Tilray Brands (TLRY) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 net revenue of $218 million, up 3% year-over-year, driven by strong international medical cannabis (+36%), Canadian adult-use cannabis (+6%), and distribution growth, while beverage revenue declined due to market headwinds.

• Net loss improved by $41.8 million to $(43.5) million, with adjusted EBITDA of $8.4 million and adjusted net loss per share of $(0.02); excluding non-cash tax charges, adjusted net income per share was $0.01.

• Ended the quarter with $292 million in cash and marketable securities, a net cash position of ~$30 million, and reduced debt by $4.2 million.

• Reaffirmed full-year fiscal 2026 adjusted EBITDA guidance of $62–$72 million.

• Completed a one-for-ten reverse stock split effective December 2, 2025.

Financial highlights

• Net revenue for Q2 was $217.5 million, with gross profit of $57.5 million and a gross margin of 26% (down from 29%); cannabis gross margin rose to 39%, beverage to 31%, distribution to 13%, and wellness to 32%.

• Net loss for the quarter was $43.5 million, a significant improvement from $85.3 million in the prior year; adjusted EBITDA was $8.4 million.

• Cash and marketable securities totaled $291.6 million as of November 30, 2025, with working capital at $470 million.

• Cash used in operations improved to $(8.5) million from $(40.7) million year-over-year.

• Free cash flow for the quarter was $(9.6) million, a significant improvement year-over-year.

Outlook and guidance

• Reaffirmed full-year 2026 adjusted EBITDA guidance of $62–$72 million.

• Management expects continued growth in international cannabis and pharma, with operational improvements expected to benefit beverage margins in Q4.

• U.S. federal cannabis rescheduling and global regulatory changes are anticipated to unlock new market opportunities, especially for medical expansion.

• Ongoing focus on SKU rationalization, geographic and distributor optimization, and synergy realization in the beverage segment.