from 1.7x last year.
Expansion and Growth in Key Markets
European cannabis revenue increased organically by 112% in Q4, excluding Australia, and Germany achieved a revenue growth of 134% over the prior year quarter.
Negative Updates
Noncash Impairment Charges
Recorded a noncash impairment charge of $1.4 billion in the fourth quarter, largely due to a decline in market capitalization and slower-than-expected US regulatory changes.
Beverage Segment Underperformance
Beverage revenue impacted by SKU rationalization and softer consumer demand, resulting in a $20 million revenue impact for the year.
US Regulatory Delays
Slower-than-anticipated progress in global cannabis regulatory change, impacting long-term strategic positioning in the US market.
Company Guidance
During the call discussing Tilray Brands' financial results for the fourth quarter and fiscal year 2025, several key metrics and guidance were highlighted. Tilray achieved record annual revenue of $821 million, marking a 4% increase year-over-year on a constant currency basis. The international cannabis business reached a record revenue of $22.4 million in Q4, up 71% year-over-year. Total cannabis gross margin increased by 400 basis points to 44% in Q4, with a 700 basis point increase over the fiscal year. The company reported its second-highest quarterly consolidated adjusted EBITDA of nearly $28 million. For fiscal 2025, Tilray's highest gross profit to date was $241 million, an 8% increase year-over-year. The company maintained a strong balance sheet with approximately $256 million in cash and reduced its debt by about $100 million, improving its net debt-to-EBITDA ratio to 0.3x from 1.7x the previous year. Looking ahead to fiscal 2026, Tilray anticipates adjusted EBITDA between $62 million and $72 million.

Tilray Financial Statement Overview

Summary
Tilray's financial performance is challenged by negative net income and EBIT, despite some revenue growth. The balance sheet shows stability with low leverage, but cash flow inefficiencies persist, highlighting the need for operational improvements.
Income Statement
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.15B1.13B1.07B844.72M792.12M619.67M
Gross Profit353.50M330.11M304.33M197.95M147.26M148.77M
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 Assets3.40B2.07B4.22B4.31B5.45B6.03B
Cash, Cash Equivalents and Short-Term Investments248.41M256.36M260.52M448.53M415.91M488.47M
Total Debt343.91M235.13M387.32M590.13M623.81M938.66M
Total Liabilities701.04M584.75M778.49M977.32M1.01B1.56B
Stockholders Equity2.73B1.51B3.44B3.32B4.40B4.46B
Cash Flow
Free Cash Flow-81.23M-94.60M-60.15M-12.89M-211.33M-83.59M
Operating Cash Flow-50.67M-94.60M-30.91M7.91M-177.26M-44.72M
Investing Cash Flow-16.47M-46.72M128.35M-285.11M-21.53M46.10M
Financing Cash Flow124.77M133.51M-75.19M70.16M128.20M124.31M

Tilray Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.19
Price Trends
50DMA
0.82
Positive
100DMA
0.63
Positive
200DMA
0.82
Positive
Market Momentum
MACD
0.13
Positive
RSI
55.98
Neutral
STOCH
20.63
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 above the 20-day moving average (MA) of 1.17, above the 50-day MA of 0.82, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLRY.

Tilray Risk Analysis

Tilray disclosed 61 risk factors in its most recent earnings report. Tilray reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Tilray Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$628.06M-8.30%0.70%15.62%
51
Neutral
$7.92B-0.43-41.69%2.21%22.29%-1.85%
50
Neutral
$1.38B-88.27%4.10%-594.06%
46
Neutral
$4.70M-52.05%-29.64%73.63%
44
Neutral
$6.42M-33.13%-7.80%90.17%
39
Underperform
$12.68M-230.73%-24.10%38.17%
$2.58M-1460.27%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TLRY
Tilray
1.19
-0.43
-26.54%
CPHI
China Pharma Holdings
1.68
-0.09
-5.08%
YCBD
cbdMD
0.73
-3.83
-83.99%
SNDL
SNDL
2.48
0.50
25.25%
FLGC
Flora Growth
22.50
-16.35
-42.08%
AKAN
Akanda Corp
3.45
-3.43
-49.85%

Tilray Corporate Events

Private Placements and Financing
Tilray Completes Debt-for-Equity Exchange Transaction
Neutral
Jun 23, 2025

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.

Shareholder MeetingsStock Split
Tilray Approves Reverse Stock Split Proposal
Neutral
Jun 10, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025