Tilray Brands (TLRY) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 net revenue of $218 million, up 3% year-over-year, with strong international cannabis and Canadian adult-use growth, surpassing analyst expectations despite industry headwinds.

• Operating loss narrowed to $22.3 million from $42.2 million in the prior year, with net loss improving by $41.8 million to $(43.5) million and adjusted net loss per share improving to $(0.02).

• Ended the quarter with $292 million in cash and marketable securities, achieving a net cash position of nearly $30 million.

• Diversified operations across cannabis, beverage, and wellness, with leading market positions in Canada and significant presence in the U.S. and Europe.

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

Financial highlights

• Net revenue for Q2 was $217.5 million, driven by international cannabis and distribution, with Canadian adult-use revenue up 6% year-over-year.

• Cannabis net revenue reached $67.5 million, beverage net revenue was $50.1 million (down 21% year-over-year), distribution net revenue was $85.3 million (up 26%), and wellness net revenue was $14.6 million.

• Gross profit was $57.5 million with a gross margin of 26%; cannabis gross margin increased to 39%, beverage 31%, distribution 13%, and wellness 32%.

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

• Cash flow used in operations improved to $8.5 million from $40.7 million last year.

Outlook and guidance

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

• Anticipates continued growth in international cannabis and distribution, with spring product resets expected to benefit beverage revenue and margins in Q4.

• Positioned to capitalize on U.S. cannabis rescheduling and global regulatory shifts, with readiness to scale medical cannabis operations.

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