Tilray Brands (NASDAQ: TLRY) captured significant market attention on October 9th with the release of unexpectedly strong quarterly results. In a dramatic reversal of fortune, the Canadian cannabis producer reported net earnings of $1.5 million, completely transforming last year’s $34.7 million loss during the same period. This impressive performance triggered a powerful market response, sending the company’s share price soaring 17.1% to reach $2.02.
Financial Metrics Show Broad-Based Strength
The company’s revenue performance reached unprecedented levels, climbing to $210 million—representing a 5% increase over the prior year’s $200 million. Both domestic and international cannabis operations contributed significantly to this growth, with Canadian cannabis revenue advancing 12% while international cannabis sales grew by 10%.
Chief Executive Irwin D. Simon highlighted the comprehensive nature of these achievements, stating: “Our first-quarter record revenue, net income achievement, and strengthened balance sheet demonstrate our focused execution toward building sustainable growth.”
Operational Excellence Drives Profitability
Beyond the top-line growth, Tilray’s operational improvements proved equally noteworthy:
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- Adjusted EBITDA increased 9% to $10.2 million
- Operating cash flow showed dramatic improvement, with outflow shrinking by $34 million to just $1.3 million
- Net debt was reduced to minimal levels at $4 million, supported by cash reserves of $264.8 million
Analyst Sentiment Shifts Dramatically
Wall Street responded enthusiastically to these developments. On October 29th, market analysts substantially raised their price target for Tilray shares by 82.7% to $1.89. The positive momentum continued as Zacks Investment Research upgraded its rating to “Buy,” citing the company’s strengthened fundamental financial position.
Looking further ahead, management has established ambitious adjusted EBITDA guidance of $62-72 million for fiscal year 2026, projecting growth between 13% and 31% compared to their 2025 expectations.
Global Growth Initiatives Accelerate
Tilray is aggressively pursuing international expansion opportunities across multiple markets. The company’s November participation in the Japan American Craft Beer Experience Festival represents a strategic initiative to establish presence in developing Asian markets. Company leadership has identified substantial growth potential across Europe, the Middle East, India, and Turkey.
With its strengthened financial foundation and accelerating global expansion, Tilray appears strategically positioned for its next growth phase—particularly should the United States move toward cannabis policy reform.
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