Tilray’s Q2 Performance: Record Revenue Amid Diverging Segment Trends

Cannabis producer Tilray Brands has delivered a stronger-than-anticipated second-quarter report for its 2026 fiscal year, surpassing Wall Street’s revenue forecasts. The latest figures reveal a company making strides in profitability while navigating a significant downturn in one of its key diversification segments. The central question now is whether its growing focus on THC-infused beverages can offset emerging weaknesses elsewhere.

For the quarter, the company achieved record revenue of $217.5 million. This result represents a 3% year-over-year increase and notably exceeded analyst consensus estimates, which had projected revenue of approximately $211 million. The bottom line showed marked improvement: the net loss was nearly halved to $43.5 million, down from $85.3 million in the prior-year period. On a per-share basis, the loss improved from $0.99 to $0.41.

A Strategic Pivot Toward Beverages

In response to challenges within its alcohol division and to capitalize on new growth avenues, Tilray is accelerating its expansion into the market for THC-based and non-alcoholic drinks. The company has launched new hemp-derived cocktails in both the United States and Canada. This initiative is designed to meet rising consumer demand for functional beverages and to establish an early foothold ahead of potential federal regulatory changes in the U.S. cannabis landscape.

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Management reiterated its full-year 2026 guidance, forecasting an adjusted EBITDA in the range of $62 million to $72 million. With an improved net cash position of approximately $30 million, Tilray maintains the financial flexibility to advance its strategic realignment as it awaits broader federal legalization in the U.S.

Segment Performance Reveals a Mixed Picture

A detailed breakdown of revenue streams presents a tale of two strategies, highlighting both successes and challenges in the company’s diversified portfolio:

• The International Cannabis business emerged as the primary growth engine, posting a substantial 36% revenue increase.
• In its Canadian home market, revenue saw a solid 6% gain.
• Conversely, the Alcohol segment experienced a sharp 20.6% decline in sales. Company leadership attributes this primarily to difficult conditions in the craft beer market.

Overall, cannabis-related revenue climbed 3% to $67.5 million for the period.