Tilray’s Mixed Quarter: Record Revenue Tempered by Beverage Weakness

Tilray Brands’ latest financial report presents investors with a complex picture. The company achieved its highest-ever quarterly revenue, driven by international cannabis operations, yet significant challenges in its beverage division cast a shadow over the results. The central question now is whether the firm can successfully navigate its European expansion while simultaneously rehabilitating its struggling beer business.

Financial Performance: A Closer Look

For its second quarter of fiscal 2026, ended November 30, 2025, and reported on January 8, the Canadian cannabis and beverage company posted net revenue of $217.5 million. This figure not only set a new company record but also surpassed market expert expectations, which had averaged around $210 million.

A notable improvement was seen on the bottom line. The net loss contracted sharply to $43.5 million, marking a 49% reduction compared to the same period last year. Management reaffirmed its full-year guidance for adjusted EBITDA, projecting it to land between $62 million and $72 million.

Key financial highlights include:
* Revenue: $217.5 million (a 3% year-over-year increase)
* Net Loss: $43.5 million (showing substantial improvement)
* Liquidity: $292 million in cash and marketable securities

International Cannabis Drives Growth

The standout performer was Tilray’s international medical cannabis business, which surged 36% and served as the primary engine for overall growth. Germany and Italy have emerged as critical markets in this segment.

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This expansion is being actively pursued. On January 22, the company launched Tilray Medical Italia, a strategic move designed to broaden its portfolio and presence in the Italian market. In contrast, growth in the Canadian adult-use cannabis market was more measured, with revenue increasing by a modest 6%.

The Beverage Segment Struggles

The performance of the beverage segment was decidedly less robust. Revenue in this division fell approximately 21% to $50.1 million. Company leadership attributed the decline to broader softness in the craft beer market and internal portfolio restructuring efforts.

A strategic initiative, internally dubbed “Project 420,” is underway to optimize the beverage brand portfolio. While these changes are pressuring short-term sales, they are intended to enhance long-term efficiency. The associated cost-saving program is already delivering results, with $27 million in annualized savings achieved in the first half of the fiscal year. The company remains confident in reaching its target of $33 million in savings.

U.S. Prospects and Future Outlook

Potential regulatory shifts in the United States offer a source of future optimism. The anticipated reclassification of cannabis to Schedule III could unlock significant new opportunities. In preparation, Tilray has established Tilray Medical USA. Meanwhile, the company maintains a dominant position in the Canadian THC beverage market, claiming a continued market share exceeding 45%.

Investors’ next key milestone will arrive in early April 2026, when Tilray discloses its third-quarter results. That report will reveal whether the company’s efforts to stabilize its beverage operations are succeeding without impeding the momentum of its core cannabis business.